20090113Application.pdf

Barton L. Kline
Lead Counsel
esIDA~PORQD
An IDACORP Company
January 12, 2009
VIA HAND DELIVERY
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-09-01
IN THE MA ITER OF THE APPLICATION OF IDAHO POWER COMPANY
FOR ATEMPORARY AMENDMENT OT THE ENERGY SALES
AGREEMENT WITH MICRON TECHNOLOYG, INC.
..
Dear Ms. Jewell:
Enclosed please find for filing an original and seven (7) copies of Idaho Power's
Application in the above matter.
I would appreciate it if you would return a stamped copy of this letter for my file inthe enclosed stamped, self-addressed envelope. ·
Vel\ truly yours,ßJ~
Barton L. Kline
BLK:sh
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
BARTON L. KLINE, ISB #1526
LISA D. NORDSTROM, ISB #5733
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: 208-338-6936
bklineCâidahopower.com
InordstromßYidahopower.com
RECE r:n
2009 JMll 2 PM 4: 56
Attorneys for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR A
TEMPORARY AMENDMENT TO THE
ENERGY SALES AGREEMENT WITH
MICRON TECHNOLOGY, INC.
)
) CASE NO. IPC-E-09-01
)
) APPLICATION
)
)
Idaho Power Company ("Idaho Powet' or "the Company"), in accordance with
Idaho Code § 61-524 and RP 52, hereby respectfully makes application to the Idaho
Public Utilities Commission ("I PUC" or "the Commission") for an Order approving a
temporary amendment to the Electric Service Agreement ("ESA") between Micron
Technology, Inc. ("Micron") and Idaho Power and a revised Schedule 26 containing
modified rates and charges for service to Micron. The Application is based on the
following:
APPLICATION - 1
I. BACKGROUND
1. Idaho Power and Micron are signatories to a Commission-approved ESA
dated September 1, 1995, under which Micron purchases electric energy and demand
from Idaho Power for its Boise facility. Because Micron's demand exceeds 25,000 kW,
the ESA is a special contract under the Company's rate Schedule19.
2. Micron is in the process of restructuring its operations at its Boise facility.
Micron estimates that this restructuring wil take approximately six months. The ESA
contains a monthly Contract Demand Charge, which may reduce Micron's flexibility in
managing its electric consumption during the restructuring period. Idaho Power is
amenable to adjusting the ESA Contract Demand Charge to accommodate Micron's
restructuring so long as the revenue requirement received from Micron is unaffected
based upon current authorized base rates effective June 1, 2008, under the biling
determinants presented in IPC-E-08-10.
3. To accomplish the above-described mutual goals, Idaho Power and
Micron have entered into a letter agreement which makes several changes to the rates,
terms, and charges in the ESA. The letter agreement is enclosed with this Application
as Attachment NO.1. In the letter agreement, the parties agree that the monthly
Contract Demand Charge wil be set at $0.00 per kW of Contract Demand rather than
the existing $1.83 per kW of scheduled Contract Demand. The monthly Billng Demand
Charge and the monthly Energy Charge wil be increased so that Idaho Power can
obtain the same revenue from Micron as it would have received with the monthly
Contract Demand Charge.
APPLICATION - 2
4. With the changes to the Special Contract and Schedule 26 set out in the
letter agreement, Micron receives the contract flexibility it needs and Idaho Power
obtains the same revenues from Micron that it would have otherwise received
consistent with paragraph 2 of this Application.
5. Also enclosed as Attachment NO.2 is a revised Schedule 26 which
reflects the rates and charges described in the ESA. The enclosed Schedule 26 has
been denominated as Schedule 26A to differentiate it from the Schedule 26 the
Company is currently seeking in the pending general rate case. Attachment No. 2
includes a Schedule 26A in legislative format showing the proposed rate changes.
6. Also enclosed as Attachment No. 3 is a spreadsheet showing the
derivation of the rate changes proposed in this filing.
7. Micron is immediately commencing the restructuring of its operations and
therefore Idaho Power respectfully requests that the Commission expedite its review of
this Application. Idaho Power believes that a hearing is not necessary to consider the
issues presented herein and respectfully requests that this Application be processed
under modified procedure; i.e., by written submissions rather than by hearing. RP 201,
et seq. If, however, the Commission determines that a technical hearing is required, the
Company stands ready to present its testimony and support the Application in such
hearing.
8. It would be extremely helpful to Micron if the Commission could see fit to
