20040722Notice of Application.pdf

GUice of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
July 22, 2004
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMP ANY FOR APPROVAL
OF AN AGREEMENT FOR ELECTRIC
SERVICE BETWEEN IDAHO POWER
COMP ANY AND THE J.R. SIMPLOT COMPANY.
CASE NO. IPC-O4-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF COMMENT/
PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on July 2, 2004, Idaho Power Company (Idaho
Power; Company) filed an Application with the Idaho Public Utilities Commission
(Commission) for approval of an Agreement for Electric Service between Idaho Power and the
R. Simplot Company (Simplot) dated June 29, 2004 (the 2004 Agreement).
Simplot operates a plant for the production of fertilizer near Pocatello, Idaho (the
Pocatello facility). Pursuant to an Agreement for Supply of Power and Energy between Idaho
Power and Simplot dated August 27, 1973 (the 1973 Agreement), Idaho Power supplies electric
service to Simplot's Pocatello facility in accordance with the rates and charges set out in tariff
Schedule 29 and its successor schedules. Since the 1973 Agreement was last renewed, Idaho
Power has revised and updated its contracts for special contract customers like Simplot. In
accordance with ~ 1.1 of the 1973 Agreement, Idaho Power timely notified Simplot in writing of
the Company s intent to terminate the 1973 Agreement effective June 30, 2004.
Pursuant to Commission Order No. 29535 dated June 28, 2004, the termination date
of the 1973 Agreement, as amended, was extended to the earlier of either August 29, 2004 or a
date on which the Commission approves a new service agreement between the parties.
2004 Agreement
Under the terms of the 2004 Agreement, Idaho Power agrees to furnish, and Simplot
agrees to purchase, 25 000 kilowatts of electric power and energy on a monthly basis. Section
1 of the 2004 Agreement permits Simplot to increase the monthly Demand to a maximum
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
000 kilowatts upon one year prior written notice to the Company. (Under the 1973
Agreement, Idaho Power agreed to supply and Simplot agreed to purchase up to 38 000
kilowatts.) The Minimum Billing Demand is the Contract Demand less 5 000 kilowatts. The
availability of power in excess of the Contract Demand is not guaranteed, and if Billing Demand
at the Simplot Facility exceeds the Contract Demand, Idaho Power may curtail service to the
Simplot facility.
Idaho Power states that the 2004 Agreement is similar to the Company s special
contract with Micron Technology. Reference Order No. 26238 November 20, 1995. The
unique provisions of the 2004 Agreement are described below.
Section 8.1 of the 2004 Agreement establishes that the rates and charges for electrical
power energy and other services provided by the Company to the Pocatello facility will be
determined in accordance with the sum of the components of electric tariff Schedule 29 and its
successor schedules. The monthly charges under the 1973 Agreement include a Demand
Charge, an Energy Charge and a Facility Charge. The monthly charges under the 2004
Agreement include the same three charges plus a contract Demand Charge. The individual
component charges for the 2004 Agreement were derived by first establishing the charges
utilizing the 2003 normalized test year revenues and usage for Simplot from Case No. IPC-03-
13 and by adjusting the charges on a uniform percentage basis to derive the revenue requirement
authorized for Simplot by Commission Order No. 29505 in Case No. IPC-03-13. Reference
Worksheets, App. Att. 3.
All transmission and distribution facilities necessary for the delivery of power and
energy to the Pocatello facility are installed, owned and operated by Idaho Power. Section 7 of
the 2004 Agreement permits the parties to enter into separate agreements to provide any
additional transmission and/or substation facilities that may be required to provide electric
service to the Pocatello facility. Section 7.2 of the 2004 Agreement sets forth the monthly
Facilities Charge that Simplot agrees to pay for the use of the Company s distribution facilities.
Under the 2004 Agreement, the monthly Facilities Charge remains unchanged at 1.7% per
month.
If approved by the Commission, the 2004 Agreement would remain in effect for five
years , through June 30, 2009, and would automatically renew thereafter until either party to the
2004 Agreement terminates that Agreement in accordance with the Agreement terms and
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
prOVISIons. The effective date of any termination cannot be less than 12 months after the date of
delivery of the termination notice.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. IPC-04-17. The Commission has preliminarily found that the public
interest in this matter may not require a hearing to consider the issues presented and that issues
raised by the Company s filing may be processed under Modified Procedure, i., by written
submission rather than by hearing.
31.01.01.201-204.
Reference Commission Rules of Procedure IDAP A
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the Application and the Commission s use of Modified Procedure in
Case No. IPC-O4-17 is Friday, August 13, 2004.Persons desiring a hearing must
specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the issue on its merits and enter its
Order without a formal hearing. If comments or protests are filed within the deadline, the
Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter aI!d issue its Order based on the written positions before it. Reference IDAP A
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No.IPC-
04-17 should be mailed to the Commission and the Company at the addresses reflected below.
COMMISSION SECRETARY MONICA MOEN, ATTORNEY II
IDAHO PUBLIC UTILITIES COMMISSION BARTON L KLINE, SR. ATTORNEYPO BOX 83720 IDAHO POWER COMPANY
BOISE, IDAHO 83720-0074 PO BOX 70
BOISE ID 83707-0070
e-mail: bkline~idahopower.com
e-mail: mmoen~idahopower.com
Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983 JOHN R. GALE
, REGULATORY AFFAIRS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
e-mail: rgale((i),idahopower.com
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
All comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application in Case No. IPC-04-
may be viewed at www.puc.state.id.by clicking on "File Room" and "Electric Cases " or can
be viewed during regular business hours at the Idaho Public Utilities Commission, 472 West
Washington Street, Boise, Idaho and at the general business office of Idaho Power Company,
1221 West Idaho Street, Boise, Idaho.
DATED at Boise, Idaho this ;2;(t--l.. day of July 2004.
D. Jewell
ission Secretary
VI dIN :IPCEO41 7
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE