20160831notice_of_application_order_no_33579.pdf

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION TO
APPROVE AN AGREEMENT FOR
ELECTRIC SERVICE WITH THE UNITED
STATES DEPARTMENT OF ENERGY
------------------
) CASE NO. IPC-E-16-18
)
) NOTICE OF APPLICATION
)
) NOTICEOF
) MODIFIED PROCEDURE
)
) ORDER NO. 33579
Office of the Secretary
Service Date
August 31, 2016
On August 15, 2016, Idaho Power Company filed an Application seeking approval of
a new special services agreement with the United States Department of Energy (DOE) for
service at the Idaho National Laboratory (INL). The current agreement, approved in Order No.
32354, expires on September 14, 2016, and the new agreement is set to become effective on
September 15, 2016. Idaho Power asks the Commission to process the Application using
Modified Procedure. The Company also asks for an extension of the expiring agreement until
the new agreement is approved.
BACKGROUND
"Idaho Power has supplied electric service to the DOE and its predecessors since
1950 and currently serves the DOE under a special contract in accordance with the rates and
charges set out in Electric Service Rate Schedule 30 and its successor schedules." Application at
2. The Commission approved Idaho Power's current special services agreement with the DOE in
2011. Order No. 32354. The current agreement has a five-year term expiring September 14,
2016. Application at 2. Idaho Power began researching issues for negotiating a new agreement
with DOE in July 2015. Id. The Company and DOE successfully negotiated the terms and
conditions of its new special services agreement signed by the contracting parties on August 15
and 11, 2016, respectively. Attachment 1.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power's 2016 Agreement with DOE
includes the following terms:
Term. The agreement begins September 15, 2016, and ends September 14,
2021, subject to the Commission's approval. Application at 4.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33579
Services Provided by the Company. The Company agrees to provide the DOE
up to 55,000 kilowatts (kW) monthly for the operation of facilities at the INL.
The DOE may request additional power requirements subject to terms
specified in the 2016 Agreement. Id. at 3.
Contract Charges to be Paid to the Company. Under the 2016 Agreement, the
DOE will pay Idaho Power the monthly rate charges set forth in Schedule 30
for firm retail service of electric power and energy to the DOE at the INL site.
Id. at 4.
Equipment at Antelope Facilities. For the Company to provide service to
INL, it must use DOE-owned equipment located at the Antelope substation.
The Antelope substation is jointly owned by PacifiCorp and Idaho Power, but
operated by PacifiCorp. Under the agreement, Idaho Power will maintain the
DOE-owned equipment and coordinate access to such equipment with
PacifiCorp. Id. at 3.
YOU ARE FURTHER NOTIFIED that Idaho Power, the DOE, and PacifiCorp have
negotiated but not yet executed an agreement to transfer title of the DOE-owned equipment at
the Antelope substation to Idaho Power and PacifiCorp. Idaho Power is in the process of
determining whether PacifiCorp or Idaho Power will separately or jointly take title of the
equipment. Under the 2016 Agreement, the DOE will be notified of the utilities' decision by no
later than March 31, 2017. Upon transfer of title, Idaho Power will charge the DOE to maintain
the equipment through a facility service charge. Id. at 3-4.
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 opposition with the Commission by no
later than 21 days from the service date of this Order. 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 Idaho Power at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33579 2
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
4 72 W. Washington Street
Boise, ID 83702-5918
Lisa D. Nordstrom
Michael Youngblood
Idaho Power Company
1221 W. Idaho Street
PO Box 70
Boise, ID 83707-0070
E-mail: [e-mail]
[e-mail]
[e-mail]
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 addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments, if
necessary, by no later than 28 days from the service date of this Order.
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 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, 61-622.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure, ID APA 31.01.01.000, et seq.
YOU ARE FURTHER NOTIFIED that we find it appropriate to extend the term of
the expiring special agreement approved in Order No. 32354 until such time as the Commission
approves or rejects the Agreement proposed in this matter.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33579 3
ORDER
IT IS HEREBY ORDERED that the Application shall be processed by Modified
Procedure, ID APA 31.01.01.201-.204. Persons interested in submitting written comments in this
matter must do so no later than 21 days from the service date of this Order.
IT IS FURTHER ORDERED that reply comments by Idaho Power, if any, shall be
due 28 days from the effective date of this Order.
IT IS FURTHER ORDERED that the term of the special agreement approved in
Order No. 32354 is extended until such time as the Company's Application to approve the
proposed Agreement here is resolved.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3 / st
day of August 2016.
ATTEST:
l D. Jewell
:mmission Secretary
O:IPC-E-16-18_djh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ERIC ANDERSON, COMMISSIONER
ORDER NO. 33579 4