20110928IPC to ICIP 64-73.pdf

JASON B. WILLAIMS
Corporate Counsel
jwilliamscæidahopower.com
esIDA~POR~
An IDACORP Company
September 28,2011
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West'Washington Street
Boise, Idaho 83720
Re: Case No. IPC-E-11-08
General Rate Case
Dear Ms. Jewell:
Enclosed for filing are an original and one (1) copy of Idaho Power Company's
Response to the Seventh Requests for Production of the Industrial Customers of Idaho
Power in the above matter.
Very truly yours,
-!c.p..
ÇZ~n B. Willams
-
JBW:kkt
Enclosures
RECE!V:-:DLISA D. NORDSTROM (ISB No. 5733)
DONOVAN E. WALKER (ISB No. 5921)
JASON B. WILLIAMS
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
InordstromCCidahopower.com
dwalkerCCidahopower.com
jwilliamsCCidahopower. com
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Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )
AUTHORITY TO INCREASE ITS RATES )
AND CHARGES FOR ELECTRIC )SERVICE IN IDAHO. )
)
)
)
)
CASE NO. IPC-E-11-08
IDAHO POWER COMPANY'S
RESPONSE TO THE SEVENTH
REQUESTS FOR PRODUCTION OF
THE INDUSTRIAL CUSTOMERS OF
IDAHO POWER
COMES NOW, Idaho Power Company ("Idaho Power" or "Company"), and in
response to the Seventh Requests for Production of the Industrial Customers of Idaho
Power dated September 7, 2011, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 1
REQUEST FOR PRODUCTION NO. 64: Reference the Company's Response
to ICIP Request No. 45.
(a) Please provide the Company's records demonstrating that the facilties
charge has been in place since 1995 for Schedule 9, 1976 for Schedule 19, and 1964
for Schedule 29/Special Contract.
(b) Please explain how the Company charged customers for distribution
facilities beyond the point of delivery prior to these dates for each schedule.
RESPONSE TO REQUEST FOR PRODUCTION NO. 64:
a) Please see the attached PDF file for Company records demonstrating
when the facilities charge went into place for Schedule 9, Schedule 19, and Schedule
29 (Special Contract).
b) Prior to implementing facilties charge provisions, the costs associated
with most customer-dedicated distribution facilties installed beyond the Company's
point of delivery were included in the Company's general rate base and allocated to the
associated customer class. For some large power users, the Company had service
contracts in place that accounted for facilities installed beyond the Company's point of
delivery.
The response to this Request was prepared by Scott D. Sparks, Senior
Regulatory Analyst, Idaho Power Company, in consultation with Jason B. Willams,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 2
REQUEST FOR PRODUCTION NO. 65: Reference the Company's Response
to ICIP Request No. 45, stating that the facilities charge has been in place since 1995
for Schedule 9, 1976 for Schedule 19, and 1964 for Schedule 29/Special Contract.
Please reconcile this statement with Company's Response to ICIP Request No. 25(b),
stating that the oldest piece of equipment installed for Schedule 9 was installed in 1969,
for Schedule 19 was installed in 1945, and Company's Response to ICIP Request No.
25(c), stating that the Company is stil calculating the monthly facilties charge by
multiplying the monthly facilties charge percentage by the initial investment for these
pieces of equipment.
For equipment already in the Company's possession at the time of
commencement of the facilities charge, did the Company use the value of the initial
investment or the depreciated value of the equipment at the time of commencement of
the facilties charge? Please provide supporting evidence for the explanation.
RESPONSE TO REQUEST FOR PRODUCTION NO. 65: The equipment
identified in the Company's Response to the Industrial Customers of Idaho Power's
("ICIP") Request No. 25(b) was installed prior to implementation of the facilities charge
for Schedules 9 and 19. Once the facilities charge provisions were approved by the
Idaho Public Utilities Commission ("Commission" or "IPUC") and implemented per the
Company's tariff schedules, the initial value of this customer-dedicated equipment was
included on the associated customer's Distribution Facilties Investment report ("DFI")
used to calculate the monthly facilties charge. As stated in the Company's response to
ICIP's Request No. 25(a), the equipment wil remain on the DFI as long as it is installed
and used and usefuL.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 3
For facilities beyond the point of delivery that were in service and in the
Company's possession prior to implementation of the facilties charge provisions, the
Company used the initial investment in its calculation of the monthly facilties charge.
The Company's current DFI's show the initial investment values used to calculate each
facilities charge customer's monthly facilities charge. The use of depreciated values
has never been approved by the Commission and the Company has never used
depreciated values to calculate monthly facilities charges.
The response to this Request was prepared by Scott D. Sparks, Senior
Regulatory Analyst, Idaho Power Company, in consultation with Jason B. Wiliams,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 4
REQUEST FOR PRODUCTION NO. 66: With regard to the equipment
discussed in Request No. 65, did the Company began charging the customer in
Schedule 9 a facilities charge in 1995 based upon the initial investment in a piece of
equipment installed in 1969, or did the Company use the depreciated value of the 1969
piece of equipment in 1995? What value did the Company use and based on what
depreciation schedule
RESPONSE TO REQUEST FOR PRODUCTION NO. 66: Please see the
Company's response to ICIP's Request No. 65.
