HomeMy WebLinkAbout20051209Application.pdfIDAHO POWER COMPANY
O. BOX 70
BOISE. IDAHO 83707
BARTON L. KLINE
Senior Attorney
An IDACORP Company
December 9 2005
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074
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Re:Case No. IPC-
Application For Approval of A Contract
To Supply Standby Electric Service To
The Amalgamated Sugar Company, LLC
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Dear Ms. Jewell:
Please find enclosed for filing an original and seven (7) copies of Idaho
Power Company s Application for approval of a contract to supply standby electric
service to The Amalgamated Sugar Company, LLC.
I would appreciate it if you would return a stamped copy of this transmittal
letter in the enclosed self-addressed , stamped envelope.
(Jj;iJLBarton L. Kline
BLK:jb
Enclosures
Telephone (208) 388-2682 Fax (208) 388-6936 E-mail BKline(jj)idahopower.com
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BARTON L. KLINE, ISB # 1526
MONICA B. MOEN , ISB # 5734
Idaho Power Company
1221 West Idaho Street
P. O. Box 70
Boise, Idaho 83707
Telephone: (208) 388-2682
FAX Telephone: (208) 388-6936
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Attorney for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR APPROVAL)
OF A CONTRACT TO SUPPLY STANDBY
ELECTRIC SERVICE TO THE
AMALGAMATED SUGAR COMPANY, LLC
CASE NO. IPC-05-:r7
APPLICA TION
COMES NOW Idaho Power Company, and hereby requests that the
Commission issue its Order approving the Agreement For Supply of Standby Service
between Idaho Power Company ("Idaho Power" or the "Company ) and The
Amalgamated Sugar Company ("TASCO") dated December 7 2005 , under which Idaho
Power will supply standby service to TASCO ("the Standby Agreement"
).
The Standby
Agreement is attached hereto as Attachment 1. This Application is based on the
following:
Idaho Power provides electric service to T ASCO'refined sugar
production facilities at Nampa, Paul , and Twin Falls, Idaho under Idaho Power
Schedule 19 and to TASCO's refined sugar production facility at Nyssa, Oregon , under
APPLICATION , Page
Idaho Power s Oregon Schedule 19. T ASCO owns and operates electric generation
facilities at these refined sugar production facilities and utilizes electricity generated
from those facilities to supply a portion of its electric loads. Idaho Power s service under
Schedule 19 supplements the energy obtained from T ASCO's on-site generation.
T ASCO currently purchases standby service from Idaho Power under an
Agreement For Supply of Standby Service between Idaho Power and T ASCO ("the
1998 Standby Agreement") dated April 6, 1998 to backup T ASCO's on-site generation.
The Standby Agreement will replace the 1998 Standby Agreement
II.
Idaho Power and T ASCO executed a Letter Agreement dated September
2004 through which the parties agreed to minor language changes to the 1998
Standby Agreement to reflect changes to Schedule 19 approved by the Commission in
Order No. 29505 (Case No. IPC-03-13). For the convenience of the Commission
review, a copy of the Letter Agreement and a copy of the 1998 Standby Agreement are
included as Attachments 2 and 3.
III.
Changes in TASCO'operation of the Nyssa, Oregon facility have
reduced the amount of supplemental energy required by T ASCO from Idaho Power to
operate the production facility. According to the service eligibility provisions of Schedule
, TASCO's Nyssa facility will no longer be eligible for service under Schedule 19
beginning in January 2006. The terms of the 1998 Standby Agreement, as modified by
the Letter Agreement, specify that the 1998 Standby Agreement shall be canceled upon
APPLICATION , Page 2
the transfer of service for any of the four (4) TASCO facilities from Schedule 19 to any
other Idaho Power Company general service schedule or special contract
IV.
T ASCO has requested that Idaho Power continue to provide standby
service for the Nampa, Paul, and Twin Falls , Idaho refined sugar production facilities;
T ASCO has requested that standby service no longer be provided to the Nyssa, Oregon
facility.
