20150408Application.pdf

LISA D. NORDSTRO]I'
Lead Counsel
! [e-mail]
April 8, 2015
VIA HAND DELIVERY
Jean D. Jewel!, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-15-13
J. R. Simplot Company (Caldwell Facility) -
Application
Dear Ms. Jewell:
Enclosed for filing in the above matter please find
copies of ldaho Power Gompany'sApplication.
Very truly yourEi,
Lisa D. Nordstrom
LDN:csb
Enclosures
3Effi*.
An IDACORP Company
ldaho Power Company's
an original and seven (7)
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I no rd stro m @ ida hopowe r. co m
Attorney for ldaho Power Company
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OF SPECIAL CONTMCT AND
TARIFF SCHEDULE 32 TO PROVIDE
ELECTRIC SERVICE TO J. R. SIMPLOT
COMPANY'S CALDWELL FACILITY.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-15-13
APPLICATION
ldaho Power Company ("ldaho Powe/'or "Company"), in accordance with RP 52
and ldaho Code SS 61-502 and 61-503, hereby requests that the ldaho Public Utilities
Commission ("Commission") issue an order approving the special contract ("Caldwell
Special Contract") for electric service between ldaho Power and the J. R. Simplot
Company ("Simplot") for Simplot's new Caldwell facility dated April 8, 2015, and rates
proposed in tariff Schedule 32.1 ldaho Power is requesting a final order in this case and
Schedule 32 effective on or before June 1, 2015, with service under Schedule 32
applicable the first day of the month in the first month in which the aggregate power
' The proposed Schedule 32 for the new Caldwell facility replaces the prior Schedule 32, which
had been assigned to the special contract serving the now defunct Hoku Materials, lnc.
APPL]CATION - 1
requirement at the new Caldwell facility exceeds 20,000 kilowatts ("kW'). ldaho
Powe/s Application is based on the following:
I. BACKGROUND
1. ldaho Powe/s Schedule 19, Large Power Service, requires customers
with an aggregate power requirement receiving service at one or more points of delivery
on the same premises that exceeds 20,000 kW "to make special contract arrangements
with the Company."2
2. Currently, ldaho Power and Simplot have a specia! contract for Simplot's
Don Plant located in Pocatello, ldaho ("Don Plant Specia! Contract"), which enables
Simplot to use in excess of 20,000 kW at that location, in accordance with the terms
set forth in the Don Plant Special Contract.3 In addition to the Don Plant, Simplot
owns a facility in Caldwell, ldaho, that currently takes electric service under Schedule
19. Because its operations at the Caldwell facility have recently expanded,a Simplot
anticipates this facility may require an electric demand in excess of 20,000 kW as
early as the summer of 2015.
3. On December 4, 2013, ldaho Power filed an application in Case No.
IPC-E-13-23 requesting approval of a special contract with Simplot for the new Caldwell
facility. Prior to filing the application in that case, ldaho Power and Simplot had not
come to agreement on all terms of the proposed contract, reaching an impasse on
certain provisions regarding limitations of liability. Consequently, the application in
2See I.P.U.C. No.29, Tariff No. 101, Schedule 19.
t The Don Plant Special Contract was approved by the Commission in Case No. IPC-E44-17,
Order No. 29576 (September 2,2004).
a lt is the Company's understanding that the new Caldwell facility replaced the existing Caldwell
facility and that Simplot plans to consolidate the activities of the Nampa and Aberdeen facilities at the new
Caldwell location.
APPLICATION - 2
Case No. IPC-E-13-23 requested approval of the agreed-upon provisions of the
contract, and a Commission determination regarding the liability provisions in question.
Further, through comments filed in that case, it became apparent that ldaho Power and
Simplot disagreed with respect to the appropriate pricing methodology to be used for
setting rates for the new Galdwell facility. After Simplot, ldaho Power, and Commission
Staff filed comments on March 28, 2014, and reply comments on April 11, 2014, the
Commission issued Final Order No. 33038 on May 19, 2014, and Reconsideration
Order No. 33071 on July 7, 2014, resolving the issue of timited liabilitys and providing
guidance with respect to the appropriate methodology to be utilized for the
determination of specia! contract rates.
4. Following the resolution of Case No. IPC-E-13-23 and commissioning of
Simplot's new Caldwell facility, ldaho Power and Simplot have agreed to the special
contract set forth in the concurrently filed Attachment 1. Attachment 2 to this
Application is the proposed tariff, Schedule 32, which shows the billing components and
rates associated with the Caldwell Specia! Contract. Service under Schedule 32 would
be applicable beginning the first day of the month in the first month that the aggregate
power requirement at the new Caldwell facility exceeds 20,000 kW. Simplot will
additionally be subject to rates set forth in tariff Schedules 55 (Power Cost Adjustment),
91 (Energy Efficiency Rider), and 95 (Adjustment for Municipal Franchise Fees).
5. The Commission has broad authority to regulate and fix the rates and
charges assessed by ldaho Power. ldaho Code SS 61-502, 61-503. For rate setting
purposes, "each special contract customer is considered a separate class with different
conditions and contract terms affecting their rates . . . ." Order No. 33038 at 11.
u The limitation of liability language approved by Order No. 33071 in Case No. IPC-E-1&23 is
found in Section 11 of the Caldwell Special Contract.
