modproc.app.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER COMPANY FOR APPROVAL OF A SECOND AMENDMENT TO THE FIRM ENERGY SALES AGREEMENT FOR THE POCATELLO FERTILIZER PLANT COGENERATION PROJECT. )
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CASE NO. IPC-E-01-10

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

NOTICE OF COMMENT/ PROTEST DEADLINE

YOU ARE HEREBY NOTIFIED that on March 20, 2001, Idaho Power Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of a negotiated second amendment to a Firm Energy Sales Agreement between Idaho Power and the J.R. Simplot Company (Simplot) for the Pocatello Fertilizer Plant cogeneration project (project).
As reflected in the Application, Idaho Power and Simplot entered into the underlying Firm Energy Sales Agreement (Agreement) for the project on January 24, 1991. The project is a qualifying cogeneration facility under the Public Utility Regulatory Policies Act of 1978 (PURPA). The original Agreement approved by the Commission in Order No. 23552 established rates at which Idaho Power would purchase power and provided a five-year effective term ending December 31, 1995.
On December 31, 2000 the parties entered into a first amendment extending the effective term of the Agreement to December 31, 2001, and changing the purchase rates. The rates established by the first amendment were the average non-levelized rates approved by the Commission in Case No. IPC-E-93-04, Order No.24911, Appendix C. The first amendment was approved by the Commission in Order No. 25353.
Under the terms of the proposed second amendment, the term of the current Agreement is extended from December 31, 2001 to December 31, 2003. Under the second amendment, the rates that will be in effect from January 1, 2001 through December 31, 2003 are summarized as follows:
Calendar
Year 2001 Calendar
Year 2002 Calendar
Year 2003 Price for first 240,000 kWh delivered per day

KWh delivered in excess of 240,000 per day 7.5¢ per kWh

50% of market price 9¢ per kWh

90% of market price 85% of market price

85% of market price
The market price defined in the Agreement uses the same index (Mid C) that the Commission has approved for non-firm purchases of power under the Company’s existing Rate Schedule 86.
The Company represents that the rates in the second amendment for calendar year 2001 will result in a reduction that would have been otherwise paid by Idaho Power to Simplot during 2001 under the terms of the existing Firm Energy Sales Agreement. As reflected in Application Attachment 2, during the first two months of 2001 Idaho Power’s customers under the proposed second amendment will save approximately $485,000. The Company also contends that the purchase prices under the second amendment during calendar years 2002 and 2003 will be cost-effective when compared to alternative market purchases of equivalent availability and reliability. The modified rates for 2001 and the prices contained in the two year extension, the Company contends, represent compromises made by both Idaho Power and Simplot.
Idaho Power requests that the Commission approve the second amendment for an effective date of January 1, 2001. The Company requests a Commission finding that the purchase of power on the rates, terms and conditions set out in the second amendment will be in the public interest. The Company also requests that all costs of purchasing power under the second amendment be allowed to Idaho Power as prudently incurred power purchase expense for ratemaking purposes.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. IPC-E-01-10. The Commission has preliminarily determined that the public interest regarding the proposed amendment to the Idaho Power/Simplot Firm Energy Sales Agreement 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 the Commission may not hold a hearing in this proceeding unless it receives written protests or comments 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 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-01-10 is Friday, April 27, 2001. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the issue on its merits and issue 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 matter and issue its Order based on the written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. IPCE-01-10 should be mailed to the Commission, 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 BARTON L KLINE
SENIOR ATTORNEY
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
And
MAGGIE BRILZ
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
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-01-10 and the underlying Firm Energy Sales Agreement can be reviewed at the Commission’s office and at principal office of Idaho Power Company during regular business hours. Idaho Power Company is located at 1221 West Idaho Street, Boise, Idaho.
DATED at Boise, Idaho this day of April 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

Vld/N:IPC-E-01-10_sw

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE 1

Office of the Secretary
Service Date
April 6, 2001