28983.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE PETITION OF THE COMMISSION STAFF REQUESTING THAT THE COMMISSION INVESTIGATE THE BUY-BACK RATES IN THE LETTER AGREEMENT ENTERED INTO BY IDAHO POWER COMPANY AND ASTARIS LLC. )
)
)
)
)
) CASE NO. IPC-E-01-43

NOTICE OF SETTLEMENT CONFERENCE

ORDER NO.  28983

On January 8, 2002, the Commission on its own Motion initiated an investigation to examine the load-reduction rates contained in the Letter Agreement between Idaho Power Company and Astaris LLC. The Letter Agreement amended the Electric Service Agreement (ESA) that governs the delivery of electric service to Astaris’ Pocatello plant. The Commission Staff urged the Commission to modify the load-reduction rates because the monthly rates are no longer just and reasonable. Idaho Code § 61-502. Staff maintained that continuation of the unjust and unreasonable load-reduction rates is not in the public interest and will impose an excessive burden on Idaho Power’s ratepayers.
At the prehearing conference, the parties urged us to set an expedited hearing schedule in this matter. In Order No. 28933, the Commission adopted a discovery and hearing schedule proposed by the parties. Evidentiary hearings in this matter were held on February 21-22, 2002. Post hearing briefs were filed by nearly all the parties on March 8, 2002. This matter is now ripe for a decision.
As mentioned above, the Commission processed this matter under an extremely expedited schedule. Given the significant issues in this case, the Commission is concerned that the expedited schedule did not provide a sufficient period of time for the parties to consider the possibility of settling this dispute. At the hearing, it was disclosed that the contracting parties (Idaho Power and Astaris) had engaged in several unsuccessful settlement conferences in 2001. Given the evidence produced at our hearing, we believe it may be beneficial for the parties to be afforded one last attempt to settle this dispute. Consequently, the Commission shall schedule a settlement conference to allow the parties an opportunity to settle the case.
NOTICE OF SETTLEMENT CONFERENCE
YOU ARE HEREBY NOTIFIED that convening a settlement conference allows the parties to explore the possibility of settling issues in a reasonable, speedy and economical manner. IDAPA 31.01.01.273. In attempting to settle this matter, we encourage the parties to explore spreading the benefits and obligations equally among Idaho Power, Astaris, and the general body of ratepayers.
YOU ARE FURTHER NOTIFIED that to promote the unencumbered exchange of information and positions, the settlement conference and negotiations are confidential. All discussions during the settlement conference or settlement documents prepared by the parties shall be confidential. Written and oral statements made by or submitted by an attorney or any party at the settlement conference shall not be admissible for any purpose before the Commission and shall not be subject to discovery. See Rule 272, IDAPA 31.01.01.272; I.A.R. 49(f).
YOU ARE FURTHER NOTIFIED that the parties are encouraged to attend the settlement conference in person. However, those parties unable to attend in person may participate via telephone conference. All parties shall be prepared to state their position at the settlement conference and shall be prepared to make settlement offers.
YOU ARE FURTHER NOTIFIED that the parties attending the settlement conference in person or via teleconference shall have the immediate authority to approve or enter into a settlement. Given the expedited nature of this case, the Commission anticipates that the settlement conference will only last a single day.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by any settlement reached by the parties. Pursuant to Rule 276, the Commission will independently review any settlement proposed to determine whether the settlement is just, fair and reasonable, and in the public interest, or otherwise in accordance with law or regulatory policy. If the settlement is presented to the Commission, it may accept the settlement, reject the settlement, or state additional conditions under which the settlement will be accepted. IDAPA 31.01.01.276.
YOU ARE FURTHER NOTIFIED that at the conclusion of the settlement conference, the parties will advise the Commission of the success or failure of settlement negotiations. If a settlement is reached between two or more parties, the Commission will determine how the settlement is to be reviewed. IDAPA 31.01.01.274.
O R D E R
IT IS HEREBY ORDERED that the parties attend (preferably in person or by teleconference) a settlement conference at 9:30 a.m. on Tuesday, April 2, 2002, at the Commission’s offices located at 472 West Washington Street in Boise. Those parties wishing to participate in the teleconference are advised to contact the Staff’s counsel at least 24 hours before the conference so that adequate telecommunication arrangements can be made.
IT IS FURTHER ORDERED that the Commission Secretary serve this Order on the parties via electronic mail.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 18th
day of March 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:IPCE0143_dh

NOTICE OF SETTLEMENT CONFERENCE
ORDER NO. 28983 3

Office of the Secretary
Service Date
March 18, 2002