modproc.app.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF TARIFF SCHEDULE 22, AN ENERGY BUY-BACK TEMPORARY PROGRAM FOR CUSTOMERS THAT CAN REDUCE ELECTRICAL LOADS BY AT LEAST 1000 KW. )
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CASE NO. IPC-E-01-04

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

NOTICE OF COMMENT/ PROTEST DEADLINE

YOU ARE HEREBY NOTIFIED that on February 12, 2001, Idaho Power Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) for approval of Tariff Schedule 22, an Energy Buy Back Temporary Program (Program) applicable to the Company’s industrial customers, large commercial customers, and any customer capable of reducing electrical load by 1000 KW.
Current projections of below normal stream flows in the Snake River and its tributaries, coupled with the volatile wholesale energy market in the western United States, Idaho Power states, has created a situation where the Company believes that it is cost effective to acquire reductions in consumption of electrical energy in order to avoid the purchase of high cost power from the wholesale market.
The proposed Program encourages customers to voluntarily reduce electric load in exchange for credit against the customer’s Idaho Power account for the curtailed energy. The goal will be to make this credit, called the Exchange Credit, economically beneficial to both the customer, the Company, and the Company’s other customers as well. Benefits to the Company and other customers will result from reduced system demand as well as reduced costs.
The set of hours that a customer is given the opportunity to exchange electrical load for Exchange Credit is called an Exchange Event. An Exchange Event will typically be initiated during peak load hours when the Company anticipates high electricity costs. Customers will receive notice the day of, the day ahead, or two days ahead of the Exchange Event. Exchange Events will be for a minimum of two hours. The price for kilowatt hour that the Company offers the customer is called the Bid Price. The Bid Price will vary hour to hour and the customer may commit to load reductions for specific hours. The minimum time limit for an Exchange Event will be two consecutive hours for both the customer and the Company. There can be multiple Exchange Events in one day. Load reduction by customer will be a voluntary decision by the customer for a set number of hours in exchange for an agreed upon monetary consideration that will vary hourly and between Exchange Events.
In order to participate, a customer must satisfy certain conditions. The customer may be required to demonstrate to the satisfaction of the Company that the customer is able to reduce its electrical load by at least 1000 KW. The customer must have a meter provided by the Company which is capable of recording interval usage data for intervals no greater than 60 minutes. Customers are required to pay for costs associated with any load monitoring and communications equipment necessary to participate in the Program. Other conditions are set forth in the Application and the Company’s tariff. A secured internet site will allow participating customers and the Company to communicate with one another.
The Energy Buy Back Temporary Program will expire March 14, 2002, unless extended by the Company. This program will not affect the calculation of Demand, Customer, Basic, or Facilities charges associated with a customer’s normal rate schedule. The Company will ask that each customer remain on this schedule for a minimum of one year or until the termination date, whichever is sooner. If a customer voluntarily terminates the agreement, the customer will be responsible for reimbursing the Company for setup costs associated with enrolling the customer in the Program.
Commencement of the Program is dependent upon Idaho Power being assured that it will be entitled to recover through retail sales the payments that the Company will make to the customers participating in the program and that the Company will also be entitled to recover through retail sales its lost revenues resulting from the implementation of the Program. The Company’s ultimate implementation of the Program is conditioned upon the receipt of an appropriate accounting and ratemaking Order which would authorize utilization of the Power Cost Adjustment rate mechanism or similar type of mechanism to recover the Company’s costs.
Idaho Power requests that its tariff be effective March 14, 2001, and that its Application be processed pursuant to Modified Procedure, i.e., by written comment rather than by evidentiary hearing.
YOU ARE FURTHER NOTIFIED that Commission has reviewed the filings of record in Case No. IPC-E-01-04. The Commission has preliminarily determined that the public interest may not require a hearing to consider the issues presented and that the issues raised by the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that to facilitate the processing of the Company’s Application under Modified Procedure and to provide adequate time for public comment, the Commission in Order No. 28653 suspended the effective date from implementation of their proposed Tariff Schedule 22—Energy Buy Back Temporary Program from March 14, 2001 to March 30, 2001, or until such earlier time as the Commission might issue its Order approving, denying or modifying the Company’s proposal. Reference Idaho Code 61-623.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the Commission’s use of Modified Procedure in Case No. IPC-E-01-04 is Wednesday, March 14, 2001. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in this proceeding unless it receives written comments or protests opposing the use of Modified Procedure and stating why Modified Procedure should not be used. Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the matter on its merits and enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the mattr and issue its Order on the basis of the written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. IPCE-01-04 should be mailed to the Commission and the Company at the addresses reflected below.

COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:

472 W WASHINGTON ST
BOISE, ID 83702-5983 LARRY D RIPLEY
BARTON L. KLINE
SENIOR ATTORNEYS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070

And

JOHN R. GALE
GENERAL MANAGER
PRICING & REGULATORY SERVICES
IDAHO POWER COMPANY
PO BOX 70
BOISE, ID 83707
All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that the Application in Case No. IPC-E-01-04 can be reviewed at the Commission’s office and at principal office of Idaho Power Company (1221 West Idaho Street, Boise, Idaho) during regular business hours.

DATED at Boise, Idaho this day of February 2001.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

Vld/N:IPC-E-01-04_sw

DECISION MEMORANDUM 1

Office of the Secretary
Service Date
February 22, 2001