The Standby Agreement filed herewith contains the same service
provisions and requirements as the 1998 Standby Agreement with the exception that
the total amount of standby generation available to TASCO during the fall and winter
months has been reduced from 4 000 kW to 3 000 kW to accommodate TASCO'
current standby service requirements. In addition , minor language revisions have been
made to remove references to T ASCO's Nyssa facility. T ASCO will continue to pay the
standby charges specified on Tariff Schedule 31 as approved by the Commission.
addition , T ASCO will continue to pay all costs of supplying, installing, operating and
maintaining standby facilities to allow Idaho Power to supply standby service to the
ASCO Facilities.
VI.
It is requested that copies of all pleadings regarding this Application be
mailed to T ASCO and Idaho Power at the following addresses:
APPLICATION , Page 3
Barton L. Kline, Senior Attorney
Idaho Power Company
O. Box 70
Boise , Idaho 83707
Maggie Brilz, Pricing Director
Idaho Power Company
P. O. Box 70
Boise, Idaho 83707
K. Pete Chertudi
Sr. Vice President and
Chief Operating Officer
The Amalgamated Sugar Company
3184 Elder Street
Boise , Idaho 83705
Ray Arp
Corporate Electrical Engineer
The Amalgamated Sugar Company
3184 Elder Street
Boise, Idaho 83705
VII.
Idaho Power believes that the Standby Agreement continues to take into
account the unique operating characteristics of TASCO'refined sugar production
facilities, to be beneficial to Idaho Power s other existing customers , and to be in the
public interest Idaho Power therefore requests that the Commission issue its order
approving the Standby Agreement.
DATED at Boise , Idaho, this 9th day of December, 2005.
BARTON L. KLINE
Attorney for Idaho Power Company
APPLICATION , Page 4
TT CHMENT
AGREEMENT FOR SUPPLY OF STANDBY ELECTRIC SERVICE
BETWEEN
IDAHO POWER COMPANY
AND
THE AMALGAMATED SUGAR COMPANY, LLC
THIS AGREEMENT is entered into on this '1+0 day of Dr;;c.G1V/ F36-A..2005
by The Amalgamated Sugar Company, LLC , a Delaware Limited Liability Company
authorized to do business in the State of Idaho ("TASCa"), and Idaho Power Company,
an Idaho corporation ("Idaho Power" or "Company
).
TASCO and Idaho Power are
hereinafter sometimes referred to collectively as "Parties" or individually as "Party.
RECITALS
Idaho Power provides electric service to TASCO's refined sugar
production facilities at Nampa , Paul , and Twin Falls , Idaho, under Idaho Power
Schedule 19. Idaho Power s service under Schedule 19 supplements T ASCO's own
electric generation.
ASCO owns and operates electric generation facilities at its refined
sugar production facilities and carries a portion of its electric loads with its own
generation.
ASCO currently purchases standby service from Idaho Power under an
Agreement for Supply of Standby Electric Service Between Idaho Power Company and
The Amalgamated Sugar Company, LLC dated April 6, 1998.
Page
TAsca desires to obtain standby service on a uniform basis for all three
(3) TASCa Facilities.
Idaho Power is willing to provide standby service at all three (3) TASCa
Facilities in accordance with the provisions of this Agreement and Schedule 31.
In consideration of the mutual covenants hereinafter set forth and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged , the Parties agree as follows:
SECTION 1 -- PRIOR AGREEMENT
This Agreement replaces the Agreement for Supply of Standby Electric
Service Between the Parties dated April 6 , 1998 as amended by the Letter Agreement
between the Parties dated September 27, 2004.
SECTION 2 -- DEFINITIONS
When used in this Agreement, the Capitalized Terms shall have the following
meanings:
Commission" means the Idaho Public Utilities Commission or its
respective successor agency.
Excess Demand" means the average kW supplied during the 15-
consecutive-minute period of maximum use each day, adjusted for power factor, which
exceeds the Total Contract Demand or the Standby Contract Demand.
Nampa Facility" means TASCO's refined sugar production facilities
located at Nampa, Idaho.
2.4 Paul Facility" means TASCO's refined sugar production facilities located
at Paul , Idaho.
Page 2
Prudent Electrical Practices" means those practices, methods and
equipment that are commonly and ordinarily used in electrical engineering and utility
operation to operate electrical equipment and deliver electric power and energy with
safety, dependability, efficiency and economy.
