HomeMy WebLinkAbout20120724Application.pdf)
LARRY D. RIPLEY
Idaho Power Company
1221 West Idaho Street
P. 0. Box 70
Boise, Idaho 83707
Telephone No. (208) 388-2674
FAX Telephone No. (208) 388-6936
Attorney for Idaho Power Company
CONLEY E. WARD
Givens, Pursley & Huntley
277 N. 6th Street, Suite 200
P.O. Box 2720
Boise, Idaho 83701
Telephone No. (208) 388-1200
FAX Telephone No. (208) 388-1201
Attorney for FMC Corporation
ECE) L~U
El
97 DEC 31 1W! 9 20
O PUBLiC
u JTIES COMMISSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY AND FMC
CORPORATION FOR APPROVAL OF A
SPECIAL CONTRACT FOR SERVICE TO
FMC CORPORATION AND A REVISED
SCHEDULE 28--FMC TARIFF;
!i1i]
FOR APPROVAL OF REVISIONS TO THE
POWER COST ADJUSTMENT MECHANISM
OF IDAHO POWER COMPANY AS A RESULT
OF THE NEW FMC SPECIAL CONTRACT.
CASE NO. IPC-E-97- I
JOINT APPLICATION
COMES NOW, FMC Corporation (FMC) and Idaho Power Company
(Idaho Power), by and through their respective attorneys, Conley E. Ward and Larry D.
Ripley, and herewith file this joint application for approval of an "Electric Service
Agreement" between FMC and Idaho Power (the "Contract"). As set forth in the
JOINT APPLICATION, Page 1
attached Contract (Attachment 2), the parties have successfully negotiated a new
special contract and tariff schedule and have agreed that the new Contract and Tariff
Schedule be effective January 1, 1998, or upon approval by the Commission. Approval
of the Commission is requested for and upon the following grounds:
The existing Agreement For Supply of Interruptible Power and Energy
between FMC and Idaho Power is dated April 20, 1973, as amended March 8, 1982
(the 1973 Agreement"). The current FMC Tariff Schedule 28 reflects the current rates
paid by FMC under the 1973 Agreement. The 1973 Agreement as amended and the
current Schedule 28 are attached hereto as Attachment 1.
FMC and Idaho Power have attempted to modernize the 1973 Agreement,
recognizing that the 1973 Agreement was based upon a total Idaho Power hydro
system. Currently Idaho Power is a mixed hydro/thermal system, and the 1973
Agreement does not recognize this change. The unique operating characteristics of the
FMC phosphate plant have not significantly changed. Accordingly it was necessary to
revise the 1973 Agreement to incorporate the new resources makeup of Idaho Power
while at the same time taking into account the unique operating characteristics of the
FMC phosphate plant. FMC and Idaho Power believe that this has been accomplished
without detriment to Idaho Power's existing customers and that, in fact, the changes
and revisions that have been made are beneficial to Idaho Power's existing customers,
and thus the new Contract is in the public interest and should be approved by the
Commission.
JOINT APPLICATION, Page 2
The new Contract between FMC and Idaho Power with the revised
Schedule 28 is attached hereto as Attachment 2.
IV.
There are many similarities between the 1973 Agreement and the new
Contract. For example, the 1973 Agreement provides for a contract demand up to 250
MW and the new Contract is for a contract demand of 250 MW. The 1973 Agreement
was divided into two (2) parts, primary power and secondary power. The new Contract
provides for a first block of energy and a second block of energy. Under the 1973
Agreement the amount of primary power was defined as one-half of the contract
demand. Under the new Contract the first block of energy is 120 MW. Under the 1973
Agreement FMC's primary power was subject to limited interruptibility. The new
Contract retains the interruptibility capability in the first block of energy for load
shedding during system transmission disturbances, although under the new Contract
Idaho Power cannot curtail FMC's first block of energy for generating/supply (load
resource) purposes.
V.
Under the 1973 Agreement, when Idaho Power interrupted electric service
to FMC, the 1973 Agreement provided that, with the consent of FMC as to rates, terms,
and conditions, Idaho Power would purchase power to serve the FMC secondary load.
That provision has been revised to provide that there is no obligation on the part of
Idaho Power to provide any power from Idaho Power resources for the second block of
energy. While the second block of energy may be provided from Idaho Power
JOINT APPLICATION, Page 3
resources, all power supplied, either from Idaho Power resources or from third parties,
must be approved as to prices, terms and conditions by FMC.
VI.
As a result of the new Contract, FMC will pay demand and energy
charges for the first block in the amount of $22,830,480, and normalized charges for
the second block will be $2,933,550 based on Idaho Power delivery costs. Commodity
purchases and related charges for the second block are additional costs borne by FMC.
The result is an increase in the rates to be paid by FMC for first block
power when compared to the primary power under the 1973 Agreement and a floating
rate for the second block of energy as compared to the existing 23 mills for the
secondary power under the 1973 Agreement.
VII.
The new FMC Contract requires revisions to the Power Cost Adjustment
(PCA) mechanisms of Idaho Power.
Currently sales to FMC under the 1973 Agreement have implications both
to the PCA itself and to FMC's annual rates. As previously stated, the 1973 Agreement
provides for FMC's total load to be divided into primary and secondary components.
The total contract demand is divided evenly between the two components. For
example when FMC's contract demand is set at 240 MW, 120 MW are designated as
primary and 120 MW are designated as secondary. For PCA purposes, the primary is
included as a firm system load in the Idaho jurisdiction, while the secondary is treated
as a revenue offset to the total system power supply costs. The revenue offset from
secondary sales is in addition to the revenue offset from Idaho Power's other nonfirm
off-system sales. The new Contract can be viewed similarly in that the first block of 120
JOINT APPLICATION, Page 4
MW is essentially the existing primary power provided by Idaho Power system
resources, while the second block is subject to FMC acceptance based upon market
conditions.
In the 1973 Agreement the energy rate for the primary service is adjusted
by the PCA and the rate for secondary service is not. The new Contract provides that
the first block energy rate also be adjusted by the PCA. The second block would not be
adjusted since the second block should already be reflective of market conditions.
Approval of the new FMC Contract will require the following changes to
the PCA:
The normalized energy included as firm system load and as firm
Idaho retail load will be changed to reflect the difference between the current
primary amount and the new first block amount.
2.The Idaho retail allocation would be adjusted to reflect item I
adjustments.
3.The first block energy will be considered as actual firm load on an
ongoing basis.
4.The normalized secondary revenue offset will be removed from the
PCA base and replaced with the second block energy revenue.
5.The actual secondary revenue offset will be removed from the PCA
base and replaced with the actual second block energy revenue.
The second block revenue can be normalized by applying surplus sales
prices to the normalized secondary kWh.
It is proposed that the Commission convene a workshop for Staff, Idaho
Power, FMC, and other interested parties to determine exactly how Idaho Power's
JOINT APPLICATION, Page 5
Power Cost Adjustment mechanism should be revised. The parties would then report
to the Commission the results of that workshop.
VIII.
FMC and Idaho Power have agreed that the rates for service set forth in
the new FMC Contract would not be subject to change except for the conditions set
forth in Sections 6 and 17 of the new FMC Contract.
Ix.
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FMC and Idaho Power have agreed that an employee of Idaho Power will
be stationed at the FMC plant to facilitate the supply of second block energy. The cost
that Idaho Power incurs for this employee will be recovered in the demand charge for
the second block.
X.
There are other changes between the existing FMC Contract and the new
Contract.
Notices
It is requested that copies of all pleadings be mailed to FMC and Idaho
Power at the following addresses:
Conley E. Ward, Esq.
