20230523Application.pdf

MEGAN GOICOECHEA ALLEN
Corporate Counsel
[e-mail]

May 23, 2023

Jan Noriyuki, Secretary
Idaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714

Re: Case No. IPC-E-23-18
Application for Approval of Special Contract and Tariff Schedule 34 to Provide
Electric Service to Lamb Weston, Inc.

Dear Ms. Noriyuki:

Attached for electronic filing is Idaho Power Company’s Application in the above-
entitled matter.

If you have any questions about the attached documents, please do not hesitate to
contact me.

Sincerely,

Megan Goicoechea Allen
MGA:sg
Enclosures
RECEIVED
2023 May 23, 4:58PM
IDAHO PUBLIC
UTILITIES COMMISSION

APPLICATION - 1
MEGAN GOICOECHEA ALLEN (ISB No. 7623)
LISA NORDSTROM (ISB No. 5733)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

Attorneys for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF SPECIAL CONTRACT AND
TARIFF SCHEDULE 34 TO PROVIDE
ELECTRIC SERVICE TO LAMB WESTON,
INC.
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CASE NO. IPC-E-23-18

APPLICATION

Idaho Power Company (“Idaho Power” or “Company”), in accordance with Idaho
Code §§ 61-502 and 61-503 and Idaho Public Utilities Commission’s (“Commission”) Rule
of Procedure 52, hereby requests that the Commission issue an order approving the
Special Contract for electric service between Idaho Power and Lamb Weston, Inc. (“Lamb
Weston”) for electric service at the Lamb Weston manufacturing facility located at 2975
Lamb Weston Road, American Falls, Idaho (“Lamb Weston Facility”), and rates proposed
in tariff Schedule 34, “Idaho Power Company Electric Service Rate for Lamb Weston,
Inc.” (“Schedule 34”).
Based on Lamb Weston’s projected load ramp, the customer expects they will
exceed the eligibility requirements of Schedule 19 Large Power (“Schedule 19”) in July

APPLICATION - 2
2023. However, due to delays in executing the special contract agreement1 with the
customer, the Company understands the timing of its filing does not provide sufficient
time for the regulatory approval process to be complete prior to July 1, 2023. Accordingly,
Idaho Power is considering a contingency plan in the event a Commission order has not
been issued prior to Lamb Weston becoming ineligible for service under Schedule 19.
The Company would appreciate the Commission’s guidance in this regard but again
acknowledges this may not be practical given the time constraints, and to this end, unless
the Commission directs otherwise, Idaho Power intends to continue providing service to
the Lamb Weston Facility under rates, charges, and terms as contained within Schedule
19 until the Commission has issued a final order approving the Agreement.
In support of this Application, Idaho Power represents as follows:
I. BACKGROUND
1. Currently, Lamb Weston receives electric service from Idaho Power at the
Lamb Weston Facility under Schedule 19 as a Primary Service Level customer. Lamb
Weston has advised the Company that it anticipates that energy requirements at the
Lamb Weston Facility will exceed 20,000 kilowatts (“kW”) as early as July 2023 as a result
of expanding its operations at that location to include new manufacturing lines, raw and
cold storage, and ancillary facilities. When Lamb Weston exceeds that threshold, it will
be ineligible for service under Schedule 19, which requires that customers with an
aggregate power requirement of more than 20,000 kW at the same premises “make

1 Please note that the Execution Date listed in the Special Contract, May 5, 2023, represents the date it
was originally sent to the customer for signature via DocuSign; another version that incorporated two
minor, non-substantive corrections was sent on May 11, 2023, which was signed by the customer on May
23, 2023.

APPLICATION - 3
special contract arrangements with the Company.”2
2. Upon learning of Lamb Weston’s intent to expand its operations and the
associated increase in energy requirements, on or about August 25, 2022, Idaho Power
initiated discussions with Lamb Weston to explain that once its demand exceeded 20,000
kW, it could not continue taking service under Schedule 19 and would instead need to
enter into a special contract with Idaho Power for electric service (“Special Contract” or
“Agreement”). The Company further explained that once executed, the Agreement would
need to be approved by the Commission before becoming effective and advised Lamb
Weston that the entire process—including reaching agreement on the terms of the
Special Contract and obtaining Commission approval--could be time intensive; time was
therefore of the essence considering Lamb Weston’s projections that the Lamb Weston
Facility may require electric demand in excess of 20,000 kW as early as July 2023.
3. In the ensuing months, the parties exchanged information relative to the
Special Contract, negotiated its terms, conditions, and rates, and engaged in good faith
to resolve several items and reach an agreement.
4. Idaho Power and Lamb Weston have successfully negotiated the terms and
conditions of a Special Contract that is consistent with cost-based principles and
methodology included in previously approved electric service agreements but tailored to
fit Lamb Weston’s specific service requirements. A copy of the executed Special Contract
between Idaho Power and Lamb Weston and Schedule 34, which contains the proposed
rates for service under the Agreement, are attached to this Application as Attachments 1
and 2, respectively, and subject to the Commission’s approval.

2 See I.P.U.C. No. 29, Tariff No. 101, Schedule 19.

APPLICATION - 4
5. On March 31, 2023, Idaho Power issued a Notice of Intent to File a General
Rate Case (“GRC”), where it stated it intended to file a GRC on or after June 1, 2023.3
As part of its GRC, Idaho Power anticipates proposing updated rates for Schedule 34,
consistent with the methodologies described below.
II. SPECIAL CONTRACT TERMS AND PROVISIONS
Agreement Overview
6. When the aggregate power requirement at the Lamb Weston Facility
exceeds 20,000 kilowatts, Lamb Weston will be ineligible for service under Schedule 19.
Service pursuant to this Special Contract arrangement under Schedule 34 is applicable
beginning the first day of the month following Commission approval.
7. The Company advised Lamb Weston that in order to avoid impacting its
planned operations, a special contract needed to be executed and approved by the
Commission prior to the aggregate power requirement at the Lamb West Facility
exceeding the special contract threshold. The Company is aware, however, that the
timeline is compressed to obtain Commission approval prior to Lamb Weston’s projected
load ramp in July 2023. Given the timing constraints, the recitals of the Agreement
provide:
[I]f the aggregate power requirement at the Lamb West
Facility exceeds 20,000 kW prior to the Commission’s
approval of the Agreement, Lamb Weston may be required to
curtail load requirements or take service under rates, charges,
and terms to be determined by the Commission.

