20070504Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:APRIL 26, 2007
SUBJECT:CASE NO. IPC-07-11 (Idaho Power)
EXTENSION OF SCHEDULE 30 SERVICE AGREEMENT
IDAHO POWERIU.S. DEPARTMENT OF ENERGY
On April 19, 2007, Idaho Power filed an Application requesting that the Commission
approve a one-year extension of the 2006 special contract between Idaho Power and the U.
Department of Energy (DOE) for electric service at the Idaho National Laboratory (INL), a site
located approximately 50 miles west of Idaho Falls.
On May 8, 2006, in Order No. 30030 (Case No. IPC-06-12), the Commission
approved a special contract between Idaho Power and DOE, with an initial term running from
May 15,2006 through May 14 2007 (2006 Agreement). The estimated annual energy usage at
INL is 225 000 000 kWh. The estimated demand is 27 000 to 45 000 kW. The 2006 Agreement
gives DOE the option to request up to four one-year extensions of the 2006 Agreement.
Following negotiations, Idaho Power and DOE have agreed to extend the 2006
Agreement for one year with a term of service running from May 15 , 2007 through May 14
2008 (the 2007 Extension). No other changes to the 2006 Agreement are proposed. Under the
2007 Extension, electric service to INL continues to be provided under tariff Rate Schedule 30.
The tariffed rates and charges for providing service under the 2007 Extension are subject to
change in Commission ratemaking proceedings. Contract termination continues to require
written notice and provides for the assessment of Convenience Charges if notice of termination is
less than 12 months in advance.
DECISION MEMORANDUM
COMMISSION DECISION
Idaho Power requests that the Commission expedite its review of the proposed 2007
Extension. Staff has reviewed the underlying 2006 Agreement between Idaho Power and DOE
and the proposed 2007 Extension and recommends that the 2007 Extension be approved without
further notice or procedure. Does the Commission find it reasonable to approve the proposed
2007 Extension without further notice or procedure?
Scott Woodbury
bls/M:IPC-O7-1 I sw
DECISION MEMORANDUM