Givens, Pursley & Huntley
P. 0. Box 2720
Boise, Idaho 83702
Attorney for FMC Corporation
Ken Tandy
FMC Corporation
Highway 30, West of Pocatello
P.O. Box 4111
Pocatello, Idaho 83202
Larry D. Ripley, Esq.
Idaho Power Company
P. 0. Box 70
Boise, Idaho 83707
Attorney for Idaho Power Company
John R. Gale, General Manager
Pricing & Regulatory Services
Idaho Power Company
P. 0.70
Boise, Idaho 83707
JOINT APPLICATION, Page 6
WHEREFORE, FMC Corporation and Idaho Power Company respectfully
request that the Commission approve the attached Contract and accompanying Rate
Schedule 28. In addition, the Commission, as a part of its consideration of the FMC
Contract, should also schedule a workshop for Staff and interested parties to discuss
any required changes to Idaho Power's Power Cost Adjustment mechanism.
Respectfully submitted this 31st day of December, 1997.
Q /'
D
Corporation
RIPLEY
Attorney for Idaho Power Company
JOINT APPLICATION, Page 7
CASE NO. IPC-E-97-____
ATTACHMENT I
Agreement For Supply of Interruptible Power and Energy
FMC Corporation - Idaho Power Company
April 20, 1973
Amendment to Agreement Dated April 20, 1973 For Supply
of Interruptible Power and Energy Between
Idaho Power Company and FMC Corporation
March 8, 1982
Existing
Idaho Power Company
Electric Service Rate
Schedule 28
for
FMC Corporation
-
•, ..--. S
AGREEMENT FOR SUPPLY OF INTERRUPTIBLE
POWER AND ENERGY
FMC CORPORATION
IDAHO POWER COMPANY
0.1 THIS AGREEMENT, Made and entered into this day
of 1973, between FMC CORPORATION, a Delaware cor-
poration (hereinafter called "Customer"), and IDAHO POWER COMPANY,
a Maine corporation (hereinafter called "Company"), both corpora-
tions being qualified and doing business in the State of Idaho;
WITNESSETIT:
0.2 WHEREAS, Customer and Company heretofore entered into agree-
ments dated December 16, 1947, June 22, 1950, June 25, 1951, and
August 29, 1963, as amended April 1, 1964, June 7, 1966, October 26,
1966, April 25, 1967 and March 18, 1971, under which Company agreed
to supply and Customer agreed to purchase certain Contract Amounts
of electric power and energy as might be specified by Customer
up to a total amount of 250,000 KW for the operation of Customer's
electric furnace plant and related operations at or near Pocatello,
Idaho; and
0.3 WHEREAS, Customer has to date scheduled in accordance with
the provisions of the agreements 230,000 KW; and
0.4 WHEREAS, it is the desire of the parties hereto to enter
into a single agreement which will provide for the terms and condi-
tions under which the Customer's total power requirements will be
Supplied.
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NOW, THEREFORE, in consideration of the premises and th.
mutual benefits from the covenants hereinafter set forth, 'the
parties hereby agree as follows:
ARTICLE I - TERM OF AGREEMENT
1.1 The original term of this agreement shall be for a period
beginning January 1, 1974, and ending December 31, 1981, which
term shall be automatically extended for two-year periods to run
concurrently with the term of any Service Schedule in effect. -
1.2 This agreement shall, upon becoming effective January 1,
1974, terminate any agreements or contracts between the Company
and the Customer providing for the sale and purchase of electric
energy which may be in force at the time this agreement becomes
effective; provided, however, this paragraph 1.2 shall not relieve
the Customer from payment for electric energy delivered under the
previous agreements or contracts.
ARTICLE II - POWER TO BE SUPPLIED
2.1 During the effective term of this agreement, Company will
supply or stand ready to supply to Customer, and Customer will
purchase and pay for, electric power and energy in the amounts,
of the types, under the conditions, and at the rates hereinafter
set forth. The types of power to be supplied and purchased here-
under are Interruptible Primary Power as hereinafter defined and
described in paragraph 3.1 hereof, and Secondary Power as herein-
after defined and described in paragraph 3.2 hereof. The maximum
1
I. ; : •:..
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Contract Amount of Power to be supplied under this agreement and
four related Service Schedules is 250,000 KW, and said maximum
Contract Amount shall at all times be equally divided among four
Service Schedules. The power supplied hereunder and related
Service Schedules shall consist one-half of Interruptible Primary
Power and one-half Secondary Power, and shall be available for the
terms and at rates specified in four Service Schedules attached
hereto and made a part hereof.
2.2 Service Schedules shall be the agreements between the
parties with respect to the amount of Interruptible Primary Power
and Secondary Power to be made available by the Company, the term
of availability and the charges for the Interruptible Primary Power
and Secondary power. Except as specifically stated therein, each
* Service Schedule shall be subject to the terms and conditions
expressed in this agreement.
2.3 The Contract Amount of power to be supplied hereunder
shall be as follows:
(a) The term "Contract Amount," as used herein, means as
to any month that total amount of electric power (one-half of
which is Interruptible Primary Power and one-half Secondary Power)
which Customer agrees to purchase hereunder and which Company agrees
to supply under the conditions set forth herein and the Service
Schedules in effect at the time. Said Contract Amounts are as
set forth in the schedules provided for in subparagraphs (b) and
I: •':•.
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(c) in this paragraph 2.3.
(b)The Contract Amount under this agreement for the four -
Service Schedules shall be 230,000 KW from January 1, 1974 and
thereafter, except as provided in subparagraph 2.3(c) hereafter,
(c)On or before October 1 of each year, beginning
October, 1973, Customer shall submit to Company in writing a
schedule setting forth (a) the Contract Amount or Amounts, by
half-year periods, for the succeeding calendar year, and (b
Customer's estimated power requirements, by half-year periods,
for the next succeeding four calendar years. The Contract Amount
or Amounts set forth for each of the two six-month periods of the
first calendar year in each such schedule shall not vary upwards
or downwards by more than 12,000 KW (equally divided among the
Service Schedules in effect at the time) from the Contract Amount
applicable for the immediately preceding annual schedule, or the
level established pursuant to the provisions of subparagraph 5.3(c);
provided, however, that all increases in Contract Amounts shall be
limited by the maximum amount of power specified in paragraph 2.1
to be supplied hereunder.
ARTICLE III - DESCRIPTION OF POWER
3.1 Interruptible Primary Power - Interruptible Primary Power
shall mean power which is available at all times (except during
emergency conditions as set forth in paragraph 5.3(a) hereof or
in section 25 of Company's Rules and Regulations referred to in
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paragraph 11.1 hereof, or necessary repairs of or changes in
facilities, as included in section 26 of said Rules and Regula-
tions, if such facilities are essential for supply of power to
Customer), subject, however, to temporary reductions or inter-
ruptions by Company when load and capacity conditions on Company's
system require; provided, however, during such temporary reductions -
or interruptions, company shall make available Interruptible
Primary Power equivalent to 7% of the Contract Amount scheuled
pursuant to paragraph 2.3(b) or (c) for operation of Customer's
auxiliary equipment or such lesser amount as may be requested by
Customer. Interruptions or reductions of such supply by Company
shall be upon telephone notice from Company's load dispatcher to
Customer's designated representative, and upon receipt of such
notice Customer shall reduce or:discontinue use of such power by
the amounts and for the period or periods specified in such notice.
