19900613Motion to Deny Afton Petition.pdf

../..-7-19SNAKE RIVER
IDAHO ~r.9EVVI\i¡:.f.\:ER COMPANY
l\i_V ~b'.-i
'.-.- LED gx 70. BOISE, IDAHO 83707
HYDRO POWER
80 JUN 13 furi 8 3;ke 12, 1990
¡'\tO FUGUe
LJT:LiTIES COMMISSION/2~
Mrs. Myrna J. Walters
Secretary
Idaho Public Utilities Commission
Statehouse
80i se, Idaho 83720
Re: Case No. IPC-E-90-8
Dear Mrs. Walters:
Please find enclosed for fil ing an original and seven (7) copies of
Idaho Power Company's Motion to Deny Petition to Intervene Filed by Afton
Energy, Inc.
I f you have any quest ions, please feel free to call me.
LDR:mmb
Enclosures
~ -..
LED
ryLJ
o
F~ECEiv
LARRY D. RIPLEY
EVANS, KEANE, KOONTZ, BOYD, SIMKO & RIPLEY
c/o Idaho Power Company
1220 W. Idaho Street
P. o. Box 70
Boise, Idaho 83707
[phone]
STEVEN L. HERNDON
IDAHO POWER COMPANY
1220 W. Idaho Street
P. O. Box 70
Boi se, ID 83707
[phone]
JllN 13 Aí1 ß 31
~.., D ~ ¡ t\V ULiV
t iTI'ES COf¡~t,îlSS ON
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR A )
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY FOR THE RATE BASING )
OF THE MILNER HYDROELECTRIC PROJECT )
OR IN THE ALTERNATIVE )
A DETERMINATION OF EXEMPT STATUS )
FOR THE MILNER HYDROELECTRIC )PROJECT )
)
CASE NO. IPC-E-90-8
MOTION OF IDAHO POWER COMPANY
TO DENY PETITION TO INTERVENE
F I LED BY AFTON ENERGY, INC.
COMES NOW Idaho Power Company (Idaho Power) and pursuant to RP&P
24. 7(b), herewith files its Motion in opposition to the Petition for Intervention
filed by Afton Energy, Inc. (Afton), upon the following grounds:
1.
Afton Energy, Inc. has also fi 1 ed a Pet it i on to Intervene inCase No,
IPC-E-90-2, Idaho Power's Swan Falls Application. The Petition to Intervene
Afton has filed in the Milner Application is identical to the Petition to
Intervene that Afton filed in the Swan Falls Application, except that Afton
..
changed the reference from "Swan Falls" to 'IMilner Dam", and in allegation number
3, added the verbi age ". . . based on 1 awful avoi ded costs and arms 1 ength
negot i at ions." to the 1 ast sentence in that paragraph.
I i.
Afton's Petition to Intervene in the Swan Falls proceeding is
attached as Attachment No.1, and Idaho Power Company's Motion to Deny fi 1 ed in
the Swan Falls proceeding is attached as Attachment No.2. Also attached as
Attachment No.3, is Commission Order No. 2300 entered in Case No. IPC-E-90-2.
III.
In Order No. 2300 the Commi ss i on permi tted Afton's i ntervent ion, but
1 i mi ted such i ntervent ion.
IV.
Based upon Afton's Pet it i on to Intervene fi 1 ed in th is proceed i ng and
referri ng to Attachments 1, 2 and 3 as if set out in full herei n, Idaho Power
Company objects to the intervention of Afton Energy, Inc., but recognizes that
the Commission may desire to permit Afton's intervention on a limited basis as
provided in Order No. 2300.
WHEREFORE
Idaho Power respectfully moves that the Petition for Intervention
filed by Afton should be denied.
DATED this 12th day of June, 1990.
2
..
