20090126final_order_no_30721.pdf

Office of the Secretary
Service Date
January 26, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR A
TEMPORARY AMENDMENT TO THE
ELECTRIC SERVICE AGREEMENT
WITH MICRON TECHNOLOGY, INC.
CASE NO. IPC-09-
ORDER NO. 30721
On January 12, 2009, Idaho Power Company filed an Application with the
Commission seeking approval of a temporary amendment to its Electric Service Agreement with
Micron Technology, Inc. (Micron). Specifically, Idaho Power seeks to decrease the monthly
Contract Demand Charge to $0.00 per kW of Contract Demand, but increase the monthly Energy
Charge. This change would allow Idaho Power to obtain the same revenue from Micron as it
would through the monthly Contract Demand Charge.
THE APPLICATION
Idaho Power s Application asserts that it and Micron are parties to a Commission-
approved Electric Service Agreement (ESA) under which Micron purchases electric energy and
demand from Idaho Power for its Boise facility. Because Micron s monthly demand exceeds
000 kW, Micron is a "special contract" customer under the Company s Schedule 19.
Idaho Power states that it has entered into a letter agreement with Micron which
proposes to make several changes to the rates, terms, and charges in the ESA. The amendments
include a new schedule (Schedule 26A) with a proposed effective date of January 1 , 2009
through June 30, 2009. Schedule 26A removes the Monthly Contract Demand Charge but
increases the Monthly Billing Demand Charge and the Base Monthly Energy Charge to result in
proposed changes that are revenue neutral. The Application maintains that Micron is in the
process of restructuring and the proposed changes will help facilitate that process.
The Application asserts that, unless other rates are approved by the Commission in
the interim, Schedule 26A will expire June 30, 2009, and Schedule 26 rates will resume on July
, 2009. Given the proposed effective date of the Application, the parties asked that the
Commission expedite its review of the matter.
COMMISSION FINDINGS
Having fully reviewed the Application and recommendation of Staff, the
Commission grants Idaho Power Company s request to temporarily amend its Electric Service
ORDER NO. 30721
Agreement with Micron Technology, Inc. Based upon the revenue neutrality of the amendments
the expedited request, and the limited scope of the Application, we find that a hearing in this
matter is not necessary. We further find that Schedule 26A shall be effective January 1 , 2009
through June 30, 2009, at which time Schedule 26 rates will recommence. The proposed
changes are just and reasonable. Moreover, the changes are revenue neutral and agreed to by
both Idaho Power and Micron.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company s Application to temporarily
amend its Electric Service Agreement with Micron Technology, Inc., is granted. Schedule 26A
shall be effective January 1 2009, through June 30, 2009. On July 1 , 2009, Schedule 26 rates
shall resume.
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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this C;l3 rJ.
day of January 2009.
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MACK A. REDFORD, PRESIDENT
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ATTEST:
ft~J. D. Jewell
Co mission Secretary
O:IPC-09-
ORDER NO. 30721