MODPROC.docx

(text box: 1)BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF AN AMENDMENT TO THE SPECIAL CONTRACT FOR SERVICE TO MICRON TECHNOLOGY, INC.
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CASE NO. IPC-E-96-23
NOTICE OF APPLICATION
NOTICE OF MODIFIED
         PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on November 14, 1996 Idaho Power Company (Idaho Power; Company) and Micron Technology, Inc. (Micron) filed a joint Application with the Idaho Public Utilities Commission (Commission) requesting approval of an amendment to an underlying August 31, 1995 agreement for electric service between Micron and Idaho Power (Agreement).
The underlying Agreement between Idaho Power and Micron was approved by the Commission in Case No.  IPC-E-95-14, Order No.  26238.  Under the Agreement, Idaho Power agrees to furnish Micron’s total requirements for electric power and energy.  As reflected in the Commission’s Order No.  26238, the Schedule 26-Micron tariff included an immediate increase in scheduled monthly contract demand to 50 MW from the previous 40 MW.  It further provided for increases in 10 MW increments while Micron expanded its load to a monthly contract demand of 100 MW by January 1997.  (Agreement ¶¶ 6.1, 6.1.1)  Under the terms of the Agreement, Micron was permitted to increase its contract demand in increments of 10 MW up to a total contract demand of 140 MW or could similarly decrease its contract demand to zero.  (Agreement ¶ 6.2.1)
The underlying Agreement contained a scheduled ramp up of contract capacity up to the 100 MW level along with contract demand charges and minimum monthly bill provisions.  As set forth in the Application, it has now become apparent that due to a slow down in the semi-conductor market, Micron’s need for power will not grow at the rate originally anticipated.  Micron approached Idaho Power concerning the need for minimum monthly billing demand relief.  Under current conditions the contract demand and minimum monthly billing demand exceed Micron’s actual billing demand by over 35%, and this will soon increase to over 50%.  Micron desires to retain the ability to expand to 100 MW but views the ramp up of the minimum monthly billing demand as excessive.
After negotiations Idaho Power and Micron have agreed to lower the minimum monthly billing demand to 25 MW (Agreement ¶¶ 6.1.2, 6.2.2) and to increase the monthly billing demand charge by $0.43 per kW per month, i.e. to $6.25 per kW.  See revised tariff Schedule 26-Micron.  (Attached)  Other administrative changes have also been made to the Agreement (amendment to ¶ 6.2 Contract Demand Provision After Initial Expansion, ¶ 7.2 Operation and Maintenance and ¶ 7.3 Reactive Compensation), including a new Section 16 Right of First Refusal in the event of deregulation.  The parties have further agreed that all of the changes and amendments to the Agreement and revised tariff Schedule 26 will be effective as of September 1, 1996.
The applicants request that the Application be processed under Modified Procedure, IDAPA 31.01.01.201-.204.  
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. IPC-E-96-23.  The Commission has preliminarily determined that the public interest may not require a hearing to consider the issues presented and that the issues raised by the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing.  Reference Commission Rules of Procedures, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in this proceeding unless it receives written protests or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used.  Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the Commission’s use of Modified Procedure in Case No. IPC-E-96-23 is Friday, December 27, 1996.  Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the matter on its merits and enter its Order without a formal hearing.  If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order on the basis of the written positions before it.  Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. IPC-E-95-23 should be mailed to the Commission, Idaho Power Company and Micron Technology, Inc. at the addresses reflected below:
COMMISSION SECRETARYLARRY D. RIPLEY
IDAHO PUBLIC UTILITIES COMMISSIONJOHN R. GALE
PO BOX 83720IDAHO POWER COMPANY
BOISE, IDAHO  83720-0074PO BOX 70
BOISE, ID 83707
Street Address for Express Mail:
ALAN R.  RICHEY
472 W WASHINGTON STSTEVEN L. STOUT
BOISE, IDAHO  83702-5983MICRON TECHNOLOGY, INC.
PO BOX 6—MAIL STOP 507
BOISE, ID 83707-0006
All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that the Application in Case No. IPC-E-96-23 can be reviewed at the Commission office and at the offices of Idaho Power Company during regular business hours.  Idaho Power Company is located at 1221 West Idaho Street, Boise, Idaho.
DATED at Boise, Idaho this                  day of December 1996.

Myrna J. Walters
Commission Secretary
vld/N:IPC-E-96-23.sw
COMMENTS AND ANNOTATIONS
Text Box 1:
TEXT BOXES
Office of the Secretary
Service Date
December 4, 1996