The aggregate amounts of such reductions or interruptions by
Company shall not in any calendar year exceed 300 kilowatt-hours
per kilowatt of Interruptible Primary Power Contract Amount in
effect during such calendar year; provided that, in the event
that the Contract Amount of Interruptible Primary Power is in-
creased during a calendar year, the amount of interruption per
kilowatt of additional Contract Amount in said calendar year
shall be prorated in the relation that the remaining number of
days in the calendar year bears to 365. Inability of Company to
supply power power due to emergency conditions (as set forth in para-
graph 5.3(a) hereof, or in section 25 of Company's Rules and
Regulations referred to in paragraph 11.1 hereof), or necessary
repairs of or àhanges in facilities (as included in section 26
of said Rules and Regulations), if such facilities are essential
for supply of power to Customer, shall not be deemed an inter-
ruption for the purpose of this paragraph and curtailments or
failures of supply, if any, due to such cause shall not be
included in the aforesaid annual limitation of 300 kilowatt-
hours of aggregate interruptions per kilowatt.
3.2 Secondary Power - (a) Secondary Power shall mean power
that shall be available at the discretion of company, provided
that Secondary Power shall be available in an aggregate amount
during each 10-year span starting respectively January 1, 1974,
and January 1, 1984, equivalent to an average of not less than
6,720 kilowatt-hours per kilowatt per year (beginning January 1)
of the average Secondary Power Contract Amount in effect during
the 10-year span; provided, further, that Secondary Power shall
be available in an amount of not less than 4,380 kilowatt-hours
per kilowatt of the average Secondary Power Contract Amount during
each 12-month span beginning January 1, 1974. In the event that
the Contract Amount of Power is increased, the amount of Secondary
Power for each additional kilowatt to be made available in the
12-month span of such increase shall not be less than the product
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of the remaining number of days in said 12-month span multiplied
by 12 kilowatt-hours.
(b) Availability of Secondary Power shall be established
for the purposes hereof by notices by Company to Customer's de-
in the manner hereinafter set forth.
When used in connection with availability of Secondary Power or
accounting for Secondary Power, the word "day" shall mean a 24-
hour period starting at 12:00 midnight, unless otherwise á?reed
Upon. Company, not later than 4:00 PM on Wednesday of each week,
will submit by mail to Customer's designated representative a
tentative program showing for the four subsequent weeks, by days
and by periods within each day (beginning Monday 12:01 AM), the
amounts of Secondary Power expected to be made available, such
tentative program to be for the convenience of Customer and not
to be binding upon either party. Actual availability of Secondary
Power shall be established for each day by a schedule given over
te-1eone by company's load dispatcher to Customer's designated
representative before 4:00 PM of the previous day, which daily
schedule may either confirm or modify the amounts shown in the
tentative program previously given, and may provide for either a
uniform amount of Secondary Power throughout the day or amounts
Varying for different periods within the day, provided that the
highest amount provided for in such daily schedule shall be made
available for, at least five consecutive hours in such day. The
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amounts of Secondary Power set forth in such daily schedules
shall be the amounts deemed to be made available hereunder, and
a cumulative record of kilowatt-hours shown by such daily schedules
shall be maintained for comparison with the-minimum amounts speci-
fied in paragraph 3.2(a).
(c)Secondary Power Billing Demand, for which Customer
shall be obligated, shall be based upon the minimum amount of
----a
Secondary Power shown in each daily schedule as provided in para-
graph 3.2(b).
(d)During any emergency period, as defined in paragraph
5.3(b), or any Down Period requested by Customer as provided in
paragraph 3.5, in which Customer's power requirements are reduced
at Customer's request, Company will schedule Secondary Power as
available only to the extent as determined by paragraph 5.3(a)
to be the reduced amount of Secondary Power, or in such lesser
amounts as Customer may request,-but any reduction in scheduling
of Secondary Power from this cause shall reduce correspondingly
the aforesaid annual minimum and 10-year minimum amounts computed
as set forth in subparagraph 3.2(a), and shall not indicate a
reduction in availability of Secondary Power. During any emer-
gency periods as defined in paragraph 5.3(a), or any Down Period
requested by Company as provided in paragraph 3.5, in which
Customer's power supply is reduced at Company's request, Company
will schedule Secondary Power as available only to the extent as
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determined by paragraph 5.3(a) to be the reduced amount of
Secondary Power, and such schedule shall be the basis for determ-
ining availability and Billing Demand of Secondary Power as specir
fled in paragraphs 3.2(b) and (c). In event both parties have an
emergency or request a Down Period, the excess reduction of one
party's request over the other party's request will be reflected
in the manner specified above for the party requesting the excess
-
reduction.
3.3 Service Schedules - Not less than twelve (12) months prior
to the expiration of the, term of each Service Schedule, Customer
shall notify the company in writing whether or not it desires to
enter into a new Service Schedule to replace the expiring Service
Schedule. Subject only to agreement by the parties on the rates
and charges, the customer shall have the right to renew the
expiring Service Schedule for a term of eight (8) years. Not
later than October 15 of the calendar. year in which the Service
Schedule expires, the parties after giving consideration to the
changes in all factors bearing upon the costs for the service
supplied, shall agree upon rates and charges for the ensuing two-
year period to be included in each and every Service Schedule, and
shall execute one Service Schedule for a term of eight years and
amend the remaining Service Schedules to the extent necessary to
incorporate therein the, agreed upon rates and charges. Upon
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termination of any Service Schedule, the Contract amount appli-
cable to such Service Schedule shall be terminated. The Contract
Amount for any Service Schedule, upon renewal, will be the same
as the Contract Amount for the remaining Service Schedules in
effect at the time of renewal. In the event it is necessary to
segregate the total demand and energy deliveries between the
Service Schedules for any purpose, the division shall be
accomplished by dividing the Contract Amount, Interruptible
Primary Contract Demand, Secondary Billing Demand and kilowatt-
hours associated therewith by the number of Service Schedules
in effect at the time.
3.4 Excess Power - The possibility is recognized that Customer
may at times take power in excess of the aggregate amount which
Customer is at the time entitled to take under this agreement.
In such event Customer shall discontinue such excess taking upon
notice from company's load dispatcher, it being understood that
failure to receive such notice shall, not constitute permission
by Company for Customer to continue or repeat such excess taking.
3.5 Down Periods - (a) It is understood that electric furnaces
of the type operated by the Customer require periodic shut-downs
for maintenance and overhauling for periods of from ten to approxi-
mately 72 calendar days, and it is the intent of the parties that
such shut-down and consequent reduction of power requirements
shall be coordinated with conditions on the Company's system.
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Customer accordingly will arrange for Down Periods with respect
to power to be supplied hereunder at times approved or requested
by Company for such durations not to exceed 72 days in any calendar
year; provided, however, that Company shall not request Down
Periods during the January 1 - May 31 period.
(b)Company may schedule a Down Period reduction of not
to exceed one-fourth (1/4) of the total Contract Amount hereunder.
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Customer may schedule a Down Period reduction hereunder of not to
exceed 65,000 KW, provided the sum of all such reductions scheduled
by Customer shall not exceed the average of the Contract Amount
hereunder during the four-year periàd ending with the calendar
year in which the Down Period occurs, and provided further, that
in any calendar year a Down Period may reduce the kilowatt-days
of Contract Amount (days times Contract Amount in kilowatts) in
not to exceed a 90-consecutive-day period up to an amount which
is equal to one-fourth (1/4) times the current Contract Amount
times 72 days. In the event Down Period reductions are requested
by both parties in any year, and subject to the proviso in the
last foregoing sentence, the higher of the two Down Period
amounts so requested shall be scheduled.
(c)The reduction in the amount of power (Contract Amount)
during a Down Period shall be one-half Interruptible Primary Power
and one-half Secondary Power. During such Down Periods Company
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will waive the Interruptible Primary Demand Charges on the Inter-
ruptible Primary Demand reduction and will reduce the scheduling
of Secondary Power in a like amount.
