28403.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO IMPLEMENT A SPECIAL LINE INSTALLATION ARRANGEMENT WITH BOGUS BASIN RECREATIONAL ASSOCIATION, INC.
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CASE NO. IPC-E-00-5

ORDER NO. 28403

On March 30, 2000, Idaho Power Company filed an Application requesting authority to implement a special line installation arrangement with Bogus Basin Recreational Association, Inc. (Bogus Basin). Bogus Basin requested that Idaho Power construct an additional distribution line for service to the Bogus Basin ski area, and the parties entered into a special arrangement to deviate from the normal Rule H refund provision in Idaho Power’s tariff. Subparagraph VI.D in the tariff allows Idaho Power and a customer to agree that deviation from the Rule H refund provision is reasonable and not adverse to other customers of the Company.
On May 4, 2000, the Commission issued a Notice of Application and Notice of Modified Procedure to process Idaho Power’s Application. During the comment period, written comments were filed only by the Commission Staff, which recommended approval of Idaho Power’s Application.
The distribution line to be constructed to meet Bogus Basin’s request is a 7.5 megawatt line referred to as the Hidden Springs feeder. Construction cost is estimated to be $2.4 million and Bogus Basin is responsible for the entire cost of the new distribution line. The variation from the tariff provides terms by which Bogus Basin will receive refunds from customers who subsequently use the excess capacity that will become available after the Hidden Springs feeder is constructed. Specifically, the deviation from the Rule H provisions are that (1) refunds will be computed based on cost per kilowatt versus distance and load ratios, (2) refunds will not be limited to four applicants, (3) the refund time period will be ten years rather than five years, and (4) refunds will not be limited to 80% of the original investment.
The Commission finds the agreed upon deviations from the usual Rule H refund provisions to be appropriate, given the uniqueness of the project. The new feeder will extend more than ten miles over rugged, mountainous terrain. Future customers that utilize the feeder likely will connect near the beginning or the very end of the line, and thus determining refunds on cost per kilowatt rather than distance and load is equitable. Because the cost to construct the feeder is significant and the likelihood that customers will be available to connect in the future is uncertain, the provisions to allow for refunds from more than four customers, to extend the refund time to ten years, and to not limit recovery to 80% of the original cost, are reasonable and appropriate.
Given the unique nature of the Hidden Springs feeder, which will be constructed with funds provided by Bogus Basin, we find the provisions for Bogus Basin to receive contributions from third parties that connect to the feeder to be fair, just and reasonable. The Commission therefore approves the refund provisions agreed to by Idaho Power and Bogus Basin in their line installation agreement.
O R D E R
IT IS HEREBY ORDERED that the deviations from the Rule H refund provisions agreed to by Idaho Power and Bogus Basin in their line installation agreement are approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of June 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/O:IPC-E-00-05_ws2

ORDER NO. 28403 1

Office of the Secretary
Service Date
June 13, 2000