20080609Letter of Agreement.pdf

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An IDACORP Company
45
LISA D. NORDSTROM
Attorney"
June 9,2008
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-03-10
Sale and Purchase Agreement of Surplus Energy between TASCO
and Idaho Power
Dear Ms. Jewell:
In Order No. 29420 issued on January 15, 2004, in Case No. IPC-E-03-10, the
Commission approved an Agreement for Sale and Purchase of Surplus Energy (the
"Nampa Agreement") between Idaho Power and Amalgamated Sugar Company
("TASCO") dated October 2, 2003. Under the Agreement, Idaho Power agrees to
purchase from TASCO surplus energy not otherwise consumed at its Nampa, Idaho,
facility.
Through tariff changes approved by minute order in accordance with general rate
case Order No. 30508, the Commission authorized the termination of all Uniform Service
Agreements between Idaho Power and its customers effective March 1, 2008. As a result,
it is necessary to amend the Nampa Agreement to remove all references to the Uniform
Service Agreement and instead reference only the Agreement for Supply of Standby
Electric Service between Idaho Power and TASCO dated December 7, 2005, as amended
by the Letter Agreements dated January 31,2007, and May 6,2008. Furthermore, it is
also necessary to terminate Amendment 1 to the Uniform Service Agreement dated
September 15, 2004, and incorporate the provisions of Amendment 1 regarding Basic
Load Capacity into the Nampa Agreement.
Enclosed for filing is a Letter Agreement dated May 6, 2008, in which Idaho Power
and TASCO have agreed to amend the Nampa Agreement to reflect these changes. I
would request that you file the Letter Agreement with the Nampa Agreement that was
approved in the IPC-E-03-10 case. In addition, I would appreciate it if you would return a
stamped copy of this transmittal letter to me in the enclosed self-addressed stamped
P,O, Box 70 (83707)
1221 W Idaho St,
Boise. ID 83702
Jean Jewell
June 9,2008
Page 2
envelope. It is not Idaho Power Company's intention to file an application with the
Commission and open a new docket for a contract change that is in the nature of a
housekeeping matter. Of course, if the Commission desires that Idaho Power make a
separate filing to present this amendment, the Company is certainly willng to do so.
Ifthe Commission has any questions regarding this matter, please do not hesitate to
contact me.
Very truly yours,
~~mr¿~~
Enclosure
cc: Scott Woodbury - w/encl.
Joe Huff - w/encl.
Jim Hovda - w/encl.
Mike Pohanka - w/encl.
Ric Gale - w/encl.
Tim Tatum - w/encl.
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esIDA~POR~
An IDACORP Company
JOHNR.GALE
Vic Preident, Regulatry Affirs
May 6, 2008
Mr. Joe Huff
Vice President and Chief Operating Ofcer
The Amalgamated Sugar Company, LLC
3184 Elder Street
Boise, ID 83705
RE: Amendments to October 2, 2003 Nampa Agreement
TASCO and Idaho Power Company
Dear Mr. Huff:
The Agreement for Sale and Purchase of Surplus Energy between Idaho Power Company
("Idaho Powet') and The Amalgamated Sugar Company ("TASCO") dated October 2, 2003 ("the
Nampa Agreement") defines an arrangement under which Idaho Power agrees to purchase from
TASCQ surplus energy not otherwise consumed at its Nampa, Idaho facility.
The Idaho Public Utilities Commission, through Order No. 30508 authorized the
terminê:ion of all Uniform Service Agreements between Idaho Power and its customers effective
March 1, 2008. As a result, it is necessary to amend the Nampa Agreement to remove all
references to the Uniform Service Agreement and instead reference only the Agreement for
Supply of Standby Electric Service between Idaho Power and TASCO dated December 7, 2005 as
amended by the Letter Agreements dated January 31, 2007 and May 6, 2008. Furthermore, it is
also necessary to terminate Amendment 1 to the Uniform Service Agreement between Idaho
Power and TASCO dated September 15, 2004 and incorporate the provisions of Amendment 1
into the Nampa Agreement. The Nampa Agreement is to be amended as follows:
1. Section C wil be amended to read:
T ASCO currently purchases standby electric service for the Nampa
Plant from Idaho Power under the Agreement for Supply of Standby
Electric Service Between Idaho Power Company and The Amalgamated
Sugar Company, LLC dated December 7, 2005 as amended by the
Letter Agreement dated January 31, 2007 and the Letter Agreement
dated May 6, 2008 (Standby Agreement).
in lieu of
T ASCO currently purchases standby electric service for the Nampa
Plant from Idaho Power under the Agreement for Supply of Standby
Electric Service Between Idaho Power Company and The Amalgamated
Sugar Company, LLC dated April 6, 1998 (Standby Agreement).
2. The current Section 1.14 wil be amended to read:liT otal Contract Demand" is measured at the Point of Delivery and
means the sum of the Standby Facilities Contract Demand and the
Supplementary Contract Demand as specified in the Standby
Agreement.
in lieu of
liT otal Contract Demand" is measured at the Point of Delivery and
means the sum of the Standby Facilities Contract Demand as specified
in the Standby Agreement and the KVA of demand specified in the
Uniform Large Power Service Agreements (Schedule 19 Agreements).
3. Section 4.5 wil be added and wil read:
During the term of this Agreement, TASCa's minimum monthly Basic
Load Capacity ("BLC") under Schedule 1.9 will be equal to the
Supplementary Contract Demand as specified in the Standby
Agreement. The minimum monthly BLC wil be billed to TASCa at the
rates in effect under the then-current Schedule 19. When the Agreement
is terminated, TASCa's minimum monthly 6LC wil no longer be fixed
but wil revert to the conditions specified in the then-current Schedule
19.
If you approve of the foregoing amendments to the October 2, 2003 Nampa Agreement,
please indicate your acceptance in the space provided below, retain one copy of this Letter
Agreement and return a copy to Idaho Power.
Cordially,
/~It tJdJohn R. Gale
JRG:ma
Enclosure
C: Ray Arp, TASCa
Mike Pohanka
Tim Tatum
THE ABOVE LETTER AGREEMENT READ,
UNDERSTOOD, AND AGREED TO:
Date: Mat 15 2~
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