20080425Decision memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER RED FO RD
CO MMISSI 0 NER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:APRIL 21 , 2008
SUBJECT:CASE NO. IPC-08-08 (Idaho Power)
EXTENSION OF SCHEDULE 30 SERVICE AGREEMENT
IDAHO POWERIU.S. DEPARTMENT OF ENERGY
On April 17, 2008 , Idaho Power filed an Application requesting that the Commission
approve a second one-year extension of the 2006 special contract between Idaho Power and the
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.
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). 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. 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 2008
Extension. Staff has reviewed the underlying 2006 Agreement between Idaho Power and DOE
and the proposed 2008 Extension and recommends that the 2008 Extension be approved without
further notice or procedure. Does the Commission find it reasonable to approve the proposed
2008 Extension without further notice or procedure?
Scott D. Woodbury
Deputy Attorney General
bls/M: IPC-O8-08 sw
DECISION MEMORANDUM