Schedule 31" means the TASCO standby service tariff schedule of rates
and charges or its successor schedule(s).
Standby Billing Demand" means the total average kW supplied to a
TASCO Facility during the 15-consecutive-minute period of maximum use during the
billing period, adjusted for power factor, less the Supplementary Billing Demand , but
not less than zero nor more than the Standby Contract Demand. Standby Billing
Demand will not be included in the calculation of Basic Load Capacity for Schedule 19
billing purposes.
Standby Contract Demand" means the kilowatts (kW) of Standby
Demand specified in Paragraph 4.1 that Idaho Power agrees to make available to the
TASCO Facilities.
Standby Demand" means the firm electric power and energy supplied by
Idaho Power to back up T ASCO's own on-site generation when that generation is
curtailed for any reason.
10 "Standby Facilities" means the substation and primary distribution
facilities plus all other facilities which are reasonably required by Prudent Electrical
Practices and the National Electric Safety Code to allow Idaho Power to provide
standby service to TASCa's Facilities.
Page 3
Standby Facilities Contract Demand" means the kW of demand specified
in Paragraph 4.2 that Idaho Power agrees to make available in its substation and
primary distribution facilities to deliver Standby Demand.
12 "Summer Months" means the calendar months of April through August.
13 "Supplementary Billing Demand" means the individual amounts of firm
power supplied by Idaho Power on a continuous basis to each of the three TASCa
Facilities to supplement TASCO's own generation. Supplementary Billing Demand for
each TASCa Facility is equal to the total average kW supplied during the 15-
consecutive-minute period of maximum use during the billing period , adjusted for power
factor, but not less than the minimum Billing Demand under the provisions of
Schedule 19 nor greater than the Supplementary Contract Demand for each TASCa
Facility. Supplementary Billing Demand is billed monthly under the Demand Charge
provisions of Schedule 19.
14 "Supplementary Contract Demand" means the individual amounts of firm
power TAsca has contracted to purchase under the Uniform Service Agreement for
each of the three TASCa Facilities to supplement TASCa's own generation.
15 "TASCO Facilities" means the Nampa Facility, Twin Falls Facility, and
Paul Facility collectively.
16 "Total Contract Demand" means the sum of the Supplementary Contract
Demand and the Standby Contract Demand for each of the TASCa Facilities.
17 "Total Energy Requirement" means the total energy supplied to a T ASCO
Facility by Idaho Power for both supplementary and standby purposes. The Total
Page 4
Energy Requirement is billed monthly under the energy charge provisions of
Schedule 19.
18 "Twin Falls Facility" means TASCO's refined sugar production facilities
located at Twin Falls, Idaho.
19 "Winter Months" means the calendar months of September through
March.
SECTION 3 -- TERM AND TERMINATION
Initiation of Services. The scheduled initial date of standby service under
this Agreement is January 1 , 2006.
Term of Aareement.The term of this Agreement shall be for one (1) year
from and after January 1 , 2006 and will automatically renew and extend each year
thereafter unless written notice of termination is given by either Party to the other not
less than twelve (12) months prior to the desired termination date. Unless otherwise
agreed by the Parties, this Agreement and Schedule 31 will automatically be canceled
upon the transfer of service, voluntarily or otherwise, for any of the three (3) TASCO
Facilities from Schedule 19 to any other Idaho Power Company general service
schedule or special contract.
SECTION 4 -- SUPPLY OF DEMAND AND ENERGY
Standby Supply Obliaation. Idaho Power will make available and TASCO
will purchase 3 000 kW of Standby Contract Demand during the winter months. Idaho
Power will not make available and TASCO will not purchase Standby Contract Demand
during the summer months. Standby Contract Demand will be purchased on a "take or
pay" basis. TASCO will be permitted to utilize Standby Demand and energy at any
Page 5
single TASCa Facility or any combination of the TASCa Facilities so long as the total
Standby Demand consumed at any time does not exceed 3 000 kW.
Standby Facilities Contract Demand. Idaho Power will make available
and TASCa will purchase Standby Facilities Contract Demand at each of the TASCa
Facilities in the amounts specified below. Standby Facilities Contract Demand will be
purchased on a "take or pay" basis. Standby Facilities Contract Demand will be billed
each month.
