HomeMy WebLinkAbout20040528Draft Motion to Dismiss.pdf.....
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BARTON L. KLINE
Senior Attorney
John R. Hammond , Jr.
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, Idaho 83720-0074
Re:Dismis~al of Case Nos. IPC-01-02 and 01-
Codes of Conduct for Idaho Power Doing Business
With Affiliates
Dear John:
On several occasions we have discussed the idea of dismissing the
above-referenced cases because they have become moot. You had indicated that
there may be some basis to support dismissal but you wanted to discuss the matter
further with your client.
:. .
I have enclosed a draft Motion To Dismiss For Mootness for the -02 case.
I hope it will make it easier for us to focus on the remaining issues in these cases.
have only prepared the Motion To Dismiss For Mootness for the case relating to IE
because it seems so obvious that the case has become moot. The other case (-08)
deals with the few remaining Idaho Poweraffiliates, most of which have very few touch
. points with Idaho Power. In addition , those touch points are covered by inter-company
agreements which Staff auditors have r~viewed several times. .In a~y event . I am
. hopeful that th~ attached draft Motio.nwillhelp.move ourdiscussionsforward. With
. all of the regulatory matters the. Commission is currently dealingvv'ith , it \~ould be nice to
. get a couple of old dockets cleared. out. '
. .
After you have had a chance to review the 'enclosure, please give me a
call so we can discuss this matter further.
Very truly yoursGM~
Barton L. Kline
BLK:jb
Enclosure
Telephone (208) 388-2682 Fax (208) 388-6936 Email BKlinefYidahopower.com
BARTON L. KLINE ISB #1526
MONICA B. MOEN ISB #5734
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Telephone: (208) 388-2682
FAX Telephone: (208) 388-6936
DRAFT
5/26/04
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
APPROVAL OF A PROPOSED STATEMENT)
OF POLICY AND CODE OF CONDUCT
COVERING TRANSACTIONS BETWEEN
IDAHO POWER COMPANY AND IDACORP
ENERGY SOLUTIONS LP , AN AFFILIATEDCOMPANY
CASE NO. IPC-01-
MOTION TO DISMISS
FOR MOOTNESS
COMES NOW, Idaho Power Company ("Idaho Power" or "the Company
by and through its.attorneys, and in .accordance withRP 056,. hereby moves the
Commission for an Order dismissing this case with prejudice because it has become
. moot. The basis for this Motion is as follows:
BACKGROUND
In Commission Order No. 28596 issued in Case No. IPC-OQ-, the
Commission authorized Idaho Power to enter into an Agreement For Electricity Supply
and Management Services ("Agreement") with its affiliate IDACORP Energy Solutions
MOTION TO DISMISS FOR MOOTNESS , Page
LLP ("I ES"
).
ES subsequently changed its name to "DACORP Energy" and I ES and
. IDACORP Energy will hereinafter referred to collectively as "IE.,,1
In Order No. 28596, the Commission stated that the Statement of Policy
and Code of Conduct submitted with the Company s Application required further
development and the opportunity for public input. In Order No. 28596, the Commission
directed Idaho Power to make a formal filing within thirty (30) days of a proposed policy
and code of conduct for affiliate relationships. In the interim , the Commission found it
reasonable that the Company and I E conduct relationships between themselves in
accordance with the Statement of Policy and Code of Conduct outlined in the
Company s Application.
On January 18, 2001 , Idaho Power made the compliance filing discussed
in Order No. 28596 and requested that the Commission approve a proposed Statement
of Policy and Code of Conduct covering transactions between Idaho Power and I E.
March 5 , 2001 , in Order No. 28649, the Commission bifurcated the Company
Application into two separate proceedings. In this case , Case No. IPC-01-, the
Commission would consider the Statement of Policy and Code of Conduct between
Idaho Power and IE. Under Case No. IPC-01-08, the Commission would consider
the .Code of Conduct that would be applicable to other IDACORP subsidiaries and
Idaho Power affiliates that would be engaged in non-utility, non-power transactions with
Idaho Power. Subsequently, the Commission approved petitions to intervene in this
case filed by Astaris, LLC, Power Development Associates, LLC and the Industrial
Customers of Idaho Power.