The response to this Request was prepared by Scott D. Sparks, Senior
Regulatory Analyst, Idaho Power Company, in consultation with Jason B. Wiliams,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 5
REQUEST FOR PRODUCTION NO. 67: With regard to the equipment
discussed in Request No. 65:
(a) Did the Company began charging the customer in Schedule 19 a facilities
charge in 1976 based upon the initial investment in a piece of equipment installed in
1945, or did the Company use the depreciated value of the 1969 piece of equipment in
1995?
(b) What value did the Company use and based on what depreciation
schedule? What value is the Company using for this piece of equipment today, the
value at installation in 1945, or the depreciated value when the charge commenced in
1976?
(c) Please explain why this piece of equipment was not fully depreciated at
the time the Company initiated the facilties charge 31 years after the equipment was
initially installed.
(d) Please explain how the Company has not over-recovered for this fully
depreciated asset from the Schedule 19 customer since 1976?
RESPONSE TO REQUEST FOR PRODUCTION NO. 67:
(a) Please see the Company's response to ICIP's Request No. 65.
(b) Please see the Company's response to ICIP's Request No. 65.
(c) Including the depreciated value of equipment at the time the Company
initiated the facilities charge was not, and currently is not, the Commission-approved
methodology for calculating monthly facilities charges under the Company's tariff.
(d) For this asset and other assets installed under the Commission-approved
facilties charge provisions, the Company has fully recovered the cost of a depreciated
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 6
piece of equipment if and when it reaches its assumed 31-year depreciable life, as
described on page 38 of Scott Sparks testimony and the Company's responses to
ICIP's Request Nos. 5, 21, 22, and 23. If a piece of equipment is installed and used
and useful beyond 31 years, the Company continues to provide readily available utility
grade equipment inventories, tools, manpower, response services, and electrical
knowledge and experience for keeping that piece of equipment in operation. In
addition, the Company disagrees with the characterization that it has "over-recovered"
as the Company charges and collects what has been authorized by the Commission.
The response to this Request was prepared by Scott D. Sparks, Senior
Regulatory Analyst, Idaho Power Company, in consultation with Jason B. Wiliams,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 7
REQUEST FOR PRODUCTION NO. 68: Reference the Company's Response
to ICIP Request Nos. 9, 10, 11, and 51. Please confirm, despite the responses to these
questions that it is not the Company's policy to sell distribution facilities to customers,
that in Case No. IPC-E-05-16 the Company sold distribution facilties to the Sun Valley
Company/Sinclair Oil Co. at depreciated book value. What is the Company's policy?
Please explain why the Company wil sell facilities to one customer at book value but
refuses to sell to other customers at book value.
RESPONSE TO REQUEST FOR PRODUCTION NO. 68: The Company's
response to ICIP Request Nos. 9, 10, and 11 all clearly state the Company's policy that
it will not sell Company-owned facilties installed beyond the point of delivery. The
Company's response to ICIP No. 51 states that in the last five years, one customer has
requested removal of facilities installed beyond the Company's point of delivery. IPUC
Case No. IPC-E-05-16 involved a unique situation whereby the Company and Sinclair
Oil Company d/b/a Sun Valley Company ("Sun Valley") mutually agreed to submit a joint
application to IPUC to transfer certain distribution facilities from the Company to Sun
Valley. IPUC approved the transfer, concluding that the transfer would "not cause any
increase in rates and Sun Valley will be able to maintain the acquired distribution
facilities necessary to serve its tenants. We find the improved operating efficiencies
serve the public interest." IPUC Order No. 29864 at 3-4.
The response to this Request was prepared by Jason B. Williams, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 8
REQUEST FOR PRODUCTION NO. 69: Reference the Company's Response
to ICIP Request No. 47(c), stating that all costs for facilties installed beyond the point of
delivery are included in the associated customer classes' revenue requirement, and
when the facilties charge revenue is applied as a credit or offset, the associated
customer classes' revenue requirement is reduced.
(a) When the Company includes the costs for distribution facilities beyond the
point of delivery in the revenue requirement, does the Company use a depreciation
schedule as it must for distribution facilities on the Company's side of the meter
included in the revenue requirement? Please explain how depreciation is considered
when facilities beyond the point of delivery are included in the revenue requirement prior
to the point that the Company credits facilties charge revenue back to the customer
class's revenue requirement.
(b) If the amount of the revenue requirement decreases over time to account
for depreciation, but the principal amount of the facilties charge to the individual
customer does not decrease over time, please explain how the individual facilities
charge customer is not subsidizing the rest of the customer class.
(c) If the amount of the revenue requirement does not decrease over time to
account for depreciation of distribution facilities beyond the point of delivery, please
explain how the Company is not over-recovering for depreciated assets.
