20040503Basin Land Irrigation Comments with Brochure.pdf

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BASIN LAND IRRIG TION COMP _ -- .t_ �- - RI c. A , ANY , __ .. _ · ' o ,.,, .. . .. \,...-cpt .. i RE'.Ctf�ED 0 u
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IDAHH PUBUC UHUTlES COMMIS.SlON April 29, 2004
v'Paul Kjellander Marsha H. Smith Dennis S. Hansen Idaho Public Utilities Corn.mission P.O. Box 83720 Boise, Idaho 83720-0074
Dear Commissioners:
Basin Land Irrigation Company first brought water from the Snake River to the Dry Lake area south of Nampa in the spring of 1963. I presently serve as president of the company and am one of the farmers who uses the irrigation water. My name is Steve .. Moody of Moody Farms.
All of the other Dry Lake irrigation projects were put in during the same time period as Basin Land and were in large part the result of a huge lobbying effort by Idaho Power to find summer users for its unused seasonal power. We have included a booklet compiled and distributed by Idaho Power in 1964.
These river stations represented then and yet today opportunities for Idaho Power to deliver large amounts of power to single locations for very low "costs of service." Once the water reaches the canal system 500 feet above the river, Idaho Power gets another energy sale from large pumps at diversion points along the canals.
These projects are not difficult or expensive for Idaho Power to service. We have not added any additional acres or pumping equipment during the last 38 years. We are not the cause of the huge need for new power. We are good stewards of the water we pump and are constantly trying to improve our efficiency in the use of both water and electricity.
In addition to the Idaho Power booklet we are submitting two attachments. Attachment 1 is a cost comparison sheet using Basin Land's power usage for year 2000 as its basis. Year 2000 was the last year of traditional rates before the energy crisis of 2001 which caused rates for 2001, 2002 and 2003 to skyrocket. We have compared our costs of year 2000 against costs for year 2000 kwh usage calculated with rates from
217 West Georgia Avenue
Nampa, Idaho 83686
proposals for 2004 (one by the PUC Staff and the other by Idaho Power) and also using the rates of 2003 (that being the last of the 3 years of exceptionally high rates). Attaclunent 2 is a table ofldaho Power rates (established and proposed) which were used for the calculations in Attachment 1 .
It is easy to see by the final percentages on the bottom of Attaclunent 1 that Idaho Power's request for a general base rate increase coupled with the proposed reduction of 15% on the Power Cost Adjustment (PCA) is still higher than the skyrocketed rate of 2003.
This reminds one of the old "cost of a loaf of bread" story where wheat prices skyrocket out of sight for a season and the bakers raise the price of bread to compensate for it. However, when the price of wheat comes down the next season to its previous level - the price of the loaf of bread remains the same. The underlying philosophy is that once the consumer has been conditioned to the pain of increased price - keep it there.
Energy. is a huge portion of our budgets as pumpers. We've struggled through the past three years of extremely high rates with the understanding that we'd get back pretty close to where we were before the 2001 crisis. Even the lesser figures of the PUC Staff are way beyond where we should be.
We urge you to cut back severely the proposed rates set forth by the PUC Staff and Idaho Power.
Attachment 1
BASIN LAND IRRIGATION CO.
