20110913final_order_no_32354.pdf

Office of the Secretary
Service Date
September 13,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER’S )
APPLICATION FOR APPROVAL OF ITS )CASE NO.IPC-E-11-13
2011 ELECTRIC SERVICE AGREEMENT )
WITH THE UNITED STATES )
DEPARTMENT OF ENERGY )ORDER NO.32354
___________________________________________________________________________
)
On July 7,2011,Idaho Power Company applied to the Commission for an Order
approving the Company’s 2011 agreement with the U.S.Department of Energy (DOE)to
provide electric service at the Idaho National Laboratory (the “2011 Agreement”).The 2011
Agreement will take effect on September 15,2011,subject to Commission approval.
On August 4,2011,the Commission issued a Notice of Application and Notice of
Modified Procedure setting an August 25,2011 comment deadline.See Order No.32315.On
August 15,2011,Commission Staff filed comments and recommended that the 2011 Agreement
be approved in the public interest.Staffs comments were the only comments filed in the case.
In this Order,the Commission grants the Company’s Application and approves the
2011 Agreement with an effective date of September 15,2011.
FINDINGS OF FACT
The Commission,having reviewed the Company’s Application,the 2011 Agreement,
Staffs comments,and the other filings of record in this case,finds as follows:
A.Background
The Commission approved Idaho Power’s current special services agreement with the
DOE in 2006 (the “2006 Agreement”).The 2006 Agreement stated that Idaho Power will
provide electric service under Schedule 30.The rates and charges for providing service under
Schedule 30 were subject to change in an appropriate ratemaking proceeding (the “tariff
standard,”as opposed to the “contract standard”where the rates are fixed in the contract).
The 2006 Agreement had a one-year term,subject to four,one-year renewal options.
Each option was exercised with the Commission’s approval,which extended the 2006
Agreement’s term through May 2011.As that date approached,however,the parties asked the
Commission to further extend the 2006 Agreement’s term to allow the parties more time to
ORDER NO.32354 1
negotiate a new agreement.The Commission approved the parties’request and extended the
2006 Agreement’s term until September 14,2011.
B.The 2011 Agreement
Following negotiations,Idaho Power and DOE signed the 2011 Agreement on June
30,2011.The 2011 Agreement is similar to the 2006 Agreement.There is additional definition
and clarifying language in the 2011 Agreement.The 2011 Agreement also contemplates the
following:
•Term:The 2011 Agreement changes the term from a one-year term with
four one-year options,to a single five-year term that (if approved)will
begin on September 15,2011,and expire on September 14,2016.See
2011 Agreement,§1.1 (Term ofAuthorization);
•Contract Demand:Like the 2006 Agreement,the 2011 Agreement sets the
initial contract demand level at 45 MW,while enabling the DOE to
demand up to 55 MW upon 12 months written notice.Both Agreements
also state that the DOE may ask Idaho Power for additional demand above
55 MW,and note that any such additional amounts may be granted at
Idaho Power’s discretion.’The 2011 Agreement differs in that it would
enable the Company to assess a contract demand charge to the DOE in an
effort to allow “for more flexible rate design and for consistency with
other large special contract customers.”If assessed,the contract demand
charge will be contained in Schedule 30.See 2011 Agreement §4 and 6;
Application at 3;and
•Schedule 30:The parties anticipate that Idaho Power’s pending general
rate case (IPC-E-11-08)will result in new rates.Accordingly,while the
2011 Agreement will not immediately change Idaho Power’s Schedule 30
rates,the parties expect the Schedule 30 rates will be modified after the
Commission issues its final Order in the rate case.See Application at 3;
2011 Agreement,§6.1.The rates and charges under the 2011 Agreement
are the rates provided in Idaho Power electric tariff rate Schedule 30 and
are subject to change in rate proceedings.
C.Staff Comments
Staff reviewed the Company’s Application and filed comments similar to those set
forth in Sections A and B,above.Staff opined that the 2011 Agreement is in the public interest,
and it recommended that the Commission approve the 2011 Agreement with an effective date of
September 15,2011.
The initial Decision Memorandum stated that the 2011 Agreement increases the demand ceiling.In actuality,the
2011 and 2006 Agreements set the same demand ceiling.
ORDER NO.32354
The Commission finds that the 2011 Agreement is just and reasonable and in the
public interest.
CONCLUSIONS OF LAW
The Commission has jurisdiction over Idaho Power Company,an electric utility,and
the issues presented in this case pursuant to Idaho Code,Title 61,and the Commission’s Rules of
Procedure,IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Company’s Application is granted:the
Commission hereby approves the 2011 Agreement for an effective date of September 15,2011.
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.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /3
day of September 2011.
PAUL KJELLA’,RESIDENT
.1
MACK A.REDFORD,COM ISSIONER
U
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jên D.JeweI1
6mmission Secretary
O:IPC-E-11-1 3kk2
ORDER NO.32354 3