HomeMy WebLinkAbout20100505_2942.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
FROM: DON HOWELL
DEPUTY ATTORNEY GENERAL
DATE: APRIL 28, 2010
SUBJECT: IDAHO POWER’S APPLICATION TO EXTEND ITS ELECTRIC
SERVICE CONTRACT WITH THE IDAHO NATIONAL LABORATORY,
CASE NO. IPC-E-10-14
On April 16, 2010, Idaho Power Company filed an Application for an Order
approving another one-year extension to the special contract for electric service between Idaho
Power and the U.S. Department of Energy (DOE) at the Idaho National Laboratory site. More
specifically, Idaho Power seeks approval for a fourth, one-year extension of its special contract
(Schedule 30) with DOE. The current extension expires on May 14, 2010. The Company
requests expedited processing of the contract extension. Application at 3.
BACKGROUND
The current special contract between Idaho Power and DOE was initially approved by
the Commission in May 2006 in Order No. 30030. Id. The 2006 contract grants DOE the option
of requesting up to four, one-year extensions. The 2006 contract has previously been extended
three times (in 2007, 2008, and 2009). See Order Nos. 30314, 30536, and 30816. In the three
prior contract extensions, the Commission approved the extension without public comment or
hearing.
Idaho Power notes that there was one change to the contract extension. DOE
indicated in its negotiations with Idaho Power that its load might exceed the 45,000 kW
“Estimated Demand” cap shown in the previous extensions. Consequently, the parties have
changed the Estimated Demand shown in this extension from a range of 27,000 to 45,000 kW to
a range of 27,000 to 54,000 kW. The Application notes that this increase “is within the
DECISION MEMORANDUM 2
requirements limit that Idaho Power is obligated to provide under the 2006 Agreement.”
Application at 2.
Because the current contract extension expires on May 14, 2010, the Company
requests that the Commission process this Application on an expedited basis and approve this
extension without further public comment.
STAFF RECOMMENDATION
Staff has reviewed the Application and confirmed that the Estimated Demand range
has been increased to 27,000 - 54,000 kW. Under this extension (“the 2010 Extension”), electric
service to INL will continue to be provided under tariff Schedule 30. The tariff rates and charges
under Schedule 30 for providing service under the 2010 Extension are subject to change in any
Commission ratemaking proceeding. Given the press of time and the lack of any substantive
change, Staff concurs with the Company’s request that this 2010 Extension be approved without
further notice or public comment.
COMMISSION DECISION
Does the Commission find it reasonable to approve the proposed one-year 2010
Extension (until May 14, 2011) of the special contract (Schedule 30) between Idaho Power and
DOE without further notice or procedure?
bls/M:IPC-E-10-14_dh