20010925Letter Agreement.pdf

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PUBLIC UTILITIES
corn mission
September 25,2001
Dirk Kempthome,Governor
P.O.Box 83720,Boise,Idaho 83720-0074
Paul Kjellander,President
Marsha H.Smith,Commissioner
Dennis S.Hansen,Commissioner
Larry D.Ripley
Idaho Power Company
P0 Box 70
Boise,Idaho 83707-0070
Ref:IPC—E—95—14
O.N.26238
RE:Letter Agreement between Idaho Power Company and Micron Technology Increasing
Micron’s Contract Demand to 85,000 kW.
Dear Mr.Ripley:
At its September 24,2001 decision meeting,the Commission considered and approved
the August 30,2001 Letter Agreement between Idaho Power Company and Micron Technology,
Inc.In this Letter Agreement,Idaho Power allows Micron to increase its load under the existing
special contract to 85,000 kW of demand effective October 1,2001.
Sincerely,
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Randy Lobb
Utilities Division Administrator
Cc:John R.Gale,TPCo
Richard E.Malmgren,Micron Technology
Steven L.Stout,Micron Technology
Keith Hessing,IPUC
Janet Bahora,IPUC
rlobb:gdk’microniet
Located at 472 West Washington Street,Boise,Idaho 83702
Telephone:[phone] Facsimile:[phone]
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IIIO IDAHO POWER COMPANY El
PCJlJER BOISE IDAHO H3707 r 9AnIDACORPCompany
August 31 2901 n
Ms.Jean D.Jewell,Secretary
Idaho Public Utilities Commission
472 W.Washington Street
P.O.Box 83720
Boise,Idaho 83720-0074
Re:Micron Special Contract Dated August 31,1995
Increase In Demand To 85,000 kW
Dear Ms.Jewell:
Enclosed are an original and three (3)copies of a Letter Agreement between
Micron Technology,Inc.(“Micron”)and Idaho Power Company (“Idaho Power”).As set forth in
the Letter Agreement,Micron and Idaho Power have agreed that Micron is permitted to
increase its contract demand to 85,000 kW effective October 1,2001.Please note that the
increase in contract demand does not require any change in the special contr’act between
Micron and Idaho Power,nor is there any change in the rates and charges for electric service.
In order to avoid any confusion in this matter,it is requested that the
Commission indicate it has no objection to Micron’s contract demand being increased to 85,000
kW effective October 1,2001.If the Commission is of the opinion that more formal action
should be taken,please consider this letter as an advice letter.
It is requested that any order or correspondence issued in this matter be
addressed to the following:
Larry D.Ripley Richard E.Malmgren
John R.Gale Steven L.Stout
Idaho Power Company Micron Technology,Inc.
P.O.Box 70 P.O.Box 6
Boise,Idaho 83707-0070 Boise,Idaho 83707-0006
Very truly yours,
LDR:jb
Enclosures
bc:Richard E.Malmgren (w/enclosures)
Steven L.Stout (w/enclosures)
Randy Lobb,IPUC (w/enclosures)
Telephone [phone],Fax [phone]
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JOHN R.GALE [phone]
Vice President FAX [phone]
Regulatory Affairs E-MAIL rgaIeidahopower.com
August 30,2001
Mr.Steven L.Stout
Vice President,Facilities
Micron Technology,Inc.
8000 Federal Way
P0 Box 6
Boise,Idaho 83707-0006
RE:Micron Special Contract Dated August 31,1995
Increase in Demand to 85,000 kW
Dear Mr.Stout:
This is to acknowledge receipt of your letter dated August 7,2001,wherein you have
requested on behalf of Micron Technology,Inc.(“Micron”)an increase in contract demand
under the Micron Special Contract for Electric Service dated August 31,1995 (“the
Contract”).Currently,Micron’s contract demand is 80,000 kW.Idaho Power Company
believes that under the Contract,Micron is permitted to increase its contract demand by
increments of 10,000 kW with one year’s notice.You have requested that Micron be
permitted to increase its contract demand to 85,000 kW effective October 1,2001.Idaho
Power Company believes that such an increase would require Idaho Power Company to
waive the one-year advance notice requirement and the requirement that Micron can only
increase its contract demand by increments of 10,000 kW.
Idaho Power Company acknowledges that Micron believes that Micron’s request does
not require a waiver of any Contract provisions.Micron believes that the contract demand
may be adjusted by increments of less than 10,000 kW and without the obligation to provide
one year’s notice until Micron’s contract demand reaches 100,000 kW.
Idaho Power Company is willing in this instance to waive the one-year notice
requirement and the 10,000 kW contract demand increment requirement if waiver of such
provisions is required and permit Micron to change its contract demand from 80,000 kW to
85,000 kW effective October 1,2001.This increase in contract demand shall not establish a
precedent that requires Idaho Power Company to grant similar requests in the future.This
increase shall also not constitute an acknowledgement or an admission by Micron that a
waiver is required under the Contract.
Steve Stout Letter
Page -2-
If you believe I have accurately set forth the positions and understanding of the
parties please indicate such and your concurrence to the change in contract demand to
85,000 kW in this instance in the space indicated below.Obviously,to the extent that the
approval of the Idaho Public Utilities Commission is requited,Idaho Power Company’s
concurrence in your request is contingent upon receiving Idaho Public Utilities Commission
approval.Upon receipt of your signed concurrence,Idaho Power will pursue any approvals
that might be required from the Idaho Public Utilities Commission.
Please return to me two signed copies so that one can be filed with the Idaho Public
Utilities Commission.
Cordially,
John R.Gale
JRG:ma
ACCEPTED AND APPROVED BY:
MICRON TECHNOLOGY,INC.
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