20090731final_order_no_30871.pdf

Office of the Secretary
Service Date
July 31 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMP ANY FOR A )
TEMPORARY AMENDMENT TO THE
ELECTRIC SERVICE AGREEMENT WITH
MICRON TECHNOLOGY, INc.
CASE NO. IPC-09-
ORDER NO. 30871
On June 15, 2009, Idaho Power Company filed an Application for a temporary
amendment to its energy sales agreement with Micron Technology. The proposed amendment
requests (1) an extension of the previously approved temporary amendment to the Electric
Service Agreement (ESA) between Micron and Idaho Power and (2) an updated Schedule 26A
containing the temporary rates and charges for service to Micron.
THE APPLICATION
Idaho Power asserts that Micron is in the process of restructuring operations at its
Boise facility. Micron s ESA with Idaho Power contains a monthly Contract Demand Charge
that may reduce Micron flexibility in managing its electric consumption during the
restructuring period. On January 26, 2009, the Commission approved a temporary amendment to
the ESA between the parties to be effective January 2009, through June 30, 2009, at which
time Schedule 26 rates were to recommence. Order No. 30721.
Idaho Power now requests that the ESA amendment be extended through December
, 2009. Idaho Power further states that it has entered into a letter agreement with Micron that
proposes to reduce the Contract Demand component from 85 000 kW to 75 000 kW for purposes
of administering the Daily Excess Demand Charge. Idaho Power also proposes a modification to
its Schedule 26A to reflect the change in the Daily Excess Demand Charge.
The proposed changes have been agreed to by both Idaho Power and Micron.
COMMISSION FINDINGS
Having fully reviewed the Application and recommendation of Staff, the
Commission grants Idaho Power Company s request to (1) extend the temporary amendment to
its Electric Service Agreement with Micron Technology, Inc.; (2) reduce the Contract Demand
component from 85 000 kW to 75 000 kW for purposes of administering the Daily Excess
I The Daily Excess Demand Charge should have been adjusted when Schedule 26A was revised on February 1
2009, following Idaho Power s general rate case. Order No. 30722.
ORDER NO. 30871
Demand Charge; and (3) update its Schedule 26A. Based upon 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 through December 31 , 2009, at which time Schedule 26 rates will
recommence. The proposed changes are just and reasonable. Moreover, the changes are agreed
to by both Idaho Power and Micron.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company s Application to extend the
temporary amendment to its Electric Service Agreement with Micron Technology, Inc., is
granted. Schedule 26A shall be effective through December 31 , 2009. On January 1 , 2010
Schedule 26 rates shall resume.
IT IS FURTHER ORDERED that the temporary amendment include a reduction in
the Contract Demand component from 85 000 kW to 75 000 kW for purposes of administering
the Daily Excess Demand Charge.
IT IS FURTHER ORDERED that Idaho Power Company update its Schedule 26A to
reflect the adjusted Daily Excess Demand Charge.
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 ~ 61-626.
ORDER NO. 30871
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this .3()
day of July 2009.
~d G/---. KEMPTON, P IDENT
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFO \, CO MISSIONER
ATTEST:
J a D. Jewell
mmission Secretary
O:IPC-09-17 _
ORDER NO. 30871