(d) Each year Company shall advise Customer at least four
months (120 days) in advance of the time Company desires such
Down Period to begin. In the event Company does not advise
Customer of the time a Down Period is desired, Customer may
schedule a down period in the July - December 31 period.
ARTICLE IV - SERVICE SPECIFICATIONS
4.1 The electric power supplied under this agreement shall be
in the form of 3-phase, alternating current at a frequency of
approximately 60 cycles per second, and at a nominal phase-to-
phase potential of approximately 13,500 volts. Voltage variations
at the point of delivery shall not be greater than 5% below or 5%
above the normal operating voltage, except under emergency condi-
tions.
4.2 The point of delivery for power supplied hereunder shall
be on the 13,500 volt side of Company's substation located near
Pocatello, Idaho.
4.3 Company will provide suitable metering equipment for
obtaining measurements required in connection with settlements
under this agreement. Company shall, at its own expense, test
such metering equipment once in each calendar year.
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4.4 The Customer shall limit the operation of individual
furnaces so that the electrical demand of each furnace, including
auxiliaries, shall not exceed the following limits:
(i) Furnace No. 1 60,000 EW
(ii) Furnace No. .2 85,000 KW
(iii) Furnace No. 3 85,000 KW
(iv) Furnace No. 4 60,000 KW
ARTICLE V - DETERMINATION OF AMOUNTS OF
POWER AND ENERGY SUPPLIED
5.1 Definitions of Terms - For purposes of this agreement,
the following terms shall have the meanings indicated:
(1)"Demand Interval" means any clock half-hour.
(2)"Customer's Demand" means as to any Demand Interval
the integrated amount of power supplied during that
interval.
(3)"interruptible Primary Contract Demand" means as to
any month one-half of such Contract Amount as may
be established as provided in paragraph 2.3.
(4)"Secondary Billing Demand" means as to any day the
amount of Secondary Power scheduled during that
Demand Interval in said days when such scheduled
amount is lowest.
(5)"Excess Demand" means as to any month the sum of
the amounts in kilowatts by which Customer's demand
in any Demand Intervals in the month exceeds power
entitlement for those respective Demand Intervals,
such power entitlement for any Demand Interval being
the sum of the power scheduled under this agreement.
5.2 Basic Data - For purposes of settlements hereunder there
shall be determined for each month the following basic data:
DEC
(1)Total kilowatt-hours supplied to Customer under
this agreement as determined from suitable metering
equipment.
(2)Total kilowatts supplied to Customer during Demand
Intervals in the month, as determined from suitable
metering equipment.
(3)Power factor of Customer's load during Demand Intervals
in the month, as determined from suitable metering
equipment.
(4)Kilowatt-hours of power interrupted in accordance
with the provisions of paragraph 3.1 hereof to be
determined by computation from the amounts and
durations of power interruptions and reduction.
(5)Kilowatt-hours of interruption or reduction in power
supply to Customer resulting from emergency conditions
and continuing for a period of 36 consecutive hours
or longer, to be determined by computation.
5.3 Adjustment in Amount of Power Supply - (a) When, due to
emergency conditions affecting Company, there is any curtailment
or failure of power supply for a period of thirty-six consecutive
hours or longer, the Interruptible Primary Power Contract Amount
and the Secondary Power Contract Amount under this agreement
shall be reduced for billing purposes in accordance with the
number of hours and amount of such curtailment or failure of power
supply and Customer shall be excused from payment of any charges
on the computed amount of reduction in power supply beginning
with the commencement of such emergency.
(b) When, due to causes beyond Customer's control, as
a result of acts of God, or the public enemy, fire, flood, war,
government action, accident, strikes or labor disputes, Customer
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reduces or discontinues its operations for an emergency period
of 36 consecutive hours or longer, the Interruptible Primary
Power Contract amount and Secondary Power Contract Amount under
this agreement shall be reduced for billing purposes by following
the same procedure as Set forth in paragraph 5.3(a) above, and
Customer shall be excused from payment of any charges therefor;
provided, however, that the emergency period or periods of
Customer with respect to power furnished under this agreement
shall not exceed an aggregate total of 30 days due to strikes or
labor disputes in customer's plant in any consecutive 12 months
period. Customer shall exercise due diligence to remove any such
cause or condition with all reasonable dispatch.
(c) In the event Customer is required to temporarily
curtail operations at Pocatello during the term of this agreement
due to loss or reduction of business, it may, by giving six months'
prior written notice thereof, substitute a schedule in lieu of
the schedule then in effect under paragraph 2.3(b) or (c), provid-
ing for a reduction in the schedule of Contract Amount then in
effect by an amount not to exceed a total of 30,000 KW equally
divided among the Service Schedules. The amount of such reduction
shall be stated in the notice which shall be effective for a
reduction period comprising the remaining months of the half-year
period in which such reduction becomes effective and the entire
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next ensuing half-year period. Such reduction shall be a specified
amount under the Contract Amount in effect the month immediately
preceding the effective month of such reduction, and such reduced
Contract Amount shall not again be changed or subject to change,
under the provisions of paragraph 2.3(c) or otherwise, within
such reduction period except with the written consent of Company.
Upon expiration of such reduction period, the Contract Amount
shall be the amount of power set forth in the last October 1
schedule as provided for in subparagraph 2.3(c).
ARTICLE VI - CHARGES
6.1 -. The amount to be paid monthly by Customer to Company for
the power and energy supplied hereunder shall be the sum of the
charges as specified in Section 3 of the Service Schedules attached
hereto and made a part hereof, for the power and energy supplied
under each Service Schedule.
6.2 Tax Adjustment charge - If, after the date of this agreement,
any new or increased tax or taxes (other than income taxes and
taxes based on income) payable by Company are imposed upon revenues
received from Customer hereunder, or upon power or energy sold to
Customer hereunder, or upon power or energy generated for supply
of Customer hereunder, Customer shall pay, in addition to the
charges hereinabove specified in paragraph 6.1, an amount sufficient
to cover any such taxes payable by Company.
I;
-17-
I 6.3 (a) in event a Service Schedule is not renewed or extended
at the time hereinbefore specified, Customer shall pay to-Company
the nonsalvable cost of the transformer bank and all appurtenances
I
associated with one of Customer's furnaces, which furnace may be
designated by Customer. It is understood and agreed by the parties
that the nonsalvable cost of the Don Substation facilities associated
with the total supply of power and energy herein provided for
Customer on December 31, 1973, will be $1,111,815. The nonsalvable
cost to be paid by Customer upon termination of a Service Schedule
shall be the original installed cost of the transformers and equip-
ment directly associated with the furnace to be discontinued, plus
the original installed cost of the jointly used equipment allocated
to Customer's load, in the proportion represented by the ratio of
the KVA rating of the transformers to be discontinued to the total
KVA transformer rating used for Customer's total load. The total
original cost thus determined shall be reduced by the depreciation
reserve accumulated between the installation date of the facilities
and date of expiration of the Service Schedule for the equipment
to be discontinued, and the salvage value, if any, on the dis-
continued facilities. The nonsalvable amount thus computed shall
be paid in equal monthly installments beginning twelve months before
the expiration date of the Service Schedule. The remaining part
of the total agreed nonsalvable cost shall be related to the
-18- -
remaining Service Schedules and subject to payment to the Company
in the manner set forthabove. Customer shall have the option of
acquiring ownership of the transformers and equipment directly
associated with the furnace to be discontinued upon payment of
the salvage value and the removal cost of such facilities; provided,
however, that any discontinued transformers and equipment' directly
associated therewith acquired by Customer and not removed from
Company's premises will be removed on 90 days' notice from Company
when Company has need of the space occupied by such equipment.