The Company understands that an order before July 2023 is not practicable and is
therefore contemplating the need for an interim arrangement; absent alternative direction

3 Docketed as Case No. IPC-E-23-11.

APPLICATION - 5
from the Commission, the Company proposes to continue to provide service to the Lamb
Weston Facility after the Customer’s aggregate power requirement exceeds 20,000 kW
under Schedule 19 rates without curtailment to the 20 MW threshold until the Commission
has issued a final order approving the Agreement, and will proceed in this manner unless
it is otherwise directed.
8. The parties agree that the Lamb Weston Special Contract and the rates set
forth therein and in Schedule 34 are subject to and expressly conditioned upon approval
by the Commission. The Agreement shall become effective upon approval by the
Commission of all terms and provisions without change or condition and will continue until
terminated as provided in Section 3 of the Agreement.
9. Pursuant to the Special Contract, Idaho Power agrees to furnish Lamb
Weston’s total requirements for electric service and energy delivered via three 12.5
kilovolt distribution circuits to the Lamb Weston Facility. The rates and charges for
electrical power, energy, and other service provided by Idaho Power to Lamb Weston
pursuant to this Agreement are identified by component in proposed Schedule 34.4 Lamb
Weston agrees to pay Idaho Power the sum of the components identified in the then-
current Schedule 34 for Idaho Power to provide electric service to the Lamb Weston
Facility.
Pricing Considerations and Elements
10. When determining rates for new special contract customers, Idaho Power
must account for a number of factors including, but not limited to, each customer’s unique
needs, site-specific circumstances, infrastructure available at the time, and in

4 Attachment 2 hereto.

APPLICATION - 6
consideration of the potential impact of the load to the operation, safety, and reliability of
Idaho Power’s system.5 Special contract arrangements are highly customer and site-
specific, and Idaho Power determines rates for new special contract customers on a case-
by-case basis.
11. Contract Demand. Contract Demand is defined in the Agreement as the
monthly schedule of kilowatts Idaho Power has agreed to make available to the Lamb
Weston Facility based on Lamb Weston’s forecasted load, whether utilized or not. Lamb
Weston and Idaho Power agreed to include demand provisions that allow Lamb Weston
to increase its Contract Demand on a monthly basis consistent with the growth of their
load until it reaches a steady state of production, which Lamb Weston currently
anticipates will be by March 2024. Lamb Weston anticipates an annual peak of
approximately 32,000 kW for steady state production but has requested an initial annual
Contract Demand level of 34,000 kW beginning March 2024.
12. Minimum Billing Demand. Billing Demand is defined in Section 1.2 of the
Agreement as “the average kilowatts supplied to the Lamb Weston Facility during the 15-
consecutive-minute period of maximum use during the monthly billing period, adjusted for
Power Factor6. . . as measured by the metering equipment located at the Points of
Delivery.” The minimum Billing Demand that will be charged to Lamb Weston during a
monthly billing period (the “Minimum Monthly Billing Demand”) is 20,000 kW.

5 See, e.g., In the Matter of the Application of Idaho Power Company for Approval of a Special Contract
with J.R. Simplot Company, Case No. IPC-E-13-23, Order No. 33038 at 11-12 (May 19, 2014).
6 Section 1.16 of the Agreement defines “Power Factor” as “the percentage obtained by dividing the
maximum demand recorded in kilowatts by the corresponding kilovolt-ampere (“kVA”) demand established
by Lamb Weston.”

APPLICATION - 7
13. Power Factor Adjustment. When the Power Factor at the Lamb Weston
Facility drops below the established minimum, as determined by measurement under
actual load conditions, Idaho Power may adjust the total Billing Demand by the ratio of
the minimum power factor to the actual power factor. Typically, the minimum Power
Factor required by Idaho Power for special contract customers is 95 percent, while the
requirement for Schedule 19 customers is 90 percent.
14. Initial Power Factor Adjustment. Lamb Weston requested that, initially,
Idaho Power only apply the 95 percent requirement for capacity in excess of 20,000 kW7
based on a unique set of circumstances for the customer. The Company evaluated the
request and determined that due to the existing load on the system and existing
requirements to serve Lamb Weston at a 90 percent Power Factor for up to 20,000 kW,
continuing to serve that load at that requirement for a period of not to exceed 10 months
(through April 2024) was reasonable. During that period, the 95 percent Power Factor
adjustment will only be applicable to aggregate power requirement at the Lamb Weston
Facility exceeding the first 20,000 kW, which accounts for the incremental load on the
system.
Pricing Structure
15. Proposed Pricing Methodology. With respect to the Lamb Weston Special
Contract, Idaho Power evaluated the relevant circumstances to develop pricing that would
reduce potential cost-shifting and result in Lamb Weston fairly contributing to incremental
system costs necessary to serve their new load. Based on its evaluation, Idaho Power
proposes a two-block pricing structure that incorporates embedded and marginal cost

7 Block 2 Energy as more fully described in Paragraph 16 below.

APPLICATION - 8
rates, thereby reducing the upward pressure on existing customers that is incurred due
to the addition of Lamb Weston’s incremental load.
16. The two-block pricing structure proposed for the Lamb Weston Facility
includes an embedded-cost pricing block, Block 1, and a marginal energy cost pricing
block, Block 2, as follows:
 Block 1 applies to the first 20,000 kW of the aggregate power requirement at
the Lamb Weston Facility and is priced based on embedded cost Schedule 19
retail rates, The Power Cost Adjustment (“PCA”) rate will apply to energy sales
under the embedded energy cost block, Block 1. Because Lamb Weston is
currently an Idaho Power customer taking service under Schedule 19, the
Company believes it is reasonable to propose an embedded energy and
demand rate up to the current threshold provided for in Schedule 19.
 Block 2 applies to the aggregate power requirement at the Lamb Weston
Facility exceeding the first 20,000 kW and is priced based on: (1) capacity cost
per kilowatt, recovered through a monthly Contract Demand charge and a
monthly Billing Demand charge (“Block 2 Demand”), and (2) energy priced at a
marginal cost-based rate, recovered through the Block 2 Energy Charge
(“Block 2 Energy”). Because Block 2 energy is priced on a marginal-cost basis,
the Company proposed the PCA rate does not apply to Block 2 energy sales.
17. To determine Block 2 Demand charges, Idaho Power employed a cost-of-
service methodology to allocate costs to the expanded Lamb Weston Facility utilizing
Idaho Power’s embedded capacity costs. The expansion of the Lamb Weston Facility is
expected to result in an approximately 14,000 kW increase in power requirements, which