Nampa Facility 000 kW
Paul Facility 000 kW
Twin Falls Facility 000 kW
Limitation on Use of Supplementary Service. Except for those periods of
time when Idaho Power is unable to deliver energy to a TASCO Facility, Standby
service under this Agreement will be the sole source of demand and energy to supply
those TASCO Facility loads that are ordinarily served by TASCa's generation. TASCO
will not utilize Supplementary demand or energy to supply loads at the TASCa
Facilities that would otherwise be supplied by TASCa's generation or Standby service
under this Agreement.
4.4 The availability of power in excess of the Total Contract Demand is not
guaranteed , and if TASCO's load exceeds the kW amounts specified below, Idaho
Power may curtail service to that Facility.
Nampa Facility 500 kW
Paul Facility 000 kW
500 kWTwin Falls Facility
Page 6
Idaho Power reserves the right to install , at any time, at TASCa'
expense, any device necessary to protect Idaho Power s system from damage which
may be caused by actual loads at any of the TASCO Facilities exceeding the Total
Contract Demand for that Facility. .
SECTION 5 -- CHARGES TO BE PAID BY TASCO
TO IDAHO POWER
Rates and CharQes. The rates and charges for electrical power, energy
and other services provided by Idaho Power to the TASCO Facilities will be identified
by component in Schedule 31. The total amount to be paid monthly by TASCa to
Idaho Power for Standby Demand and energy made available or supplied to the
TAsca Facilities will be the sum of components identified in Schedule 31.
Monthly BiliinQ. Billing for service under this Agreement will be on a
calendar month basis.
SECTION 6 -- COMMISSION JURISDICTION
Except as otherwise specifically modified by this Agreement, the provisions
contained in the Company s Schedule 19, and any revisions to those schedules and/or
any successor schedules are to be considered as part of this Agreement.
SECTION 7 -- STANDBY FACILITY OPERATIONS
TASCO will pay all costs of supplying, installing, operating and
maintaining Standby Facilities to allow Idaho Power to supply standby service to the
TAsca Facilities. The costs of such Standby Facilities will be included in the
Distribution Facilities Investment Report currently provided to TASCO under the
provisions of Schedule 19.
Page 7
SECTION 8 -- MISCELLANEOUS PROVISIONS
Indemnification.ASCO agrees to hold harmless and indemnify Idaho
Power, its officers, agents, and employees, against all loss, damage, expense and
liability to third persons or injury to or death of person or injury to property proximately
caused by TASCO's construction , operation or maintenance of, or by failure of, any of
TASCO's generating facilities or interconnection facilities owned by TASCa.
ReQulatorv Requirements. This Agreement and the rates, terms and
conditions of service set forth in Schedule 31 or incorporated herein, and the
respective rights and obligations of the Parties hereunder, will be subject to valid laws
and to the regulatory authority and orders, rules and regulations of the Commission and
such other administrative bodies having jurisdiction.
Commission Jurisdiction . Nothing herein will be construed as limiting the
Commission from changing any rates , charges, classification or service, or any rules
regulation or conditions relating to service under Schedule 31 or this Agreement, or
construed as affecting the right of Idaho Power or T ASCO to unilaterally make
application to the Commission for any such change.
8.4 Attorney s Fees . In any action at law or equity commenced under this
Agreement and upon which judgment is rendered , the prevailing party, as part of such
judgment, will be entitled to recover all costs , including reasonable attorney s fees
incurred on account of such action.
Page 8
IDAHO POWER COMPANY
RREN KLINE
Vice President, Customer Service and Regional Operations
THE AMALGAMATED SUGAR COMPANY, LLC
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By 0 \ 1b
,;
K. Pete Chertudi u
Sr. Vice President and Chief Operating Officer
Page 9
TT CHMENT 2
t=R IDAHO POWER COMPANY
O. BOX 70
BOISE, IDAHO 83707
An IDACORP Company
JOHN R. GALE
Vice President
Regulatory Affairs
(208) 388-2887
FAX (208) 388.fj449
MAIL rgale(g')idahopower.com
September 27 , 2004
Mr. Edward G. Bulgin, P. E.
