20080609Letter of Agreement.pdf

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1SIDA~POR~
An IDACORP Company
LISA D. NORDSTROM
Attorney II
June 9,2008
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-06-29
Sale and Purchase Agreement of Surplus Energy between TASCO
and Idaho Power
Dear Ms. Jewell:
In Order No. 30220 issued on January 19, 2007, in Case No. IPC-E-06-29, the
Commission approved an Agreement for Sale and Purchase of Surplus Energy (the "Twin
Falls Agreement") between Idaho Power and Amalgamated Sugar Company ("TASCO")
dated December 7, 2005. Under the Agreement, Idaho Power agrees to purchase from
TASCO surplus energy not otherwise consumed at its Twin Falls, Idaho, facility.
Through tariff changes approved by minute order in accordance with general rate
case Order No. 30508, the Commission authorized the termination of all Uniform Service
Agreements between Idaho Power and its customers effective March 1, 2008. As a result,
it is necessary to amend theTwin Falls Agreement to remove all references to the Uniform
Service Agreement and instead reference only the Agreement for Supply of Standby
Electric Service between Idaho Power and TASCO dated December 7,2005, as amended
by the Letter Agreements dated January 31, 2007, and May 6,2008. Furthermore, it is
also necessary to terminate Amendment 1 to the Uniform Service Agreement dated
September 15, 2004, and incorporate the provisions of Amendment 1 regarding Basic
Load Capacity into the Twin Falls Agreement.
Enclosed for filing is a Letter Agreement dated May 6, 2008, in which Idaho Power
and TASCO have agreed to amend the Twin Falls Agreement to reflect these changes. I
would request that you file the Letter Agreement with the Twin Falls Agreement that was
approved in the IPC-E-06-29 case. In addition, I would appreciate it if you would return a
stamped copy of this transmittal letter to me in the enclosed self-addressed stamped
envelope. It is not Idaho Power Company's intention to file an application with the
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
Jean Jewell
June 9,2008
Page 2
Commission and open a new docket for a contract change that is in the nature of a
housekeeping matter. Of course, if the Commission desires that Idaho Power make a
separate filing to present this amendment, the Company is certainly willng to do so.
If the Commission has any questions regarding this matter, please do not hesitate to
contact me.
Very truly yours;
&o~m1~~
Enclosure
cc: Scott Woodbury - w/encl.
Joe Huff - w/encl.
Jim Hovda - w/encl.
Mike Pohanka - w/encl.
Ric Gale - w/encl.
Tim Tatum - w/encl.
esIDA~POR~t'i.n An IDACORP Company
JOHNR.GALE
VIC Prident, Regulatoiy Affirs
3= 49
May 6,2008
Mr. Joe Huff
Vice President and Chief Operating Offcer
The Amalgamated Sugar Company, LLC
3184 Elder Street
Boise, ID 83705
RE: Sale and Purchase Agreement between
TASCO and Idaho Power Company
Dear Mr. Huff:
The Agreement for Sale and Purchase of Surplus Energy between Idaho Power Company
("ldaho Power") and The Amalgamated Sugar Company ("TASCO") dated November 20, 2006
("the Twin Falls Agreement") defines an arrangement under which Idaho Power agrees to
purcha~e from TASCO surplus energy not otherwise consumed at its Twin Falls, Idaho facility.
The Idaho Public Utilities Commission, through Order No. 30508, authorized the
termination of all Uniform Service Agreements between Idaho Power and its customers effective
March 1, 2008. As a result, it is necessary to amend the Twin Falls Agreement to remove all
references to the Uniform Service Agreement and instead reference only the Agreement for
Supply of Standby Electric Service between Idaho Power and TASCO dated December 7, 2005 as
amended by the Letter Agreements dated January 31, 2007 and May 6, 2008. Furthermore, it is
also necessary to terminate Amendment 1 to the Uniform Service Agreement between Idaho
Power and TASCO dated September 15, 2004 and incorporate the provisions of Amendment 1
into the Twin Falls Agreement. The Twin Falls Agreement is to be amended as follows:
1. Section C wil be amended to read:
TASCa currently purchases standby electric service for the Twin Falls
Plant from Idaho Power under the Agreement for Supply of Standby
Electric Service Between Idaho Power Company and The Amalgamated
Sugar Company, LLC dated December 7, 2005 as amended by the
Letter Agreement dated January 31, 2007 and the Letter Agreement
dated May 6, 2008 (Standby Agreement).
in lieu of
TASCO currently purchases standby electric service for the Twin Falls
Plant from Idaho Power under the Agreement for Supply of Standby
Electric Service Between Idaho Power Company and The Amalgamated
Sugar Company, LLC dated April 6, 1998 (Standby Agreement).
2. The current Section 1.13 will be amended to read:
"Total Contract Demand" is measured at the Point of Delivery and
means the sum of the Standby Facilities Contract Demand and the
Supplementary Contract Demand as specified in the Standby
Agreement.
in lieu of
"Total Contract Demand" means the sum of the Standby Facilities
Contract Demand as specified in the Standby Agreement and the KVA
of demand specified in the Uniform Large Power Service Agreements
(Schedule 19 Agreements) and is measured at the Point of Delivery.
3. Section 4.5 will be added and will read:
During the term of this Agreement, TASCa's minimum monthly Basic
Load Capacity ("BLC") under Schedule 19 will be equal to the
Supplementary Contract Demand as specified in the Standby
Agreement. The minimum monthly BLC will be billed to TASCa at the
rates in effect under the then-current Schedule 19. When the Agreement
is terminated, TASCa's minimum monthly BLC will no longer be fixed
but wil revert to the conditions specified in the then-current Schedule
19.
If you approve of the foregoing amendments to the November 20, 2006 Twin Falls
Agreement, please indicate your acceptance in the space provided below, retain one copy of this
Letter Agreement and return a copy to Idaho Power.
Cordially,
~~frAL
JRG:ma
Enclosures
c: Ray Arp, TASCa
Mike Pohanka, ipca
Tim Tatum, ipca
THE ABOVE LETTER AGREEMENT READ,
UNDERSTOOD, AND AGREED TO:
erations & COO