APPLICATION - 9
is a relatively small increment as compared to Idaho Power’s system load and is not
expected to alone drive new generation or transmission investments. As a result, the
Company developed the demand rates to reflect embedded costs.
18. To calculate the Block 2 Demand rates, Idaho Power applied the most
current cost-of-service information available to projected electrical requirements provided
by Lamb Weston. The foundation for these calculations was the most recently
Commission-reviewed class cost-of-service study (“2011 Study”) from the Company’s
most recent General Rate Case, Case No. IPC-E-11-08 (“2011 Rate Case”), reflecting
the final revenue requirement approved in the 2011 Rate Case. At a high level, costs
were then allocated to the expanded Lamb Weston Facility according to projected loads
provided by Lamb Weston, and the rates were then adjusted to accurately reflect
Commission-approved revenue requirement increases and decreases that have occurred
since the conclusion of the 2011 Rate Case. This approach is consistent with previously
approved energy service agreements.
19. Because the Company’s system is currently facing near-term energy
constraints, it is expected that the incremental load will cause an increase in the cost to
provide energy to all customers. As such, the Company proposes to price Block 2 Energy
on a marginal cost basis as more fully set forth below.
20. The Block 2 Energy Charge is the per kilowatt-hour marginal cost of energy
based on the simulated hourly operation of the Company’s power supply system over
expected hydro conditions. Under this method, net power supply expenses are first
quantified using the Company’s expected load for the test year, then an incremental load
increase is added to determine the resulting increase in power supply expenses and

APPLICATION - 10
generation. In this case, the Company modeled an incremental load of 15 megawatts
(“MW”), as the Customer’s most recent load forecast indicates they expect to have an
incremental load increase between 12-14 MW at steady state. The difference in monthly
power supply expenses between the initial and subsequent simulation is divided by the
difference in generation to produce a marginal cost per kilowatt-hour.
21. The initial Block 2 Energy Charge determined using this method, as set forth
in proposed Schedule 34, is $0.058694, to be in effect following Commission approval
through May 31, 2024.
22. The Company’s proposed method for determining the marginal cost of
energy in the Lamb Weston Special Contract is consistent with those principles identified
by Commission Staff (“Staff”) as best practices that should be considered when
evaluating marginal pricing methodologies as set forth in the memo dated February 16,
2023, included as Attachment 3 to the Application.8
23. To ensure the marginal energy price applied to Lamb Weston’s Block 2
usage keeps pace with conditions experienced on the Company’s system, the Company
proposes to submit an annual update to the marginal energy price utilizing the same
method described in this Application. The annual update would be filed around the time
of the Company’s annual PCA filing, with the updated marginal energy price proposed to
be effective June 1, consistent with PCA rates.
24. All costs of supplying power to both the first block energy and second block

8 The memo memorializes the discussions between the Company and Staff regarding the basis for
marginal pricing of energy, which resulted from Staff’s recommendation, adopted by the Commission, that
prior to developing the next general rate case filing the Company should “evaluate and compare other
methods for determining a marginal cost of energy.” In the Matter of the Application of Idaho Power
Company for Authority to Establish a New Schedule to Serve Speculative High-Density Load Customers,
Case No. IPC-E-21-37, Order No. 35482 at 5-7 (Jun. 15, 2022).

APPLICATION - 11
energy are proposed to be included in the PCA and revenues from the second block
energy would be treated as a surplus sale and an offset to power supply costs.
Accordingly, second block energy - the marginal block - would not be included as Idaho
retail sales used to calculate the sales-based adjustment in the PCA. First block energy
– the embedded block - would be included as Idaho retail sales and the sales in this
pricing block would be subject to the annual PCA. Essentially, the second energy block
is accounted for as if it were an off-system sale. This PCA treatment is similar to the
approach authorized when the Hoku special contract was served under two blocks, one
priced at embedded rates and one at marginal cost-based rates, and Schedule 20, which
has all energy priced on a marginal basis.
25. After the Agreement has been in effect for at least five (5) years, Lamb
Weston has the option under Section 6.4 of requesting that Idaho Power reevaluate the
source of the Block 2 Energy Charge. This provision was negotiated to allow an “offramp”
for the applicability of marginal energy prices, such that after 5 years , the Company could
consider pricing Lamb Weston at its then embedded costs.
III. MODIFIED PROCEDURE
26. Idaho Power believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under
Modified Procedure, i.e., by written submissions rather than by hearing. RP 201, et seq.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
27. Communications and service of pleadings with reference to this Application
should be sent to the following:

APPLICATION - 12

Megan Goicoechea Allen
Lisa D. Nordstrom
Regulatory Dockets
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
[e-mail]
[e-mail]
[e-mail]

Connie Aschenbrenner
Pawel P. Goralski
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
[e-mail]
[e-mail]
V. CONCLUSION
28. The rates included in Attachment 2 reflect the cost of providing service to
the expanded Lamb Weston Facility according to the most current cost information
available. These rates will appropriately recover the cost of providing service to the Lamb
Weston Facility, while limiting the potential for cost shifting between the Lamb Weston
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.
29. Accordingly, as set forth more fully above, Idaho Power respectively
requests the Commission issue an Order: (1) approving the Lamb Weston Special
Contract attached as Attachment 1 and (2) approving the rates and charges set out in
Schedule 34 attached as Attachment 2 without change or condition. In the event Lamb
Weston exceeds the 20 MW threshold before the Commission has issued an Order, the
Company respectfully requests the Commission advise if it does not wish the Company
to continue to provide service without curtailment to the Lamb Weston Facility in the
interim applying the rates and charges for service that are contained within Schedule 19
until the Commission has issued a final order approving the Agreement.

APPLICATION - 13
DATED at Boise, Idaho, this 23rd day of May 2023.

________________________________
MEGAN GOICOECHEA ALLEN
Attorney for Idaho Power Company

APPLICATION - 14
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on the 23rd day of May 2023, I served a true and correct
copy of Idaho Power Company’s Application upon the following named parties by the
method indicated below, and addressed to the following:

Lamb Weston, Inc.
Jon Schutte
Melody Whigam
2975 Lamb Weston Road
American Falls, Idaho 83211
Hand Delivered
U.S. Mail
Overnight Mail
FAX
X _E-mail [e-mail]