Corporate Chief Engineer
Director of Environmental Affairs
The Amalgamated Sugar Company, LLC
O. Box 8787
Nampa, Idaho 83653
RE:Standby Electric Service Agreement between
Idaho Power and TASCO , LLC
Dear Mr. Bulgin:
The Agreement for Supply of Standby Electric Service between Idaho Power
Company and The Amalgamated Sugar Company, LLC dated April 6 , 1998 ("the
Agreement") provides up to four megawatts of standby service on a uniform basis to your
Nampa , Twin Falls, and Paul facilities in Idaho and your Nyssa facility in Oregon.
As a result of Order No. 29505 issued by the Idaho Public Utilities Commission ("the
Commission ) in Case No. IPC-03~13, which approved changes in terminology for Idaho
Power Company s Schedule 19, Large Power Service, it is necessary to amend the
Agreement to conform to the revised terminology. In addition, it is my understanding that
you desire 13 000 kilowatts of Total Contract Demand at the Paul facility rather than the
000 kilowatts currently specified in the Agreement.
Accordingly, the Agreement is to be amended as follows:
Paragraph 2.will be amended to read Supplementary Billing
Demand" in lieu of Supplemental Billing Demand".
The language in Paragraph 2.15 will be deleted and the following
substituted in its place:
Supplementary Contract Demand" means the individual
amounts of firm power T ASCO has contracted to purchase under the
Uniform Service Agreement for the Nampa, Twin Falls, and Paul
Facilities and the Uniform Large Power Service Agreement for the
Nyssa Facility.
TAsca Letter
September 24, 2004
Page -
The existing Paragraph 3.will be deleted and the following
substituted in its place:
The term of this Agreement shall be for one (1) year from and
after September , 1998 and will automatically renew and extend each
year thereafter unless written notice of termination is given by either
Party to the other not less than twelve (12) months prior to the desired
termination date. Unless otherwise agreed by the Parties, this
Agreement and Schedule 31 will automatically be canceled upon the
transfer of service for any of the four (4) TASCa Facilities from
Schedule 19 to any other Idaho Power Company general service
schedule or special contract."
Paragraph 4.4 will be amended to read:
Paul Facility 13 000 kW'
in lieu of
Paul Facility 10,000 kW'
If the foregoing accurately portrays the agreement of our two companies, please
execute all three copies of this Letter Agreement in the space provided below and return two
copies to me. Upon receipt of the executed letter, Idaho Power will file this agreement with
the Commission , requesting the Commission s approval.
JRG:ma
Cordially,
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John R. Gale
2004
By:
Its: ~
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TT CHMENT 3
AGREEMENT FOR SUPPLY OF STANDBY ELECTRIC SERVICE
BETWEEN
IDAHO POWER COMPANY
AND
THE AMALGAMATED SUGAR COMPANY, LLC
THIS AGREEMENT is entered into on this day of /J IJA. . 1998
by The Amalgamated Sugar Company, LLC , a Delaware Limited Liability Company
authorized to do business in the State of Idaho ("TASCO"), and Idaho Power Company,
an Idaho corporation ("Idaho Power" or "Company
).
TASCO and Idaho Power are
hereinafter sometimes referred to collectively as "Parties" or individually as "Party.
RECITALS
Idaho Power provides electric service to TASCO's refined sugar
production facilities at Nampa , Paul , and Twin Falls , Idaho, under Idaho Power s Idaho
Schedule 19 , and to TASCO's refined sugar production facility at Nyssa , Oregon under
Idaho Power s Oregon Schedule 19. Idaho Power s service under Schedule 19
supplements TASCO's own electric generation.
ASCO owns and operates electric generation facilities at its refined
sugar production facilities and carries a portion of its electric loads with its own
generation.
ASCO currently purchases standby service from Idaho Power under
Idaho Schedule 45 to back up TASCO's generating facilities at the Paul Facility.
ASCO desires to obtain standby service on a uniform basis for all four
(4) TASCO Facilities.
Page 1
.-...
Idaho Power is willing to provide standby service at all four (4) TASCO
Facilities in accordance with the provisions of this Agreement and Schedule 31.