APPLICATION - 3
Differentiation between classes of customersi is permissible when it is based on cost of
service, quantity of electricity used, differences in conditions of service, or the time,
nature, and pattem of the customers' use.6
II. SPECIAL CONTRACT TERMS
6. Services Provided. ln Section 4 of the Caldwell Special Contract, Idaho
Power agrees to furnish Simplot's total requirements for electric service and energy
delivered via four 12.5 kilovolt distribution feeders to the Caldwell facility. ldaho Power
will supply three-phase, 60 herlz ("H2") altemating current at nomina! 12,500 volts, with
a maximum steady state variation of plus or minus 5 percent under normal system
conditions. Consistent with Prudent Electrical Practices,T ldaho Power wilt operate
within the capability of its existing system to minimize voltage leve! fluctuations, the
normalfrequency variation to be within plus or minus 0.05 Hz on a 60 Hz base.
7. Contract Demand. According to Section 5 of the Caldwell Special
Contract, ldaho Power agrees to initially provide the Caldwell facility 25,000 kW of
Contract Demands up to a Total Maximum Contract Demande of 50,000 kW. Simplot
may change (increase or decrease) the Contract Demand in the amounts and time
u Building Contractors Association of Southwestern ldaho, lnc. v. ldaho Pubtic lJtilities Comm'n,
128 ldaho 534, 539, 916 P.2d 1259,1264 (1996); Agricultural Products Corp. v. Utah Power & Light Co.,
98 ldaho 23,557 P.2d 617 (1976); and ldaho State Homebuilders v. Washington Water Power,107 ldaho
415,420,690 P.2d 350, 355 (1984).
7As defined in Section 1.10 of Attachment 1: "Prudent Electrical Practices" shall mean those
practices, methods, and equipment that are commonly and ordinarily used in electrical engineering and
utility operation to operate electrical equipment and deliver electric power and energy with safety,
dependability, efficiency, and economy.
I As defined in Section 1.3 of Attachment 1: "Contract Demand" shall mean the monthly schedule
of kW ldaho Power has agreed to make available to the [new Caldwell facility] in accordance with [the
Caldwell Special Contractl. The Contract Demand may vary pursuant to Section 5 [of the Caldwell
Special Contractl.
e As defined in Section 1.14 of Attachment 1: "Total Maximum Contract Demand" shall mean the
upper limit of 50,000 kW of monthly contract demand ldaho Power will make available to the [new
Caldwell facilityl.
APPLICATION - 4
periods set out in Section 5 with written notice to ldaho Power. The minimum monthly
Billing Demandlo will be the Contract Demand tess 1O,OOO kW. ln the event Simptot's
Billing Demand exceeds the established Contract Demand, ldaho Power does not
guarantee or warrant the avaitability of Excess Demandll and may curtail service to the
Caldwel! facility at ldaho Powe/s sole discretion. ln the event ldaho Power makes
power available to satisfy Excess Demand, the costs charged to Simplot for such
Excess Demand will be subject to the Daily Excess Demand Charge specified in the
then-current Schedule 32.
8. Rates and Charoes. ldaho Power must account for a number of factors
when determining rates for new special contract customers, such as the impact of the
load on its system and the operational conditions that exist at the time of application.
ldaho Power determines rates for new special contract customers on a case-by-case
basis, taking into account the unique circumstances that exist when each contract is
developed.
9. With respect to the Caldwell Special Contract, ldaho Power evaluated the
unique circumstances of the new facility to determine the appropriate rate methodology
and pricing structure. Through this evaluation, ldaho Power determined that the
circumstances surrounding the new Caldwell facility wananted fully-embedded, cost-
based pricing according to the Company's most recently reviewed class cost-of-service
study (2011 Study'') from Case No. IPC-E-11-08 (2011 Rate Case"). This
10 As defined in Section 1.1 of Attachment 1: "Billing Demand" shall mean the kW supplied to the
[new Caldwell facility] during the coincident 1S-consecutive-minute period of maximum use during the
monthly billing period, adjusted for power factor, as measured by ldaho Power's metering equipment
located at the [new Caldwellfacility].
" As defined in Section 1.5 of Attachment 1: "Excess Demand" shall mean Billing Demand in
excess of the Contract Demand.
APPLICATION - 5
determination was based on the fact that the new Caldwell facility is intended to replace
three existing facilities (Aberdeen, Nampa, and Caldwell), and therefore does not
represent a true incremental load, but rather the consolidation of existing load cunently
subject to fully-embedded rates. Although the estimated load at the new Caldwell
facility is greater than the combined load of the three facilities slated for consolidation,
the level of incremental Ioad above the combined load of these three operations is
estimated to be less than 5,000 kW. Based upon these unique circumstances, the
Company developed the rates and charges for the Caldwell Special Contract to reflect
the full embedded cost of providing electrical service to the new Caldwell facility.
10. To calculate the Caldwell Special Contract rates, Idaho Power applied the
most current cost-of-service information available to projected electrical requirements
provided by Simplot. The foundation for these calculations was the 2011 Study
reviewed in the 2011 Rate Case, reflecting the final revenue requirement approved in
the 2011 Rate Case. At a high level, the 2011 Study was modified to reflect the
removal of the three Simplot Schedule 19 locations that the new Caldwell facility is
intended to replace and the addition of the new Caldwell facility as an individual rate
class. Costs were then allocated to the new Caldwell facility according to projected
loads and the Company's methodology from the 2011 Study.