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on this 12th day of June, 1990, I mailed a true
and correct copy of the within and foregoing MOTION OF IDAHO POWER COMPANY TO
DENY PETITION TO INTERVENE FILED BY AFTON ENERGY, INC., postage prepaid and
addressed as fo 11 ows:
Afton Energy, Inc.
c/o Owen H. Orndorff
Orndorff & Peterson
Suite 230
1087 West Ri ver Street
Boi se, 10 83702
Owen H. Orndorff
Orndorff & Peterson
Suite 230
1087 West River Street
Boise, ID 83702
/S/~~~
3
.. --, r' ~
~..~ ~~....~..
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
OF THE STATE OF IDAHO
IN TH MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY
AUTORITY TO RATE BASE THE
INVSTMNT REQUIRED FOR THE
REBUILD OF THE SWAN FALL HYDRO-
ELECTRIC FACILITY.
)
)
)
)
)
)
)
PETITION TO INTERVENE BY
AFTON ENERGY, INC.
CAE NO. IPC-E-90-2
COMES NOW, Afton Energy Inc., herein called "this Intervenor"
and pursuant to this Commission's Rule 5, by this Petition requests
leave to intervene herein and to appear and participate as a party
herein, and as grounds therefor states as follows:
i. The name and address of this Intervenor is:
Afton Energy, Inc.
% Owen H. Orndòrff
Orndorff & Peterson
1087 West River Street
Suite 230
Boise, Idaho 83702
This Intervenor will be represented by:
Owen H. Orndorff
Orndorff & Peterson
1087 West River Street
Suite 230
Boise, Idaho 83702
- 1 -
Attaclint No. 1
"
"..
Copies of all pleadings, testimony, exhibits, production
requests, Commission Orders and other documents should be provided
to the parties identified above.
2. Afton Energy, Inc. ("Afton") has built a Qualified
Facility under the Pulic utility Regulatory Policies Act of 1978
("PURPA") in Afton, Wyoming. Although the facility experienced
temporary operating problems in the early contract years, it has
now been rebuilt and is presently delivering approximately 50% more
Dispatchable Capacity to Idaho Power than required under its
contract. Afton's contract specifically allows Afton to make
additional sales to Idaho Power and existing avoided costs from
time to time. The filing by the Company for setting its proposed
rate based costs may specifically impact the equivalent value of
new resources such as the Afton rebuilt plant. To the extent Idaho
Power's filing for rate based costs for Swan Falls are greater than
its PURA avoid cost rates, such discrimination against Qualified.
Facilities is prohibited under federal law. without an opportunity
to intervene in this case, Afton and similarly situated Qualified
Facilities are without any means to challenge Idaho Power's claims
that new resources such as Swan Falls are "non deferrable."
3 . Intervenor believes that any rate based cost above
existing avoided costs should be disallowed as a expense properly
changed to shareholders. In the al ternati ve, Afton should be
- 2 -
, ._'."..
allowed to provide Idaho Power capacity and energy at whatever rate
is set for Swan Falls for which ratepayers will be charged.
4 . This Intervenor intends to participate herein as a party,
and if necessary to introduce evidence, cross-examine witnesses,
call and examine witnesses, and be heard in arguent. The nature
and quality of evidence which this Intervenor will introduce is
dependent upon the nature and effect of other evidence in this
proceeding.
5. wi thout the opportuni ty to intervene herein, this
Intervenor will be wi thout any means of participation in the
determination of the public interest with respect to the avoided
cost rates and the rated Idaho Power proposes charging ratepayers
for an unecessary new generating resource. Unless allowed to
Intervene, this. Intervenor would be unable to participate in
proceedings which may have a material impact on future electric
production.
WHREFORE, Afton Energy, Inc. requests that this Commission
grant this Petition to Intervene in these proceedings and to appear
and participate in all matters as may be necessary and appropriate;
and to present evidence, call and examine witnesses, present
arguent and to otherwise fully participate in these proceedings.
- 3 -
,
c ..-'.
Dated at Boise, Idaho this (p -t day Of~, 1990.
By:
H. ORNDORFF
Attorney for Afton , Inc.