RESPONSE TO REQUEST FOR PRODUCTION NO. 69:
(a) Yes. When determining revenue requirements for base rates, the
Company does not identify and treat separately facilties installed beyond the
Company's point of delivery. That is, the Company uses the same depreciation
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 9
methodology for all distribution facilities when determining its test year revenue
requirement.
(b) Because the facilities charge calculation is based on a levelized revenue
determination method and base rates are determined using a single test period method,
there wil always be differences in the annual revenue requirements determined under
each method. These timing differences or "subsidies" go in either direction for individual
customers depending on the average age of the facilities subject to the facilities charge.
For example, a customer with newer facilties wil pay less in facilities charges than the
actual annual revenue requirement with the rest of the customer class paying the
difference through their base rates. The opposite is true for customers with older
facilities who pay more in facilities charges than the single-year revenue requirement
would suggest.
(c) The amount of revenue requirement determined in a test year for a
customer class that is eligible for facilities charges decreases over time to account for
depreciation of distribution facilities installed beyond the point of delivery. All revenue
received from facilities charge customers is credited back to the associated customer
class leaving no chance for over-recovery.
The response to this Request was prepared under the direction of Scott D.
Sparks, Senior Regulatory Analyst, Idaho Power Company, in consultation with Jason
B. Williams, Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 10
REQUEST FOR PRODUCTION NO. 70: Please admit or deny that in meetings
with representatives of the ICIP in the fall and winter of 2010 regarding the facilties
charge, Idaho Power representatives stated that the reason the Company does not
apply a depreciation schedule to the initial investment in facilities charge equipment is
that Idaho Power takes on the risk that it wil have to replace a piece of failed equipment
prior to expiration of its depreciation schedule. Please also admit or deny that Idaho
Power stated that its insurance policy would not cover replacement of such equipment.
RESPONSE TO REQUEST FOR PRODUCTION NO. 70: The Company objects
to the form of the question as it is not a proper form of production request per the
Commission's rules. Notwithstanding, Idaho Power asserts that it uses a levelized 31-
year straight-line depreciation schedule for the Company's initial investment in facilities
charge equipment. Idaho Power further asserts that under the Commission-approved
facilities charge provisions, the Company wil replace a failed piece of equipment prior
to expiration of its depreciation schedule without fully recovering the cost of the failed
piece of equipment. Moreover, the Company's insurance policy does not apply to
replacement of pieces of equipment that fail prior to expiration of their expected useful
life as these are not considered insurable losses. This was further discussed in the
Company's responses to ICIP's Request Nos. 15 and 16.
The response to this Request was prepared by Scott D. Sparks, Senior
Regulatory Analyst, Idaho Power Company, in consultation with Jason B. Willams,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 11
REQUEST FOR PRODUCTION NO. 71: Reference the Company's Response
to ICIP Request No. 53(c), stating that the Company recovers costs associated with
uninsured amounts related to failed facilities charge equipment by booking those costs
as expenses and including them in customer rates. In light of this response, please
explain the basis for not allowing for the facilities charge equipment's initial value to
decrease over time as the piece of equipment depreciates. Please explain why the
Company includes depreciation as a positive component to the facilities charge that wil
increase the amount the customer pays, rather than decrease it.
RESPONSE TO REQUEST FOR PRODUCTION NO. 71: The facilities charge
rate calculation is based upon a 31-year depreciation schedule which is reflected in the
return and depreciation components of the rate.
Depreciation is a positive component of the facilities charge because it reflects
the Company's recovery of its investment in the customer-dedicated facilities that it
installs, owns, operates, and maintains without increasing the rates of customers in the
associated customer class. The monthly facilities charge is designed to recover all
costs associated with customer-dedicated facilities installed beyond the Company's
point of delivery through a levelized cost-recovery approach.
The response to this Request was prepared by Scott D. Sparks, Senior
Regulatory Analyst, Idaho Power Company, in consultation with Jason B. Willams,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 12
REQUEST FOR PRODUCTION NO. 72: Reference the Company's Response
to ICIP Request No. 57. Please provide the "Service Request Form." Please confirm
that the form is not provided to or signed by existing facilities charge customers, except
with regard to new equipment installed at their premises.
RESPONSE TO REQUEST FOR PRODUCTION NO. 72: Please see the
attached PDF file for a copy of the Service Request Form. The Service Request form
for facilities charge customers is signed by new customers going on a facilties charge
and by existing customers requesting alterations to equipment installed under the
facilities charge provisions.
The response to this Request was prepared by Scott D. Sparks, Senior
Regulatory Analyst, Idaho Power Company, in consultation with Jason B. Wiliams,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 13
REQUEST FOR PRODUCTION NO. 73: Reference the Company's Response
to ICIP Request No. 58. Please confirm that the Company would recover the uninsured
costs of such equipment failing prior to expiration of its 31-year depreciation schedule in
the manner discussed in the Company's Response to ICIP Request No. 53.