11. Once revenue requirement from the 2011 Rate Case had been
appropriately allocated to the Caldwell Special Contract, rates were adjusted to reflect
changes that have occuned since the conclusion of the 2011 Rate Case. Specifically,
the Company adjusted the special contract tariff to capture base rate changes resulting
from Commission orders related to the Open Access Transmission Tariff ("OATT')
APPLICATION - 6
deferral adjustment,l2 the depreciation study adjustment,l3 the Boardman balancing
account adjustment,l4 the Langley Gulch power plant adjustment,ls and, most recently,
the update to base net power supply expenses effective June 1, 2014.16 To
appropriately reflect the outcomes of these cases, ldaho Power adjusted the Caldwell
Special Contract rates in the same manner as the final approved rate changes from
those cases.17
12. The rates resulting from the calculations described above are reasonable,
consistent with previous cost-of-service determinations, and in the public interest.
Further, the use of the 2011 Study as the basis for this analysis is in alignment with the
Commission's direction provided in Case No. IPC-E-13-23.18 The intent of this rate-
setting methodology was to develop the customer-specific cost of providing electrical
service to the new Caldwell facility utilizing the most cunent cost-of-service information
available. Because the new Caldwell facility primarily reflects the consolidation of
existing load rather than the addition of entirely new load, the fully-embedded cost-
based rates appropriately recover the cost of providing electrical service to the new
" Case No. IPC-E-12-06, Order No. 32540 (April27,2012).
'3 Case No. !PC-E-12-08, Order No. 32559 (May 31 , 2012).
la Case No. IPC-E-I2-09, Order No. 32549 (May 17,2012).
'5 Case No. IPC-E-12-14, Order No. 32585 (June 29, 2012l,
to Case No. IPC-E-14-05, Order No. 33049 (May 30, 20141.
" For example, the OATT deferral adjustment was applied to all classes on a uniform cents-per-
kilowatt-hour ("kWh") basis; therefore, cents-per-kWh rates for the Caldwell Special Contract were
adjusted using the same cents-per-kWh adder approved in Case No. IPC-E-12{6.
'8 Case No. IPC-E-13-23, Order No. 33038 at 12 (May 19,2014), ". . . we find that a rate utilizing
cost-of-service as a starting point for negotiation is consistent with prior Commission Orders and is fair,
just and reasonable."
APPLICATION. T
Caldwell facility, and limit the potential undue impact of upward rate pressure on the
Company's other customer classes.
13. As described above, the rates and charges for electrical power, energy,
and other services provided by ldaho Power to the new Caldwell facility will be identified
by billing component in the then-current Schedule 32. Simplot agrees to pay ldaho
Power the sum of the billing components identlfied on the then-current Schedule 32 for
ldaho Power to provide electric service to the new Caldwell facility.
14. Power Factor. During the first 12-month period after service under
Schedule 32 is applicable, when the new Caldwell facility's adjusted power factor is less
than 90 percent as measured by ldaho Power, ldaho Power will adjust the Billing
Demand by the process outlined in Section 7.2 of Attachment 1. After this period, when
the new Caldwell facility's adjusted power factor is less than g5 percent as measured by
ldaho Power, ldaho Power wil! adjust the Billing Demand by the process outlined in
Section 7.2 of Attachment 1.
15. Termination. As set forth in Section 3 of Attachment 1, Simplot and Idaho
Power have the right to terminate the Caldwell Special Contract for convenience and
without cause by delivering advance written notice of termination of 12 months or 18
months, respectively to the other party. Simplot will reimburse ldaho Power for ldaho
Powe/s costs associated with the termination of the Caldwell Specia! Contract, which
are limited to the net book value (original cost less depreciation) of the lnterconnection
Facilitiesle paid for by tdaho Power plus the cost of the removal and transport to storage
of surplus lnterconnection Facilities, if any, less a credit, for any residual value of the
'n As defined in Section 1.6 of Attachment 1: "lnterconnection Facilities" are reasonably required
by Prudent Electrical Practices and the National Electric Safety Code to interconnect and deliver electrical
power and energy to the Point of Delivery at the [new Caldwell facility], including, but not limited to,
transmission facilities, substation facilities, and metering equipment.
APPLICATION - 8
surptus lnterconnection Facilities. Termination Charges2o will not be assessed for
investment costs of lnterconnection Facilities paid for by Simplot. ldaho Power shall
deduct from the Termination Charges any credits due and owing to Simplot under the
terms of the Caldwell Special Contract.
16. Commission Jurisdiction. Simplot and ldaho Power agree in Section 13 of
Attachment 1 that the Caldwell Special Contract and the rates set forth therein and in
Schedule 32 are.subject to the jurisdiction and regulatory authority of the Commission
and subject to the same ratemaking standards applicable to ldaho Power intrastate tariff
rates.
17. Effective Date. Per Section 13 of Attachment 1, the Caldwell Special
Contract is subject to the approval by the Commission of all terms and provisions hereof
without change or condition. ldaho Power requests that the Commission approve the
Caldwell Specia! Contract and Schedule 32 effective on or before June 1, 2015, with
service under Schedule 32 applicable the first day of the month in the first month in
which the aggregate power requirement at the new Caldwell facility exceeds 20,000 kW.
Because Simplot is uncertain as to the month in which it will first exceed an aggregate
power requirement of 20,000 kW, the flexible "Applicability" section of Schedule 32 wil!
allow the new Caldwell facility to remain on Schedule 19 until it is no longer eligible for
service under that schedule.
III. MODIFIED PROCEDURE
18. ldaho Power believes that a hearing is not necessary to consider the
issues presented herein and respectfully requests that this Application be processed
'0 As defined in Section 3.2 of Attachment 1: "Termination Charges" are costs associated with
the termination of [the CaldwellSpecial Contract].
