20110309final_order_no_32199.pdf

Office of the Secretary
Service Date
March 9, 2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
IDAHO POWER COMPANY FOR A 120-DA Y
EXTENSION OF THE SPECIAL CONTRACT
FOR ELECTRIC SERVICE BETWEEN
IDAHO POWER AND THE U.
DEPARTMENT OF ENERGY AT THE INL
) CASE NO. IPC-ll-
) ORDER NO. 32199
On February 17, 2011 , Idaho Power Company filed a Petition seeking a short-term
extension to the "special contract" for electric service between Idaho Power and U.
Department of Energy (DOE) at the Idaho National Laboratory (INL) site. More specifically,
Idaho Power seeks a 120-day extension to the existing contract which is set to expire on May 14
2011. Petition at,-r 2. Under the special contract, Idaho Power supplies electric service to INL in
accordance with the rates and charges set out in Schedule 30. Id. at,-r 1. The Petition states that
the parties have worked diligently toward negotiating a new special contract but additional time
is necessary for the parties to complete and execute a new contract. Due to the nature of its
Petition, Idaho Power requests that the Commission approve the contract extension without
further public procedure.
Based upon our review of the representations set out in the Petition, the Commission
grants the Petition.
THE PETITION
The current special contract between Idaho Power and DOE was initially approved by
the Commission in May 2006 in Order No. 30030. Id. The 2006 contract grants DOE the option
of requesting up to four one-year extensions. The 2006 contract has previously been extended
four times (in 2007 2008 2009, and 2010). See Order Nos. 30314 30536 30816, and 31075.
In the four prior contract extensions, the Commission approved the extensions without public
comment or technical hearings.
Although Idaho Power and DOE have worked diligently toward negotiating a new
special contract, the parties need additional time to complete their negotiations and execute a
new contract. As part of the negotiations, DOE personnel are examining factors that may cause
the electrical requirements of the INL to change in the future. "These factors could include, for
ORDER NO. 32199
example and without limitation, incremental loads DOE may wish to locate at the INL site over
the term of a newly negotiated electric service agreement, as well as any load reductions DOE
may wish to pursue associated with energy efficiency improvements and renewable energy
projects.Id. at,-r 7.
The Petition indicates that DOE has many steps to "complete as part of the
government contracting process prior to being in a position to execute a new contract." Id. at ,-r
6. For example, each of the steps requires the INL to prepare information for review and
approval by DOE headquarters in Washington, D.C. Id. Idaho Power expects that this
administrative review will be completed within the next 60 days.
The Petition also noted that but for the special contract, there is no tariff under which
INL could be supplied with electric service. Idaho Power s Schedule 19 serves large customers
but is capped at 20 000 kW. Currently, INL's energy demand ranges from 27 000 kW to 54 000
kW. "Thus, DOE is ineligible to receive Schedule 19 services at the INL site.Id. at,-r 8.
In addition to the Petition, Idaho Power also filed a Pro Hac Vice Motion to allow
Jason B. Williams to enter an appearance for the Company, pursuant to Commission Rule 43.
Mr. Williams has recently relocated from Montana for the purposes of working as an in-house
attorney for Idaho Power. The Motion certifies that he is an active member of the Montana Bar
in good standing and anticipates that Mr. Williams will become a member of the Idaho Bar
before the end of the year. A copy of the Motion, accompanied by the $200 fee, has been
provided to the Idaho State Bar.
FINDINGS
After reviewing the Petition, we find there is good cause to approve the 120-day
extension to the existing special contract. We find that Idaho Power and DOE are actively
engaged in negotiating a new special service contract.In addition, we note that Staff has
concurred with the Company s extension request.We further find that it is reasonable to
approve the l20-day extension without further public notice or comment. Idaho Code 9 61-304.
The 120-day extension continues the existing contract until August 11 , 2011.
We next turn to the Pro Hac Vice Motion. Based upon the representations made in
the Motion and the fact that Mr. Williams is in good standing with the Montana Bar, we find that
it is reasonable to grant him limited admission for this calendar year to represent Idaho Power in
this and other cases before the Commission.
ORDER NO. 32199
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company
and the special contract (Schedule 30) for electric service between the utility and the U.
Department of Energy pursuant to Idaho Code 99 61-129, 61-502, and Section 12 of the
Addendum to the Special Contract No. GS-00P-99-BSD-0124.
The Commission also has jurisdiction over the Motion for Limited Admission for
Jason B. Williams pursuant to Idaho Code, Title 61 , and Commission Rule 43 IDAPA
31.01.01.043.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company s Petition for a 120-day
extension to the underlying April 20, 2006, special contract between Idaho Power and the U.
Department of Energy for electrical services at the Idaho National Laboratory is approved. The
120-day extension to the special contract contained in Schedule 30 shall run through August 11
2011.
IT IS FURTHER ORDERED that Jason B. Williams is hereby granted limited
admission to appear as legal counsel for Idaho Power Company in this and other cases until such
time as he is admitted to the Idaho State Bar in calendar year 2011. Mr. Williams' sponsors
Donovan E. Walker and Lisa D. Nordstrom, are excused from attending all further proceedings
in this case and other cases unless requested by Idaho Power Company.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. IPC-II-
may petition for reconsideration within twenty-one (21) days of the service date of this Order
with regard to any matter decided in this Order or in interlocutory Orders previously issued in
this case. 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.
ORDER NO. 32199
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
f4.
day of March 2011.
~L)
. KE PTON , PR IDENT
J&:JL
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFO
ATTEST:
f#~~J n D. Jew
Commission Secretary
bls/O:IPC-II-02 dh
ORDER NO. 32199