08172001.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
BILL EASTLAKE
TONYA CLARK
DON HOWELL
LYNN ANDERSON
DAVE SCHUNKE
RICK STERLING
RANDY LOBB
GENE FADNESS
WORKING FILE
FROM:
DATE:
AUGUST 17, 2001 RE: CASE NO. IPC-E-01-28 (Idaho Power)
ELECTRIC SERVICE AGREEMENT—AMENDMENT
IDAHO POWER/J.R. SIMPLOT COMPANY

On August 3, 2001, Idaho Power Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of a July 30, 2001, Letter Agreement amending the August 27, 1973, Electric Service Agreement between Idaho Power Company and J.R. Simplot Company (Pocatello Plant). Simplot agrees to reduce its electric load at the Pocatello facility as per scheduling set forth in the Letter Agreement. The actions to be taken by the parties are conditioned upon the market prices of wholesale power. In consideration for a reduction in Simplot’s consumption of energy, the parties agree that Idaho Power shall pay to Simplot an amount equal to two-thirds of market price for each kilowatt hour of actual load reduction. The parties agree that if Simplot fails to reduce its load by a percentage of the amount specified in the Letter Agreement that liquidated damages will be assessed.
Idaho Power requests authority to include in the Company’s Power Cost Adjustment (PCA) mechanism any payments made to Simplot under the Letter Agreement. The Letter Agreement as structured provides that there is no requirement for lost revenue computation. Idaho Power submits that the transaction is in the public interest in all aspects and is beneficial to the Idaho Power retail system.
Idaho Power requests that its Application be processed on an expedited basis under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
Commission Decision
The Company and Staff recommend that the Application in Case No. IPC-E-01-28 be processed pursuant to Modified Procedure. Staff recommends that the comment period be shortened to 10 days. Does the Commission find Modified Procedure to be acceptable?

vld/M:IPC-E-01-28_sw

DECISION MEMORANDUM 1