APPLICATION - 9
under Modified Procedure; i.e., by written submissions rather than by hearing. RP 201,
ef seg.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
19. Communications and service of pleadings with reference to this
Application should be sent to the following:
Lisa D. Nordstrom
Regulatory Dockets
ldaho Power Company
Michael Youngblood
Idaho Power Gompany
1221West ldaho Street (83702)
Boise, ldaho 83707
mvou nq b lood @ idahopower. co m
1221 West ldaho Street (83702) P.O. Box 70
P.O. Box 70
Boise, ldaho 83707
I no rd stro m @ id a ho power. co m
[e-mail]
v. coNcLustoN
20. The rates included in Attachment 2 reflect the cost of providing service to
the new Caldwell facility according to the most current cost information available.
These rates will appropriately recover the cost of providing service to the new Caldwell
facility, while limiting the potential for cost shifting between the Caldwell Special
Contract and the Company's other customer classes. These rates are reasonable,
consistent with past cost-of-service determinations, and in the public interest.
THEREFORE, ldaho Power respectfully requests that the Gommission issue its
Order effective on or before June 1, 2015, (1) approving the Caldwell Special Contract
attached as Attachment 1 and (2) approving the rates and charges set out in Schedule
32 attached as Attachment 2 without change or condition.
DATED at Boise, ldaho, this 8h day of April 2015.
Attomey for ldaho Power Company
APPLICATION - 10
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 8th day of April 2015 t served a true and correct
copy of the within and foregoing APPLICATION upon the following named parties by the
method indicated below, and addressed to the following:
J. R. Simplot Company
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 27th Street (83702)
P.O. Box 7218
Boise, Idaho 83707
Don E. Sturtevant
Director, Energy Purchasing
J. R. Simplot Company
P.O. Box 27
Boise, ldaho 83707 -0027
Hand Delivered
U.S. Mail
Overnight Mail
FAXX Email [e-mail]
[e-mail]
_Hand Delivered
X U.S. Mail
Ovemight Mail
FAXX Email [e-mail]
APPLICATION - 11
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC.E.15.13
IDAHO POWER COMPANY
ATTACHMENT 1
CALDWELL SPECIAL CONTRAGT
SIffi*"
An IDaCORP CompanY
SPECIAL CONTRACT FOR ELECTRIC SERVICE
BETWEEN
IDAHO POWER COMPANY
AND
StMPLOT (CALDWELL, TDAHO)
THIS AGREEMENT FOR ELECTRIC SERVICE ("Agreement") is entered
into by J.R. Simplot Company, a Nevada Corporation ("Simplot") and ldaho Power
Company, an ldaho Corporation ("ldaho Power") and is dated Arnru8 ,2015.
The undersigned may also be referred to individually as a "Party" or collectively as the
"Parties." ln consideration of the mutual covenants hereinafter set forth, the Parties
hereby agree as follows:
SECTION 1 _ DEFINITIONS
1.1. "Billing Demand" shall mean the kilowatts supplied to the Simplot
Facility during the coincident 1S-consecutive-minute period of maximum use during the
monthly billing period, adjusted for power factor, as measured by ldaho Power's
metering equipment located at the Simplot Facility.
1.2. "Commission" shall mean the ldaho Public Utilities Commission or
its successor agency.
1.3. "Contract Demand" shall mean the monthly schedule of kilowatts
ldaho Power has agreed to make available to the Simplot Facility in accordance with this
Agreement. The Contract Demand may vary pursuant to Section 5.
Section 6.
1.4. "Construction Agreement" shall have the meaning set forth in
1.5. "Excess Demand" shall mean Billing Demand in excess of the
Contract Demand.
1.6. "lnterconnection Facilities" shall mean all facilities that are
reasonably required by Prudent Electrical Practices and the National Electric Safety
Code to interconnect and deliver electrical power and energy to the Point of Delivery at
the Simplot Facility, including, but not limited to, transmission facilities, substation
facilities and metering equipment.
1.7. "Minimum Monthly Billing Demand" shall have the meaning set forth
in paragraph 5.2.3.
1.8. "Notice" as used in this agreement shall mean written notice
delivered to the other Party by a recognized commercial courier, addressed as set forth
below. Such notice will be deemed given as of the date of receipt.
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1.8.1. To ldaho Power:
ldaho Power Company
ATTN: Vice President of Regulatory Affairs
P.O. Box 70
Boise, ldaho 83707
1.8.2. To Simplot:
J.R. Simplot Company
ATTN: Director, Energy
P.O. Box27
Boise, ldaho 83702
1.9. "Point of Delivery" shall mean the location(s) specified in paragraph
4.2 where the electrical facilities owned by Simplot are interconnected to the electrical
facilities owned by ldaho Power and where power and energy are delivered by ldaho
Power for the purpose of providing electrical service for the operations of the Simplot
Facility.
1.10. "Prudent Electrical Practices" shall mean those practices, methods,
and equipment that are commonly and ordinarily used in electrical engineering and utility
operation to operate electrical equipment and deliver electric power and energy with
safety, dependability, efficiency and economy.
1.11. "Schedule 32" shall mean the Simplot Facility tariff schedule of rates
and charges or its successor schedules approved by the Commission. Service under
Schedule 32 is applicable beginning the first day of the month in the first month that the
aggregate power requirement at one or more Points of Delivery at the Simplot Facility
exceeds 20,000 kW.
1.12. "Simplot Facility" shall mean the Simplot manufacturing complex
located near or at 16551 Simplot Boulevard, Caldwell, ldaho.