make the rate change set out in Schedule 26A effective January 1, 2009. Idaho Power
is authorized to advise the Commission that Micron and the Staff of the Commission
APPLICATION - 3
have reviewed this Application and concur with the proposed changes, including the
Company's request that the rate change be made effective January 1,2009.
II. COMMUNICATIONS AND SERVICE OF PLEADINGS
9. Communication and service of pleadings with reference to this Application
should be sent to the following:
Barton L. Kline
Lisa D. Nordstrom
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
bklineßYidahopower.com
InordstromßYidahopower.com
John R. Gale
Vice President, Regulatory Affairs
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
rgaleßYidahopower.com
Rick Malmgren
Micron Technology, Inc.
8000 Federal Way
P.O. Box 6
Boise, Idaho 83707-0006
remalmgrenßYmicron.com
III. REQUEST FOR RELIEF
10. Idaho Power respectfully requests that the Commission issue its Order: (1)
approving Attachment NO.1, the letter agreement to temporarily amend Micron's ESA,
and (2) approving the rates and charges set out in the enclosed Schedule 26A to be in
effect during the term of Attachment NO.1..i
DATED at Boise, Idaho, this J "2 of January 2009.
ßM~
Barton L. Kline
Attorney for Idaho Power Company
APPLICATION - 4
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-09-01
IDAHO POWER COMPANY
LETTER AGREEMENT
ATTACHMENT NO.1
J
. .' : .0: .' ': . "::. ~.' ........:... ..0.;. ',' ..:.HII.
......:-:.....:.:.:.....
.~:..:.: '0. ,0, . 0° ..:.....::...:.':.::.. :.:.....: ...':..:;.~...~.~ :.~ "'..:....
. . ~ :.. .0'.,::. :', '::.0':.:: '0: .::',:;' :':. :'0 " ;... ,0 :.. ..':....... ':.:..~ .,:... :.or,:.:
An JDACP copeny
. .': ::... '::..:,:::~.. .. .:.:.:. ::::-: ..:::\ :.;.:.::;~; -0 ...... _. . I" ..' ~.
JOHNR.GALEV1ci Prekt
Reoiy Afli
. . ':'. :." .....;.:.. .. .. . ..... ~ .. ..., .":' ":-
. 3';:..:::..::...:.:......,..':........:;.:.....\........... .: . ..... ......,. '.
January 9, 2009
Dale Eldridge
Directr of Facllitie
Micrn Tecnology. Inc.
8000 Federal Way
P.O. Bo 6
Boise, Idaho 83707-0006
Re: Agreemnt to Temporarily Suspend the Applicon of the Contrct Demand Charge
Und the September 1. 1995, Elect Service Agreement between
Micron Technology, Inc., and Idaho Por Company
Dear Mr. Eldridge:
. Representtives of our tw compies hav been discussing Micn Tecnology, Inc.'s
t"Mlcron's.) reest for a tempora suspension of the Conra Demand Charge under the above-
reference Electc Seice Agrement t"ESAj. Micon is in the proces of reslring it operatins at
its Boise fality and the tempora sunsin would provide Micn wtth needed f1exbllit to undertke
ifs reuctring. Idaho Powr Is willing to acommoe Micn's rees In a manner that is reenue
neutrl for Idaho Power.
Base on these understadings. Idaho Power and Micron have reaed the follog
agremen:
1. The term of this ageement wil run fr January 1. 2009, through June 30, 2009.
2. Th reised charges tht wiD implement this agreent are set out in thprop()d SCedule 26A, which is attched as Exibit NO.1. The charges are
summaried as follo:
a. Monthly Contrct Demand Charge of $0.00 per kW of Contrct Demand which Is
set at 85,000 kW.
b. Monthly Billng Demand Charge of $8.16 per It of Billing Demand.
c. Daily Excess Demand Charge of $0.226 per kW of demand that exces the
Contrt Demand of 85.000 kW.
d. Base Monthly Energy Charg of $.016628 per kW.
3. Duong the si month term of this agrement unles the partes agee othrwe
or,. the Commison specifcally orers a diffnt rate design, any base rate revenue
reuirement changes authoried by the Commission that are applicble to Micron wil bereovered frm Micron by adjusting Micron's Biling Demand Chare and Energ Charge.
~
REVIEWED
MT Lel
ZC?t
4. Charges set out in SCedule 65 (Power Cost Adjusent), Schedule 91 (Energy
Effciency Rider), and SchedUl 95 (Adjustment for Municpat Fran.chise Fees) will not be
changed by this agreement and will continue to apply in accanc wìt applicae
Commission Orers.
5. Prior to the end of the term of this agrement, Micron shall, subj to Idaho
Power's resonable approal, designae the Contrct Demand which shall be effctive
under the ESA on July 1, 2009. The term of th ESA shall oterise remin unchanged
except with repec to resions.to the ESA mually agreed upon between the parties.
6. Unless specifcally modified by this agreement, all other term and conditns of
the ESA remain in effct, including the applicaon of th Daily Exo Demand Charge
for demand In exce of 85.000 kW.
7. This agreement Is subject to th reiew and approval of the Comission. Idaho
Power wlJ frte this agreement and the proposed Schedule 26A. which Is ated hereo
as Exhibit No.1, with the Commission. Idaho Pow wil rees exdit review and