CERTIFICATE OF MAILING
I hereby certify that I have served a true and correct copy
of the foregoing document upon the following parties in thisproceeding by:
Larry Ripley
Evans, Keane, Koontz, Boyd,
Simko & Ripley
c/o Idaho Power Company
1220 West Idaho Street
P.O. Box 70
Boise, ID 83707
Steven L. Herndon
Idaho Power Company
1220 West Idaho Street
P.O. Box 70
Boise, Idaho 83707
Hand Del i very
.. U.S. Mail
Facsimile Transmission
Certified Mail
Federal Express
DATED this 6th day of March,
- 4 -
"'i
.......
~.
~---. ---...... /~d' 3.-/' "'~ i
/ RECEIVED £I ~
=-!LED 0 \\
90 ll8R 13 All.9 ~7 ..
SIMKO & RIPLEY
\~~ -'--~ --..~__A.:~
LARRY D. RIPLEY
EVANS, KEANE, KOONTZ, BOYD,
c/o Idaho Power Company
1220 W. Idaho Street
P. O. Box 70
Boi se, Idaho 83707
[phone]
STEVEN L. HERNDON
IDAHO POWER COMPANY
1220 W. Idaho Street
P. O. Box 70
Boise, 10 83707
[phone]
Attorneys for Idaho Power Company
(,0\
: :'AHO PUBL!C
UTIUilES COMMISSION/:~
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY AUTHORITY TO
RATE BASE THE INVESTMENT REQUIRED FOR
THE REBUILD OF THE SWAN FALLS
HYDROELECTRIC FACILITY
)
)
)
)
)
)
)
CASE NO. IPC-E-90-2
MOTION OF IDAHO POWER
COMPANY TO DENY PETITION
TO INTERVENE FILED BY
AFTON ENERGY, INC.
COMES NOW Idaho Power Company (Idaho Power) and pursuant to
RP&P 24.7(b), herewith files its Motion in opposition to the Petition for
Intervention filed by Afton Energy, Inc. (Afton), upon the following grounds:
i.
That Afton is not a customer of Idaho Power.
II.
That Afton does have a contract with Idaho Power, but th~~term and
conditions of that contract are not an issue in this proceeding. Expanding these
proceed i ngs to include an i nterpretat i on of the ri ghts and ob 1 i gat ions of the
parties under the Afton contract, whether Afton has the right to sell additional
Attaclnt No. 2
f¡ ...:.
power to Idaho Power, whether Afton has any "new" capac i ty to sell to Idaho
Power, and the impact of the rate basing of Swan Falls on the Afton facility are
all issues which are irrelevant and immaterial to Idaho Power's application in
this proceeding and will unduly broaden the issues in this application.
III.
Afton, which is not a customer of Idaho Power, has no standing to
request the disallowance of any expenses as legitimate rate making items.
IV.
That there is presently pending before the Idaho Publ ic Util ities
Commission, Case No. IPC-E-89-11, which proceeding is for the setting of avoided
cost rates and the estab 1 i shment of such rates for Idaho Power.
V.
In addressing Afton's allegations set forth in paragraphs 2 and 3
to the extent that such all egat ions purport to set forth factual contentions,
Idaho Power denies those allegations except for the fact that Afton has entered
into a contract wi th Idaho Power and that contract is now the subject of
1 itigation in the District Court of the Fourth Judicial District of the State
of Idaho, in and for the County of Ada. Any rights that Afton has to sell
additional power to Idaho Power are set forth in its contract.
VI.
The Petition to Intervene filed by Afton does not show any direct
and substantial interest in the proceeding and will unduly broaden the issues.
Granting the Petition to Intervene filed by Afton is not in the public interest.
2
...
WHEREFORE
.
Idaho Power respectfully moves that the Petition for Intervent;on
filed by Afton should be denied. For whatever reason, Afton has chosen not to
be a participant in Case No. IPC-E-89-11.
