modproc.app.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of THE APPLICATION OF IDAHO POWER COMPANY TO AMEND SCHEDULE 86—COGENERATION AND SMALL POWER PRODUCTION—NON-FIRM ENERGY. )
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) CASE NO. IPC-E-01-40

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

NOTICE OF COMMENT/PROTEST DEADLINE

YOU ARE HEREBY NOTIFIED that on November 9, 2001, Idaho Power Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of proposed changes and amendments to the Company’s existing tariff rate Schedule 86—Cogeneration and Small Power Production—Non-Firm Energy.
BACKGROUND
On January 22, 1997, the Commission issued Order No. 26750 approving the current Schedule 86. On May 3, 1999, the Commission issued Order No. 28033 approving the current methodology for computing the purchase price, or avoided energy cost, for non-firm purchases under Schedule 86. The purchase price section of Schedule 86 currently provides two options under which PURPA qualifying facilities can sell non-firm energy to the Company:
Option A. The purchase price is an amount equal to the monthly weighted average cost per kilowatt hour of the daily on-peak and off-peak Dow Jones Mid-Columbia Electricity Price Index prices for non-firm energy published in the Wall Street Journal (Mid-C Index) minus $0.004 per kWh.
Option B. The Net Metering Option.
Description of Proposed Changes
Removal of Schedule 86 Option B.

Idaho Power has requested that the Commission approve a new tariff Schedule 84—Net Metering—which would take the place of Option B under Schedule 86. Reference Case No. IPC-E-01-39.
Tariff Eligibility Criteria
Idaho Power proposes to limit the applicability of Schedule 86 to PURPA qualifying facilities (QFs) with capacity name-plate ratings of less than 1 MW. This change, the Company contends, will bring Schedule 86 into conformity with the Commission’s current policy concerning qualifying facility purchase arrangements. Qualifying facilities smaller than 1 MW are entitled to Commission established published rates; but qualifying facilities larger than 1 MWs, the Company contends, are required to negotiate contracts with Idaho Power and to negotiate appropriate power purchase prices as a part of that contracting process.
Schedule 86 Purchase Price.
Idaho Power proposes to set the purchase price at an amount equal to eighty-five percent (85%) of the monthly weighted average Mid-C Index, consistent with several purchase and sale agreements the Company has recently entered into with various sellers. By establishing the purchase price as a percentage discount from the Mid-C Index, Idaho Power’s customers, the Company contends, can be confident that non-firm energy Idaho Power is obligated to purchase under Schedule 86 can be resold in the wholesale market at a price that will recover Idaho Power’s purchase costs plus transmission costs. Conversely, the Company contends that when Idaho Power desires to retain the non-firm energy delivered by a seller under Schedule 86, Idaho Power can be assured that the purchase price will be at least as beneficial as a wholesale non-firm market purchase.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. IPC-E-01-40. The Commission has preliminarily determined that the public interest regarding the Company’s proposed amendment to Schedule 86 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-01-40 is Friday, December 21, 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 the written comments concerning Case No. IPCE-01-40 should be mailed to the Commission and 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
E-Mail: [e-mail]

Street Address for Express Mail
1221 WEST IDAHO STREET
BOISE, ID 83702

And

MAGGIE BRILZ
DIRECTOR OF PRICING
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-Mail: [e-mail]

Street Address for Express Mail
1221 WEST IDAHO STREET
BOISE, ID 83702
All comments should contain the case caption and case number shown on the first page of this document. Persons desiring to submit comments via e-mail may do so by accessing the Commission’s homepage located at www.puc.state.id.us under the heading “Contact Us.” Once at the “Contact Us” page, select “Email Case Comments or Questions,” fill in the case number as it appears on the front of this document, and enter your comments. These comments should also be sent to the applicant at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Application in Case No. IPC-E-01-40 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 November 2001.

Jean D. Jewell
Commission Secretary

vld/N:IPC-E-01-40_sw

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

Office of the Secretary
Service Date
November 23, 2001