1.13. "Termination Charges" shall have the meaning set forth in Section
3.2.
1.14. "Total Maximum Contract Demand" shall mean the upper limit of
50,000 kilowatts of monthly contract demand ldaho Power will make available to the
Simplot Facility pursuant to this Agreement.
SECTION 2 - TERM OF AGREEMENT
This Agreement shall remain in effect until either Simplot or ldaho Power
terminates this Agreement as provided in Section 3.
SECTION 3 _ TERMINATION
3.1. Notice of Termination bv Simplot. Simplot shall have the right to
terminate this Agreement for its convenience and without cause by delivering twelve (12)
months advance written Notice of termination to ldaho Power. The Notice of termination
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shall set forth the effective date of termination, which shall be no earlier than twelve (12)
months after Simplot delivers the written Notice of termination.
3.2. Termination Charoes. Simplot shall reimburse ldaho Power for
ldaho Power's costs associated with the termination of this Agreement ("Termination
Charges"). Termination Charges shall be limited to the net book value (original cost less
depreciation) of the lnterconnection Facilities paid for by ldaho Power plus the cost of
the removal and transport to storage of surplus lnterconnection Facilities, if any, less a
credit, for any residual value of the surplus lnterconnection Facilities. Termination
Charges will not be assessed for investment costs of lnterconnection Facilities paid for
by Simplot. ldaho Power shall deduct from the Termination Charges any credits due and
owing to Simplot under the terms of this Agreement. Nothing in this paragraph 3.2 shall
prevent either Party from asserting any rights or claims under this Agreement or
otherwise. Subsequent to giving or receiving a termination Notice as described in
paragraph 3.1, ldaho Power will invoice Simplot for any Termination Charges known at
that time. Termination Charges shall be due and payable within fifteen (15) calendar
days of Simplot's receipt of the invoice.
3.3. Notice of Termination bv ldaho Power. ldaho Power shall have the
right to terminate this Agreement and negotiate a new agreement for its convenience
and without cause by delivering eighteen (18) months advance written Notice to Simplot.
The Notice shall set forth the effective date of termination of the Agreement, which shall
be no earlier than eighteen (18) months after ldaho Power delivers the written Notice.
Any new agreement negotiated and agreed to by the Parties shall be subject to final
approval by the ldaho Public Utilities Commission.
SECTION 4 _ SERVICES TO BE PROVIDED
4.1. Supplv Oblioation. ln accordance with Prudent Electrical Practices
and subject to the provisions of this Agreement, ldaho Power will furnish Simplot's total
requirements for electric power and energy at the Simplot Facility. Before ldaho Power
commences electric service and as an ongoing condition of service, Simplot's loads must
satisfy the harmonic control requirements set forth in ldaho Power's Rule K approved by
the Commission and the current lnstitute of Electrical and Electronic Engineers (IEEE)
Standard 519. Simplot will not resell any portion of the power and energy furnished
under this Agreement.
4.2. Point of Deliverv. Electric power and energy shall be delivered by
ldaho Power via four 12.5 kilovolt distribution feeders to each point generally described
as the X-1 disconnect switch(es) at the Simplot Facility.
4.3. Description of Electric Service. ldaho Power shall supply three-
phase, 60 HZ alternating current at nominal 12,500 volts, with a maximum steady state
variation of plus or minus five percent (5%) under normal system conditions. Consistent
with Prudent Electrical Practices, ldaho Power will operate within the capability of its
existing system to minimize voltage level fluctuations, the normal frequency variation to
be within plus or minus 0.05 HZ on a 60 HZ base. ldaho Power's maximum steady state
variation of plus or minus five percent (5%) and the voltage level fluctuations may vary in
the event of abnormal system conditions.
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SECTION 5 _ CONTRACT DEMAND
5.'1. Contract Demand. ldaho Power agrees to initially provide the
Simplot Facility 25,000 kilowatts of Contract Demand.
5.2. Chanoes to Contract Demand. Under no circumstances will Simplot
be allowed to increase the Contract Demand above the Total Maximum Contract
Demand of 50,000 kilowatts.
5.2.1. Chanoes durino the first twelve (12) months after service under
Schedule 32 is applicable. During this period, to facilitate actual production and energy
consumption history, Simplot will be able to change (increase or decrease) the contract
demand by 1,000 kilowatts per month with 30 days written notice and up 5,000 kilowatts
(+/-) per month with three (3) months written notice up to a total increase of 10,000
kilowatts during the first year. lncreases beyond 10,000 kilowatts during the first year
may be possible, but Simplot must notify and ldaho Power must agree to these
additional increases.
5.2.2. Chanoes After the First Twelve (12) Months.
a. lncreases to Contract Demand. Under the terms of this
Agreement, Simplot may increase the Contract Demand above the 25,000 kilowatts of
Contract Demand, in even increments of 1,000 kilowatts. lf the increase in Contract
Demand is between 1,000 kilowatts and 10,000 kilowatts, Simplot shall provide Notice to
ldaho Power of its desire to increase its Contract Demand at least six (6) months in
advance of the first day of the month it desires the additional capacity to be made
available. lf the increase in Contact Demand is greater than 10,000 kilowatts, Simplot
shall provide Notice to ldaho Power of its desire to increase its Contract Demand at least
twelve (12) months in advance of the first day of the month it desires the additional
capacity to be made available. The new Contract Demand will not be decreased for a
minimum of six (6) months. Simplot shall not increase its Contract Demand more than
15,000 kilowatts in any twelve ('12) month period.
b. Decreases to Contract Demand. Simplot may decrease the
Contract Demand in even increments of 1,000 kilowatts. Simplot will provide ldaho
Power Notice of Simplot's desires to decrease its Contract Demand at least three (3)
months in advance of the first day of the month in which Simplot desires its decreased
Contract Demand to be effective. Simplot cannot decrease its Contract Demand more
than 15,000 kilowatts in any twelve (12) month period.
