ModProc.app.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR APPROVAL
OF THE FIRST AMENDMENT TO THE
AGREEMENT FOR SALE AND PURCHASE OF
SURPLUS ENERGY BETWEEN IDAHO
POWER COMPANY AND AMALGAMATED
SUGAR COMPANY LLC
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CASE NO. IPC-E-01-26

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

NOTICE OF
COMMENT/PROTEST
DEADLINE

On October 31, 1998, Idaho Power Company (Idaho Power; Company) and The Amalgamated Sugar Company LLC (TASCO) entered into an Agreement for the Sale and Purchase of Surplus Energy (the “Surplus Energy Agreement”) under which Idaho Power currently purchases surplus electric energy up to 2 MW from TASCO at market-based prices. Reference Case No. IPC-E-98-15, Order No. 27885.
YOU ARE HEREBY NOTIFIED that on July 25, 2001, Idaho Power filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of a First Amendment (Amendment) to the Idaho Power/TASCO Surplus Energy Agreement. As represented in the Application, TASCO has decided to install additional generating capacity at its Nampa plant. In addition to the approximately 2 MW of generating capacity that currently exists, TASCO intends to add an additional 8 MW of capacity which will bring the total generating capacity at the Nampa plant to 10 MW. Under the Amendment dated July 23, 2001, Idaho Power agrees to purchase the additional surplus energy generated by TASCO at prices that are less than market-based non-firm energy prices. The Amendment provides a September 1, 2003 termination date for the Surplus Energy Agreement.
Pursuant to the Amendment, the electric energy to be sold under the Surplus Energy Agreement is non-firm energy and will be only available when TASCO does not consume the electric energy in the Nampa plant. The purchase price for the energy provided by TASCO is separated into two blocks. The first block is energy attributable to the first two (2) MW of energy and is priced at the same level as previously approved by the Commission in Order No. 27885. The second block is energy attributable to the next eight (8) MW of capacity installed by TASCO and is priced at a percentage discount from the monthly average non-firm Dow Jones Mid-Columbia index price. During the period from August 1, 2001 through September 30, 2001, the price for the second block energy will be equal to 90% of the monthly weighted average non-firm Dow Jones Mid-Columbia index prices during the period. From January 1, 2002 through September 1, 2003, second block energy will be priced at 85% of the monthly weighted average non-firm Dow Jones Mid-Columbia index price.
Under the terms of the Amendment, until Idaho Power has completed necessary engineering studies, purchases from the Nampa plant will be physically and contractually limited to 8.5 MW. If additional interconnection facilities are required to allow parallel operation between TASCO and Idaho Power at the 10 MW level, TASCO will be obligated to reimburse Idaho Power for those costs prior to the additional generation being accepted by Idaho Power.
Pursuant to the Amendment, the revisions of the Surplus Energy Agreement will not become finally effective until the Commission has approved the Amendment and declares that all payments for surplus energy under the Surplus Energy Agreement as amended shall be allowed as prudently incurred expenses for ratemaking purposes.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. IPC-E-01-26. The Commission has preliminarily determined that the public interest regarding the First Amendment to the Agreement for Sale and Purchase of Surplus Energy between Idaho Power Company and Amalgamated Sugar Company LLC may not require a hearing to consider the issues presented and that 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-01-26 is Wednesday, September 12, 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 enter 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. IPC-E-01-26 should be mailed to the Commission and the Company at the addresses 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
1221 W. IDAHO STREET (83702)
PO BOX 70
BOISE, ID 83707-0070

JOHN P. PRESCOTT
VICE PRESIDENT-GENERATION
IDAHO POWER COMPANY
1221 W. IDAHO STREET (83702)
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-01-26 can be reviewed at the Commission’s office and at the principal office of Idaho Power Company during regular business hours.
DATED at Boise, Idaho, this day of August 2001.

Jean D. Jewell
Commission Secretary

bls/N:IPCE0126_sw

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

Office of the Secretary
Service Date
August 24, 2001