________________________________
Stacy Gust, Regulatory Administrative
Assistant

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-23-18
IDAHO POWER COMPANY
ATTACHMENT 1
SPECIAL CONTRACT
1
SPECIAL CONTRACT
BETWEEN
IDAHO POWER COMPANY AND
LAMB WESTON, INC.
THIS LAMB WESTON SPECIAL CONTRACT FOR ELECTRIC
SERVICE (“Agreement”) is executed on May 5th, 2023 (the “Execution Date”), by LAMB
WESTON, INC., a Delaware Corporation (“Lamb Weston”) and IDAHO POWER
COMPANY, an Idaho Corporation (“Idaho Power”). Lamb Weston and Idaho Power
are hereinafter referred to as a “Party” and collectively as the “Parties”.
WHEREAS, Lamb Weston is an existing retail customer of Idaho Power, taking
service under Schedule 19, Large Power Service; and
WHEREAS, Lamb Weston is expanding its American Falls campus to include new
manufacturing lines, raw and cold storage, and ancillary facilities (as more fully defined
herein “Lamb Weston Facility”); and
WHEREAS, when the aggregate power requirement at the Lamb Weston Facility
exceeds 20,000 kilowatts (“kW”), Lamb Weston will be ineligible for service under
Schedule 19 and will take service pursuant to this special contract arrangement under
Schedule 34 upon approval of the Idaho Public Utilities Commission (“Commission”)
pursuant to Section 14 of this Agreement; and
WHEREAS, if the aggregate power requirement at the Lamb West Facility exceeds
20,000 kW prior to the Commission’s approval of the Agreement, Lamb Weston may be
required to curtail load requirements or take service under rates, charges, and terms to
be determined by the Commission.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants
herein set forth, and other good and valuable consideration, the receipt, sufficiency and
adequacy of which are hereby acknowledged, Lamb Weston and Idaho Power, each
intending to be legally bound, agree as follows:
DocuSign Envelope ID: 942444B5-1BF6-42B0-B47C-4A20A726DF5E

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SECTION 1. – DEFINITIONS
1.1 Defined Terms. Unless otherwise required by the context in which any term
appears, initially capitalized terms used herein have the meanings set forth in this
Section 1.
1.2 “Billing Demand” means the average kilowatts supplied to the Lamb Weston
Facility during the 15-consecutive-minute period of maximum use during the monthly
billing period, adjusted for Power Factor pursuant to Section 6.2, as measured by the
metering equipment located at the Points of Delivery.
1.3 “Block 2 Contract Demand” shall mean the Contract Demand exceeding 20,000
kilowatts.
1.4 “Block 1 Billing Demand” means the Billing Demand up to 20,000 kilowatts.
1.5 “Block 2 Billing Demand” means the Billing Demand exceeding 20,000 kilowatts.
1.6 “Block 1 Energy” is the Block 1 Billing Demand multiplied by the Monthly Load
Factor multiplied by the number of hours in the billing month. Block 1 Energy will be
subject to the applicable Block 1 Energy Charge as set forth in Schedule 34.
1.7 “Block 2 Energy” is the Block 2 Billing Demand multiplied by the Monthly Load
Factor multiplied by the number of hours in the billing month. Block 2 Energy will be
subject to the applicable Block 2 Energy Charge as further described in Section 6.4 and
set forth in Schedule 34.
1.8 “Contract Demand” means the monthly schedule of kilowatts Idaho Power has
agreed to make available to the Lamb Weston Facility based on Lamb Weston’s
forecasted load as further described in Section 5.
1.9 “Excess Demand” means Billing Demand in excess of the Contract Demand.
1.10 “Interconnection Facilities” means all facilities which are reasonably required by
Prudent Electrical Practices and the National Electric Safety Code to interconnect and
deliver electrical power and energy to the Lamb Weston Facility, including, but not limited
to, transmission facilities, substation facilities, and metering equipment.
DocuSign Envelope ID: 942444B5-1BF6-42B0-B47C-4A20A726DF5E

3

1.11 “IPUC” or “Commission” means the Idaho Public Utilities Commission.
1.12 “Lamb Weston Facility’’ means the Lamb Weston manufacturing facility located at
2975 Lamb Weston Road, American Falls, Idaho.
1.13 “Minimum Monthly Billing Demand” is the minimum Billing Demand that will be
charged to Lamb Weston during a monthly billing period as set forth in Section 5.3.
1.14 “Monthly Load Factor” is the total aggregate energy consumption at the Lamb
Weston Facility for the billing month divided by the number of hours in the billing month
divided by the sum of Block 1 and Block 2 Billing Demand.
1.15 “Points of Delivery’’ means the locations specified in Section 4.2 where the
electrical facilities owned by Lamb Weston are interconnected to the electrical facilities
owned by Idaho Power and where power and energy are delivered by Idaho Power for the
purpose of providing electrical service for the operations of the Lamb Weston Facility.
1.16 “Power Factor” means the percentage obtained by dividing the maximum demand
recorded in kilowatts by the corresponding kilovolt-ampere (“kVA”) demand established
by Lamb Weston.
1.17 “Prudent Electrical Practices” means 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.
1.18 “Schedule 34” means the then-current Idaho Power tariff schedule of rates
applicable to Lamb Weston for the Lamb Weston Facility on file with the IPUC. Service
under Schedule 34 is applicable beginning the first day of the month following
Commission approval of the ESA.
SECTION 2. – TERM OF AGREEMENT
2.1 This Agreement shall become effective as provided in Section 14 and shall
continue until either Lamb Weston or Idaho Power terminates this Agreement as provided
in Section 3.
DocuSign Envelope ID: 942444B5-1BF6-42B0-B47C-4A20A726DF5E

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SECTION 3. – TERMINATION
3.1 Termination for Convenience. Either Party shall have the right to terminate this
Agreement for any reason without cause and without penalty by providing advance written
notice, as set forth in Section 15, of termination to the other Party that specifies the
effective date of termination, which shall be at least twelve (12) months from the date of
the notice of termination. If both Parties give notice of termination, the earliest effective
date will prevail.
3.2 Termination for Cause. If a Party materially breaches this Agreement and the
material breach is not cured within thirty (30) calendar days (ten (10) calendar days
in the case of a breach of the payment terms herein) after the non-breaching Party
gives written notice to the breaching Party thereof, the non-breaching Party shall
have the right to terminate this Agreement by giving the breaching Party written
notice of the termination. Failure to pay in accordance with this Agreement shall
constitute a material breach.
SECTION 4. – SERVICES TO BE PROVIDED
4.1 In accordance with Prudent Electrical Practices and subject to the provisions
of this Agreement and the continuing regulatory authority of the IPUC and Idaho Power’s
General Rules and Regulations on file with the IPUC, including but not limited to Rule J
(Continuity, Curtailment and Interruptions of Electric Service) and Rule K (Customer’s
Load and Operations), Idaho Power will furnish Lamb Weston’s total requirements for
electric power and energy at the Lamb Weston Facility. Lamb Weston will not resell
any portion of the power and energy furnished under this Agreement.
4.2 Points of Delivery. Electric power and energy shall be delivered by Idaho Power to
the Lamb Weston Facility via three (3) separate 12,500 volt distribution circuits originating
at Idaho Power’s LAMB substation.
4.3 Description of Electric Service. Idaho 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, Idaho Power will operate within the capability of its existing system
DocuSign Envelope ID: 942444B5-1BF6-42B0-B47C-4A20A726DF5E