reques that the Commission make th rae changes set out in Scedule 2eA effece as
of Januar 1, 2009.
If you concur that th foregoIng accraly set forth the agreement of the parties. please indica
your ooncurrnce by signing all thre oopies of this lettr and returning two fully exected oopi to me.
Idaho Power wll' file the original wit the Commission.
Cordially,
i~~de
JRG:mka
REVIEWED AND ACCEPTED BY:
MICRON dEC N L
Jj
EXHIBIT NO.1
#
Idaho Powe Company Fif R.viseà Sheet li:i. 26 1
CaBsels
I.P.ll.C. No. 29. Tarff No. 101 Origi Sheet No. 26A-l
SCHEULE 26A
IDAHO POWER COMPAN.
ELECC SERVICE RATE
FOR
MICRON TEHNOLOGY~ INç.
BOISE. IDAHO
SPECIAL CONlCT DAmR SEPER 1, 1995
MONTY CHAGE
Th Monthy'Charge is th su of the followig chares, and ma also include chages
as set fort in Schedule 55 (power Cost Adjustment). Schede 91 (Energ Efciency Rider).
and Schede 9S (Adjustent for Muncipal Frachie Fees).
Mont Contact Dem Chage
~O.OO per kW of Scheduled Contract De
Scheduld Monthy Contrac Deman .
The Scheduled Monty Contr Dem is 0 - 140.000 kW as per the contct with one
yea wrtt notieaon.
Monty BjlJng Deand Chae
I $=8.16 per kW of Biling Ded but not less th Scheduled Mimum MontyBillig Dema.
Mi Monthy Biling Demand
The Mimum Monty Biling Deand will be 25.000 kiowatts.
Daily Exces Dean Chae
$0.226 pe eah kW over the ~ntct Dem.
Th Daily Excess Demand Charge is applicable beging Janua 1997 or once th
Contr Demd reaches 100.000 kW. which eve comes fi
Mont Energy Chare
~1.6628it per kWh
Monty 0 & M Chas
Zero percet of tota cost of Substtion Facilties.
IDAHO . Ised by IDAHO POWE COMPAN
I Issued pel OmeF'Nos. 30556. 30559 aR 30S63John R. Gale. Vice Preident, Regulatory AffrsEffective Jl:e 1. 29g8 1221 West Idaho Strt, Boise, ID
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-09-01
IDAHO POWER COMPANY
SCHEDULE 26A
ATTACHMENT NO.2
Idaho Power Company
I.P.U.C. No. 29. Tariff No. 101 Original Sheet No. 26A-1
SCHEDULE 26A
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
MICRON TECHNOLOGY, INC.
BOISE, IDAHO
SPECIAL CONTRACT DATED SEPTEMBER 1. 1995
MONTHLY CHARGE
The Monthly Charge is the sum of the following charges, and may also include charges as set
forth in Schedule 55 (Power Cost Adjustment), Schedule 91 (Energy Effciency Rider), and Schedule 95
(Adjustment for Municipal Franchise Fees).
Monthly Contract Demand Charge
$0.00 per kW of Scheduled Contract Demand
Scheduled Monthly Contract Demand
The Scheduled Monthly Contract Demand is 0 - 140,000 kWas per the contract with one year
written notification.
Monthly Biling Demand Charge
$8.16 per kW of Biling Demand but not less than Scheduled Minimum Monthly Billng Demand.
Minimum Monthly Billng Demand
The Minimum Monthly Biling Demand wil be 25,000 kilowatts.
Daily Excess Demand Charge
$0.226 per each kW over the Contract Demand.
The Daily Excess Demand Charge is applicable beginning January 1997 or once the Contract
Demand reaches 100,000 kW, whichever comes first.
Monthly Energy Charge
1.6628Ø per kWh
Monthly 0 & M Charges
Zero percent of total cost of Substation Facilities.
IDAHO
Issued
Effective -
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, ID
Idaho Power Company FiFSt Revised Sheet No. 26 1
GanGels
Original Sheet No. 26A-1I.P.U.C. No. 29, Tariff No. 101
SCHEDULE 268
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
MICRON TECHNOLOGY, INC.
BOISE. IDAHO
SPECIAL CONTRACT DATED SEPTEMBER 1, 1995
MONTHLY CHARGE
The Monthly Charge is the sum of the following charges, and may also include charges as set
forth in Schedule 55 (Power Cost Adjustment), Schedule 91 (Energy Effciency Rider), and Schedule 95
(Adjustment for Municipal Franchise Fees).
Monthly Contract Demand Charge
~O.OO per kW of Scheduled Contract Demand
Scheduled Monthly Contract Demand
The Scheduled Monthly Contract Demand is 0 - 140,000 kW as per the contract with one year
written notification.
Monthly Biling Demand Charge
$7a.16 per kW of Billng Demand but not less than Scheduled Minimum Monthly Billng
Demand.
Minimum Monthly Billng Demand
The Minimum Monthly Billng Demand wil be 25,000 kilowatts.
Daily Excess Demand Charge
$0.226 per each kW over the Contract Demand.
The Daily Excess Demand Charge is applicable beginning January 1997 or once the Contract
Demand reaches 100,000 kW, whichever comes first.
Monthly Energy Charge
1.50681.662aø per kWh
Monthly 0 & M Charges
Zero percent of total cost of Substation Facilities.
IDAHO
Issued per Order Nos. 30556, 30559 and 30563
Effective June 1, 2008
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, 10
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-09-01
IDAHO POWER COMPANY
SPREADSHEET - DERIVATION OF RATE
CHANGES
ATTACHMENT NO.3
Id
a
h
o

