HomeMy WebLinkAbout2000530_ws.docDECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
RON LAW
LOUANN WESTERFIELD
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
DAVE SCHUNKE
BILL EASTLAKE
RANDY LOBB
GEORGE FINK
WORKING FILE
FROM:
DATE: MAY 30, 2000
RE: CASE NO. IPC-E-00-05; APPROVAL OF IDAHO POWER COMPANY’S
APPLICATION FOR AUTHORITY TO DEVIATE FROM RULE H REFUND PROVISION
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 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, recommending 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. Idaho Power proposes that the installation be provided under a special arrangement pursuant to Rule H, Subparagraph VI.D. 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.
Staff recommends that the Commission approve the special line agreement between Idaho Power and Bogus Basin as proposed in the Company’s Application. Staff stated that it believes the unique geographical conditions and customer base of the service area warrant the special arrangement.
Commission Decision
Should the special line agreement between Idaho Power and Bogus Basin allowing for deviations from the Rule H refund provisions be approved?
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