RESPONSE TO REQUEST FOR PRODUCTION NO. 73: If a piece of
equipment under a facilities charge failed prior to expiration of its 31-year depreciation
schedule and was included in the Company's test year base rates, then recovery of the
uninsured costs of the failed equipment would occur through customer's rates as
described in the Company's Response to ICIP's Request No. 53. However, if the piece
of equipment failed outside ora test year, then the Company would not recover the full
cost of the equipment, as is the case for all of the Company's distribution equipment.
The response to this Request was prepared by Scott D. Sparks, Senior
Regulatory Analyst, Idaho Power Company, in consultation with Jason B. Wiliams,
Corporate Counsel, Idaho Power Company.
DATED at Boise, Idaho, this 28th day of September 2011.
.. CëG? C7
A N B. WILLIAMS
orney for Idaho Power Company
.,
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER -14
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 28th day of September 2011 I served a true and
correct copy of IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH
REQUESTS FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO
POWER upon the following named parties by the method indicated below, and
addressed to the following:
Commission Staff
Donald L. Howell, II
Karl T. Klein
Deputy Attorneys General
Idaho Public Utilties Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-0074
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U.S. Mail
_ Overnight Mail
FAX
-- Email Don.Howell((puc.idaho.gov
Karl. Klein((puc. idaho.gov
Industrial Customers of Idaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON & O'LEARY, PLLC
515 North 2ih Street (83702)
P.O. Box 7218
Boise, Idaho 83707
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_ Overnight Mail
FAX
-- Email peter((richardsonandolearv.com
greg((richardsonandoleary.com
Dr. Don Reading
Ben Johnson Associates, Inc.
6070 Hil Road
Boise, Idaho 83703
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FAX
-- Email dr((benjohnsonassociates.com
Idaho Irrigation Pumpers Association, Inc.
Eric L. Olsen
RACINE, OLSON, NYE, BUDGE &
BAILEY, CHARTERED
201 East Center
P.O. Box 1391
Pocatello, Idaho 83204-1391
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FAX
-- Email elo((racinelaw.net
Anthony Yankel
29814 Lake Road
Bay Village, Ohio 44140
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FAX
-- Email tony((yankel.net
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 15
The Kroger Co.
Kurt J. Boehm
BOEHM, KURTZ & LOWRY
36 East Seventh Street, Suite 1510
Cincinnati, Ohio 45202
Kevin Higgins
Energy Strategies, LLC
215 South State Street, Suite 200
Salt Lake City, Utah 84111
Micron Technology, Inc.
MaryV. York
HOLLAND & HART, LLP
101 South Capital Boulevard, Suite 1400
Boise, Idaho 83702
Richard E. Malmgren
Senior Assistant General Counsel
Micron Technology, Inc.
800 South Federal Way
Boise, Idaho 83716
The United States Department of Energy
Arthur Perry Bruder, Attorney-Advisor
United States Department of Energy
1000 Independence Avenue SW
Washington, DC 20585
Dwight D. Etheridge
Exeter Associates, Inc.
10480 Little Patuxent Parkway, Suite 300
Columbia, Maryland 21044
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FAX
-L Email kboehmCãBKLlawfirm.com
jrhCãbattfisher.com
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-L Email khigginsCãenergystrat.com
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X Email myorkCãhollandhart.com
tnelsonCãholland hart. com
madavidso nCãholland ha rt. com
fschmidtayhollandhart. com
In buchananayholland hart.com
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-L Email remalmgrenaymicron.com
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-L Email Arthur.bruderayhg.doe.gov
Steven. porterayhq .doe.gov
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FAX
X Email detheridgeayexeterassociates.com
IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 16
Community Action Partnership
Association of Idaho
Brad M. Purdy
Attorney at Law
2019 North 1ih Street
Boise, Idaho 83702
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FAX
-- Email bmpurdycæhotmail.com
Idaho Conservation League
Benjamin J. Otto
Idaho Conservation League
710 North Sixth Street (83702)
P.O. Box 844
Boise, Idaho 83701
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FAX
-- Email bottocæidahoconservation.org
Snake River Allance
Ken Miller
Snake River Alliance
P.O. Box 1731
Boise, Idaho 83701
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-- Email kmillercæsnakeriverallance.org
NW Energy Coalition
Nancy Hirsh, Policy Director
NW Energy Coalition
811 First Avenue, Suite 305
Seattle, Washington 98104
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-- Email nancycænwenergy.org
Hoku Materials, Inc.
Dean J. Miler
McDEVITT & MILLER LLP
420 East Bannock (83702)
P.O. Box 2564
Boise, Idaho 83701
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-- Email joecæmcdevitt-miller.com
heathercæmcdevitt-miller.com
Scott Paul, CEO
Hoku Materials, Inc.
One Hoku Way
Pocatello, Idaho 83204
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-- Email spauicæhokucorp.com
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IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH REQUESTS
FOR PRODUCTION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER - 17
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-11-08
IDAHO POWER COMPANY
RESPONSE TO STAFF'S REQUEST NO. 64
IDAHO POWER COMPAN _PUlCUTlleo..
