20210907Final_Order_No_35157.pdf

ORDER NO. 35157 1

Office of the Secretary
Service Date
September 7, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On June 23, 2021, Idaho Power Company (“Company” or “Idaho Power”) applied for
approval of its new service agreement with the United States Department of Energy (“DOE”) for
service at the Idaho National Laboratory (“INL”).
On July 9, 2021, the Commission issued a Notice of Application and set deadlines for
public comments and the Company’s reply. Staff filed comments and the Company indicated that
they would not be filing any comments.
Having reviewed the record, we now approve the Company’s Application as discussed
below.
BACKGROUND
DOE operates the Idaho National Laboratory (“INL”) site located approximately 50
miles west of Idaho Falls, Idaho. The Company “has supplied electric service to the DOE and its
predecessors since 1950 and currently serves DOE under a special contract in accordance with the
rates and charges set out in Electric Service Rate Schedule 30 (“Schedule 30”) and its successor
schedules.” Application at 2. The current special contract (“2016 Agreement”) between the
Company and DOE was approved by the Commission in Case No. IPC-E-16-18. See Order No.
33621. The 2016 Agreement expires on September 14, 2021.
To replace the 2016 Agreement the Company and DOE have negotiated and executed
what the Company refers to as a new “Authorization for Electric Service to the GSA” in 2021 that
it refers to as a special contract that is attached to the Company’s Application (“2021 Agreement).
Id. The 2021 Agreement is set to become effective on September 15, 2021.

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION TO APPROVE
2021 SERVICE AGREEMENT WITH THE
UNITED STATES DEPARTMENT OF
ENERGY
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CASE NO. IPC-E-21-20

ORDER NO. 35157
ORDER NO. 35157 2

THE APPLICATION
The Company requests the Commission issue an order approving the 2021 Agreement
for electric service between the Company and the DOE prior to September 14, 2021, the date when
the 2016 Agreement expires.
The 2021 Agreement begins September 15, 2021, and ends September 14, 2031,
subject to the Commission’s approval. DOE has the right to terminate the 2021 Agreement on
eighteen (18) months’ advance written notice to Idaho Power, subject to certain termination
charges outlined in Section 6 of the 2021 Agreement.
The Company agrees to provide the DOE up to 65,000 kilowatts (“kW”) monthly for
the operation of facilities at the INL through calendar year 2024. The DOE may request additional
power requirements in excess of 65,000 kW per month for INL with eighteen (18) months’ written
notice in advance of the first day of the month DOE desires the additional power requirements be
made available. The Company will have sole discretion to grant or deny any request. The
Company’s discretion will include an analysis of its obligation to provide reliable and cost-
effective service to all customers, including INL.
In the 2021 Agreement DOE and the Company agree to engage in good faith
negotiations to determine new rates, conditions, and charges for INL’s anticipated increase in
power requirements estimated to occur in 2025 and beyond.
Through the 2021 Agreement Idaho Power will supply three-phase, 60 hertz alternating
current at normal 138,000 volts, with a maximum steady state variation of plus or minus 5 percent
under normal system conditions via the two existing interconnection lines between the Antelope
substation and DOE’s Scoville substation. The Point of Delivery of the electric power supplied by
the Company to DOE will be at the Point of Interconnection with DOE’s slack spans, located at
DOE’s Scoville substation.
When the 2021 Agreement is executed, and on each May 1 thereafter, DOE will
provide Idaho Power with its forecast of demand and energy expected to be supplied and delivered
by Idaho Power for each month during the next 16 months together with a forecast of the annual
firm power load requirements (demand and energy) expected to be supplied by the Company for
a forecasted ten (10) year period. DOE will also provide the Company in advance with information
on conditions affecting DOE's load requirements necessary for the Company in load dispatching
and in planning of power system operation, prompt notice of any abnormal system operating
ORDER NO. 35157 3

conditions, and all known or anticipated increases or decreases in DOE's power requirements other
than normal load growth.
Under the 2021 Agreement, DOE reserves the right to install and operate generation at
the INL site to offset all or part of DOE’s energy usage as provided in the 2021 Agreement.
Pursuant to the 2021 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. The Company represented that to allow for flexible rate design and for consistency
with other large special contract customers, the 2021 Agreement allows Idaho Power to assess a
contract demand charge, that will be in Schedule 30 if charged. Last, Idaho Power reserved the
right to revise INL’s rates, rate structures, or charges based on any INL notification of increase or
decrease to Contract Demand subject to Commission approval.
STAFF COMMENTS
Staff recommends the Commission approve the 2021 Agreement with an effective date
of September 15, 2021.
Staff reviewed the Application, previous DOE agreement cases, and past updates to
Schedule 30. Staff concluded from the review that the 2021 Agreement is reasonable because most
of the terms remain consistent with the Commission-approved 2016 Agreement. Staff found the
changes in the 2021 Agreement are minor or provide additional layers of protection for the
Company and ensure the Company can continue to recover its costs to serve the DOE in the future
and maintain reliability of the system.
Staff also noted that the 2021 Agreement does not change the Company’s Schedule 30
rates that apply to DOE. However, Schedule 30 rates can change because of a change in base rates
such as through a general rate case, Power Cost Adjustment (Schedule 55), changes in the Energy
Efficiency Rider (Schedule 91), adjustments in Municipal Franchise Fees (Schedule 95), and other
special cases directly pertaining to the DOE.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-502 and 61-
503. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and 61-503.
ORDER NO. 35157 4

According to the terms of the 2021 Agreement, the 2021 Agreement is expressly subject
to and only becomes effective upon approval of the Commission.
The Commission has reviewed the record and finds that the Company’s proposed 2021
Agreement with DOE contains terms that remain consistent with the 2016 Agreement, which we
approved in 2016. Order No. 33621. The Commission also finds that the changes to the 2021
Agreement provide protection for Idaho Power to ensure that the Company recovers the costs to
serve DOE in the future and to maintain reliability of the system. First, the 2021 Agreement
provides DOE may request additional power requirements with eighteen (18) months’ advance
written notice rather than twelve (12) months written contained in the 2016 Agreement. Second,
the 2021 Agreement contains terms that allow Idaho Power to revise rates if DOE’s power
requirements change affecting the cost to serve DOE. Third, the 2021 Agreement requires the
Company and DOE to engage in good faith negotiations to determine new rates, conditions, and
charges for INL’s anticipated increase in power requirements in 2025 and beyond. Based on the
content of the 2021 Agreement, including the changes which provide additional protection for the
Company, we find the 2021 Agreement to be fair, just, and reasonable. Accordingly, we approve
the Company’s Application and 2021 Agreement.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for approval of its 2021
Agreement with the DOE is granted, effective on the service date of this Order.
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 regarding any matter
decided in 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.
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ORDER NO. 35157 5

DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 7th day
of September 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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