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HomeMy WebLinkAbout20231121_IPCE2329_dh.pdfDECISION MEMORANDUM TO:COMMISSIONER ANDERSON COMMISSIONER HAMMOND COMMISSIONER LODGE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM:MICHAEL ELDRED DAYN HARDIE DATE:NOVEMBER 21,2023 SUBJECT:IN THE MATTER OF IDAHO POWER COMPANY'S REQUESTFOR EXEMPTION FROM THE COMPANY'S RULE C PROVISIONS REGARDING AGGREGATING METER READING; CASE NO.IPC-E-23-29 BACKGROUND On November 1,2023,Idaho Power Company ("Company")requested to add the Lamb Weston manufacturing facility in American Falls to the list of customers exempt from Rule C's aggregated meter reading provisions. The Company's Rule C states that where a customer has more than one deliverypoint or separate meters at a single premises,that the meter readings will not be combined or aggregated for any purpose except for determining if the customer's total power requirements exceed 20,000 kW. In Case No.IPC-E-07-02,Order No.30274,the Commission granted the Company an exemption from Rule C's aggregated meter reading provision to allow bills for specific large accounts to be prepared by combining the readings from multiplemeters.Each of the 13 customers identified in that case involved situations where having multiplemeters at the same premises was the most cost-effective and optimal means of providing and metering service. Order No.30274 also authorized a streamlined regulatory procedure for handling future situations where an exemption to Rule C was merited and sought by the Company.Instead of requiring the Company to file a petition for each additional exemption,the Company was DECISION MEMORANDUM -1 -NOVEMBER 21,2023 authorized to provide the Commission with information supporting its decision that an exemption was merited.Unless the Commission objected to a proposed exemption,the affected customer would then be added to the list of customers exempt from Rule C provisions. STAFF ANALYSIS Staff reviewed the Company's request to add Lamb Weston to the Rule C exemption list and has no objection to the Company's request.However,to ensure the Commission has an updated list of all customers under the exemption,Staff recommends the Company provide a list of Rule C exemption customers to the Commission througha compliance filing. The Lamb Weston facility is currentlya Schedule 19 customer but is expanding the facility and is expected to soon be above the 20 MW load threshold requiring a Special Contract. A Special Contract for Lamb Weston was approvedin Case No.IPC-E-23-18,Order No.35929. When Lamb Weston exceeds the 20 MW threshold and becomes a Special Contract Customer, the Rule C exemption will no longer be required because Rule C's aggregated meter reading provision will not apply.The configuration that is most economic for Lamb Weston's expansion plans is to service the customer using three feeders and three primary metering packages.This economic justification behind the Company's request is consistent with the justification provided in Case No.IPC-E-07-02 where the original 13 customers were approved to be included on the Rule C exemption list. The Company in this request stated it would submit an updated list of Rule C exemption customers to the Commission.Staff agrees and recommends the Company provide the list in a compliance filing to the Commission within seven days of the Commission's decision. RECOMMENDATION Staff recommends the Commission accept the Company's request to add Lamb Weston to the list of Rule C exemptions and require the Company to file a compliance filing with an updated list of Rule C exemption Customers within seven days of the Commission's decision. DECISION MEMORANDUM -2 -NOVEMBER 21,2023 COMMISSION DECISION Does the Commission wish to accept the Company's request to add Lamb Weston to the list of Rule C exemptions and require the Company to file a Compliance Filing with an updated list of Rule C exemption Customers within seven days of the Commission decision? Michael Eldred Udmemos/IPC-E-23-29 Decision Memo DECISION MEMORANDUM -3 -NOVEMBER 21,2023