28829.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE JOINT APPLICATION OF IDAHO POWER COMPANY, THE URBAN RENEWAL AGENCY OF THE CITY OF CALDWELL, IDAHO, AND THE CITY OF CALDWELL FOR APPROVAL OF A SPECIAL LINE INSTALLATION AGREEMENT. )
)
)
)
)
)
)
CASE NO. IPC-E-01-24

ORDER NO. 28829
On July 13, 2001, Idaho Power Company, the Urban Renewal Agency of the City of Caldwell, Idaho (“URA”) and the City of Caldwell (“Caldwell”) jointly filed an Application requesting Commission approval of a special line installation agreement (“Agreement”) they have entered into. The Commission processed the Company’s Application by Modified Procedure i.e., by written submissions rather than by an evidentiary hearing, under the Commission’s Rules of Procedure. Order No. 28791. The Commission Staff, the City of Caldwell and the Caldwell East Urban Renewal Agency filed written comments.
BACKGROUND
The Application states that URA and Caldwell have created an Urban Renewal Plan for the Caldwell East Urban Renewal Project that will rehabilitate and develop a specified area of the City. In order to accomplish this the Applicants state that it is necessary to have adequate electric utility service available to the area. Accordingly a new distribution feeder line, the “New Linden Feeder,” will be constructed. The Applicants state that grant monies are available for the construction of the required facilities. Due to the unique nature of funding for the line installation the parties have entered into the Agreement pursuant to Rule H, Subparagraph VI, D, i.e., which allows for special arrangements that deviate from Rule H Refund Provisions. Based on this Agreement Idaho Power is willing to construct the New Linden Feeder and related distribution facilities upon payment by Caldwell in the amount of $408,386.30. Caldwell also agrees to waive all vested interest rights or payments in the New Linden Feeder in exchange for the Company agreeing to commit to making 10 MW of feeder line capacity available to the City within the Caldwell project boundaries for seven (7) years. The Application also states that for a period of five (5) years, any capacity of the New Linden Feeder that is utilized for service outside the Caldwell Project boundaries will be subject to a connection charge.
STAFF RECOMMENDATION
Staff recommends that the Joint Application and associated special line installation agreement be approved with one modification. Staff recommends that the Commission order Idaho Power to collect connection charges for developments outside the Caldwell project as described in this Agreement for a period of seven (7) years so that it matches the seven (7) year term under the Agreement that Idaho Power must reserve 10 MW of capacity for Caldwell and the URA.
COMMENTS
Garret L. Nancolas, the Mayor of the City of Caldwell, filed a letter with the Commission. In this letter Mayor Nancolas states that in order for this renewal plan to succeed it “depends heavily upon economic development within that region.” In order to insure the success of this plan the Mayor further represents that Caldwell has made significant investment in infrastructure within the Caldwell Urban Renewal Area boundaries and the only remaining element of that infrastructure that is needed is a means by which to supply adequate power to the area. Accordingly, Mayor Nancolas requests that the Commission approve this Application and Agreement. ElJay Waite, Chairman of the Caldwell East Urban Renewal Agency, has also filed a letter with the Commission similarly requesting approval of this Application and the associated Agreement.
COMMISSION FINDINGS
After review of this case and consideration of all comments the Commission finds that approval of the Special Line Installation Agreement is in the public interest. Accordingly, the Commission shall grant the Joint Application and the Agreement between Idaho Power, the City of Caldwell and the Caldwell East Urban Renewal Agency with one modification to the Agreement. That is, the Commission shall order Idaho Power to collect connection charges for requests of developments outside the Caldwell project seeking connection to the new line as described in this Agreement for a period of seven (7) years so that it matches the seven (7) year term under the Agreement that Idaho Power must reserve 10 MW of capacity for Caldwell and the URA.
O R D E R
IT IS HEREBY ORDERED that the Joint Application and the Agreement between Idaho Power, the City of Caldwell and the Caldwell East Urban Renewal Agency is approved.
IT IS FURTHER ORDERED that Idaho Power shall collect connection charges for requests of development outside the Caldwell project seeking connection to the new line as described in this Agreement for a period of seven (7) years so that it matches the seven (7) year term under the Agreement that Idaho Power must reserve 10 MW of capacity for Caldwell and the Caldwell East Urban Renewal Agency.
THIS IS A FINAL ORDER. Any person interested in this Order or in interlocutory Orders previously issued in this Case No. IPC-E-01-24 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this Order or in interlocutory Orders previously issued in this Case No. IPC-E-01-24. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of August 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

O:ipce0124_jh2

ORDER NO. 28829 1

Office of the Secretary
Service Date
August 23, 2001