HomeMy WebLinkAbout2001816_jh.docDECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
BILL EASTLAKE
LOU ANN WESTERFIELD
LYNN ANDERSON
DON HOWELL
RANDY LOBB
KEITH HESSING
TERRI CARLOCK
BEV BARKER
GENE FADNESS
TONYA CLARK
WORKING FILE
FROM: JOHN R. HAMMOND
DATE: AUGUST, 16 2001
RE: 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.
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 have 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 years. The Application also states that for a period of five 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 instant 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 DECISION
Does the Commission wish to approve this Application and the associated Special Line Installation Agreement?
If the Commission approves the Application and Agreement does it also wish to 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?
John R. Hammond
Staff: Keith Hessing
M:ipce0124_jh
DECISION MEMORANDUM 3