ORIGtNAl SHEETNQ.9-~ APVI ~
FE l- ~ ftl ~ '95
I.P.l).C. NO. 24 TARIfF NO. lOl
SCHEDULE 9
lARGE GENERAL SERVICE
fContinued)~jl~AtA~
At the. optio of th Cøipcny, lransor$f and oth føcUffie insføllød l:e.yøn the. PQÎll öf
Oéltve.l' to provid Primar or TransiSn Serice mOy be oWr', operated. ond .motdin by the
Company in CQnsideration of the CvstorTr PC1in 0 facilities Chare to the Cop.any.
Company~owned Faoffties BeQnd th Pølnt of Deliver wilbe set forth in a Dlon FQciffl
lnvesment leØO provided to fhé C\J$fomer. As the. Compy's investment in 'Qelllties Beyd th
Poit of DeIer ohnges in order to provide the cusomers service requements; the Company $hn
notifY .fh ~tøm of the additons ondlor deletiøns of facilties by foiarQing to the. Ctit~r a
revised Ditribution facilities Investment Reprt.
lnthe event tli Customer requests the Company roremove .Ot reinstal or change company..
owned F~ilitiè$8eyond the Point of Oe(lVer. the customer shall pø to th&" Compøn fh "nøn..
salablecosllt .of such removaL. reistollation or change. Non-slvetle cost as us.ed herein i$cored
of the lotaloriginal cQSl$ of moørQIs.lar and overhds of the faCilti, leS$ th etiference between
the. sQfvable cOl of material removed and removal IOborcosl inckJdingeiropte ove~ 100$1$.
PQweR FACIR
Wii the Costomer's Power FOetor is less than 85 peenl.os determined by l'Q$efnt
vnder açvQllood condifions. the Compa"y mC1 adjust the kW measi,red to determine th ßlUitig
Deand by mulfipf'ng the measured kW bya5 percent and dividing by the aclual PoWer roctór.
MQNTHlY CHARGE
The MonthlY Charg is th sum ot the Customer, the Bac, the. Demand, the Energ. an' th
FQcllities Charge dt the following rates:
SECNDARY SERVICE
Customer Chorgi
$S~50 pe mefer per month
Sglc Charg
$0.36 per kW of Basc Load Capacity
Dimgn Charge
$268 per kW for oIf kW of Demand
0'eorgv Chørge
be Rgte
2.5748rt
PowerCOl
Adiustimmf*
O.1449rt
Effectie
Rati-
2.7197rt per kWh for all kWh
IDAHO
Issued - Febrar 3, 1995
..fei~~~ß-:~~Qry. .1~.ig¡~'ß
Per lPUC Orer No~ 25880
Issued by lDAHO POWER COMPANY
O. H. Jackson, Vice Presient. Ditrutio
1221 West Idaho Street. Boi, Idaho
LP.u.c. NO. 11, TARIFF NO. 101
ORIGINAL SHEET tW. 19
IDAHQ POWER COMANY
SCHEDULE f'O 19
l1l'IFGRM RArE. COtRACT
tWAiiAIHUTY
At points on tlie Company's distribution system in Idaho, for loads from 750 to 1S.000 Kilowatts where, in
the CólilflY'S sJTle judgment, existing fi)i1ities of adequate capacity arrd desired volt'àge are adjacent to the
premise to be served, and addititmal investment by the Comny for new transmissio:n. substation, distlibution
or terminal facilities is not necessary to supply the désired service, and subject to proiiisions set fo¥'th in
an ETectric Servtce Agreement be1:eef) the Company and Customer
APPiICASIUn
To all firm electric Service supplied to a Customer at one premise, where all service required by theCustomer is supplied under this Schedule, at one point of deHvery and measured through one meter Not applic
abJe to seasonal, breakdown, standby, supplementary, reale. snared service, multi.faiily dwllings. electricboil ars ellceeding 2:"OOn KW CBlacit,y or in remote areas
T'fE OF SERVICE
- Tfiree-plíse at approximately 60 cycles and at the distriBution voltage avaiìable at the premise t'O be
served,
MOtlTHL ¥ ClfRGt$
The slJm of Uemand, Ener\i .and Facilities Charges at tile following rates
Oemann CJiarye
$3,35 per KW for the first 250 KW M Oeii2:. 05 per KW for each additional KW of Qeanel
Erier9l Charge
1.90 mills per KWH for the first 100 KWH per KW of Oemand
5.90 mi n s per KW for the next 190 KWH per KW of O:eind
4.10 mills pet KWH for all additional KWH
Facil ities Chilrge;.t""'~"'SmeéO?Mìf"'re supplied hereunder at primary distribution voltage aiel the l.nint of Delivery shall
be where the Company's lines first became adjacent to Cust()r's ¡woperty, Transformers and/or otherfacilities, beyOnd the Point of Delivery and used ta deliver ¡íewer at lIti1iiiatioli voltage to points of use
at the option of the CO\any, ma;) be owned, operated a:nd maintained by CalipMY in consideraticrfl of Ctistomer
p&ying to Company a fací1 i ties charge of one. and se-en-tenths percent (1,7%) per month times the Company's
il1vestit beyOnd the Point Of Deliver')/
High Voltage Dciscf)jJnt (WIen service is taken at 44 KV or abovei
$90 00' for thê first 250 KW of Demand
o 24 per KW for each additiooal KW of' Demand
Demand Determina:tion
. The average KW supplied during the 15-consecutive-nrinute period of maxi:mm use during the 1l011tn.