In consideration of the mutual covenants hereinafter set forth and other good
and valuable consideration , and the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:
SECTION 1 -- PRIOR AGREEMENT
This Agreement replaces the Uniform Standby Service Agreement under
Idaho Power s Schedule 45 for TASCO's Paul Facility.
SECTION 2 -- DEFINITIONS
When used in this Agreement, the Capitalized Terms shall have the following
meanings:
Commission" means the Idaho Public Utilities Commission or the Oregon
Public Utility Commission or their respective successor agencies.
Excess Demand" means the average kW supplied during the 15-
consecutive-minute period of maximum use each day, adjusted for power factor, which
exceeds the Total Contract Demand or the Standby Contract Demand.
Nampa Facility" means TASCO's refined sugar production facilities
located at Nampa , Idaho.
2.4 Nyssa Facility" means TASCO's refined sugar production facilities
located at Nyssa , Oregon.
Paul Facility" means TASCO's refined sugar production facilities located
at Paul, Idaho.
Page 2
Prudent Electrical Practices" means those practices, methods and
equipment that are commonly and ordinarily used in electrical engineering and utility
operation to operate electrical equipment and deliver electric power and energy with
safety, dependability, efficiency and economy.
Schedule 31" means the TASCO standby service tariff schedule of rates
and charges or its successor schedule(s).
Standby Billing Demand" means the total average kW supplied to a
TASCO Facility during the 15-consecutive-minute period of maximum use during the
billing period , adjusted for power factor, less the Supplemental Billing Demand, but not
less than zero nor more than the Standby Contract Demand. Standby Billing Demand
will not be included in the calculation of Basic Load Capacity for Schedule 19 billing
purposes.
Standby Contract Demand" means the kilowatts (kW) of Standby
Demand specified in Paragraph 4.1 that Idaho Power agrees to make available to the
ASCO Facilities.
10 "Standby Demand" means the firm electric power and energy supplied by
Idaho Power to back up T ASCO's own on-site generation when that generation is
curtailed for any reason.
Standby Facilities" shall mean the substation and primary distribution
facilities plus all other facilities which are reasonably required by Prudent Electrical
Practices and the National Electric Safety Code to allow Idaho Power to provide
standby service to T ASCO's Facilities.
Page 3
12 "Standby Facilities Contract Demand" means the kW of demand specified
in Paragraph 4.2 that Idaho Power agrees to make available in its substation and
primary distribution facilities to deliver Standby Demand.
13 "Summer Months" means the calendar months of April through August.
14 "Supplementary Billing Demand" means the individual amounts of firm
power supplied by Idaho Power on a continuous basis to each of the four TASCO
Facilities to supplement TASCO's own generation. Supplementary Billing Demand for
each TASCO Facility is equal to the total average kW supplied during the 15-
consecutive-minute period of maximum use during the billing period , adjusted for power
factor, but not less than the minimum Billing Demand under the provisions of
Schedule 19 nor greater than the Supplementary Contract Demand for each TASCO
Facility. Supplementary Billing Demand is billed monthly under the Demand Charge
provisions of Schedule 19.
15 "Supplementary Contract Demand" means the individual amounts of firm
power T ASCO has contracted to purchase under each of the Schedule 19 Uniform
Large Power Service Agreements for each of the four TASCO Facilities to supplement
T ASCO's own generation.
16 "TASCO Facilities" means the Nampa Facility, Twin Falls Facility, Paul
Facility, and Nyssa Facility collectively.
17 "Total Contract Demand" means the sum of the Supplementary Contract
Demand and the Standby Contract Demand for each of the TASCO Facilities.
18 "Total Energy Requirement" means the total energy supplied to a TASCO
Facility by Idaho Power for both supplementary and standby purposes. The Total
Page 4
Energy Requirement is billed monthly under the energy charge provisions of
Schedule 19.
19 "Twin Falls Facility" means T ASCO's refined sugar production facilities
located at Twin Falls, Idaho.
20 "Winter Months" means the calendar months of September through
March.
SECTION 3 -- TERM AND TERMINATION
Initiation of Services. The scheduled initial date of standby service under
this Agreement is September, 1998. The Company s ability to provide standby service
is subject to its ability to retain the required labor, materials, equipment and satisfactory
rights-of-way and to comply with governmental regulations.