5

to minimize voltage level fluctuations, the normal frequency variation to be within plus or
minus 0.05 HZ on a 60 HZ base. Idaho 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.
4.4 Integrated Resource Planning. Upon request from Idaho Power, Lamb Weston
agrees to provide an updated 20-year load forecast on an annual basis using the 20-Year
Annual Load Forecast Template provided as Exhibit 1 to this Agreement. This forecast
will include any known planned additions.
SECTION 5. – CONTRACT DEMAND
5.1 Contract Demand. The initial levels of Contract Demand requested by Lamb
Weston and made available by Idaho Power under the terms of this Agreement are set
forth below. Effective March 1, 2024, the Contract Demand requested by Lamb Weston
and made available by Idaho Power under the terms of this Agreement is 34,000 kW,
whether utilized or not.
a. Contract Demand Ramp projection:
Contract Demand Ramp (MW)
Jul-23 23
Aug-23 25
Sep-23 27
Oct-23 27
Nov-23 27
Dec-23 27
Jan-24 33
Feb-24 33
Mar-24 34
Apr-24 34

5.2 Changes to Contract Demand. Under the terms of this Agreement, Lamb Weston
may request a change to Contract Demand pursuant to the following limitations:
a. Decreases to Contract Demand. Subject to Section 5.3, below, Lamb
Weston may decrease the Contract Demand in even increments of 1,000 kilowatts down
DocuSign Envelope ID: 942444B5-1BF6-42B0-B47C-4A20A726DF5E

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to a minimum Contract Demand of 20,000 kilowatts but cannot decrease the Contract
Demand more than 10,000 kilowatts in any twelve (12) month period. Lamb Weston shall
notify Idaho Power in writing of its desire to decrease the Contract Demand at least three
(3) months in advance of the first day of the month in which it desires the decreased
Contract Demand to be effective.
b. Increases to Contract Demand. Subject to Section 5.4, below, Lamb
Weston may increase the Contract Demand in even increments of 1,000 kilowatts up to
a maximum Contract Demand of 34,000 kilowatts but cannot increase the Contract
Demand more than 10,000 kilowatts in any twelve (12) month period. Lamb Weston shall
notify Idaho Power in writing of its desire to increase the Contract Demand at least six (6)
months in advance of the first day of the month it desires the increased Contract Demand
to be effective. The increase Contract Demand shall be in effect for a minimum of six (6)
months.
5.3 Minimum Monthly Billing Demand. The Minimum Monthly Billing Demand will be
20,000 kilowatts as set forth in Schedule 34. If Billing Demand is less than the Minimum
Monthly Billing Demand in any two consecutive months, the Parties agree to review Lamb
Weston’s energy requirements and enter into good faith negotiations to modify this
Agreement as appropriate.
5.4 Excess Demand. The availability of power in excess of the Contract Demand is not
guaranteed, and if Billing Demand at the Lamb Weston Facility exceeds the Contract
Demand, Idaho Power may curtail service to the Lamb Weston Facility. Idaho Power
reserves the right to install, at any time at Lamb Weston’s expense, any device necessary
to protect Idaho Power’s system from damage which may be caused by Excess Demand
at the Lamb Weston Facility. Lamb Weston will be responsible for any damages to Idaho
Power’s system or damages to third parties resulting from Excess Demand at the Lamb
Weston Facility. Lamb Weston agrees to use its best reasonable efforts to monitor its
electric loads and to advise Idaho Power as soon as possible of the potential for Excess
Demand at the Lamb Weston Facility. In the event Idaho Power decides, in its sole
discretion, to make power available to satisfy Excess Demand, Lamb Weston will be
subject to the Daily Excess Demand Charge specified in Schedule 34.
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7

SECTION 6. – CHARGES TO BE PAID BY LAMB WESTON TO IDAHO POWER
6.1 Rates and Charges. The rates and charges for electrical power, energy, and other
service provided by Idaho Power to Lamb Weston pursuant to this Agreement will be
identified by component in Schedule 34 as filed by Idaho Power with the IPUC. Lamb
Weston shall pay Idaho Power the sum of the components identified in the then-current
Schedule 34 for Idaho Power to provide electric service to the Lamb Weston Facility.
6.2 Power Factor Adjustment. Unless otherwise provided for in Section 6.3, when the
Lamb Weston Facility’s Power Factor is less than 95 percent, as determined by
measurement under actual load conditions, Idaho Power may adjust the kW measured to
determine the Billing Demand by multiplying the measured kW by 95 percent and dividing
by the actual Power Factor. The reactive component of the adjusted Power Factor is
comprised of the reactive load plus the 138/13.09 kilovolt (“kV”) transformer reactive
losses reduced by the amount of reactive correction paid for by Lamb Weston.
6.3 Initial Power Factor Adjustment. Effective with the first month’s billing under
Schedule 34, and effective through May 2024 usage, if a Power Factor adjustment is
necessary, the application of the 95 percent adjustment will be applied only to the Block
2 Billing Demand. Block 1 Billing Demand will be subject to a 90 percent Power Factor
adjustment during this period.
6.4 Block 2 Energy Charge is the per kilowatt-hour marginal cost of energy determined
from the simulated hourly operation of Idaho Power’s power supply system over expected
hydro conditions. Net power supply expenses are first quantified using Idaho Power’s
expected load for the test year, then an incremental load increase is added to determine
the resulting increase in power supply expenses and generation. The difference in
monthly power supply expenses between the initial and subsequent simulation is divided
by the difference in generation to produce a marginal cost per kilowatt-hour. The Block 2
Energy Charge will be updated annually on June 1 using a forward test year consisting
of the twelve-month period April through the subsequent March. At Lamb Weston’s
request, Idaho Power agrees to reevaluate the source of the Block 2 Energy Charge after
the Agreement has been in effect for at least a period of five (5) years.
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8