DATED this 13th day of March, 1990./S~~
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on this 13th day of March, 1990, I served a
true and correct copy of the within and forego;ng MOTION OF IDAHO POWER COMPANY
TO DENY PETITION TO INTERVENE FILED BY AFTON ENERGY, INC., postage prepaid and
addressed as fo 11 ows:
Afton Energy, Inc.
c/o Owen H. Orndorff
Orndorff & Peterson
1087 West River Street
Suite 230
Boi se, 10 83702
Owen H. Orndorff
Orndorff & Peterson
1087 West Ri ver Street
Suite 230
Boise, ID 83702
3
7" w:1i
/st"r;::~~y
':
~'. . .
1
. .~~APR 18 1990
BEFORE TH IDAHO PUBLIC UT COMMION
..
IN TH MA1-lER OF TH APCATION )
OF IDAHO POWE COMPAN FOR )AUTORI TO RATE BAS TH )IN REQUl FOR TH )REOFTHSWANFALHYRO- )ELC FAcn. )
)
CAS NO. IPE-902
ORDER NO. 2300
On March 6, 1990, Afon Energy, Inc., petitioned to interene in thi
proceeding in which Idaho Power Company applied for authority to rate base its
invetment in the rebuid of the Swan Fals hydroelectc facty. Idaho Power
timely opposed Afon's Petition to Inteene. For the reasns stted in th Order
we grant the Petition to Interene.
Afon sell elecricity to Idaho Power under the Public Utity Reguatory
Policies Ac of 1978 (PURA). It has one of the oldest agments with Idaho
Power, and its output under the agreement quales for sales rates that are more
favoable than cuent rate. However, accordi to Afn's Petitin, it is now
delive 50% more dipatchable capacity to Idaho Power tha req under its
agreeent, and these additiona sales are prced at subsequent, lower rates. Afon
contends tht there is a relationship between Idaho Power's cost of the Swan Fal
rebuid and the Company's cunt or futue avoded cost upon which the rates for
sale of Afn's additiona outpt are based
Idao Power oppose Afn's Petition to Inteene, contendig that the,issues Afn has identied are irrlevant and imateal to thi preeg and
would unduly broaden the isses in the Application. Idaho Power contends that
Afn, which is not a cutomer, has no stadig to reqest diowance of any of
Idaho Power's exenditues as legitiate ratemak items. Idaho Power fuher
ORDER NO. 23000 -1-
Attahmt No. 3
. i
'.'
:::
. J .
ORDER NO. 23000 .2.
\:.
¡. '(
.~
,t"
,t"
i
::_~
¿..'
.;.
l'--...
On the other hand, if Afn's arguents should prevai, Afon would be
prejudiced by denyig its Petition to Intervene. The paries' rights can best be
accommodated in this instance by allowig Afn to intervene. We do, however,
agree with Idaho Power that Afon's intervention, if not properly lited, has the
potential for unduly broadeni the issues in this proceedig. Accordigly, we will
not permt the interpretation of the rights and obligations of the paries under the
Afon contract to become an issue in thi case. Th is not the appropriate foru or
proeeg for reIitigatig the disagrements assoate with tht agrment. The
intervention of Afon is strictly lited to the queston of whether and to what
extnt the investent in the rebuid of the Swan Fal facity should be included in -
the rate bas of the of the Company.,
o RD E R
IT is THREFORE ORDERED that the Petition 'to Inteene fied by
Afn Ener, Inc. is herby grte, lite in scope as set fort in the text of this
Orer.
IT is FUTHR ORDERE that al pares in thi procg sere al
paper hereafr fied in th matter on al other pares of red. Th Inteenor
is rereste by the followi for puroses of serce:
Afn Energy, Inc.
CLO Owen H. OmdomOrdor & Petn
Suite 230
1087 West River Street
Bo, m 83702 ..
ORDER NO. 23000 . -3-
A " ,. " ..r..
IIIII
IIIII
1/111
1/111
IIIII
IIIII
DONE by Order of the Idaho Public Utilties Commsion at Boise, Idaho,
thi/1'~ day of Apr1990.
..
,
~~PRSIDEN
~~:~NE.
£e~1L~RA LSON, COMMSSIONE
ATTST:~P~4!k'-/~WÄ æ, ~CRARY
MG:dclO-919 ..
ORDER NO. 23000 -4