20081114final_order_no_30680.pdf

Office of the Secretary
Service Date
November 14, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OF AN AMENDMENT TO AN
AGREEMENT BETWEEN A VIM OR LLC
AND IDAHO POWER COMPANY AND FOR
AUTHORITY TO IMPLEMENT A LINE
CAPACITY CHARGE
ORDER NO. 30680
CASE NO. IPC-08-
On July 29, 2008, Idaho Power Company filed an Application for approval of an
amendment to an Agreement the Company has with Avimor LLC. Avimor agreed to pay Idaho
Power $4.3 million to construct facilities required to serve Avimor s development north of
Boise. The contract allows A vimor to recover some or all of its investment as customers connect
to the facilities provided by A vimor. Idaho Power requested Commission approval of the
Agreement in an earlier case, and the Commission approved the Agreement if modified as stated
by the Commission. Case No. IPC-06-, Order No. 30322. The Application in this case
accommodates the modifications, including a line capacity charge for customers who connect to
the facilities but are outside the A vimor development. The Company filed testimony of Timothy
Tatum to support the Application in this case.
The amendments to the contract for which the Company now requests approval
include refunds for connections within the Avimor development at $110 per kW of estimated
demand for residential service connections. Refunds for non-residential loads are calculated by
multiplying $11 0 times the k V A rating of the distribution transformers serving each non-
residential account. Another amendment allows contributions from customers connecting in a
geographic area outside of the A vimor proj ect. These line capacity charges will be assessed at
100 per customer receiving service under Schedule 1 , and non-residential service schedules
will pay $110 times the kV A rating of the distribution transformer service of each non-residential
account. In subdivisions where Rule H applies, line capacity charges will be collected in
addition to regular Rule H charges. Refunds, including refunds of line capacity charges, will be
paid to Avimor only up to 10 years, or less if Avimor receives the full $4.3 million amount it
contributed for the construction of facilities.
ORDER NO. 30680
On August 13 , 2008 , the Commission issued a Notice of Application and Notice of
Modified Procedure to process the Application and establish a comment period.Written
comments were filed only by the Commission Staff. Staff s comments state that the Company
reasonably calculated the refund amounts of $1 100 for each permanent residential connection
and $110 times the kV rating of the distribution transformer for each non-residential
connection within the A vimor project.
We find that the contract between Idaho Power and A vimor as amended should be
approved. To determine the refund amount, Idaho Power used the same methodology approved
by the Commission to calculate the refund amount in the original Agreement, in Case No. IPC-
06-, Order No. 30322. We also approve a line capacity charge, at the same amount as the
refund amounts within the Avimor project, to be implemented for those customers requiring
electric service connection outside the project boundaries who use the transmission and
substation facilities paid for by A vimor. Based on the record in this case, the Commission
approves the terms of the amended contract between A vimor LLC and Idaho Power Company,
including implementation of a line capacity charge.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company s Application for approval of
an amendment to an Agreement the Company has with A vimor LLC and authority to implement
a line capacity charge is approved.
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 9 61-626.
ORDER NO. 30680
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this i'l f'1.
day of November 2008.
Out of the Office On this Date
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~ill-Je D. Jewell
Commission Secretary
bls/O:IPC-08-15 ws2
ORDER NO. 30680