6.5 Billing and Metering Provisions. Billing Demand at the Lamb Weston Facility shall
be determined on a 15-minute coincidental basis as determined by Idaho Power and shall
be billed accordingly. Idaho Power will install and maintain suitable metering equipment
for each Point of Delivery so that coincident Billing Demand and energy consumption can
be determined for the billing period.
a. Meter Errors. Failure of the meters or any inconsistency between meters
will be addressed promptly by Idaho Power. If a meter should fail to register correctly,
estimated readings shall be used for calculating consumption. In calculating the estimate,
consideration will be given to Lamb Weston’s consumption in the hours immediately
preceding the meter data failure or for consumption in similar periods of other years and
other relevant facts. If Lamb Weston is due a credit or is subject to a charge as a result
of a meter error, then Idaho Power shall recalculate prior billings using the corrected meter
data and provide any such credit or additional charge on the next monthly invoice.
SECTION 7. – PAYMENT OF BILLS
7.1 Billing Data. Lamb Weston shall pay Idaho Power for all services provided under
this Agreement. Invoices for payment for electric services shall be prepared and
submitted by Idaho Power to Lamb Weston monthly. All invoices or bills shall contain
such data as may be reasonably required to substantiate the billing, including statements
of the meter reading at the beginning and end of the billing period, meter constants, and
consumption during the billing period.
7.2 Payment Procedure. All bills or accounts for electric service owed by Lamb Weston
to Idaho Power hereunder shall be due and payable fifteen (15) days from the invoice
date. Payment will be made by electronic transfer of funds. Idaho Power shall provide
Lamb Weston with current ASA routing numbers and any other necessary instructions to
facilitate the electronic transfer of funds.
SECTION 8. – FACILITIES FOR DELIVERY TO LAMB WESTON FACILITY
8.1 Additional Facilities. The Parties acknowledge that they have separately entered
into a Construction Agreement dated September 30, 2022, for the construction and
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9

installation of electrical facilities and equipment associated with expansion of the Lamb
Weston Facility and necessary to provide the requested service. Additionally, there is
other temporary distribution work that is required to supply the desired service for the
initial load ramp ahead of the work identified in the Construction Agreement, which Idaho
Power will perform in accordance with Rule H (New Service Attachments and Distribution
Line Installations or Alterations) of Idaho Power’s General Rules and Regulations.
8.2 Operation and Maintenance. Idaho Power will operate and maintain
Interconnection Facilities necessary to provide service to the Lamb Weston Facility in
accordance with Prudent Electrical Practices.
SECTION 9. – ACCESS TO PREMISES
9.1 During the term of this Agreement, and for a reasonable period following
termination, Idaho Power shall have access to the Lamb Weston Facility premises at all
reasonable times with proper notice to Lamb Weston for the purposes of reading meters,
making installations, repairing, and removing Interconnection Facilities and Idaho Power
equipment, and for other proper purposes hereunder.
SECTION 10. – ASSIGNMENT; NO THIRD-PARTY BENEFICIARIES
10.1 Assignment. This Agreement shall be binding upon the heirs, legal and personal
representatives, successors, and assigns of the Parties hereto. Lamb Weston shall not
assign any part of this Agreement without the express written consent of Idaho Power,
which shall not be unreasonably withheld.
10.2 No Third Party Beneficiaries. This Agreement is not intended to, and does not,
confer upon any person other than the Parties hereto and their respective successors
and permitted assigns, any rights, or remedies hereunder.
SECTION 11. – ENTIRE AGREEMENT, MODIFICATIONS, AND COUNTERPARTS
11.1 Entire Agreement. This Agreement, in conjunction with Schedule 34 on file with
the IPUC, represents the entire understanding and agreement between the Parties with
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10

respect to the subject matter of this Agreement and supersedes all previous
communications, negotiations, and agreements, whether oral or written.
11.2 Modifications. This Agreement may only be amended or modified by a writing
signed by duly authorized representatives of both Parties.
11.3 Counterparts. This Agreement may be executed in counterparts, each of which,
when executed and delivered, shall be deemed to be an original and all of which, taken
together, shall constitute one and the same Agreement.
SECTION 12. – INDEMNIFICATION, LIMTATION OF LIABILITY, AND
EXCLUSIVITY OF WARRANTIES
12.1 Indemnity and Hold Harmless. To the fullest extent permitted by law, each Party
shall indemnify (“Indemnifying Party”), defend, and hold harmless the other Party and its
officers, directors, employees, representatives, and agents, from, for, and against any
and all allegations, liabilities, liens, suits, losses, demands, damages, claims, actions,
expenses, proceedings, judgements, and costs of any kind whatsoever, including without
limitation, settlement costs, court costs, and attorneys’ and expert witness fees and
expenses (collectively “Damages”), whether actual or merely alleged and whether directly
incurred or incurred by a third party, arising out of or caused by the negligence or willful
misconduct of the Indemnifying Party relating to this Agreement, but only to the extent
such Damages are not caused by the negligence of the indemnified Party; provided,
however, that each Party shall be solely responsible for claims by and payments to its
employees for injuries occurring in connection with their employment or arising out of any
worker’s compensation law. This indemnity shall apply without regard to whether the
Damages are based on breach of contract, breach of warranty, negligence, strict liability,
or other tort.
12.2 Limitation of Liability. EXCEPT AS TO A PARTY’S GROSS NEGLIGENCE,
INTENTIONAL MISCONDUCT, OR FRAUD, IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR ANY LIQUIDATED, INCIDENTAL, INDIRECT, EXEMPLARY, PUNITIVE,
ENHANCED, OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH, ARISING
OUT OF, OR RELATING TO THIS AGREEMENT WHETHER OR NOT THE
POSSIBILITY OF SUCH DAMAGES HAS BEEN DISCLOSED IN ADVANCE OR COULD
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11

HAVE BEEN REASONABLY FORESEEN AND REGARDLESS OF THE LEGAL OR
EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH THE
CLAIM IS BASED.
12.3 EACH PARTY AGREES UNDER NO CIRCUMSTANCES SHALL THE TOTAL
AGGREGATE LIABILITY OF THE OTHER PARTY UNDER THIS AGREEMENT
EXCEED ONE HUNDRED PERCENT (100%) OF THE TOTAL AMOUNT PAID BY LAMB
WESTON 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 LAMB WESTON TO IDAHO POWER UNDER THIS AGREEMENT
FOR THE MONTHS THAT HAVE PASSED SINCE THE DATE OF COMMISSION
APPROVAL AND (B) THE PROJECTED AMOUNTS TO BE PAID BY LAMB WESTON
TO IDAHO POWER UNDER THIS AGREEMENT (CALCULATED BASED ON THE
AVERAGE AMOUNT PAID BY LAMB WESTON 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
LIABILITY SET FORTH IN THIS SECTION 12.3 SHALL NOT LIMIT (A) LAMB
WESTON’S PAYMENT OBLIGATIONS TO IDAHO POWER UNDER THIS
AGREEMENT, OR (B) EITHER PARTY’S LIABILITY FOR GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT.
12.4 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 SERVICES PROVIDED HEREUNDER.
SECTION 13. – FORCE MAJEURE
13.1 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
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12