Idaho Power is and IES and IE were wholly-owned subsidiaries of IDACORP, Inc. The activities
of IES and IE were not regulated by the Commission except for transactions with Idaho Power.
MOTION TO DISMISS FOR MOOTNESS, Page 2
RESOLUTION OF IPC-IE ISSUES
In February and March 2001 , Idaho Power filed Applications for authority
to increase its rates under its Power Cost Adjustment ("PCA") rate schedule: These
Applications were separately docketed as Case No. IPC-01-07 ("the -7 Case ) and
Case No. IPC-01-11 ("the -11 Case ) and processed as a joint case. In Order No.
28731 , the Commission separated a number of the issues identified for investigation in
the -7 and -11 cases into a third case, which was docketed as IPC-01-16 ("the -
Case
) .
At this point, because the issues relating to the operating relationship
between Idaho Power and IE were being addressed in the -16 Case , further
proceedings in this case were suspended pending the final resolution of the -16 Case.
This suspension was de facto; no Commission order suspending the case was sought
or issued.
In response to a Joint Motion by the parties in the -16 Case, the
Commission issued Order No. 28831 on August 24 2001 , which further bifurcated the
issues in the -16 Case into Phase 1 and Phase 2. Testimony and exhibits relating to
the Company s trading practices (hedging), transmission and wheeling charges, Mid-
pricing and weighted average pricing (on a prospective basis from March 1 , 2001) were
presented in hearings held on August 28-, 2001 , in Phase 1. All of the other issues
identified for review in the -16 Case, Le., Idaho Power s approach to hedging and risk
management strategies, additional compensation to Idaho Power for transmission
system and other system resource usage by IE , and a question of whether the transfer
prices for both day-ahead and real-time transactions between Idaho Power and IE
MOTION TO DISMISS FOR MOOTNESS , Page 3
approved in Commission Order No. 28852 should be modified on a prospective basis
were assigned to Phase 2.
. Numerous workshops to discuss settlement of Phase 2 were held in 2001
2002 and 2003. On February 17 , 2004, the Company and numerous other parties filed
a Settlement Stipulation and Joint Motion For Acceptance of Settlement with the
Commission. IdahO Power requests that the Commission take administrative notice of
the above-referenced Joint Motion and Settlement Stipulation.
In Order No. 29446, the Commission accepted the proposed Settlement
Stipulation submitted with the Joint Motion and determined that the proposed
Settlement Stipulation was a fair, just and reasonable settlement of the outstanding
issues in the -16 Case, thereby bringing the -16 Case to a final conclusion.
In the summer of 2002, IDACORP decided to withdraw from the
wholesale power marketing business and began winding up IE's power marketing
business. As of the date of this pleading, IDACORP has sold IE's assets, discharged
IE's employees and IE has ceased to operate as a going concern. IE's remaining
activities consist primarily of defending several pending lawsuits.
PRAYER FOR RELIEF
As a result of the closing of I E and resolution of all issues arising out of or
relating to Idaho Power s business transactions with IE in the -16 Case, there is no
need for the Commission to further consider a Statement of Policy or ~ode of Conduct
to cover transactions between Idaho Power and IE. There will be no future transactions
between Idaho Power and IE. The issues originally intended to be addressed in this
proceeding are moot. "A case becomes moot when 'the issues presented are no longer
. MOTION TO DISMISS FOR MOOTNESS, Page 4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the day of May, 2004 , I served a true
and correct copy of the within and foregoing MOTION TO DISMISS FOR MOOTNESS
upon the following named parties by the method indicated below, and addressed to the
following:
John R. Hammond, Jr.
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, Idaho . 83720-0074
Ronald L. Williams
Ronald L. Williams , P .
O. Box 2128
Boise , Idaho 83701-2128
Conley Ward
Givens Pursley LLP
277 N. 6th Street, Suite 200
O. Box 2720
Boise , Idaho 83701
Peter J. Richardson
Molly O'Leary
Richardson & O'Leary PLLC
99 East State Street, Suite 200
O. Box 1849
Eagle, Idaho 83616
CERTIFICATE OF SERVICE
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BARTON L. KLINE.