20071115Application.pdf

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An IDACORP Company
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BARTON L. KLINE
Senior Attorney
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UTIliTIES COMMISSION January 18, 2001
Ms. Jean D. Jewell, Secretary
Idaho Public Utilties Commission
472 W. Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-01-~
Idaho Power Company's Application and
Compliance Filing For Approval of A Proposed
Statement of Policy and Code of Conduct
Dear Ms. Jewell:
Enclosed herewith for filng with the Commission are an original and
seven (7) copies of Idaho Power Company's Application For Approval of a proposed
Statement of Policy and Code of Conduct covering transactions between Idaho Power
Company and IDACORP Energy Solutions LP, an affilated company, regarding the
above-captioned case.
I would appreciate it if you would return a stamped copy of this transmittal
letter for our files.v~~
Barton L. Kline
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Enclosures
Telephone [phone], Fax [phone], Email BKline~jdahopower.com
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BARTON L. KLINE ISB #1526
Idaho Power Company
P. O. Box 70
Boise,ldaho 83707
Telephone: [phone]
FAX Telephone: [phone]
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Attorney for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-01-0~
APPROVAL OF A PROPOSED STATEMENT)
OF POLICY AND CODE OF CONDUCT ) APPLICATION AND
COVERING TRANSACTIONS BETWEEN ) COMPLIANCE FILING
IDAHO POWER COMPANY AND IDACORP )
ENERGY SOLUTIONS LP, AN AFFILIATED )COMPANY )
)
COMES NOW, Idaho Power Company ("Idaho Powet' or "the Company"),
and hereby requests that the Commission issue its Order (1) approving the attached
Statement of Policy and Code of Conduct addressing transactions between Idaho
Power and its affiliate IDACORP Energy Solutions LP (illES"), and (2) convening a pre-
hearing conference to establish the procedure for consideration of whether other
Statements of Policy and Codes of Conduct covering transactions between Idaho
Power, its utiliy customers, and other subsidiaries of Idaho Power's parent company,
IDACORP, Inc. should be adopted. This Application is based on the following:
APPLICATION AND COMPLIANCE FILING, Page 1
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I.
BACKGROUND
In Commission Order No. 28596 issued in Case NO.IPC-E-00-13 the
Commission authorized Idaho Power to enter into an Agreement For Electricity Supply
and Management Services ("Agreement") with IDACORP Energy Solutions, LP ("IES"),
an affiliate of Idaho Power. In its Application in Case No. IPC-E-00-13, Idaho Power
filed a proposed Statement of Policy and Code of Conduct. In Commission Order No.
28596 the Commission approved the Agreement and directed Idaho Power and IES to
conduct themselves in accordance with the submitted Code of Conduct. However, in
the Order the Commission indicated that they wanted additional public review and
discussion of the Statement of Policy and Code of Conduct that Idaho Power had filed
in the IES case. In compliance with that directive, Idaho Power has included with this
filing, as Attachment "A", a revised Statement of Policy and Code of Conduct.
II.
The attached Statement of Policy and Code of Conduct covering the
Idaho Power/I ES Agreement has been revised from the original fiing to include a
number of additions and clarifications requested by the Commission Staff. Idaho Power
believes that it represents a reasonable policy that allows Idaho Power and IES to
operate efficiently under the approved Agreement and the Stipulation entered in the
IPC-E-00-13 case, while at the same time providing Idaho Powets customers with
additional commitments and protection against inappropriate actions on the part of
either Idaho Power or IES.
APPLICATION AND COMPLIANCE FILING, Page 2
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II.
PROPOSAL TO BIFURCATE
In informal discussions with Commission Staff following the issuance of
Order No. 28596, Staff indicated that the Commission also desired to consider whether
a Code of Conduct might be desirable to address transactions between Idaho Power,
its utility customers, and other subsidiaries of IDACORP, Inc. These subsidiaries
provide non-power, non-utility products and services.
Idaho Power believes that a Code of Conduct addressing transactions
between Idaho Power and IES when they are undertaking wholesale energy
transactions under the Agreement is likely to be subject to very different considerations
than a Code of Conduct that would be targeted to transactions between Idaho Power
and other IDACORP subsidiaries providing products and services of a non-utility nature.
Idaho Power proposes that the Commission bifurcate the proceedings in this case to
separately consider the Statement of Policy and Code of Conduct relating to the Idaho
Power/IES Agreement and a Code of Conduct to be applicable to such other non-utility,
non-power transactions. Idaho Power believes that such a bifurcated process would be
much more efficient. Trying to address all possible utility, non-utility and power and
non-power transactions under one all-encompassing Code of Conduct docket is likely to
be less productive than addressing the immediate Idaho Power/IES affilate concerns
and then proceeding more deliberately with the broader affiliate issues.
APPLICATION AND COMPLIANCE FILING, Page 3
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II.
NOTICES
Communications with reference to this Application should be sent to the
following:
Barton L. Kline
Senior Attorney
Idaho Power Company
P.O. Box 70
Boise, ID 83707
John R. Gale, General Manager
Pricing and Regulatory Services
Idaho Power Company
P.O. Box 70
Boise, ID 83707
WHEREFORE, Idaho Power requests that the Commission issue its
Order as follows:
1. Approving the attached Statement of Policy and Code of Conduct
for the Idaho Power/IES Agreement; and
2. Setting a date for a pre-hearing conference at which time
participants would establish a schedule for workshops and other procedural steps that
could lead to the establishment of a Code of Conduct for transactions between Idaho
Power, its customers and other subsidiaries of IDACORP, Inc. if the Commission
decides it wants to adopt such Codes of Conduct.