Any cost of removal of facilities shall be paid by Customer on
receipt of bill therefor.
(b) Customer shall have the option, upon twelve months'
notice prior to the expiration of the Service Schedule, in lieu
of making monthly payments computed in paragraph 6.3(a) above,
to pay Company the monthly cost of maintaining the Company's
discontinued facilities in place. Such monthly cost shall be
computed in accordance with normally accepted accounting procedures
used by Company and shall include cost of money, taxes, deprecia-
tion and maintenance, and payment by Customer of such monthly
costs shall not convey ownership of or interest in any dis-
continued facilities to Customer.
6.4 payment - The monthly bill rendered hereunder, computed
as hereinbefore specified, is due and payable at company's office
at Pocatello, Idaho, upon receipt, and becomes past due 30 days
-19-
from the date on which rendered, and the Company may thereafter
add interest thereon at the rate of 5% per annum until paid.
ARTICLE VII - PROVISION OF REPLACEMENT POWER
7.1 At any time when the full Contract Amount of Secondary
Power provided for in paragraph 2.3 is not available, Company
will at the request of Customer endeavor to procure at Customer's
expense from available sources such power as will be sufficient
to enable delivery to Customer of that amount of power which,
when added to that Secondary Power available, will equal the full
Contract Amount of Secondary Power or, at Customer's option, a
lesser amount. If Company is able so to do and if Customer so
elects, Company will purchase such power and will deliver to
Customer an amount of power equivalent to that so purchased less
all incremental electrical losses resulting from the procurement
and delivery of such power. Company will bill Customer monthly
for the cost to Company of power so purchased, including the
power to cover said electrical losses, plus the cost of trans-
mission and load-factoring of the energy. The energy so delivered
shall not be recorded as applicable in meeting the minimum amounts
specified in paragraph 3.2(a). hereof.
ARTICLE VIII - RELATION TO OTHER AGREEMENTS
8.1 This agreement supersedes, terminates and cancels all
agreements between the parties, including agreement dated August 29,
-20-
1963, as amended April 1, 1964; June 7, 1966; October 26, 1966;
April 25, 1967; and March 18, 1971; provided, however, this
paragraph 8.1 shall not relieve Customer from payment for electric
energy delivered under the previous agreements or contracts.
ARTICLE IX - LIABILITY
91 Each party will indemnify and save harmless the other
party against loss, damage or liability, exclusive of costs and
attorneys' fees, resulting from claims asserted by third persons
against either or both parties to this agreement on account of
injury or death to persons or damage or destruction of property -.
Occurring on such (indennifying) party's side of the aforesaid
point of delivery, unless such injury or damage shall have
resulted from the sole negligence of the other party; provided,
however, that each party shall be solely responsible for claims
Of and payments to its employees and agents for injuries occurring
in connection with their employment or arising out of any workmen's
Compensation law.
ARTICLE X - WAIVERS
10.1 Any waiver at any time by either party of a right or with
respect to any matter arising under this agreement, or any failure
to give any notice provided for hereunder, shall not be deemed to
be a waiver with respect to any subsequent matter, nor as the
establishment of or consent to any practice under this agreement
-21-
or. an interpretation of any term or provision hereof.
ARTICLE XI'- CObMISSION JURISDICTION
11.1 This agreement shall be subject to the authorization
I
hereof by the Idaho Public Utilities Commission; and the rates,
terms, and provisions herein set forth, and the respective rights
and obligations of the parties hereunder, shall be subject to
the jurisdiction and regulatory authority of said Commission,
and the laws of the State of Idaho. Except to the extent' herein
otherwise provided or modified, Sections 3, 5, 12, 13, 15, 16,
18, 23, 25, 26, and 29 of Company's Rules and Regulations as now
on file with said Commission, shall apply to this agreement and
the service supplied hereunder, and shall be a part of this
agreement to the same extent as if set forth in full herein, a
copy of said Rules and Regulations being attached hereto and
made a part hereof.
ARTICLE XII - SUCCESSORS AND ASSIGNS
12.1 This agreement shall inure to the benefit of and be
binding upon the successors in interest, assigns and legal
representatives of Customer and Company.
-22-
IN WITNESS WHEREOF, the parties have executed this
agreement by their respective proper officers, thereunto duly
authorized, on the day and year first hereinabove written.
FMC CORPORATION
By ________
I. Vice President
I .-.---.. -
(CORPORATE SEAL)
ATTEST: /
AssitLt 'try
IDAHO POWER COMPANY
• By
President
(CORPORATE SEAL)
ATTEST:
\_j Secretary
CASE NO. IPC-E-97- 13
ATTACHMENT 2
Electric Service Agreement
Between
Idaho Power Company and FMC Corporation
December 30, 1997
Proposed
Idaho Power Company
Electric Service Rate
Schedule 28
for
FMC Corporation
ELECTRIC SERVICE AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
FMC CORPORATION
THIS AGREEMENT FOR ELECTRIC SERVICE is executed on December 30,
1997, by FMC CORPORATION, a Delaware Corporation ("FMC") and IDAHO POWER
COMPANY, an Idaho Corporation ("IDAHO POWER"). In consideration of the mutual
covenants hereinafter set forth, the parties hereby agree as follows:
11I)
This Agreement replaces the April 20, 1973 Agreement for Supply of Interruptible
Power and Energy between FMC and Idaho Power as amended.
When used in this Agreement, the capitalized terms shall have the following meanings:
2.1 "Commission" shall mean the Idaho Public Utilities Commission or its successor
agency.
2.2 "Contract Demand" shall mean the kilowatts ("kW") of electric demand specified
in paragraph 4.2.1 that Idaho Power agrees to make available to the FMC Facility each year.
2.3 "Demand Interval" shall mean any 15-consecutive-minute period as measured by
the demand metering at the Point of Delivery.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 1
2.4 "Energy Index Price" shall mean a price per kilowatt-hour ("kWh") equal to the
Dow Jones Mid-Columbia Electricity Index price during the same time period, either on-peak
or off-peak, whichever is applicable, adjusted for the cost of Related Services. However, if
the Idaho Power system is constrained due to west-to-east import limitations, then the Energy
Index Price shall mean a price per kilowatt-hour ("kWh") equal to the Dow Jones Palo Verde
Firm Electricity Index price during the same time period, either on-peak or off-peak whichever
is applicable, adjusted for the cost of Related Services. If either of the above, indices is --
discontinued during the term of the Agreement, then the parties will mutually agree to a
substitute index or indices. If agreement on the substitute index cannot be reached, the parties
will submit the issue to the Commission for resolution.
2.5 "Excess Demand" shall mean Metered Demand in excess of the Contract
Demand for any Demand Interval during the month.
2.6 "FMC Facility" shall mean the FMC manufacturing complex located in Power
County, Idaho.
2.7 "Interconnection Facilities" shall mean 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 FMC Facility, including, but not limited to,
substation facilities and metering equipment.
2.8 "Metered Demand" shall mean the kW's delivered to the FMC Facility at the
Point of Delivery during the coincident 15-consecutive-minute period of maximum use during
each monthly billing period as measured by suitable metering equipment.
2.9 "Month" or "Monthly" shall mean a calendar month.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 2
2. 10 "Point of Delivery" shall mean the location specified in paragraph 4.6 where the
electrical facilities owned by FMC 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 FMC Facility.
2.11 "Prudent Electrical Practices" shall mean 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.
2.12 "Related Services" shall mean the supply-related and transmission-related
services required to deliver the Second Block of Energy to the Idaho Power system. Related
Services may include, but are not limited to, such items as off-system transmission, Reserves,
and replacement of losses.