to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor
disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or
regulation occurring after the Execution 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. If 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 of the Force Majeure event, including the nature, cause, date and
time of the commencement of such event, and the anticipated scope and duration of the
delay; (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 which
could and should have been fully performed before such occurrence shall be excused as
a result of such occurrence.
SECTION 14. – COMMISSION JURISDICTION AND APPROVAL
14.1 This Agreement and the respective rights and obligations of the Parties hereunder,
shall be subject to: (a) Idaho Power’s General Rules and Regulations as now or hereafter
in effect and on file with the IPUC and (b) to the jurisdiction and regulatory authority of the
IPUC and the laws of the State of Idaho.
14.2 This Agreement is subject to, is expressly conditioned upon, and shall become
effective upon the approval by the IPUC of all terms and provisions hereof without change
or condition.
14.3 The rates set forth in this Agreement and Schedule 34 are subject to the continuing
jurisdiction of the IPUC. The rates under this Agreement are subject to change and
revision by order of the IPUC upon a finding, supported by substantial competent
evidence, that such rate change or revision is just, fair, reasonable, sufficient, non-
preferential, and nondiscriminatory. It is the Parties’ intention by such provision that the
rate making standards to be used in making any revisions or changes in rates, and the
DocuSign Envelope ID: 942444B5-1BF6-42B0-B47C-4A20A726DF5E
13
judicial review of any revisions or changes in rates, will be the same standards that are
applicable to Idaho intrastate tariff rates.
SECTION 15. – NOTICES
15.1 Any notice required to be provided in writing pursuant to this Agreement shall be
directed to the other Party as set forth in Exhibit 2.
15.2 Written notice provided or given in connection with this Agreement shall be
deemed to have been duly given when (i) delivered in person or (ii) sent by mail or courier,
return receipt requested, addressed as set forth in Exhibit 2.
SECTION 16. – MISCELLANEOUS
16.1 No Partnership. Neither Party shall be deemed an agent, partner, joint venturer, or
employee of the other Party.
16.2 Waiver. Waiver of any right, privilege, claim, obligation, condition, or default must
be in writing and signed by the waiving Party. No waiver by a Party of any rights or breach
of this Agreement shall be deemed or construed as a waiver of any other preceding or
subsequent right or breach of this Agreement.
16.3 Severability. If any term, provision, or condition of this Agreement is held to be
invalid, void, or unenforceable, (a) that provision or condition shall be deemed severable
from this Agreement, (b) the remainder of the Agreement will continue in full effect as if
the severed provision had not been included, and (c) to the extent practicable, such
provision shall be replaced by a valid and enforceable substitution provision that achieves
the benefit of the bargain intended by the Parties to the greatest extent permitted by
applicable law.
16.4 Choice of Law and Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Idaho, and venue for any court proceeding arising
out of this Agreement shall be in Ada County, Idaho.
(Signature page follows)
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14
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by the duly authorized representatives as of the date first set forth above.
LAMB WESTON, INC.
By:
Name:
Title:
IDAHO POWER COMPANY
By:
Name:
Title:
DocuSign Envelope ID: 942444B5-1BF6-42B0-B47C-4A20A726DF5E
Jon Schutte
Plant Manager
Adam Richins
COO
EXHIBIT 1
to
Special Contract
between Idaho Power Company
and
Lamb Weston, Inc.
Annual Load Forecast Template
Energy - Actual and Forecast
(thousands of megawatt hours by year)
2023 2024YearForecastForecast Month Energy (MWh)
2023 Jan-23
2024 Feb-23
2025 Mar-23
2026 Apr-23
2027 May-23
2028 Jun-23
2029 Jul-23
2030 Aug-23
2031 Sep-23
2032 Oct-23
2033 Nov-23
2034 Dec-23
2035
2036 Month Energy (MWh)
2037 Jan-24
2038 Feb-24
2039 Mar-24
2040 Apr-24
2041 May-24
2042 Jun-24
2043 Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24Peak - Actual and Forecast
(maximum demand - megawatts by year)
2023 2024
Year Forecast Forecast Month Peak (MW)
2023 Jan-23
2024 Feb-23
2025 Mar-23
2026 Apr-23
2027 May-23
2028 Jun-23
2029 Jul-23
2030 Aug-23
2031 Sep-23
2032 Oct-23
2033 Nov-23
2034 Dec-23
2035
2036 Month Peak (MW)
2037 Jan-24
2038 Feb-24
2039 Mar-24
2040 Apr-24
2041 May-24
2042 Jun-24
2043 Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
LOAD FORECAST
Energy (000's of megawatt hours)MONTHLY
LOAD FORECAST
Peak demand (megawatts)MONTHLY
0
0
0
1
1
1
1
2023 2028 2033 2038 2043
2023 Forecast
0
0
0
1
1
1
1
2023 2028 2033 2038 2043
2023 Forecast
Exhibit 1 - 1
DocuSign Envelope ID: 942444B5-1BF6-42B0-B47C-4A20A726DF5E
Exhibit 2 - 1
EXHIBIT 2
to
Special Contract
between Idaho Power Company
and
Lamb Weston, Inc.
dated
April 27th, 2023
NOTICES INFORMATION
If to Idaho Power:
Idaho Power Company
ATTN: Vice President of Regulatory Affairs
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
tel: [phone]
fax: [phone]
email: [e-mail]
[e-mail]
If to Lamb Weston : Lamb Weston, Inc.
2875 Lamb Weston Rd.
American Falls, ID 83211
Attn: Jon Schutte
With a copy to: Lamb Weston, Inc.
2875 Lamb Weston Rd.
American Falls, ID 83211
Attn: General Counsel
Email: [e-mail]
DocuSign Envelope ID: 942444B5-1BF6-42B0-B47C-4A20A726DF5E

BEFORE THE

IDAHO PUBLIC UTILITIES COMMISSION

CASE NO. IPC-E-23-18

IDAHO POWER COMPANY

ATTACHMENT 2
PROPOSED TARIFF
Idaho Power Company

I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 34-1
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective 1221 West Idaho Street, Boise, Idaho

SCHEDULE 34
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
LAMB WESTON, INC.

SPECIAL CONTRACT DATED MAY 5, 2023

POWER FACTOR ADJUSTMENT

Where the Customer’s Power Factor is less than 95 percent, as determined by measurement
under actual load conditions, the Company may adjust the kW measured to determine the Billing Demand
by multiplying the measured kW by 95 percent and dividing by the actual Power Factor. If a Power Factor
adjustment is necessary, the application of the adjustment will be applied to each respective Block at that
Block’s Billing Demand Charge.

