20140225notice_of_application_order_no_32984.pdf

Office of the Secretary
Service Date
February 25,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-13-23
APPROVAL OF A SPECIAL CONTRACT )
WITH J.R.SIMPLOT COMPANY.)NOTICE OF APPLICATION
)
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.32984
Idaho Power filed an Application with the Commission on December 4,2013,
requesting that the Commission issue an Order approving special contract terms for electric
service between Idaho Power and J.R.Simplot Company.Simplot filed an answer on February
5,2014,disputing Idaho Power’s contract language and requesting that the Commission include
Simplot’s suggested clauses in the contract.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power states,in spring 2013,a Simplot
representative contacted Idaho Power requesting that the Company enter into negotiations for a
special contract for Simplot’s Caidwell plant.In response,Idaho Power drafted a special
contract and the parties entered into negotiations regarding the specific terms.
YOU ARE FURTHER NOTIFIED that Idaho Power maintains that the Company
and Simplot have reached agreement “as to nearly all of the terms and conditions of the contract,
but have reached an impasse on certain provisions regarding limitations on liability.”
Application at 1.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that the Commission
approve terms regarding the bilateral waiver of indirect,special and consequential damages.
Application.Attachment 1.Section 11 .2.The Company also asks the Commission to approve its
proffered terms regarding limitations on direct damages.Id.,Section 11 .3.
YOU ARE FURTHER NOTIFIED that,should the Commission determine that it is
“prudent for the Company to assume the risk for unlimited direct damages and consequential
damages associated with Simplot’s business,Idaho Power requests an opportunity to re-examine
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32984 1
the terms of the special contract,including,but not limited to,an appropriate cost-of-service,that
appropriately reflect this assumption of risk.”Application at 8.
YOU ARE FURTHER NOTIFIED that Simplot argues that Idaho Power’s request for
limited and waived liability is a violation of “the well-settled Idaho legal authority prohibiting
the inclusion of such language in a utility’s tariff.”Answer at 2.Simplot maintains that Idaho
Power’s proffered clauses contradict the Idaho Supreme Court’s rulings that exculpatory clauses
used by a public utility are unenforceable.
YOU ARE FURTHER NOTIFIED that Simplot also disputes Idaho Power’s
calculation of the rates included in the contract.Simplot states that “the cost of service study
used to set Simplot’s rate is vintage 2010 and is out dated [sic].”
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 31.01.01.201-204.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 in opposition with the Commission no
later than Friday,March 28,2014.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 may be mailed to the
Commission and Idaho Power at the addresses reflected below:
Commission Secretary Lisa D.Nordstrom
Idaho Public Utilities Commission Idaho Power Company
P0 Box 83720 P0 Box 70
Boise,ID 83 720-0074 Boise,ID 83 707-0070
E-mail:lnordstromidahopower.corn
Street Address for Express Mail:
472 W.Washington Street
Boise,ID 83702-59 18
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32984
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 Case Comment or Question
Form”under the “Consumers”tab,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 Idaho Power at the
e-mail address listed above.
YOU ARE FURTHER NOTIFIED that the parties may file reply comments (if
necessary)no later than Friday,April 4,2014.
YOU ARE FURTHER NOTIFIED that if no itten comments or protests are
received within the deadline,the Commission may consider the matter on its merits and may
enter its Order without a formal hearing.If comments or protests are filed within the deadline,
the Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it.IDAPA
3 1.01.01.204.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are 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.Click on the “File Roorn’tab at the top of the
page,scroll down to the type of “Open Electric Cases,”and then click on the case number as
shown on the front of this document.
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 that 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,IDAPA 31.01.01.000,et seq.
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power for approval of a
special contract with J.R.Simplot Company be processed by Modified Procedure.Persons
interested in submitting written comments in this matter must do so no later than Friday,March
28,2014.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32984 3
IT IS FURTHER ORDERED that the parties file reply comments no later than
Friday.April 4.2014.
DONE by Ordei ot the Idaho Public Utilities Commission at Boise,Idaho this
day of February 2014.
(
L.
ATTEST:
Jean D Jewell
Cmmission Secretary
O:iPC-E-I 3-23ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32984
MACK A.REDFORD,COMMISSIONER
‘LL
MARSIIA H.SMITH,COMMISSIONER
PRESIDENT
4