2.13 "Reserves" shall mean the generation reserves which must be maintained and
provided to meet the operating criteria of the Northwest Power Pool, Western States
Coordinating Council, and National Electric Reliability Council or their successor entities'
operating criteria.
13 Ib*
3.1 Term of Agreement. This Agreement shall commence on the later of January 1,
1998 or the first day of the month following Commission approval of this Agreement, and
remain in effect through December 31, 2002 ("Initial Term"). Following the Initial Term this
Agreement shall remain in effect until terminated in accordance with Paragraph 3.2.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 3
3.2 Termination of Agreement. After December 31, 2000 either party shall have
the right to terminate this Agreement by delivering written notice of termination to the other
party. The effective date of termination will be specified in the termination notice, but such
effective date cannot be earlier than twenty-four (24) months after the delivery date of the
notice of termination ("Extension Term"). If both parties give notice of termination, the
earliest effective date will prevail.
F::J[Sil (I1L BJjLI)
4.1 Supply Obligation. In accordance with Prudent Electrical Practices and the
provisions of this Agreement, Idaho Power will make available and/or supply electric power
and energy to FMC at the Point of Delivery. FMC will not resell any power or energy
supplied under this Agreement except to an FMC affiliate for consumption at the FMC
Facility, but power and energy commitments may be reduced or modified by Idaho Power for
FMC's account in accordance with the provisions of paragraphs 4.2.4 and 4.2.5 of this
Agreement. The methodology for making and modifying energy commitments will be set forth
in mutually agreed to operating procedures.
4.2 Amounts of Electric Power and Energy To Be Supplied. During each hour of
each year of the Initial Term and any Extension Term, electric power and energy shall be made
available and/or supplied to the FMC Facility at the Point of Delivery in the following
amounts:
4.2.1 Contract Demand. Idaho Power will make available and FMC will
purchase 250,000 kW of Contract Demand consisting of a First Block of 120,000 kW and a
Second Block of 130,000 kW. Contract Demand will be supplied on a "take or pay" basis.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 4
4.2.2 First Block of Energy. Idaho Power will make available and FMC will
purchase 120,000 kWh of energy ("First Block of Energy") every hour during the term of this
Agreement. The First Block of Energy will be supplied on a "take or pay" basis. The first
120,000 kWh of energy delivered to FMC in any hour will be deemed the First Block of
Energy. On mutual agreement of FMC and Idaho Power, the amount of energy delivered and
purchased under the First Block of Energy may be reduced below 120,000 kWh for an agreed
upon time period. -
4.2.3 Second Block of Energy. In addition to the First Block of Energy made
available and/or supplied by Idaho Power in accordance with paragraph 4.2.2, Idaho Power
will, in consultation with FMC and subject to its approval, supply or acquire for FMC's
account the following: (1) up to 130,000 kWh of electric energy per hour, (2) transmission
service from the resource to Idaho Power's system, and (3) Reserves required for the load in
an amount equal to FMC's total load minus the First Block of Energy, collectively defined as
the Second Block of Energy. The Second Block of Energy will be supplied to FMC by Idaho
Power through Idaho Power's own system resources and/or through a portfolio of short or
long-term purchase arrangements. At the request of FMC, the FMC Trader described in
paragraph 4.9 (or the designated Idaho Power alternate) will obtain and provide to FMC the
prices, terms, and conditions for one or more potential acquisitions of the Second Block of
Energy. If the prices, terms, and conditions are acceptable to FMC, it will authorize the FMC
Trader (or the designated Idaho Power alternate), to make the Second Block of Energy
commitment in accordance with FMC's instructions provided the service is still available when
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 5
the FMC Trader (or the designated Idaho Power alternate) receives the authorization. FMC
and Idaho Power will execute a written confirmation after each purchase.
any time prior to the preschedule deadline(s) described herein, FMC may elect to reduce all or
part of the Second Block of Energy commitment agreed to by Idaho Power and FMC. FMC
will provide Idaho Power with the amount of the Second Block of Energy to be reduced and
Idaho Power will quote FMC a price for resale of the reduction at then prevailing -market
prices. When appropriate, such price will take into account an amount for any Related
Services associated with the Second Block of Energy purchase or its subsequent resale. FMC
may elect to accept this price or accept the existing purchase commitments. If the amount that
Idaho Power receives for a resale is less than the amount FMC would have paid Idaho Power
for the scheduled delivery, FMC will pay the shortfall. If Idaho Power receives a resale price
that exceeds the purchase price, Idaho Power will credit FMC for the original purchase and an
amount equal to 75% of the excess amount.
4.2.5 Changes to Second Block of Energy after Preschedule Deadline. If, at
anytime after the preschedule deadline, FMC determines that its load will be different than the
prescheduled amount, FMC must immediately notify Idaho Power. On receiving a modified
schedule, Idaho Power will use its best efforts to purchase additional energy or sell part of the
Second Block of Energy, at then prevailing market prices, and notify FMC of the purchase or
sale price. FMC's account will be debited for the cost of any additional purchases and Related
Services. FMC 's account will be credited for the revenue received from any sales made on
FMC's behalf. If the amount that Idaho Power receives for resale is less than the amount
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 6
FMC would have paid Idaho Power for the scheduled delivery, FMC will pay the shortfall. If
Idaho Power receives a resale price that exceeds the purchase price, Idaho Power will credit
FMC for the original purchase and an amount equal to 75% of the excess amount. FMC will
attempt to keep the number of load changes after the preschedule deadline to a minimum and
will give Idaho Power as much advance notice as practical.
4.2.6 Reserves. FMC may elect to supply its own Reserves required for the
load served by the Second Block of Energy or it may purchase Reserves from Idaho Power or
other entities. In real time, if the Reserves actually supplied are not adequate for the FMC
load and if Idaho Power has to supply Reserves for any 10-minute period in order to meet the
requirements of the pools and councils described in paragraph 2.13, then Idaho Power will
charge FMC for the Reserves at the rate specified in paragraph 5.2.8.
4.3 Transmission. Idaho Power will make transmission available from Idaho
Power's interconnections with other companies to the Point of Delivery for delivery of the
Second Block of Energy to FMC on a nonfirm basis. If transmission is available, Idaho Power
will commit to provide transmission to FMC on an annual, quarterly, monthly, weekly, daily,
or hourly basis. FMC must reserve transmission no later than 9:30 AM (MST or MDT) on the
preceding scheduling day or days. FMC understands that among competing nonfirm
transmission requests, reservations with longer duration can displace shorter duration
reservations and in case of transmission emergencies, longer duration reservations are curtailed
after all shorter duration reservations have been curtailed. At the request of FMC, Idaho
Power or the FMC Trader will make the transmission reservation.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 7
4.4 Demand Limitation, If Metered Demand at the FMC Facility exceeds 250,000
kW, Idaho Power may curtail service to the FMC Facility to the 250,000 kW level. Idaho
Power reserves the right to install, upon reasonable notice to FMC, at FMC's expense, any
device reasonably necessary to protect Idaho Power's system from damage which may be
caused by Metered Demand at the FMC Facility exceeding 250,000 kW. FMC will be
responsible for any damages to Idaho Power's system or damages to third parties resulting
from Metered Demand at the FMC Facility exceeding 250,000 kW. FMC agrees to use -its
best efforts to monitor its electric loads and to advise Idaho Power as soon as possible of the
potential for Metered Demand at the FMC Facility to exceed 250,000 kW. Metered Demand
in excess of 250,000 kW will be subject to the Excess Demand charge specified in
paragraph 5.2.7.
