20080430final_order_no_30536.pdf

Office of the Secretary
Service Date
April 30, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF AN AGREEMENT FOR
CONTINUATION OF ELECTRICAL
SERVICE BETWEEN IDAHO POWER
COMP ANY AND THE UNITED STATES
DEPARTMENT OF ENERGY
ORDER NO. 30536
CASE NO. IPC-08-
On April 17, 2008, Idaho Power Company (Idaho Power; Company) filed an
Application requesting that the Commission approve a second one-year extension of the 2006
special contract between Idaho Power and the U.S. 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.
Authorization,-r 1.2.
Following negotiations, Idaho Power and DOE have agreed to extend the 2006
Agreement for a second one-year extension period! with a term of service running from May 15
2008 through May 14 2009 (the 2008 Extension). Application, Exhibit A. No other changes to
the 2006 Agreement are proposed. Under the 2008 Extension, electric service to INL continues
to be provided under tariff Rate Schedule 30. Authorization,-r 6.1. The tariffed rates and charges
for providing service under the 2008 Extension are subject to change in Commission ratemaking
proceedings. Authorization,-r,-r 6.6; 12.1. 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. Authorization,-r 3.
2007 Extension approved by Order No. 30314 in Case No. IPC-07-11.
ORDER NO. 30536
Commission Findings
The Commission has reviewed and considered the filings of record in Case No. IPC-
08-08. We have also reviewed the underlying 2006 Agreement between Idaho Power and the
S. Department of Energy for electric service at INL. Reference Case No. IPC-06-, Order
No. 30030. The rates and charges under the 2006 Agreement and 2008 Extension are the rates
provided in Idaho Power electric tariff rate Schedule 30 and are subject to change in rate
proceedings. We find the underlying Agreement and proposed contract extension to be
reasonable. We further find it reasonable to approve the proposed 2008 Extension without
further notice or procedure for an effective date of May 15 2008.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
an electric utility, and the issues presented in Case No. IPC-08-08 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 2008 Extension to the
underlying April 20, 2006 Service Agreement between Idaho Power Company and the u.S.
Department of Energy (DOE) for electric service at the Idaho National Laboratory (INL) for an
effective date of May 15 2008.
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 ~ 61-626.
ORDER NO. 30536
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3(JrI-
day of April 2008.~A..
MACK A. DFORD , P ENT
MARSHA H. SMITH, COMMISSIONER
ff~
. D. TON, COM ISSIONER
ATTEST:
f). &if~Je D. Jewell
Commission Secretary
bls/O:IPC-O8-08 sw
ORDER NO. 30536