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HomeMy WebLinkAbout20100917Letter re Monsanto Interruptible Rate.pdfSeptember 14,2010 Mark C. Moench Sr. Vice President and General Counsel n ç C ç \ \j ED 201 S. Main Street, Suit 2400f\i- .t ~ - Salt Lake Cit, UT 84111 ~ 1': S9 801-220-4459 "I\\\\\SEl \ 1 r\ 801-220-4058 Faxl. _ ,.i \ \ rH h¿ . Nark.moench(gacificorp.com \n~r\U l;~-t~~il\SS'O'r'~ UT\L\1\ES L,U\'I\'" ~~lBf9l! BY EMA, ORIGINAL BY REGULAR MA Senator Curs McKenzie 1004 W. Fort St. Boise, il 83702 ecmckenze~senate.idao.gov PA---E- - to - 07 Representative George Eskrdge P.O. Box 112 Dover, il 83825 geskrdge~ouse.idaho.gov Re: Proposed Consideration of Monsanto Company Interrptible Rate Dear Senator McKenze and Representative Eskrdge: I have been advised by our Governenta Affais deparent that you, as co-'chais of the Energy, Environmenta and Technology Interim Committee ("Commttee"), are considering putting the subject of "Interrptible power contracts" on the Commttee's September 28 agenda. It is my understadig that you will extend an invitation to Monsanto and Rocky Mounta Power to share their respective experience and expertse on the subject with the Commttee. I would like to suggest that you consider postponig that discussion before your Commttee for the followig reasons. Rocky Mounta Power curently has a general rate case pendig before the Idaho Public Utilities Commssion ("Commssion"), Docket No. PAC-E-1O-07. Two of the major issues in that case will be (1) the value that other customers receive from Monsanto agreeing to allow its electrc service to be interrpted, and (2) how much of that value should be retued to Monsaiïto in the form of reduced electrc rates for servce. The Commission is .the admsttive agency with adjudicative powers to which the Legislatue has delegated authority to consider and decide these issues. Rocky Mounta Power believes the Commttee should defer any review of interrptible rates until afer the Commssion has had an opportty to rue on the issues based on evidence and a legal record. In the Commssion's formal adjudicatory proceedig, paries will conduct discovery and provide evidence under oath which will be subject to cross examation and rebuttal. Followig hearg and briefig, the Commssion will consider the evidence and arguent presented and will then render a decision based upon that evidence. In our view the Commssion's process, experience and expertse should be respected. Moreover, Senator Curs McKenze Representative George Eskrdge September 14,2010 Page 2 the Commttee will undoubtedly benefit from the Commission's views on the issues afer ths process. In addition, any par wil have the opportty to appeal the Commssion's decision to the Idaho Supreme Cour if there are grounds to do so, providig additional inormation for the Committee. Pares to a general rate case may not engage in ex pare communcations, diectly or indiectly, with the Commission regarding any issue in the case uness notice and an opportty for all pares to parcipate in the communcation are provided. Idaho Code § 67-5253 provides in par, "a presiding offcer servg in a conteste case shal not communcate, diectly or indirectly, regardig any substative issue in the proceeding . . . ." Compliance with ths sttutory requiement will be difcult if a hearg is held before the Commttee while the rate case is pendig. If the Committee determes to proceed with the hearg, Rocky Mountai Power urges the Commttee to limit the discussion to the conceptu issues such as the reason to offer interptible rates, the numbers of customers on such rates and existig methods that have been used to determe the value of interrptible service to customers. Rocky Mounta Power will parcipate in the hearg and will attempt to assist the Commttee in its consideration of ths issue, but will have to provide inormation in such a way as to not violate its view of the ex pare rues. P~?~~ Mark C. Moench Senior Vice President and General Counel cc: Mike Nugent Legislative Services mnugent~1so.idao.gov Donald Howell, Esq. Randy Lobb, Utilty Division Admstrator Randy Budge, Esq.