4.5 Reductions in Contract Demand. If FMC physically removes or dismantles any
of its electric furnaces at the FMC Facility, and as a result FMC's ability to utilize 250,000
kW of Contract Demand at the FMC Facility is permanently reduced, the Contract Demand in
paragraph 4.2.1 will be reduced. The reduction in Contract Demand will be the amount of
electric demand attributable to the furnace removed but not to exceed the following amount:
(i)Furnace No. 1 60,000 kW
(ii)Furnace No. 2 85,000 kW
(iii)Furnace No. 3 85,000 kW
(iv)Furnace No. 4 60,000 kW
FMC will certify to Idaho Power in writing (1) the date for commencement of the
physical removal of an electric furnace, (2) the amount of the requested Contract Demand
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 8
reduction, and (3) that FMC does not intend to replace the furnace. Upon verification by
Idaho Power that physical removal has commenced, paragraph 4.2.1 herein will be amended to
reflect the reduced Contract Demand. The reduction in Contract Demand will be considered to
be a reduction of the Second Block demand, and the charges for Second Block demand set
forth in paragraph 5.2.4 will be reduced by the amount of the demand reduction.
4.6 Point of Delivery. Electric power and energy provided under this Agreement
shall be delivered to the FMC Facility at the 13,500 volt side of Idaho Power's Don
Substation.
4.7 Specifications of Electric Power. Energy furnished under this Agreement will
be three-phase, 60 HZ alternating current at nominal phase-to-phase potential of approximately
13,500 volts. Consistent with Prudent Electrical Practices, Idaho Power will use its best efforts
to maintain and operate its system to minimize voltage level fluctuations.
4.8 Scheduling. The amounts of energy to supply the hourly loads at the FMC
Facility shall be established by advance scheduling between Idaho Power and FMC in the
manner hereinafter set forth. When used in connection with scheduling and accounting for
energy deliveries and purchase, the word "day" shall mean a 24-hour period starting at 12:00
midnight. FMC, not later than 9:30 AM (MST or MDT) on the preceding scheduling day or
days, will submit a schedule of hourly energy deliveries for the subsequent day or days. The
schedule will differentiate between the First Block of Energy and the Second Block of Energy.
FMC understands and agrees that from time to time industry scheduling practices Idaho Power
must adhere to may change, which will affect the deadline for schedules and schedule changes,
and the duration of preschedules.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 9
4.9 Second Block Purchase and Sale Procedures, Idaho Power's purchases and
sales of the Second Block of Energy for FMC 's account will be made in accordance with
operating procedures that FMC and Idaho Power will establish for the term of this Agreement.
To facilitate such purchases and sales, Idaho Power will locate a trader at the FMC Facility
("FMC Trader"), and FMC will designate a representative or representatives of FMC with
authority to approve and confirm transactions with Idaho Power on behalf of FMC. The FMC
Trader will be an employee of Idaho Power. Idaho Power's designation of an. employee as
FMC's trader shall be subject to FMC's concurrence and approval which cannot be
unreasonably withheld. FMC will provide (at no cost to Idaho Power) suitable office
accommodations for the trader in the FMC Facility. Idaho Power will, at its cost, provide the
FMC Trader with appropriate electronic communication and terminal facilities.
4.10 Transmission Losses. The amount of the Second Block of Energy delivered in
any hour at the Point of Delivery will be equal to the amount of Second Block Energy acquired
for that hour minus the energy losses both in the Idaho Power transmission system and other
transmission systems, if applicable. Energy losses in the Idaho Power transmission system
shall be computed as 5.3 percent of the energy delivered at the Point of Delivery. Prices
quoted for Second Block of Energy deliveries from Idaho Power's own resources shall not be
subject to an additional transmission loss adder.
4.11 Energy Balancing, Idaho Power will provide energy balancing for FMC.
Energy balancing will be undertaken hourly to accommodate the unintentional difference
("Imbalance") between FMC's metered load and FMC's First and Second Block of Energy
commitment for that hour as adjusted for transmission losses. Imbalances will be either
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 10
positive or negative. A positive Imbalance occurs when, in any hour, more energy is
committed to Idaho Power for FMC's account than is used by FMC. A negative Imbalance
occurs when, in any hour, more energy is used by FMC than is committed to Idaho Power for
FMC's account.
4.12 Quantification of Imbalance. Idaho Power shall utilize a deviation band of plus or
minus 5,000 kW applied hourly in determining any Imbalance. Idaho Power will maintain an
accounting for hourly positive and negative Imbalances. At the end of each billing - nlonth,idaho
Power will notify FMC of the accumulated positive and negative Imbalances and charges for such
Imbalance. The charges for furnishing energy balancing are set out in paragraph 5.3.
4.13 Procedure to Curtail Unscheduled Increase in FMC Load. The parties
understand and agree that Idaho Power will maintain adequate generating capacity to serve the
First Block of Energy and serve 5,000 kW of Imbalance. In addition Idaho Power will, at
FMC's request, either purchase or maintain Reserves for the scheduled amount of the Second
Block of Energy. Idaho Power will use its best efforts to serve any FMC load which exceeds
the sum of the First Block of Energy and the scheduled Second Block of Energy. However, if
Idaho Power determines that serving FMC load greater than the scheduled amount will
adversely impact system reliability, then Idaho Power will request FMC to immediately reduce
load to the prescheduled amount.
:) W. 311 J
5.1 Rates and Charges. The amount to be paid monthly by FMC to Idaho Power for
electric demand and energy made available and/or supplied to the FMC Facility will be the
sum of the following:
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 11
5.2.1 First Block Demand. The purchase price for the Contract Demand for
the First Block will be $3.70 per kW-month for 120,000 kW.
5.2.2 First Block of Energy. The base energy rate for the First Block of
Energy is 1.665 cents for each kWh made available by Idaho Power ("Base Energy Rate ") as
adjusted pursuant to section 6 of this Agreement.
5.2.3 First Block Load Shedding Credit. In the event Idaho Powertemporarily
interrupts or "load sheds" FMC's First Block of Energy as permitted by section 8, Idaho Power
will credit FMC for that month the hourly amounts of energy FMC was prevented from taking
as a result of the interruption. The credit will be computed by multiplying the unsupplied
energy for the First Block expressed in kWh times the then-applicable Base Energy Rate as
adjusted pursuant to section 6 of this Agreement.
5.2.4 Second Block Demand. The purchase price for the Contract Demand for
the Second Block will be $1.39 per kW-month for 130,000 kW.
5.2.5 Second Block of Energy. FMC will pay all of Idaho Power's costs
directly related to supplying the Second Block of Energy. In addition to the agreed upon
commodity price, such costs will include Related Services and any transmission congestion
charges. FMC will also pay to Idaho Power 0.142 cents per kWh for the amount of
transmission either reserved or used to deliver the Second Block of Energy across Idaho
Power's system, whichever is higher. If Idaho Power curtails nonfirm deliveries of the Second
Block of Energy, FMC will be credited for those nonfirm transmission reservation charges
which were paid for but curtailed.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 12
5.2.6 Second Block Load Shedding. In the event Idaho Power temporarily
interrupts or "load sheds" any of FMC's Second Block of Energy as permitted in section 8,
Idaho Power will credit FMC for any Second Block of Energy charges for the energy and
Related Services FMC was prevented from taking at that time as a result of the interruption.
5.2.7 Excess Demand. $0.102 per each kW over 250,000 kW in any Demand
Interval during the month.
5.2.8 Operating Reserves Charge. $0.22 per kW per day for any Reserves for
load supplied by the Second Block of Energy that was not pre-committed and pre-supplied by
Idaho Power.