Initial Power Factor Adjustment. Effective with the first month’s billing under Schedule 34, and
effective through May 2024 usage, if a Power Factor adjustment is necessary, the application of the 95
percent adjustment will be applied only to the Block 2 Billing Demand. Block 1 Billing Demand will be
subject to a 90 percent Power Factor adjustment during this period.

Block 1 means the first 20,000 kilowatt of the aggregate power requirement at the Lamb Weston Facility.

Block 2 means the aggregate power requirement at the Lamb Weston Facility exceeding the first 20,000
kilowatt.

Block 1 Pricing means the retail rates as defined in Idaho Power Company’s current Idaho retail tariff
Schedule 19 Large Power Service – Primary Service.

Block 1 Energy is the Block 1 Billing Demand multiplied by the Monthly Load Factor multiplied by the
number of hours in the billing month. Block 1 Energy will be subject to the applicable Block 1 Energy
Charge.

Block 2 Energy is the Block 2 Billing Demand multiplied by the Monthly Load Factor multiplied by the
number of hours in the billing month. Block 2 Energy will be subject to the applicable Block 2 Energy
Charge.

Monthly Load Factor is the total aggregate energy consumption at the Lamb Weston facility for the billing
month divided by the number of hours in the billing month divided by the sum of Block 1 and Block 2
Billing Demand.

Idaho Power Company

I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 34-2
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective 1221 West Idaho Street, Boise, Idaho

SCHEDULE 34
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
LAMB WESTON, INC.
(Continued)

BLOCK 1

BASIC LOAD CAPACITY

The Basic Load Capacity is the average of the two greatest monthly Billing Demands established
during the 12-month period which includes and ends with the current Billing Period, but not less than
1,000 kW for Large Power Service.

BILLING DEMAND

The Billing Demand is the average kW supplied during the 15-consecutive-minute period of
maximum use during the Billing Period, adjusted for Power Factor.

ON-PEAK BILLING DEMAND

The On-Peak Billing Demand is the average kW supplied during the 15-minute period of maximum
use during the Billing Period for the On-Peak time period.

TIME PERIODS

The time periods are defined as follows. All times are stated in Mountain Time.

Summer Season
On-Peak: 1:00 p.m. to 9:00 p.m. Monday through Friday, except holidays
Mid-Peak: 7:00 a.m. to 1:00 p.m. and 9:00 p.m. to 11:00 p.m. Monday through Friday,
except holidays, and 7:00 a.m. to 11:00 p.m. Saturday and Sunday, except
holidays
Off-Peak: 11:00 p.m. to 7:00 a.m. Monday through Sunday and all hours on holidays

Non-summer Season
Mid-Peak: 7:00 a.m. to 11:00 p.m. Monday through Saturday, except holidays
Off-Peak: 11:00 p.m. to 7:00 a.m. Monday through Saturday and all hours on Sunday
and holidays

TIME PERIODS (Continued)

The holidays observed by the Company are New Year’s Day, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day, and Christmas Day. When New Year’s Day, Independence Day, or
Christmas Day falls on a Sunday, the Monday immediately following that Sunday will be considered a
holiday.

Idaho Power Company

I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 34-3
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective 1221 West Idaho Street, Boise, Idaho

SCHEDULE 34
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
LAMB WESTON, INC.
(Continued)

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 95
(Adjustment for Municipal Franchise Fees).

Summer Non-summer

Service Charge, per month $299.00 $299.00

Basic Charge, per kW of
Basic Load Capacity $1.28 $1.28

Demand Charge, per kW of
Billing Demand $6.12 $4.54

On-Peak Demand Charge, per kW of
On-Peak Billing Demand $0.97 n/a

Energy Charge, per kWh
On-Peak 5.3049¢ n/a
Mid-Peak 4.2185¢ 3.9765¢
Off-Peak 3.7639¢ 3.5550¢

Idaho Power Company

I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 34-4
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective 1221 West Idaho Street, Boise, Idaho

SCHEDULE 34
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
LAMB WESTON, INC.
(Continued)

BLOCK 2

MONTHLY CHARGE

The Monthly Charge is the sum of the following charges, and may also include charges as set forth in
Schedule 91 (Energy Efficiency Rider), and Schedule 95 (Adjustment for Municipal Franchise Fees).

Daily Excess Demand Charge
$1.244 per each kW over the Contract Demand.

Monthly Contract Demand Charge
$3.11 per kW of Contract Demand.

Monthly Billing Demand Charge
$12.67 per kW of Billing Demand but not less than Minimum Monthly Billing Demand.

Energy Charge
$0.058694 per kWh of Block 2 Energy.

Minimum Monthly Billing Demand
The Minimum Monthly Billing Demand will be 20,000 kilowatts.

BEFORE THE

IDAHO PUBLIC UTILITIES COMMISSION

CASE NO. IPC-E-23-18

IDAHO POWER COMPANY

ATTACHMENT NO. 3
MEMORANDUM ON MARGINAL COST METHOD
Memorandum
Date: 2/16/2023
From: Yao Yin, Utilities Analyst, Idaho Public Utilities Commission
To: Connie Aschenbrenner, Idaho Power Company
Subject: Investigation in Methods to determine Marginal Cost of Energy for Schedule 20.

Background
Order No. 35428 directed Idaho Power to evaluate and compare other methods for
determining a marginal cost of energy in addition to the use of Avoided Cost Averages in the
Integrated Resource Plan for setting the Schedule 20 energy rate, before the next general rate
case is developed and filed.
On January 31, 2013, Idaho Power met with Staff and discussed potential methods for
determining marginal cost of energy for the Schedule 20 energy rate and possibly for other
customers using marginal cost of energy for their energy rates. As a result of the meeting, Staff
agreed to develop some criteria for the Company to consider for developing a method.
Criteria
Although this list may not be exhaustive, Staff identified the following criteria that could
be used for determining the final method:
• The resources used in a model for determining marginal cost should be based on the
resources that are highly likely to exist during the rate period.
• The amount of incremental load used to determine the marginal cost rate should reflect
the amount of incremental load for the portion of load that will be priced at marginal cost.
• The marginal cost rates should have enough granularity to reflect time difference (e.g.
seasonality, time of day) value of Marginal Cost within the Company’s system to provide
accurate price signals.
• If the marginal cost rates are based on a forecast, due to the lack of Marginal Costs being
trued-up in the PCA, they should be updated often enough that they reflect current
conditions or find a way to true up the marginal cost to actual marginal cost.
• If market costs are used, cost of transmission transaction and wheeling costs should be
included.