.LDATED this /8' day of January, 2001.
(Jd\tL
BARTON L. KLINE
Attorney for Idaho Power Company
APPLICATION AND COMPLIANCE FILING, Page 4
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the Ut~~ day of January, 2001, I served a
true and correct copy of the within and foregoing APPLICATION AND COMPLIANCE
FILING upon the following named individuals by the method indicated below, and
addressed to the following:
Scott Woodbury, Esq.
Deputy Attorney General
Idaho Public Utilties Commission
472 W. Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
CERTIFICATE OF SERVICE
~Hand Delivered
U.S. Mail
Overnight Mail
FAX
llcl~BARTON L. KLINE
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ATTACHMENT "A"
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STATEMENT OF POLICY AND CODE OF CONDUCT
GOVERNING THE RELATIONSHIP BETWEEN IDACORP ENERGY
AND IDAHO POWER COMPANY
1. PURPOSE
Idaho Power Company ("ldaho Power") and IDACORP Energy Solutions,
LP, dba IDACORP Energy (illES") have entered into an Electric Supply Management
Services Agreement ("Agreement"). Both Idaho Power and IES are wholly owned
subsidiaries of IDACORP, Inc. Under the Agreement, IES will, among other things,
provide Idaho Power with certain energy supply, management, marketing and brokering
services. This Statement of Policy and Code of Conduct is intended to establish
guidelines and procedures, which wil govern the relationship and transactions between
Idaho Power and IES.
The management service provided by IES to Idaho Power is a non-
competitive service for which IES may recover its costs through an annual charge. The
appropriateness of the charge is subject to regulatory review during revenue
requirement proceedings.
2. CODE OF CONDUCT
IES and Idaho Power wil comply with the following:
A. Sales of Power. When IES and Idaho Power are engaging in
power purchases and sales between themselves, IES and Idaho Power
will comply with the following:
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1. Purchases and sales of power between IES and Idaho
Power will be subject to the transaction reporting requirements specified
by the FERC, including existing quarterly compliance filings to the
Western Systems Power Pool.
2. Any transmission service provided by Idaho Power to IES,
that is not for the express purpose of supplying Idaho Power's native
loads, will be provided under Idaho Power's FERC-approved open access
transmission tariff.
3. Short-term power purchases and sales between IES and
Idaho Power Company that settle within the prompt month or sooner will
only be made at market prices.
4. Power purchases and sales that will settle outside the
prompt month will be executed by Idaho Power and a third party and may
be brokered by IES.
5. Expenses associated with long-term power sales or
purchases by Idaho Power wil be subject to approval by the Idaho Public
Utilities Commission prior to their inclusion in Idaho Power's Power Cost
Adjustment.
B. Non-Power Goods and Services. Sales of any non-power goods or
services between Idaho Power and IES wil be in accordance with the
then-current Affiliated Services Agreement between the Parties as
provided to the Idaho Public Utiities Commission pursuant to IPUC Order
No. 27348. Any non-power goods and services sold by Idaho Power to
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IES wil be priced at the higher of cost or market value, and any non-
power goods and services purchased by Idaho Power from IES wil be
priced no higher than market value.
C. Brokering of Power. To the extent IES seeks to act as broker in
arranging power purchases and sales:
1. IES wil offer Idaho Power's power for sale prior to offering
power owned or controlled by IES.
2. IES will not accept any fees in conjunction with any
brokering services it performs for Idaho Power.
D. Personnel and Records
1. IES shall be a separate legal entity, and to the maximum
extent practical, be separated physically from Idaho Power Company.
Physical separation will be accomplished by having office space in
separate buildings or, if within the same building, by a method such as
having offices on separate floors or with separate access
2. IES's books of accounts and records shall be distinguished
from Idaho Power Company' books. Idaho Power shall prepare financial
statements that are not consolidated with those of IES's. Aggregated
information that is not market-sensitive may be transferred to or from
Idaho Power Company and to or from IES for corporate financial
accounting, control, and reporting purposes.
E. Prohibition on Suggestion of Utiity Advantage
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1. Idaho Power shall not state in any advertising, promotional
materials, or sales efforts that a consumer who purchases services from
IES wil receive preferential treatment in the provision of utility services or
that any other advantage regarding the provision of utility services will
accrue to that consumer.
2. Idaho Power personnel shall not specify to any customer or
potential customer a preference for any service provided by IES over
those of any third party.
3. Idaho Power personnel shall not specify to any customer or
potential customer a preference for any service provided by a third party
over any service provided by any other third party.
4. Idaho Power shall not require that a consumer purchase any
non-utiity service from IES as a condition to providing utility services.
F. Complaint Procedure
1. If any customer believes Idaho Power Company has violated
the Statement of Policy and Code of Conduct, that customer may file a
complaint in writing with Idaho Power Company. Idaho Power Company
shall respond in writing to the complaint within 30 business days after
receipt of the complaint. Idaho Power Company must offer to meet with
the complaining party within 14 days after the response to resolve any
remaining issues and must notify the complainant of his or her right to
complain to the Commission if not satisfied.
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2. Idaho Power Company shall maintain a log of all new,
resolved, and pending complaints alleging violations of the Statement of
Policy and Code of Conduct and make the log available to the
Commission upon request. The log shall include the date each complaint
was received, the complainant's name, address, and telephone number, a
written description of the complaint, and the resolution of the complaint or
reason why the complaint is stil pending.
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