P
o
w
e
r

C
o
m
p
a
n
y
Re
c
a
l
c
u
l
a
t
i
o
n

o
f

M
i
c
r
o
n
'
s

C
u
r
r
e
n
t

B
a
s
e

R
a
t
e
s
St
a
t
e

o
f

I
d
a
h
o
No
r
m
a
l
i
z
e
d

1
2
-
M
o
n
t
h
s

E
n
d
i
n
g

D
e
c
e
m
b
e
r

3
1
,
2
0
0
8
Re
v
e
n
u
e

N
e
u
t
r
a
l
Mi
c
r
o
n
Sc
h
e
d
u
l
e

2
6
A
(1

)
(2
)
(3
)
(4
)
(5
)
06
/
0
1
/
0
8
06
/
0
1
/
0
8
Pr
o
p
o
s
e
d
Pr
o
p
o
s
e
d
Li
n
e
Ba
s
e
Ba
s
e
Ba
s
e
Ba
s
e
No
De
s
c
r
i
p
t
i
o
n
Us
e
Ra
t
e
Re
v
e
n
u
e
Ra
t
e
Re
v
e
n
u
e
Bi
l
l
e
d

k
W
1,
0
1
8
,
1
4
0
.
0
$7
.
4
0
$7
,
5
3
4
,
2
3
6
$8
.
1
6
8,
3
0
8
,
0
2
2
2
Ex
c
e
s
s

D
e
m
a
n
d

k
W
0
0.
2
2
6
0
0.
2
6
0
0
3
Bi
l
e
d

k
W
h
70
3
,
4
0
4
,
6
4
0
0.
0
1
5
0
6
8
10
,
5
9
8
,
9
0
1
0.
0
1
6
6
2
2
11
,
6
9
1
,
9
9
2
4
Co
n
t
r
a
c
t

k
W
1,
0
2
0
,
0
0
0
1.
8
3
1,
8
6
6
,
6
0
0
0.
0
0
0
-
5
To
t
a
l

S
c
h
e
d
u
l
e

B
i
l
l
n
g
$1
9
,
9
9
9
,
7
3
7
$2
0
,
0
0
0
,
0
1
4
No
t
e
:

B
i
l
l
i
n
g

D
e
t
e
r
m
i
n
a
n
t
s

f
r
o
m

G
e
n
e
r
a
l

R
a
t
e

C
a
s
e

N
o
.

I
P
C
-
E
-
0
8
-
1
0
EX
H
I
B
I
T

N
O
.
1