Term of Agreement.The term of this Agreement shall be for one (1) year
from and after September 1 , 1998 and will automatically renew and extend each year
thereafter unless written notice of termination is given by either Party to the other not
less than twelve (12) months prior to the desired termination date. Unless otherwise
agreed by the Parties, this Agreement and Schedule 31 will automatically be canceled
upon termination of the Schedule 19 Uniform Large Power Service Agreement for any
of the four (4) TASCO Facilities.
SECTION 4 -- SUPPLY OF DEMAND AND ENERGY
Standby Supply Obligation . Idaho Power will make available and TASCO
will purchase 4 000 kW of Standby Contract Demand during the winter months. Idaho
Power will not make available and T ASCO will not purchase Standby Contract Demand
during the summer months. Standby Contract Demand will be purchased on a "take or
Page 5
pay" basis. T ASCO will be permitted to utilize Standby Demand and energy at any
single TASCO Facility or any combination of the TASCO Facilities so long as the total
Standby Demand consumed at any time does not exceed 4 000 kW.
Standby Facilities Contract Demand . Idaho Power will make available
and TASCO will purchase Standby Facilities Contract Demand at each of the TASCO
Facilities in the amounts specified below. Standby Facilities Contract Demand will be
purchased on a "take or pay" basis. Standby Facilities Contract Demand will be billed
each month.
Nampa Facility 000 kW
Paul Facility 000 kW
Nyssa Facility 000 kW
Twin Falls Facility 000 kW
Limitation on Use of Supplemental Service.Except for those periods of
time when Idaho Power is unable to deliver energy to a TASCO Facility, Standby
service under this Agreement will be the sole source of demand and energy to supply
those TASCO Facility loads that are ordinarily served by TASCO's generation. TASCO
will not utilize Supplementary demand or energy to supply loads at the TASCa
Facilities that would otherwise be supplied by TASCO's generation or Standby service
under this Agreement.
4.4 The availability of power in excess of the Total Contract Demand is not
guaranteed , and if TASCO's load exceeds the kW amounts specified below, Idaho
Power may curtail service to that Facility.
Page 6
Nampa Facility 500 kW
Paul Facility 000 kW
Nyssa Facility 200 kW
Twin Falls Facility 500 kW
Idaho Power reserves the right to install, at any time, at T ASCO'
expense, any device necessary to protect Idaho Power s system from damage which
may be caused by actual loads at any of the TASCO Facilities exceeding the Total
Contract Demand for that Facility.
SECTION 5 -- CHARGES TO BE PAID BY TASCO
TO IDAHO POWER
Rates and Charges . The rates and charges for electrical power, energy
and other services provided by Idaho Power to the TASCO Facilities will be identified by
component in Schedule 31. The total amount to be paid monthly by TASCO to Idaho
Power for Standby Demand and energy made available or supplied to the T ASCO
Facilities will be the sum of components identified in Schedule 31.
Monthly Billing.Billing for service under this Agreement will be on a
calendar month basis.
SECTION 6 -- COMMISSION JURISDICTION
Except as otherwise specifically modified by this Agreement, the provisions
contained in the Company s Idaho and Oregon Schedules 19 , and any revisions to
those schedules and/or any successor schedules are to be considered as part of this
Agreement.
Page 7
SECTION 7 -- STANDBY FACILITY OPERATIONS
TASCO will pay all costs of supplying, installing, operating and
maintaining Standby Facilities to allow Idaho Power to supply standby service to the
TASCO Facilities. The costs of such Standby Facilities are attached as Exhibit A.
SECTION 8 -- MISCELLANEOUS PROVISIONS
Indemnification . TASCO agrees to hold harmless and indemnify Idaho
Power, its officers, agents, and employees , against all loss, damage, expense and
liability to third persons or injury to or death of person or injury to property proximately
caused by T ASCO's construction, operation or maintenance of, or by failure of, any of
TASCO's generating facilities or interconnection facilities owned by TASCa.
Regulatory Requirements. This Agreement and the rates, terms and
conditions of service set forth in Schedule 31 or incorporated herein , and the respective
rights and obligations of the Parties hereunder, will be subject to valid laws and to the
regulatory authority and orders, rules and regulations of the Commission and such
other administrative bodies having jurisdiction.
