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Home My WebLink About20090617Application.pdfesIDA~PORCI An IDACORP Company BARTON L. KLINE Lead Counsel June 17, 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~09-17 IN THE MA TTER OF THE APPLICA TlON OF IDAHO POWER COMPANY FOR A TEMPORARY AMENDMENT TO THE ENERGY SALES AGREEMENT WITH MICRON TECHNOLOGY, INC. Dear Ms. Jewell: Enclosed please find for filing an original and seven (7) copies of Idaho Power Company's Application in the above matter. i would appreciate it if you would return a stamped copy of this letter for my file in the enclosed stamped, self-addressed envelope. Barton L. Kline BLK:csb Enclosures P.O. Box 70 (83707) 1221 W. Idaho St. Boise, ID 83702 BARTON L. KLINE (ISB No. 1526) LISA D. NORDSTROM (ISB No. 5733) Idaho Power Company P.O. Box 70 Boise, Idaho 83707 Telephone: 208-388-2682 Facsimile: 208-388-6936 bklineaRidahopower.com InordstromaRidahopower.com RECEIVED 21ng JUN t 1 PM 12: 51 Pi 'r' ".,lDAHO . ,);~;L':t ""J UTILITIES COMMI::SiOI' 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 MAnER OF THE APPLICATION OF IDAHO POWER COMPANY FOR A TEMPORARY AMENDMENT TO THE ENERGY SALES AGREEMENT WITH MICRON TECHNOLOGY, INC. ) ) CASE NO. IPC-E-09-17 ) ) APPLICATION ) ) Idaho Power Company ("Idaho Power" or "the Company"), in accordance with Idaho Code § 61-524 and RP 52, hereby respectfully makes application to the Idaho Public Utilities Commission ("IPUC" or "the Commission") for an Order approving an extension of: (1) the temporary amendment to the Electric Service Agreement ("ESA") between Micron Technology, Inc. ("Micron") and Idaho Power and (2) updated Schedule 26A, which contains the temporary 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. The ESA contains a monthly Contract Demand Charge, which may reduce Micron's flexibility in managing its electric consumption during the restructuring period. 3. On January 26, 2009, in Order No. 30721, the Commission approved a letter agreement between Idaho Power and Micron under which Micron's monthly Contract Demand Charge was set at $0.00 per kW of Contract Demand rather than the prior rate of $1.83 per kW of scheduled Contract Demand. The monthly Biling Demand Charge and the monthly Energy Charge were increased so that Idaho Power could obtain the same revenue from Micron as it would have received with the monthly Contract Demand Charge. 4. Micron has requested that the January 9, 2009, letter agreement be extended until December 31, 2009. The parties have also agreed that the Contract Demand component will be reduced from 85,000 kW to 75,000 kW for purposes of administering the Daily Excess Demand charge. The parties have also noted the need to change the Daily Excess Demand Charge in Schedule 26A. The Daily Excess Demand Charge should have been adjusted when Schedule 26A was revised on February 1, 2009, consistent with Order No. 30722. The revised Schedule 26A in APPLICATION - 2 "clean" and "legislative" format are enclosed as Attachments 2 and 3. No other changes are requested. 5. Idaho Power has agreed to the changes proposed by Micron. A letter agreement dated June 3, 2009, reflecting these changes is enclosed as Attachment No. 1. II. COMMUNICATIONS AND SERVICE OF PLEADINGS 6. 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 bkline(Çidahopower.com Inordstrom(Çidahopower.com John R. Gale Vice President, Regulatory Affairs Idaho Power Company P.O. Box 70 Boise, Idaho 83707 rgale(Çidahopower.com Rick Malmgren Micron Technology, Inc. 8000 Federal Way P.O. Box 6 Boise, Idaho 83707-0006 remalmgren(Çmicron .com II. REQUEST FOR RELIEF 7. Idaho Power respectfully requests that the Commission issue its Order approving Attachment No.1, the June 3, 2009, letter agreement to extend the temporary amendment to Micron's ESA until December 31, 2009, including the reduction in Micron's Contract Demand to 75,000 kW and Attachment No.2, the revised Schedule 26A, both of which wil be in effect during the term of the June 3, 2009, letter agreement. APPLICATION - 3 DATED at Boise, Idaho, this 1¡th of June 2009. 0l~ BARTON L. KLINE Attorney for Idaho Power Company APPLICATION - 4 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-09-17 IDAHO POWER COMPANY LETTER AGREEMENT ATTACHMENT NO. 1 e:lDA~POø An IDACORP Company JOHNR.GALE Vice President Regulatory Affairs June 3, 2009 Dale Eldridge Director of Facilities Micron Technology, Inc. 8000 Federal Way P.O. Box 6 Boise, Idaho 83707-0006 Re: Extension of Agreement to Temporarily Suspend the Application of the Contract Demand Charge under the September 1, 1995, Electric Service Agreement between Micron Technology, Inc., and Idaho Power Company Dear Mr. Eldridge: Representatives of our two companes have been discussing Micron Technology, Inc.'s ("Micron's") request to extend a temporary suspension of the Contract Demand Charge underthe above-referenced Electric Service Agreement ("ESA"). Micron is in the process of restrctuing its operations at its Boise facility and an extension of the currently approved temporary suspension would provide Micron with needed flexibility to underte its restrctuing. Idaho Power is wiling to accommodate Micron's request in a maner that is revenue neutral for Idaho Power. Based on these understandings, Idaho Power and Micron have reached the followig agreements: 1. The term of this temporar suspension agreement will ru from July 1, 2009, through December 31, 2009. 