HomeMy WebLinkAbout20100917Letter re Monsanto Interruptible Rate.pdfSeptember 14,2010
Mark C. Moench
Sr. Vice President and General Counsel
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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.