20100225notice_of_application_order_no_31014.pdf

Office of the Secretary
Service Date
February 25, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROV AL OF ITS FIRM ENERGY SALES
AGREEMENT WITH CARGILL
INCORPORATED
NOTICE OF APPLICATION
CASE NO. IPC-10-
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 31014
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on January 29, 2010, Idaho Power Company
Idaho Power" or "Company ) filed an Application with the Commission seeking approval, in
accordance with Idaho Code ~ 61-503 , RP 52 and the applicable provisions of the Public Utility
Regulatory Policies Act of 1978, of its Firm Energy Sales Agreement with Cargill Incorporated
Cargill") under which Cargill would sell and Idaho Power would purchase electric energy
generated by the Bettencourt Dry Creek Biofactory ("Facility ) located near Hansen, Idaho.
YOU ARE FURTHER NOTIFIED that the parties entered into the aforementioned
Agreement on January 22 2010.
YOU ARE FURTHER NOTIFIED that the Agreement is for a 10-year term and
utilizes the non-levelized published avoided cost rates as currently established by the
Commission for energy deliveries of less than 10 average megawatts ("aMW"
YOU ARE FURTHER NOTIFIED that Idaho Power states that Cargill is an existing
Schedule 86 partner providing energy to the Company and that it will utilize the compliance data
(i., nameplate capacity rating, engineering certification, insurance certificates, etc.) previously
provided under the Schedule 86 requirements to review and use for compliance with this
Agreement if applicable.
YOU ARE FURTHER NOTIFIED that the nameplate rating of this Facility is 2.
MW. Cargill will be required to provide data on the Facility that Idaho Power will use to
confirm that under normal and/or average conditions the Facility will not exceed 10 aMW on a
monthly basis. Any energy that exceeds 10 aMW per month, and that does not exceed the
Maximum Capacity Amount, will be accepted but not purchased or paid for by Idaho Power.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31014
YOU ARE FURTHER NOTIFIED that the Scheduled Operation Date for the
Agreement is 30 days after the approval of the Agreement by the Commission.
YOU ARE FURTHER NOTIFIED that the Agreement includes a formula for the
assessment and calculation of Delay Liquidated Damages and associated Delay Security
provisions if Cargill fails to achieve the targeted Operation Date. The Agreement states that it is
effective once the Commission has approved all of the Agreement's terms and conditions and
declared that all payments Idaho Power makes to Cargill for purchases of energy will be allowed
as prudently incurred expenses for ratemaking purposes.
YOU ARE FURTHER NOTIFIED that the Agreement places various conditions and
requirements in order for Idaho Power to accept energy from Cargill.
YOU ARE FURTHER NOTIFIED that Idaho Power states in its Application that if
the Commission approves the Agreement the effective date ofthe Agreement will be January 22
2010.
YOU ARE FURTHER NOTIFIED that the Agreement includes non-levelized
published avoided cost rates consistent with past applicable IPUC Orders. Interconnections with
the Facility and applicable charges have been completed in accordance with the parties' existing
Schedule 86 Agreement transacted in 2008.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21) days from the service date of this Notice. The comment must contain a
statement of reasons supporting the comment. Persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this Application
shall be mailed to the Commission and the Applicant at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31014
Street Address for Express Mail:
Donovan E. Walker
Barton L. Kline
Idaho Power Company
PO Box 70
Boise, Idaho 83707-0070
E-mail: dwalker~idahopower.com
bkline~idahopower.com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
472 W. Washington Street
Boise, ID 83702-5918 Randy C. Allphin
Energy Contract Administrator
Idaho Power Company
PO Box 70
Boise, Idaho 83707-0070
E-mail: rallphin~idahopower .com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon and complete the comment form using the case number as it appears on the front of this
document. These comments must also be sent to the Applicant at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices. The Application is also available on the Commission s web site at
www.puc.idaho.gov by clicking on the "File Room" and then "Electric Cases.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code ~ 61-503. The Commission may enter any final Order consistent with its authority
under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31014
ORDER
IT IS HEREBY ORDERED that this Application will be processed under Modified
Procedure. Persons interested in submitting written comments regarding this case or protesting
the use of Modified Procedure should do so no later than 21 days from the service date of this
Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this d-srA
day of February 2010.
. KEMP IDENT
---.
MARSHA H. SMITH, COMMISSIONER
~~~
MACK A. REDFORD, COMMISSIONER
ATTEST:
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D. Jewel
ommission Secretary
O:IPC-IO-
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31014