20060126final_order_no_29958.pdf

Office of the Secretary
Service Date
January 26, 2006
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
ORDER NO. 29958
CASE NO. IPC-O5-
On December 9, 2005, Idaho Power Company (Idaho Power; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting approval of a
Standby Service Agreement (Agreement) between Idaho Power and Amalgamated Sugar
Company (TASCO) dated December 7, 2005 under which Idaho Power will supply standby
electric service to T ASCO.
Idaho Power provides electric service to TASCO's refined sugar production facilities
at Nampa, Paul and Twin Falls, Idaho under Idaho Power s Schedule 19 and to TASCO's refined
sugar production facility at Nyssa, Oregon under Idaho Power s Oregon Schedule 19. TASCO
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 load. Idaho
Power s service under Schedule 19 supplements the energy obtained from TASCa's on-site
generation.
To back up its on-site generation, TASCO currently purchases standby service from
Idaho Power under an Agreement for Supply of Standby Service between Idaho Power and
TASCO (the 1998 Standby Agreement) dated April 6, 1998. The 1998 Standby Agreement was
amended by Letter Agreement dated September 27, 2004. The submitted Agreement will
replace the 1998 Standby Agreement, as modified by the Letter Agreement.
Changes in TASCO's 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 19, 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 and Schedule 31 shall automatically be cancelled upon a transfer of service
ORDER NO. 29958
for any of the four (4) TASCa facilities from Schedule 19 to any other Idaho Power general
service schedule or special contract.
TASCa 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 Agreement submitted in this case contains the same service provisions and
requirements as the 1998 Standby Service Agreement (as modified) with the exception that the
total amount of standby generation available to T ASCO during the fall and winter months has
been reduced from 4 000 kW to 3 000 kW to accommodate TASCO's current standby service
requirements. In addition, minor language revisions have been made to remove references to
TASCO's Nyssa facility. TASCa will continue to pay the standby charges specified in tariff
Schedule 31. In addition, TASCa will continue to pay all costs of supplying, installing,
operating and maintaining standby facilities to allow Idaho Power to supply standby service to
the TASCa facilities. Idaho Power believes that the Agreement takes into account the unique
operating characteristics of TASCO's refined sugar production facilities, is beneficial to Idaho
Power s other existing customers, and is in the public interest. Idaho Power requests that the
Commission issue its Order approving the December 7, 2005 Standby Service Agreement.
Staff Analysis
Commission Staff informs the Commission that it has reviewed the new Agreement
for Supply of Standby Electric Service between Idaho Power Company and the Amalgamated
Sugar Company, LLC dated December 7 2005. The new Agreement was compared to the 1998
Standby Agreement it is replacing and the Letter Agreement modifying that 1998 agreement to
identify significant changes. Staff agrees with the Company representations that the
differences in the agreements are restricted to those necessary to accommodate the change in
scope and quantity of supply brought about by elimination of one of the four plants included in
the modified 1998 Standby Agreement.
There are a few other minor differences identified by Staff; the most notable is the
addition in the new Agreement of reference to supporting documents pertaining to the three
facilities included in the new Agreement. Those referenced documents are: (1) Idaho Power
Company Uniform Service Agreement; and (2) Distribution Facilities Investment Report. The
ORDER NO. 29958
latest versions of both of these documents were also reviewed and no significant changes have
been made to those documents for this contract.
Staff also noted that the new Agreement continues to reference tariff Schedule 19
Large Power Service and Schedule 31 , Idaho Power Company Agreement For Supply Of
Electric Service for Amalgamated Sugar Company - Contract dated April 6, 1998. The only
change proposed to those tariffs by the Company is to delete the phrase "Contract Dated April 6
1998" from Schedule 31. That change has been requested in the form of Tariff Advice No. 05-
10.
Commission Findings
The Commission has reviewed the filings of record in Case No. IPC-05-
including the December 7, 2005 Agreement for Supply of Standby Electric Service between
Idaho Power and TASCa. The Commission has also reviewed the terms of the related 1998
Standby Agreement, as modified by Letter Agreement dated September 27, 2004, and considered
Staffs analysis of the Company s filing. Based on our review of the current and proposed
Standby Service Agreements and referenced documents, the Commission finds that the proposed
changes in the Agreement appropriately reflect only those required for the continuation of
standby service to TASCO's Nampa, Paul and Twin Falls, Idaho facilities and elimination of
standby service to TASCO's Nyssa, Oregon facility. As no change in rates is proposed, we find
it reasonable to approve the Agreement without further notice or procedure.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
an electric utility, and the service issues raised in Case No. IPC-05-37 pursuant to Idaho Code
Title 61 , and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED and the Commission does hereby approve the December 7, 2005
Agreement for Supply of Standby Service between Idaho Power Company and the Amalgamated
Sugar Company, LLC.
ORDER NO. 29958
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 01-.'
fJ..
day of January 2006.
G1t(L-6L J MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSE , COMMISSIONER
ATTEST:
~6J.
D. Jewell
Commission Secretary
bls/O:IPC-O5-37 sw
ORDER NO. 29958