adjusted for power factor, but !'t less than 100 KW (not less than 250 KW when service is .$upi;lied at
44 KV or above)
Power Factor AdJustmentWhere too Customer\s power factar is less than 85%, as i:tel"mined by measlll'ement under acti:l lead
conditions, the Company may adjust the Kí measured toætermine the Demand by multiplying the measured 1(1'
by 85 and dividing by the actual power factor
"Ii nimu Iiharl1e
The minimum cf:arge shall be the Facilities Charge plus tha highest of the followirr!l
(II
(8 )
The lJemand Charge for the currerit month's maximum Demand
An aiount sufficient to make the IÆmand and Energy Charges for sérvii:é unda" the agreement.
for the 12-llnth period ending with the current iintli. equal to 9 5 times the maiiimum
Demand Charge billed for any llnth dUf'ing the term of the Agreemnt amI any renewals orextensions tnereof
Hie minimuin chal'ge sp.ecified in too Agreement The Company ma requiT'e the custoiær to
execute a service agreemnt specifying a higner minimum aAnual charge than would be
p.rovi(jed under eM or (Bì when necessary to Justify the COJ1riy's investmet in servicefacilities
(C)
lilO
fssued - J.aiiua ry 26, 1976 fssued by IDArlO POER CO/lPCANY
By JAMËS Ë BRUCE. President
1"220 Idaho Street, BQi se. Idaho
~
AG~ FOR SUPPLY OF POWE JU ENY
J Ii SMW COMPANPooatello, Idao
JJ PO COMAN
0.1 TBS A~, Madeatd entered into the '26l. (ly ø:t ~,
1964, by and between ;¡ R SDlLOT C01'AN, an IdaQ compan)" operatin a plan:t
for the :ioduciion of fertilizer near Pocatalo, Idaho, hørl:ratter referr
to as "Customer," and IDO POWE OOMAN, an electric utility authorized
to do business in tne State of Idao J hereinafter referred te as "Comp8J:ift j
W I TN E SSE T R.
O. 2 ~ J J It Si~1ot Compe.y l:spioneered. the use of Southern :to i s
imôs$lI'te rockdepo$i ts a;d fo:i :r;y years ha oJ;e$ted i: l:la't i;.a. poeø.'tel 1
Idah, processing phosphate rock in order to maufaciu.e phosphate ferilizers;
and. ;¡ Ii SinilO' Compan is now in the process af insta.il1g Ilnewamaniå
p1a.t forthep.rå:uêMôn of va.ous ~a.des ôf a.on:iti phosPMte feJ::U:iier,
Wich neW plat. Will. requ,re. the use of incresingl large amunts of'power
in orier to p1"cess the phc¡¡:~phate roek ald the eleö.tricpowerreqU1einn'ts
at this plant have increaseä from approx,tely 1,000 KW in 195~ to approxi..
mately 6,800 KW in 19621 and it is anticipated that the new alonia plant
will inexease tne power i-eqUireents to approximately 15,OQO KW; and.
0.3 wa, the continued grwth and exansion of this plat and the
use an development of' the phosphate rock depos:is o:l SoutAerz Ida are of
"9ital :trtance 'to the grwth and prosperity of the eoonoIl of 'the State
o:t Idao ana. the esi:ai'b1ishment of an itustrial rate for elee'trlc power
supplied to this 'type of' business will ma'teria1y aid and assiS' the econoi
of Idao; an
0.4 'WS, the Idaho :POwer Com:y has developed a lerge industrial
rate tor GlUfltomers whse uses Will be i:i 'the neighborhoo of 15,00 IW or
- 2 -
more and are engaged, in the State of Idaho, in mining, milling, smelting"
refining or processing" where such delivery can be made from the Companyt s
existing 138 KV transmission lines without requiring additiona expense for
facilities supplied by the Company; and
0.5 WH, the load of the J R Simplot Company at its plat near
Pocatello will meet these requirements, since this load will be used in
processing, delivery can be made at the Company1s existing Don Substation
wi thout additional expense to the Company and the rate will aid in developing
and fostering the economy of Idaho; and
.0.6 WH) the parties hereto desire to set forth and establish the
terms and conditions under which power will be available to Customer;
NOW, TBORE, in consideration of the premises and the mutua
benefits from the covenants hereinafter set forth, the parties hereby agree
as follows:
Aricle I - Term of Agreement
1.1 The original term of this agreement shall be for a period beginning
on the date of initial service and ending June 30, 1974" which term shall
be automatically renewed and extended for an additional period of five (5)
years, and from year to year thereafter, unless and until either party sha
notify the other party in writing not less than twelve (12), months prior to
any such expiration date of its intention to terminate this agreement.