Commission Jurisdiction. Nothing herein will be construed as limiting the
Commission from changing any rates , charges, classification or service, or any rules
regulation or conditions relating to service under Schedule 31 or this Agreement, or
construed as affecting the right of Idaho Power or TASCO to unilaterally make
application to the Commission for any such change.
8.4 Attorney s Fees. In any action at law or equity commenced under this
Agreement and upon which judgment is rendered, the prevailing party, as part of such
Page 8
judgment, will be entitled to recover all costs , including reasonable attorney s fees
incurred on account of such action.
THE AMALGAMATED SUGAR COMPANY , LLC
By
~" /(.
GEOR E HOBBS
Vice President - Engineering
Page 9
, . '
EXHIBIT "
ITEMIZATION OF COST ESTIMATES FOR STANDBY SERVICE UPGRADES:
Facilities Charge
Investment
Up Front
Charges
NAMPA:
3 MW STAND BY Upgrade. Change out URD
conductor 750 Alum to 750 Copper. . . . . . . . . . . . '
Non-salvable cost of existing facilities removed
EngineeringFees(30hours~$36.00)...........................
$11 314
$ 6,746
$ 1 080
Facilities Charaes increase = $370.
($11 314.47 x .017 = $192.35/month aporox.
Shift Amalgamated to Nampa 018 'Feeder
& install 2 Capacitor Banks (before meter) and
Changeoutlnsulators...........................
Change out Getaway conductor at Substation. . . . . . . . .
Nampa Stand By Subtotal
$16,836
$42.000
$66 662
NYSSA
3 MW STAND BY Upgrade and reroute primary
service and install 4 bay switch. T ASCO will
provide and install 4" rigid conduit as specifiedby Idaho Power Company.
. . . . . . . . . . . . . .
$24 142
Facilities Charges increase = $410.41
($24 142 x .017 = $410.41/month aporox.
TWIN FALLS
1 MW STAND BY - Radial Feed Upgrade
approximately 3 327' of 00 ARP primary conductor. . . . . . . . . . . . . . . . . . $72 719
Unusual conditions Rock holes (subject to refund) $ 8,517
Engineering Fees (40 hours ~ $36.00). . . . . . . . . . . . . . . . . . . . . . . . . .. $ 1.440
Twin Falls Standby Subtotal $82,676.
Standby Total $35 456 $149 338
EXHIBIT "A" TO AGREEMENT FOR SUPPLY OF STANDBY ELECTRIC POWER BETWEEN IDAHO POWER
COMPANY AND AMALGAMATED SUGAR COMPANY, LLC
' . ~ '
IDAHO POWER COMPANY
LP.c. NO. 26. TARIFF NO. 101 ORIGINAL SHEET NO. 31-
00 & ~ U
IDAHO POWER COMPANY
AGREEMENT FOR SUPPLY OF STANDBY aECTRlC SERVICE
SCHEDULE 31
FOR
THE AMALGAMATED SUGAR COMPANY
CONTRACT DATED
MONTHLY CHARGES
Standby Contract Demand Charae
$0.21 per kW of Standby Contract Demand
Standby Facilities Contract Demand Charae
Per kW of Standby Facilities Contract Demand: '
Nyssa Facility:
Paul Facility:
Nampa Facility:
Twin Falls Facility:
$1.
$0.
$0.
$0.
Standby Billina Demand Charae
$1.99 per kW of Standby Billing Demand
Excess Demand Charae
. $0.50 per day for each kW taken in excess of the Total Contract Demand during the months of
September through March
$0.75 per day for each kW taken in excess of the Total Contract Demand during the months of April
through August
$5.00 per kW for the highest Excess Demand recorded during the Billing Period. (This charge WIll not
be prorat~d.
Eneray Charae
Energy taken with Standby Demand WIll be priced at the applicable Schedule 19 Energy Charge
IDAHO
Issued -
Effectiye -
Issued by IDAHO POWER COMPANY
Kip W. Runyan, Vice President. Deliyery
1221 West Idaho Street, Boise, Idaho