20060502Decision memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DON HOWELL
DATE:MAY 1, 2006
SUBJECT:SPECIAL CONTRACT FOR ELECTRIC SERVICE BETWEEN IDAHO
POWER COMPANY AND THE U.S. DEPARTMENT OF ENERGY
(DOE), CASE NO. IPC-06-
On April 25 , 2006, Idaho Power filed an Application requesting that the Commission
approve a new contract between Idaho Power and the U.S. Department of Energy (DOE) for
service at the Idaho National Laboratory (INL). Because the existing contract expires on May
, 2006, Idaho Power requests that the Commission approve the extension of the existing
contract until such time as the Commission can approve the new contract. Idaho Power also
requests that the Commission expedite its review of the new contract.
THE PROPOSED CONTRACT
The proposed special contract between Idaho Power and DOE ("the 2006
Agreement") is identical to the existing contract with one change. The change is that the new
2006 Agreement "gives DOE the option to request up to four one-year extensions" of the special
contract. Application at 2. The proposed 2006 Agreement provides that Idaho Power will
provide electric service under rate Schedule 30. The rates and charges for providing service
under Schedule 30 are subject to change in any appropriate ratemaking proceeding. Id.
approved, the 2006 Agreement would remain in effect for one-year subject to the new renewal
provision. Contract termination requires written notice and provides for the assessment of
convenience charges if notice of termination is less than 12 months in advance. Id.
DECISION MEMORANDUM
MODIFIED PROCEDURE
Because the existing Agreement expires on May 15 2006, Idaho Power requests that
the Commission extend the term of the existing contract until such time as it may review and
approve the 2006 Agreement. In addition, Idaho Power requests that the Commission expedite
its review of the proposed 2006 Agreement. The Commission Staff concurs in these two
requests. The Company requests that this Application be processed by Modified Procedure and
the Commission set a 10-day comment period. Given the minor modification contained in the
new Agreement, Staff does not object to the 10-day comment period.
COMMISSION DECISION
Does the Commission wish to approve the continuation of the existing special
contract between Idaho Power and DOE until the new Agreement is reviewed and approved?
Does the Commission wish to process this Application via Modified Procedure? If
, does the Commission wish to establish a 10-day comment period?
Anything else?
AP~
Don Howell
blslM:IPC-O6-12 dh
DECISION MEMORANDUM