1.2 The date of initial service under this agreement shall be the first
day of that month in which the Customer first establishes a maxim demand
of 10,000 kilowatts of power.
Article II - Po,Ter to be Supplied
2.1 The Customer agrees to purchase, receive and pay for, and the Company
agrees to supply, all electric service required by Customer for its fertilizer
- 3 -
manufacturing operations near Pocatello, Idaho, such power and energy, up to the
amount of 20,000 kilowatts, shall be supplied and paid for at the rate set forth
in paragraph 5 .1, it being agreed that when the Customer i s demand exceeds such
amount it is the intention of the parties that new and superseding rates will be
ageed upon, applicable to Customer! s load and service as then required.
2.2 The Contract Amount of this agreement for each month shall be the maximu
demand (kilowatts) of power taken by Customer in any clock half-hour interval
during the calendar month but not less than 15,000 KW; provided, however, during
the development period subsequent to the date of initial service, the Contract
Amount for the month shall be the actual maximum demand (kilowatts) delivered to
Customer in any clock halt-hour period during the calenda month. The Contract
Amount for the expired term of this agreement shall be the maimum Contract
Amount established in any month subsequent to the date of initial service under
this ageement.
Article III - Facilities to be Provided
3.1 Power and energy to be supplied hereunder by the Company is available to
the Customer at 12,500 volts at the Company's Don Substation near Pocatello, Idao,
without additional investment by the Company. All facilities including switching,
transformation, regulation and protective devices necessar for the delivery of
power and energy at that point are installed.
3.2 The Customer requests the Company and the Company is agreeable to install,
own, operate, and maintain the facilities necessary to deliver the power from
the Don Substation to the Customer's plant at 12,500 volts and the transform-
tion equipment required by Customer's utilization equipment. Customer agrees
to pay the cost of such facilities and equipment in accordace with the pro-
visions of paragraph 5.4 infra. Naterial and labor required beyond the secondar
terminals of transformers shall be installed, o~~ed, operated, maintained, and
paid for by Customer. It is understood and agreed that aii the work performed
- 4 -
by the Compan under this paragph sh be in accordaçe with aU local and
sta:te :res. a.nd regulations in :rspect to construction o:t sad :facilities,
and the equipment used shal be sta.rd items in the Coirany i s syateIfh
3.3 It is uniierstood and agreed tha.t the fac11ities reqnred by Customer
may vary .from time to tim, and the Coany's investment in these :tacilii;ies
upon which charges herein shal be based.ì shàl1 be deter.ed in accrdance
with the C0mpa.nyts :il' bookkee:ping system. Th Customer shall be notified
öf any change in equipment or investment, at the earliest praaticai oote aubse-
qUEnt to any chane in such equipmnt or investment, by letter :from th Copany
'to Customer, which letter or letters of notification sha comprise Exibit A
a:tdshal be So part of this ageement, and. each sui;h letter shall show the
net in:Vestmitt inetried by the Comany in f'1icilities :rquired to deliver pOYer
aid enei-gy :tam the Don Substa.tion to the Customer i s p1at.
Aricle IV - Service Specifica.tions
4.1 The electric power sUJ?:íl1ed under th:s agement shall be :i the for
of three '"hase i aiterne:ting cUJren-t at a freqinclf of approitateJ. 60 cycles.
pe:r SeC0'nd, an at a. nominal phase to phase potentiaJ o;t app;fxtmately 12,500
volts. except under emergency eondi tiona.
4.:a The point of delivery fol' power supplied hereut:er :;J:JJ be on the
1,2,500 volt side 01' the Oopa.l s Don Substation located near locatello, Idao.
4.3 The Coany will provide sui table metering equipment for abtain:l
measurements required in connection Vl th set.tlements unr this a.greement.
Compaiy sJ:ßll" at its own e:ense, test su",h metering eqnpment once 1i each
caiendar year.
5.1 eleetl'c
Aricl.e V - çl:aries
and energy r up to the amount hereinabove specified,
- 5 -
shal be sUp'lied and paid for at the Coniany' S Picatello office in a.ccor-
ance With the folJowing monthly rate:
(a.) Dema Charge -
$1.80 per KW of Billing Demand
(b) Enrgy èhtuge ..
3 .0 mills per KW for all energy
( c) Billing Demand -
The Billing Dema.d s,ha be the Contract Álount of
power for the current month established in ac~ordacewith pa.graph 2.2.
Cd) 'Iex Adustment Chge -
If, afer the date of this agreement, any new or in-
creased tex or taxes (other than income taxs an
taxes based on inMme) pa:yable by Company are imposed
upon revenueß received trom Custoiner hereunder, or
upon power or energy sold to Customer hereunder, or
upon power or energy generated for supp1.y of Customer
hereunder, Customer shall pay, in aMi tion to the
cMrges hereinabo"le specified, an amount sUfieient
to cover any" such taxes pay"able by Compan.