Year 2000 Rates Compared to 2003 and Proposed 2004 Rates
PROPOSED RATES
Year 2000 Rates PUC Staff 2004 Idaho Power 2004 Year 2003 Rates
IN-SEASON
KWH 6,528,000 6,528,000 6,528,000 6,528,000
x .029135 x .038058 x.037862 x.041575
Total$ KWH 190, 193.28 248,442.62 247,163.14 271,401.60
Demand 13, 152 13, 152 13,152 13, 152
x 3.58 x4.00 x 5.40 ,, x 3.58
Total $ Demand 47,084.16 52,608.00 71,020.80 47,084.16
Total$ KWH 190, 193.28 248,442.62 247,163.14 271,401.60
237,277.44 301,050.62 318,183.94 318,485.76
Increase over 2000 26.9% 34.1% 34.2%
OUT-OF-SEASON
KWH 1,603,200 1,603,200 . 1,603,200 1,603,200
x.036891 x.038058 x .050959 x.049331
Total$ KWH 59, 143.65 61,014.59 81,694.26 79,087.46
Demand 6,720 6,720 6,720 6,720
x O x.80 x O x O
Total$ Demand 0.00 5,376.00 0.00 0.00
Total$ KWH 59, 143.65 61,014.59 81,697.47 79,087.46
59, 143.65 66,390.59 81,697.47 79,087.46
Increase over 2000 12.3% 38.1% 33.7%
TOTAL SEASON
Total - In 237,277.44 301,050.62 318,183.94 318,485.76
Total - Out 59, 143.65 66,390.59 81,697.47 79,087.46
296,421.09 367,441.21 399,881.41 397,573.22
Increase over 2000 24.0% 34.9% 34.1%
Attachment 2
Idaho Power Rates
Proeosed PUC Idaho Staff Power 2000 2001 2002 2003 2004 2004 In-Season Demand 3.58 3.58 3.58 3.58 4.00 5.40 Base Rate .028416 .028416 .028416 .028416 .032830 .032634 *** Power Cost Adj .000719 .013415 .. 013415 .013159 .005228 * .005228 Total .029135 .041831 .041831 .041575 .038058 .037862
Out-of-Season Demand 0 0 0 0 0.80 0 Base Rate .036172 .036172 .036172 .036172 .032830 .045731
**** Power Cost Adj .000719 .017241 ** .013415 .013159 .005228 .005228 Total .036891 .053413 .049587 .049331 .038058 .050959
* The Proposed Power Cost Adjustment rate by the PUC Staff has not yet been presented to the commission at this time, so the same rate as requested by Idaho Power was used.
** Year 2001 Out-of-Season PCA was .013415 from May 1 , 2001, until October 1, 2001, when it changed to .017241.
*** For simplicity sake the current year In-Season PCA rates were used for all In-Season months (May, June, July and August) although May is usually a mixture of previous year and current year rates.
**** For simplicity sake the current year Out-of-Season PCA rates were used for all Out-of-Season months (March, Apirl, September, October and November) although March and April fall under the previous year PCA rates.
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F O R E W O R D
History of the Snake River Valley's economic growth is synony­ mous with the development of land through irrigation. Early irrigation was accomplished by diverting water from rivers and streams, utilizing natural forces of gravity to carry water onto thousands of acres of Idaho's rich desert lands and creating in the Snake River Valley one of the largest and most productive irrigation developments in the world. A generation ago, with the opportunities for sound economic development of large scale gravity projects virtually exhausted, a significant change occurred in new land reclamation methods. Vision­ ary men sank deep wells, tapping underground water to reclaim vast acreages where gravity systems were either impractical or impossible. Thus began a second phase of Idaho's growth . . . an ingenious and enormous land development that in less than 20 years has added over a million new acres under cultivation. It is an expansion which has been accomplished by individual enterprise without federal aid, and no tax dollar obligation. This growth has outstripped any federal reclamation project in America, including the famed Columbia Basin project in Washington. Millions more virgin acres wait only for the magic of irrigation. Continued expansion of any magnitude in the Snake River Valley will be accomplished only by pumping. Ample surface and under­ ground water is available, and low cost, investor-owned power stands ready to pump it. Future orderly development, coincident with eco­ nomic factors which justify land expansion, hinges on the encour­ agement Idaho and the nation provides for individual enterprise to create new agricultural wealth from Idaho's large areas of virgin desert lands. This booklet discusses many little-known facts about the rapid \ development of this new-method concept in desert land reclamation and includes observations by some of the men who have played a vital role in its development.
Compiled and presented by
IDAHO POWER COMPANY
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