5.2.3. Minimum Monthlv Billino Demand. The minimum monthly billing
demand will be the Contract Demand less 10,000 kilowatts.
5.2.4. Excess Demand. ldaho Power does not guarantee or warrant the
availability of Excess Demand. lf there is Excess Demand at the Simplot Facility, ldaho
Power may curtail service to the Simplot Facility at ldaho Power's sole discretion. ldaho
Power reserves the right to install, at any time at ldaho Power's sole discretion and at
Simplot's expense, any device necessary to protect ldaho Power's system from damage
that may be caused by Excess Demand pursuant to prudent electrical practices as
described in paragraph 1.10 above. Simplot will be responsible for any costs or
damages related to ldaho Power's system, or any costs or damages related to third
parties resulting from Excess Demand. Simplot agrees to use its best reasonable efforts
to monitor its electric loads and to advise ldaho Power as soon as possible of the
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potential for Excess Demand. ln the event ldaho Power decides, in its sole discretion, to
make power available to satisfy Excess Demand, the costs charged to Simplot for such
Excess Demand will be subject to the Daily Excess Demand Charge specified in the
then-current Schedule 32.
SECTION 6 - FACILITIES FOR DELIVERY TO SIMPLOT FACILITY
6.1. Facilities. The Parties acknowledge that they have separately
entered into the Agreement for the Construction of the Simplot Transformer Addition and
Associated Facilities ("Construction Agreement"), pursuant to which Simplot has paid
ldaho Power to construct the lnterconnection Facilities necessary to provide up to the
Total Maximum Contract Demand under this Agreement. ln the event that additional
transmission and/or substation lnterconnection Facilities are required to provide service
pursuant to Section 5.2.1(a) above, ldaho Power may require Simplot to enter into a
separate agreement that will require Simplot to pay the costs for such additions if
necessary to provide the service.
6.2. Operation and Maintenance. ldaho Power will operate and maintain
lnterconnection Facilities necessary to provide service to the Simplot Facility. Such
lnterconnection Facilities include lnterconnection Facilities paid for by Simplot, including
those paid for by Simplot pursuant to the Construction Agreement. ldaho Power shall
operate and maintain such lnterconnection Facilities in accordance with Prudent
Electrical Practices.
SECTION 7 - CHARGES TO BE PAID BY SIMPLOT TO IDAHO POWER
7.1. Rates and Charoes. The rates and charges for electrical power,
energy, and other service provided by ldaho Power to the Simplot Facility will be
identified by component in the then-current Schedule 32. Simplot shall pay ldaho Power
the sum of the components identified on the then-current Schedule 32for ldaho Power to
provide electric service to the Simplot Facility
7.2. Power Factor. During the first twelve-month period after service
under Schedule 32 is applicable, when the Simplot Facility's adjusted power factor is
less than 90 percent during the 1S-consecutive-minute period of maximum use for the
monthly billing period as measured by ldaho Power, ldaho Power will adjust the Billing
Demand by multiplying the metered demand in kilowatts by 0.90 and dividing that
product by the adjusted power factor. After this period, when the Simplot Facility's
adjusted power factor is less than 95 percent during the 1S-consecutive-minute period of
maximum use for the monthly billing period as measured by ldaho Power, ldaho Powerwill adjust the Billing Demand by multiplying the metered demand in kilowatts by 0.95
and dividing that product by the adjusted power factor. The reactive component of the
adjusted power factor is comprised of the reactive load plus the 138112.5 kV transformer
reactive losses reduced by the amount of reactive correction paid for by Simplot.
7.3. Billinq and Meterino Provisions. Billing Demand at the Simplot
Facility shall be determined on a 15-minute coincidental basis as measured by ldaho
Power and shall be paid by Simplot accordingly. ldaho Power will install suitable
metering equipment so that coincident Billing Demand and energy consumption can be
determined for the billing period. ldaho Power shall make 15-minute interval period
energy use data available to Simplot for data and billing analysis purposes. Data can
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be provided by pulse output at the metering location in the substation and/or as an
electronic file at the time of billing. Simplot would be responsible for the installation and
maintenance associated with retrieving the meter pulse output and transmitting it from
the substation to their end use location. ldaho Power will allow Simplot to install and
maintain power quality meters in the substation metering circuits to provide for their
power quality monitoring needs. The installation and maintenance of the Simplot power
quality meters and any remote communication equipment for those meters is the sole
responsibility of Simplot. Access to the station to service or maintain their equipment
will be facilitated by ldaho Power with 48 hours notice.
SECTION 8 _ PAYMENT OF BILLS/SETTLEMENTS
8.1. Billino Data. Simplot shall pay ldaho Power for all services and
work provided under this Agreement. lnvoices for payment for electric services shall be
prepared and submitted to Simplot monthly. All invoices or bills shall contain such data
as ldaho Power deems reasonably required to substantiate the billing, including without
limitation, statements of the meter reading at the beginning and end of the billing period,
meter constants, and consumption during the billing period.