5.2 The 1tij:.nimum monthly" e'harge shall 'be añ $1our e€Jus. tQ $2.00 tj.ê$
the Contract .Aunt i'or the exired term of this agreemnt in accordance with
paragraph 2.2.
5.3 Power factor corrective apparatù.s or equipment necessary to maintai
at aJ times as ne$J unity power factor as possible shl be provded by
Customer ; however " in event Customer's power factor is less than .95 lagi,
the Company shal Mve the right and may elect to instal ac'tional power
f~ctoi: corrctive equipment in accordane with a.d. under thê pi:ovi s ions of
;p~:t;p :3.3 he:tof.
5.4 Ineonaid.ei8.~:ion 1'or the facilities inst8.led by" the C~y in
aecorñace 'tth Aricle IIX, Customer shall one
and one-quarter percent of' the total cost tö the as shown in
the last letter submitted by" Company to Customer
- 6 -
In the event it becomes necessary to remove the facilities installed by the
Company as provided by Aricle III and reinstall or chane the facilities,
the Customer shall pay to Company the "non-salvable cost" of such removal,
reinstallation or chane. Non-salvable cost as used herein is comprised of
the total cost of material, labor and overheads of installing the facilities,
less the difference between the salvable cost of material removed and the
removal labor cost including appropriate overhead costs.
Aricle Vi - Liability
6.1 Each party 'Wll indemnify and save harmess the other party against
loss, damage or liability, exclusive of costs and attorneys i fees, resulting
from claims asserted by third persons against either or both parties to this
agreement on account of injury or death to persons or daage or destruction
of property occurring on such (indemnifying) pary's side of the aforesaid
point of delivery, unless such injury or damge shall have resulted from the
sale negligence of the other party; provided, however, that each party shall
be solely responsible for claims of and payments to its employees and agents
for injuries occurring in connection With their employment or arising out of
any vrorkmen' s compensation law.
Article VII - Waivers
7.1 Any waiver at any time by either party of a right with respect to any
matter arising under this agrement, or any failure to give any notice provided
for hereunder, shall not be deemed to be a waiver with respect to any subse-
quent matter, nor as the establishment of or consent to any practice under
this agreement or an interpretation of any term or provision hereof.
,..:.'
~ 7 ~
Article VIII - Succes.sors and Assiæs
8.1 Ths ageement shall inure to the benefit of an be bindng upon
the successors, in interest" assigns and legal representatives of Cutomr
an Comany.
.Jicle IX. - Comission Jur:lsd.ctiou
9.1 Ths agreement.i the rates.) terms and. proV'isiona ñecrein set to;iñ, a.A
the respective right.s a.d. obligations of the parties hereu.r" sha be sub-
ject to the Juriad.ction and. reguatory authority of the Ido Public U'ilities
Comssión and tbe la.ws of the Sta.te of Idaho.
.Aicle X - Termination of Existing Ag;ement
10.1 The contra.ct between the paries.. datecl July 18" :i961.i is hereby
'termnated on the date of initial service set forth in paraph 1.2 of this
agreement.
IN WINES WHF, the paries have executeà. this ageement by theii-
respective pr0¡Jer of'icers" thereunto duly e.thorized" on the &:y and year
first haxei.above. written.
J R S1MOT COMPAN
~BY~v~Prsident
(CORP SEA)
;;~L.i....£(~~:~~preSi~
(CORPRAE SRAL)~~
Secretar
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-11-08
IDAHO POWER COMPANY
RESPONSE TO STAFF'S REQUEST NO. 72
Page:I
Work Order Number’SPF Location
Request Type:FC Service Location.-
Rate Sch.Required in Service Date:813/2011
Reply By’Planning Center/Team,CCANYON
Contact Detail:
CUST
1PCo
Attribute Information
Facilities Charge
Service Voltage
Number of Phases
KW Motor Load:
Largest Motor
I Phase KW Demand
3 Phase KW Demand
Commercial 1KW Load
Commercial Deposit Amount
No.Of Meters
Meter Location
Ct Loc
Primary OH/UO
Service OH/UG
Sn’Owner
Panel Amp Size
Notes
install primary metering underground to pme switch and radial feed to multipi
pad mounted xfrmr.
I understand that the Facilities Charges billing will be added or adjusted on the monthly power bill after the work order construction
and reconciliation process is complete.
I understand that requested cost estimates for removals or transfers are billed based on estimated costs Requested estimates for
installs are based on an estimate,and the actual monthly Facilities Charge is billed based on actual reconciled work order costs for installs
I verify that the mformation I have provided is accurate to the best of my knowledge
I understand that any changes to the project including but not limited to;load,location,voltage,etc,may result in additional charges
Service Request Number
Idaho Power Company
Service Request Date 8/21201 i
Client Signature Date Major Customer Rep.Signature Date