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HomeMy WebLinkAbout2001327_jh.doc SUPPLEMENT DECISION MEMORANDUM TO: COMMISSIONER HANSEN COMMISSIONER SMITH COMMISSIONER KJELLANDER JEAN JEWELL RANDY LOBB DON HOWELL LOU ANN WESTERFIELD BILL EASTLAKE TERRI CARLOCK DAVID SCHUNKE KEITH HESSING BEVERLY BARKER RON LAW GENE FADNESS TONYA CLARK WORKING FILE FROM: JOHN HAMMOND DATE: MARCH 27, 2001 RE: ADDITIONAL REQUEST BY IRRIGATION CUSTOMER TO BE ALLOWED INTO IDAHO POWER’S IRRIGATION BUY-BACK PROGRAM - CASE NO. IPC-E-01-3. On March 14, 2001, the Commission issued Interlocutory Order No. 28676 granting Idaho Power Company’s Request for Commission authorization to accept bids from its irrigation customers in order to implement its Irrigation Buy-Back Program (“Program”). Subsequently, three petitions from irrigation customers were filed that requested that the Commission issue an order which would allow them to participate in Idaho Power’s Program. See previous Decision Memorandum (March 26, 2001). On March 27, 2001, Stuart J. Mininger, an Idaho Power irrigation customer from Grandview, Idaho filed a similar request. Stuart Mininger’s Petition Mr. Mininger states that he didn’t submit a bid for Idaho Power’s Irrigation Buy-Back Program because the original maximum price of 12¢ per kWh would not work for his farming operation and because he believed that any bid he chose to submit over this level would be rejected. Furthermore, he states that it would have been difficult to wait until mid-March to be notified if his bid was accepted or rejected by the Company as he is arranging for financing at this time. However, now that the maximum price has been raised Mr. Mininger believes that he could save approximately 287,485 kWh at a price of 15¢ per kWh. Accordingly, he is requesting the Commission order Idaho Power to accept his bid to participate in this Program. STAFF ANALYSIS In its Order the Commission viewed the bidding process as a price discovery mechanism and, as previously stated, directed the Company to accept bids at 15¢ per kWh from all willing participants who submitted bids by the February 28 deadline. No provision was made for those irrigation customers who failed to submit bids by the deadline contained in Idaho Power’s RFP or whose bids were rejected for reasons other than submitting a bid over 15¢ per kWh. Staff does not find that Mr. Mininger’s Petition presents circumstances that would excuse his failure to submit a bids to Idaho Power by February 28, 2001. Accordingly, Staff believes this Petition should be denied. STAFF RECOMMENDATION Staff recommends that Stuart J. Mininger’s Petition requesting to be included in Idaho Power’s Irrigation Buy-Back Program be denied. __________________________ John R. Hammond M:ipce013_jh2 DECISION MEMORANDUM 2