8.2. Pavment Procedure. Simplot shall pay all invoices hereunder within
fifteen (15) days following Simplot's receipt of such invoice. Simplot shall make payment
by electronic transfer of funds to a location designated by ldaho Power. ldaho Power
will provide Simplot with current ABA routing numbers and other necessary instructions
to facilitate the electronic transfer of funds. Late payment charges will be assessed in
accordance with ldaho Power's then-current Rule G and Schedule 66.
SECTION 9 _ ACCESS TO PREMISES
During the term of this Agreement, and for a reasonable period deemed
necessary by ldaho Power following termination, Simplot hereby grants ldaho Power,
without cost to ldaho Power, a perpetual easement (unless terminated in accordance with
Section 3 herein) to access the Simplot Facility premises and other related areas at all
times for the purposes of operating ldaho Power facilities, making installations, repairing
and removing ldaho Power equipment, and for other purposes deemed necessary by
ldaho Power to perform work under this Agreement. ldaho Power will make reasonable
efforts to notify Simplot prior to accessing Simplot Facility premises, acknowledging
however, that timeliness in accessing the equipment may be of high importance.
SECTION 1O _ ASSIGNMENT
This Agreement shall be binding upon the heirs, legal, and personal
representatives, successors, and assigns of the parties hereto. Simplot shall not assign
any part of this Agreement without the express written consent of ldaho Power, which
shall not be unreasonably withheld.
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PoutER.
SECTION 11 _ INDEMNIFICATION. LIMITATION OF LIABILITY. AND EXCLUSIVITY
OF WARRANTIES
11.1. lf one of the Parties is negligent related to this Agreement
("Negligent Party") and that negligence causes liability, liens, suits, loss, damage,
claims, actions, costs, and expenses of any nature (collectively "Damages"), the
Negligent Party agrees to protect, defend, indemnify, and hold harmless the other party
and its successors and their officers, directors, employees, affiliates, and agents, from,
for, and against any and all Damages resulting from the negligence, whether actual or
merely alleged, including court costs and attorney's fees. lf both parties are negligent,
they shall be responsible for resulting Damages in proportion to their negligence.
11.2, NEITHER PARTY NOR ITS AFFILIATES WILL BE LIABLE UNDER
ANY THEORY OF RECOVERY, WHETHER BASED IN CONTRACT, TORT,
WARRANTY, OR OTHERWISE, FOR: ANY INDIRECT, SPECIAL, INCIDENTAL, OR
CONSEQUENTIAL LOSS OR DAMAGE; PUNITIVE DAMAGES; LOSS OF PROFITS OR
REVENUE; LOSS OF USE OF MATERIAL OR EQUIPMENT; OR INCREASED COSTS
OF CAPITAL OR FUEL COSTS; PROVIDED, HOWEVER, THAT NOTHING lN THIS
PARAGRAPH 11.2 SHALL BE CONSTRUED TO L|MIT (A) SIMPLOT'S PAYMENT
oBLTGAT|ONS TO TDAHO POWER OR (B) ETTHER PARTY',S LTABTLTTY FOR GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT.
11.3. EACH PARTY AGREES UNDER NO CIRCUMSTANCES SHALL
THE TOTAL AGGREGATE LIABILITY OF THE OTHER PARTY UNDER THIS
AGREEMENT EXCEED ONE HUNDRED FTFTY PERCENT (150%) OF THE TOTAL
AMOUNT PAID BY SIMPLOT TO IDAHO POWER UNDER THIS AGREEMENT DURING
THE TWELVE MONTHS IMMEDIATELY PRECEDING THE DATE OF BREACH. IF
TWELVE MONTHS HAVE NOT PASSED SINCE THE DATE OF COMMISSION
APPROVAL OF THIS AGREEMENT AT THE TIME OF THE BREACH, THE SUM OF (A)
THE ACTUAL AMOUNTS PAID BY SIMPLOT TO IDAHO POWER UNDER THIS
AGREEMENT FOR THE MONTHS THAT HAVE PASSED SINCE THE DATE OF
coMMrssroN APPRoVAL AND (B) THE PROJECTED AMOUNTS TO BE PArD BY
SIMPLOT TO IDAHO POWER UNDER THIS AGREEMENT (CALCULATED BASED ON
THE AVERAGE AMOUNT PAID BY SIMPLOT UNDER THIS AGREEMENT DURING THE
MONTHS THAT HAVE PASSED) FOR THE REMAINING NUMBER OF MONTHS
NECESSARY TO REACH AN AGGREGATE OF TWELVE MONTHS, WILL BE USED IN
THE CALCULATION IN THE PRECEDING SENTENCE. THE LIMITATION OF
LtABrLtTy SET FORTH rN TH|S PARAGRAPH 11.3 SHALL NOT LrMtT (A) STMPLOT'S
PAYMENT OBLTGATTONS TO IDAHO POWER UNDER THIS AGREEMENT, OR (B)
EITHER PARTY'S LIABILITY FOR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
11.4, EXCEPT AS PROVIDED IN THIS AGREEMENT, IDAHO POWER
MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WITHOUT
LIMITATION, THOSE OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE, WITH RESPECT TO THE WORK AND SERVICES PROVIDED
HEREUNDER.
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SECTION 12 - MODIFICATIONS OF CONTRACT
This Agreement represents the entire understanding and agreement
between the Parties with respect to the subject matter of this Agreement. The Parties
may amend or modify this Agreement only by a written instrument executed by the
Parties.
SECTION 13 - COMMISSION JURISDICTION
13.1. This Agreement and the respective rights and obligations of the
Parties hereunder, shall be subject to (1) ldaho Power's General Rules and Regulations
as now or hereafter in effect and on file with the Commission, and (2) to the jurisdiction
and regulatory authority of the Commission and the laws of the State of ldaho.
