ICIP_Statement of Position.doc

Peter J. Richardson ISB # 3195
Richardson & O’Leary PLLC
99 East State Street, Suite 200
P.O. Box 1849
Eagle, Idaho 83616
Telephone: [phone]
Fax: [phone]

Attorneys for Industrial Customers of
Idaho Power

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

position statement of the industrial customers of idaho power
COMES NOW the Industrial Customers of Idaho Power by and through its attorney of record, Peter J. Richardson, and pursuant to direction from the Chairman of this proceeding from the bench, hereby lodges its position statement with the Commission.
In Comments filed in Case No. IPC-E-01-10, the ICIP made its position clear as to the prudence of entering into a fixed rate two year contract with Astaris. In those comments the ICIP stated as follows:
It is not apparent to the ICIP that Idaho Power’s application must be approved within the seven days allowed by the Commission [for comment]. Unlike the irrigation buy back program, Idaho Power has not articulated any reason why the Astaris deal must be approved on an emergency basis. It is a long-term contract that locks Idaho Power into paying TODAY’S forward market prices for two full years.
As can be seen, the ICIP counseled the Commission against approving a two-year contract that locked Idaho Power into purchasing high priced power for two years. The ICIP further advised the Commission that the prudent course of action would be to require Idaho Power to put the curtailment offer out to bid in order to identify the true clearing price for such an opportunity:
It is clearly inequitable for Idaho Power to require other industrial customers to bid against each other for curtailment opportunities at fifty percent of market prices while not applying the same free market discipline to Astaris.
The sole reason the ICIP made its concerns known at that time was because as, observed above, the deal is “a long-term contract that locks Idaho Power into paying TODAY’S forward market prices for two years.” The ICIP believes a contract is a contract and that the very foundation of our economic system is dependent upon contracts being honored by all parties to them.
As to ratepayer recovery of the costs of the Astaris contract, our position was clearly
articulated in our prior comments where we stated:
We urge the Commission to critically examine the costs (including the costs of the derivative) of the Astaris deal for prudency. This prudency review can take place now, during an interim approval period, or at the time Idaho Power seeks to recover its costs through the PCA. Regardless, however, the ratepayers must be assured that any costs they are asked to bear as a result of this agreement are prudent.
The ICIP’s position has not changed since lodging its prior comments.
DATED this 4th day of March, 2002.

Richardson & O’Leary P.L.L.C.

By
Peter J. Richardson
Attorneys for Industrial Customers of
Idaho Power

3
Statement of Position of the ICIP
Boise

Statement of Position of the ICIP

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