2. The revised charges that will implement this agreement are set out in the curently approved Schedule 26A, which is attached as Exhbit NO.1. These charges are sumarized as follows: a. Monthly Contract Demand Charge of $0.00 per kW of Contract Demand which is set at 75,000 kW. b. Monthly Biling Demand Charge of $8.65 per kW of Biling Demand. c. Daily Excess Demand Charge of $0.240 per kW of demand that exceeds the Contract Demand of 75,000 kW. d. Base Monthly Energy Charge of$.017619 per kWh. P.O. Box 70 (83707) 1221 W.ldaho St. Boise, ID 83702 Dale Eldridge June 3, 2009 Page 2 3. Durng the six-month term of ths agreement, any base rate changes authorized by the Commission will be recovered from Micron by uniformly adjusting the Biling Demand Charge and the Energy Charge in Schedule 26A unless the Commission specifically orders a different rate design. 4. Charges set out in Schedule 55 (Power Cost Adjustment), Schedule 91 (Energy Efficiency Rider), and Schedule 95 (Adjustment for Muncipal Franchise Fees) will not be changed by this agreement and will continue to apply in accordance with applicable Commission Orders. 5. Prior to the end of the term of ths agreement, Micron and Idaho Power intend to amend the ESA to reflect Micron's new operating characteristics. This new ESA will include a Contract Demand Charge reflective of Micron's new capacity requirements. 6. Unless specifically modified by this agreement, all other terms and conditions of the ESA remain in effect, including the application of the Daily Excess Demand Charge for demand in excess of 75,000 kW. 7. This agreement is subject to the review and approval of the Commission. Idaho Power will file this agreement with the Commission. If you concur that the foregoing accurately sets fort the agreement of the paries, please indicate your concurence by signing all three copies of ths letter and retung two fully executed copies to me. Idaho Power will file the original with the Commission. Cordially, l4¿o/4 JohnR. Gale JRG:csb REVIWED AND ACCEPTED BY: MICRON TECHNOLOGY, INC. ¥~EJ:4~)~DATE: Jl=/~ EXHIBIT NO.1 Idaho Power Company Second Revised Sheet No. 26A-1 Cancels First Sheet No. 26A-1I.P.U.C. No. 29, Tariff No. 101 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 kWof 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 Billing Demand Charge $8.65 per kWof Billng Demand but not less than Scheduled Minimum Monthly Biling Demand. Minimum Monthly Biling Demand The Minimum Monthly Billing Demand wil be 25,000 kilowatts. Daily Excess Demand Charge $0.240 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, which ever comes first. Monthly Energy Charge 1.7619Ø per kWh Monthly 0 & M Charges Zero percent of total cost of Substation Facilities. IDAHO Issued Per IPUC Order No. Effective - July 1, 2009 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, ID BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-09-17 IDAHO POWER COMPANY ATTACHMENT NO.2 Idaho Power Company Second Revised Sheet No. 26A-1 Cancels First Sheet No. 26A-1I.P.U.C. No. 29, Tariff No. 101 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 Efficiency 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 kW as per the contract with one year written notification. Monthly Biling Demand Charge $8.65 per kW of Biling Demand but not less than Scheduled Minimum Monthly Biling Demand. Minimum Monthly Billng Demand The Minimum Monthly Biling Demand will be 25,000 kilowatts. Daily Excess Demand Charge $0.240 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, which ever comes first. Monthly Energy Charge 1.7619Ø per kWh Monthly 0 & M Charges Zero percent of total cost of Substation Facilities. IDAHO Issued Per IPUC Order No. Effective - July 1, 2009 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, ID BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-09-17 IDAHO POWER COMPANY ATTACHMENT NO.3 Idaho Power Company F-Second Revised Sheet No. 26A-1 Cancels I.P.U.C. No. 29, Tariff No. 101 Original First 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 Billng Demand Charge $8.65 per kW of Biling Demand but not less than Scheduled Minimum Monthly Billng Demand. Minimum Monthly Billng Demand The Minimum Monthly Billng Demand will be 25,000 kilowatts. Daily Excess Demand Charge $0.24022 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, which ever comes first. Monthly Energy Charge 1.7619rl per kWh Monthly 0 & M Charges Zero percent of total cost of Substation Facilties.