20041105Industrial Customers Comments.pdf

Peter Richardson
RICHARDSON AND OLEARY
PO Box 1849
99 East State Street
Eagle, Idaho 83616
peter(iijrichardsonandoleary.com
Attorneys for the Industrial Customers of Idaho Power
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ORDER APPROVING THE COSTS TO BE
INCLUDED IN THE 2002/2003 PCA YEAR
FOR THE IRRIGATION LOAD REDUCTION
PROGRAM AND ASTARIS LOAD REDUCTION AGREEMENT
l\r.Lt.!Vr.f!J
. ;L,
l, PJr' n
! -
(11' ", t n.
...' " ,
, i
, ..
i ,
" j, '
-' I U ::
-' ,- , ;
rlLI TIES COf"'
~!"
lISSI0N
CASE NO. IPC-01-
COMMENTS OF THE
INDUSTRIAL
CUSTOMERS OF
IDAHO POWER
COMES NOW, the Industrial Customers of Idaho Power ("ICIP" or "Industrial
Customers ), by and through its attorney of record, Peter J. Richardson, and pursuant to
Order No 29612 that was issued in the above docket by the Idaho Public Utilities
Commission ("Commission ) on October 15, 2004 and hereby offers the following
Comments:
NO PRECEDENT
The ICIP generally opposes the recovery of lost revenues for utilities engaged in
conservation and other demand reduction activities. While the Commission is mandated
in this case to allow such recovery by order of the Idaho Supreme Court, the Commission
should make clear that its decision in this case is limited to the unique facts presented by
the irrigation load buy back program.
II.
CLOSE SCRUTINY REQURED
Because of the unique facts surrounding the energy crisis of 2000/200 1 this
Commission allowed the construction of, and ultimately ratebase treatment for the
Danskin plant - at a significant cost to the ratepayers. At the same time Idaho Power was
constructing Danskin it was engaged in an aggressive buy back program from the
irrigation class. Although, the ICIP recognizes the Commission finds itself in a catch-
situation relative to the prudence of the irrigation buy back program, the ICIP respectfully
asserts that the Company has already been made whole through the recovery of all of its
direct costs associated with that program. Because the Company has already been made
whole through the recovery of all of its direct costs associated with the irrigation buy
back program, recovery of additional funds would essentially place the entire burden of
the energy crisis (the ten percent PCA share notwithstanding) on the backs of Idaho
Power s ratepayers.
Because all direct costs have been recovered, the lost revenue associated with the
buy back program should be discounted to take into account the fact that the Company
incurred no costs associated with the purported lost revenue amount of approximately
$12 million. This netting of costs should take into account the effects of the PCA on
recovery of the Company s variable power supply costs.
Modified procedure is not the appropriate venue for making detailed findings of
fact relative to the magnitude of the dollars that the Company saved as a result of the
irrigation buy back program.
CERTIFICATE OF SERVICE
I hereby certify that the foregoing COMMENTS OF THE INDUSTRIAL
CUSTOMERS OF IDAHO in Case No. IPC-01-34 were hand delivered to the IPUC
offices and mailed, postage prepaid, to all parties of record in this matter who are listed
on the attached service list.
~;SPectfull .7 Q f November 2
Peter Richardson, attorney for
Industrial Customers of Idaho Power
-' .,.-.
IDAHO POWER COMPANY
IPC-E-Ol-34 / ON REMAND
PARTIES OF RECORD
LARRY D RI PLEY
SENIOR ATTORNEY
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
ANTHONY YANKEL
29814 LAKE RD
BAY VILLAGE OH 44140
. J
MAGGIE BRILZ
DIRECTOR OF PRICING
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
RANDALL C BUDGE
RACINE OLSON NYE ET AL
PO BOX 1391
POCATELLO ID 83204-1391
CONLEY WARD
IVENS PURSLEY LLP
PO BOX 2720
BOISE ID 83701-2720
'I
...,