13.2. ldaho Power and Simplot agree that the rates set forth in this
Agreement and the then-current Schedule 32 are subject to the continuing jurisdiction of
the Commission. ldaho Power and Simplot agree that the rates under this Agreement
are subject to change and revision by order of the Commission upon a finding, supported
by substantial competent evidence, that such rate change or revision is just, fair,
reasonable, sufficient, non-preferential, and nondiscriminatory. lt is the Parties' intention
by such provision that the ratemaking standards to be used in making any revisions or
changes in rates, and the judicial review of any revisions or changes in rates, will be the
same standards that are applicable to ldaho Power intrastate tariff rates.
SECTION 14 - COMMISSION APPROVAL
This Agreement is subject to, and shall become effective upon, the
approval by the Commission of all terms and provisions hereof without change or
condition.
SECTION 15 _ FORCE MAJEURE
As used in this Agreement, "Force Majeure" or "an event of Force Majeure"
means any cause beyond the control of a Party which, despite the exercise of due
diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is
not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and
other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changesin law or regulation occurring after the effective date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and
by the exercise of due diligence, it shall be unable to overcome. lf either Party is
rendered wholly or in part unable to perform its obligations under this Agreement
because of an event of Force Majeure, both Parties shall be excused from whatever
performance is affected by the event of Force Majeure that: (1) The non-performing
Party shall, as soon as is reasonably possible after the occurrence of the event of Force
Majeure, give the other Party written notice describing the particulars of the occurrence.(2) The suspension of performance shall be of no greater scope and of no longer
duration than is required by the event of Force Majeure. (3) No obligations of either
Party which arose before the occurrence causing the suspension of performance and
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which could and should have been fully performed before such occurrence shall be
excused as a result of such occurrence.
SECTION 16 _ BREACH REMEDIES
lf a Party materially breaches this Agreement, the non-breaching Party
may provide Notice to the breaching Party. lf the breaching Party does not cure the
default within thirty (30) calendar days (ten (10) calendar days in the case of a breach of
the payment terms herein) of such notice, the non-breaching Party shall have the right to
terminate this Agreement and/or terminate service in accordance with the Commission's
Utility Customer Relations Rules. Failure to pay in accordance with this Agreement shall
constitute a material breach.
SECTION 17 - SURVIVAL
Any provisions of this Agreement that may be reasonably interpreted as
surviving the completion and/or termination on of this Agreement shall survive such
completion and/or termination.
SECTION 18 _ MISCELLANEOUS
18.1. Whenever possible, each provision of this Agreement shall be
interpreted so as to be effective and valid under applicable law. lf any provision is
adjudged to be invalid, the remaining provisions in this Agreement shall remain in force.
18.2. Waivers of any right, privilege, claim, obligation, or condition shall
be in writing and signed by the waiving Party. No waiver by a Party of any breach of this
Agreement shall be a waiver of any preceding or succeeding breach, and no waiver by a
Party of any right under this Agreement shall be construed as a waiver of any other right.
18.3. ln the event that legal action in court arises between the Parties
relating to this Agreement, the prevailing Party shall be entitled to recover attorney's
fees and costs incurred in prosecution or defense of the legal action (including without
limitation any fees on appeal).
18.4. No persons or entities shall be or shall be deemed to be third-party
beneficiaries of this Agreement.
18.5. Simplot shall comply with all applicable federal, state, and local
laws, including without limitation, ldaho Power's tariff approved by the Commission.
18.6. Neither Party shall be deemed an agent, partner, joint venturer, or
employee of the other Party.
[Signatures on following page.]
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An IDACOiP Comparry
Date: APe,rr-E, z.ztS
J.R. SIMPLOT COMPANY
IDAHO POWER COMPANY
W. Said, Vice President Regulatory Affairs
, Vice President
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPC-E-15-13
IDAHO POWER GOMPANY
ATTACHMENT 2
TARIFF
ldaho Power Company
|.P.U.C. No. 29. Tariff No. 101 Oriqinal Sheet No. 32-1
SCHEDULE 32
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
J. R. SIMPLOT COMPANY
CALDWELL. IDAHO
SPECIAL CONTRACT DATED APRIL 8. 2015
APPL!CABILITY
Service under this schedule is applicable beginning the first day of the month in the first month
that the aggregate power requirement at one or more Points of Delivery at the Simplot Facility located
near or at 16551 Simplot Boulevard, Caldwell, ldaho, exceeds 20,000 kW.
SUMMER AND NON-SUMMER SEASONS
The summer season begins on June 1 of each year and ends on August 31 of each year. The
non-summer season begins on September 1 of each year and ends on May 31 of each year.
MONTHLY CHARGE
The Monthly Charge is the sum of the following charges, and may also include charges as set
forth in Schedule 55 (Power Cost Adjustment), Schedule 91 (Energy Efficiency Rider), and Schedule g5
(Adjustment for Municipal Franchise Fees).
Contract Demand Charqe
per kW of Contract Demand
Demand Charqe
per kW of Billing Demand but no less
than the Contract Demand less 10,000 kW
Dailv Excess Demand Charoe
per each kW over the Contract Demand
Enerov Charoe
per kWh
Summer
$1.77
$14.74
$0.295
$0.030974
Non-Summer
$1.77
$8.57
$0.295
$0.030391
IDAHO
lssued per Order No.
Effective -
lssued by IDAHO POWER COMPANY
Gregory W. Said, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, ldaho