5.3 Imbalance Charges. The price for Idaho Power providing energy balancing is
as follows:
5.3.1 Negative Imbalance. FMC will pay Idaho Power for hourly negative
Imbalances. Each kWh of negative Imbalance which is:
(a)Outside the deviation band will be priced at an amount equal to 110% of
the Energy Index Price for that hour.
(b)Within the deviation band will be priced at the Energy Index Price for
that hour.
Negative Imbalances intentionally incurred by FMC will be charged at the rate of 10
cents per kWh or 110% of Idaho Power's incremental system cost whichever is higher.
5.3.2 Positive Imbalance, Idaho Power will credit FMC for positive
Imbalances. Each kWh of positive Imbalance which is:
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 13
(a) Outside the deviation band during time periods when Idaho Power is not
in a spill condition, will be credited at an amount valued at 90% of the
Energy Index Price.
(b)Outside the deviation band during periods when Idaho Power has notified
FMC that it is in a spill condition, will not be credited.
(c)Within the deviation band will be credited at the Energy Index Price for
that hour. --a
No credit will be given for a positive Imbalance intentionally incurred by FMC.
5.4 Power Factor Charge. If for any month the actual power factor of FMC's total
power supply is less than 0.95, the total demand charges hereunder (computed as specified in
paragraphs 5.2.1, 5.2.4 and 5.2.7) shall be multiplied by the ratio of 0.95 to such actual
power factor, and the excess of the product so obtained over the total demand charges shall
constitute the power factor charge for such month. Power factor shall be determined for that
Demand Interval in the month in which the maximum demand for that month was established.
6.1 It is the intention of the parties that the rates for service specified in this
Agreement shall not be subject to change by the Federal Energy Regulatory Commission or by
the Idaho Public Utilities Commission, or by any other regulatory body having jurisdiction,
except for the following:
6. 1.1 Changes in rates and charges to reflect the changes in the recovery of
demand-side management programs, cogeneration and small power production purchases, and
deferred taxes.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 14
6.1.2 Annual changes in the First Block Base Energy Rate, either upward or
downward, in the same amount as Idaho Power's base rate is adjusted by the Commission in
Idaho Power's annual Power Cost Adjustment ("PCA") process. If in the future the PCA
process is abolished, the purchase price for the First Block of Energy will be the Base Energy
Rate specified in paragraph 5.2.2.
6.1.3 Changes in the First Block Energy rates and charges as a result of Idaho
Power's participation in the earnings sharing agreement as provided for in Case NO IPC:E95
11, Order No. 26216.
6.2 If, as a result of either federal or state legislation or regulatory initiatives, it is
determined that any regulatory costs described in paragraph 6.1.1 should be eliminated either
in whole or in part or recovered from system users by means other than demand and energy
charges, the price established in this Agreement shall be adjusted by removing the existing
regulatory cost component in the rates and charges and substituting a monthly regulatory
charge, if any.
'dJ1IS) i) 1P!1 a *3 I 3fl
7.1 Billing Data: Invoices for payment for electric power and energy made
available and/or supplied shall be prepared and submitted to FMC monthly. All invoices or
bills shall contain such data as may be reasonably required to substantiate the billing. For
purposes of settlements hereunder there shall be determined for each month the following basic
data:
7.1.1 The Contract Demand for the First and Second Block.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 15
7.1.2 Hourly amounts of the First Block of Energy provided under this
Agreement, or credited under mutual agreement in accordance with paragraph 4.2.2.
7.1.3 Hourly amounts of the Second Block of Energy and Related Services
committed to FMC's account, or credited at FMC's direction.
7.1.4 Hourly kWhs supplied to FMC under this Agreement as determined from
suitable metering equipment.
7.1.5 Power factor of FMC's load during each 15-minute DernandTnterval, as
determined from suitable metering equipment.
7.1.6 Accumulated hourly Imbalances, if any.
7.1.7 Excess Demand, if any.
7.1.8 Load shedding credits, if any.
7.1.9 Hourly amounts of Idaho Power system transmission reserved for 's
account.
7.1.10 Reserves supplied, if any.
7.2 Billing Procedure. Invoices will be transmitted to FMC by facsimile or by
electronic mail as mutually agreed by the parties. For purposes of this Agreement, a
confirmed transmittal of the monthly invoice by facsimile or electronic mail will be deemed to
be receipt of an invoice by FMC. FMC will designate one (1) primary and one (1) alternate
facsimile address and one (1) primary and one (1) alternate electronic mail address for delivery
of invoices. A confirmation copy of each invoice will be mailed to FMC at the address
specified by FMC.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 16
7.3 Payment Procedure. All amounts owed by FMC to Idaho Power hereunder
shall be due and payable within fifteen (15) days following FMC's receipt of an invoice.
Payment will be made by electronic transfer of funds. Idaho Power will provide FMC with
current ABA routing numbers and other necessary instructions to facilitate the electronic
transfer of funds.
7.4 Interest/Late Payment. If any invoice is not paid by the due date, interest on the
unpaid amount, both principal and interest, shall accrue daily at the rate of twelve percent
(12%) per annum or one percent (1%) per month.
7.5 Audits. FMC shall have the right to audit Idaho Power's books and records to
verify the accuracy of the settlement data described in paragraph 7.1 for the Second Block of
Energy and to confirm transmission constraints described in paragraph 2.4. FMC shall
provide Idaho Power with at least two weeks notice of its intent to conduct an audit. Idaho
Power shall cooperate in good faith with FMC's auditors, but it may impose reasonable
conditions as to the time and place of the audit in order to prevent undue interference with
Idaho Power's normal operations. Idaho Power may require FMC and/or its auditors to
execute a reasonable confidentiality agreement to protect trade secrets or other competitively
valuable information.
t(•1I:iY JJ :i *m) iie
Idaho Power may temporarily interrupt or "load shed" all but 17,000 kW of FMC
furnace load during emergency conditions. Such emergency conditions include, but are not
limited to, unacceptable conditions (loading, voltage, frequency, etc.) on Idaho Power's
transmission system resulting from transmission and generation system outages. Most
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 17
interruptions shall be done by an automatic scheme which will trip the load for known
contingencies. An Idaho Power transmission dispatcher can also interrupt the load by a
manual action following a contingency to maintain system integrity. Following the
interruption, Idaho Power's dispatcher will provide telephone notification of the cause of
interruption to the FMC Trader who will notify FMC's designated representative at the FMC
facility and a projection as to when service will be restored. If the dispatcher is unable to
contact the FMC Trader, the dispatcher will notify FMC's designated representative directly.
Idaho Power will use its best efforts to restore any curtailed loads to FMC as soon as possible,
and it shall not interrupt or curtail service to FMC if it could, consistent with its contractual
obligations to third parties, prevent or mitigate such curtailment or interruption, in whole or in
part, by terminating off-system sales of power or transmission services to parties other than
firm load customers.
During the term of this Agreement, and for a reasonable period following termination,
Idaho Power shall have access to the FMC Facility premises at all reasonable times with
proper notice to FMC for the purposes of reading meters, making installations, repairing and
removing Interconnection Facilities and Idaho Power equipment and for other proper purposes
hereunder.
This Agreement shall not be assigned by either party without the prior written consent
of the other party, which shall not be unreasonably withheld.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 18
11.1 Indemnification. Each party agrees to protect, defend, indemnify and hold
harmless the other party, its officers, directors, and employees against and from any and all
liability, suits, loss, damage, claims, actions, costs, and expenses of any nature, including
court costs and attorney's fees, even if such suits or claims are completely groundless, as a
result of injury to or death of any person or destruction, loss or damage to property arising in
any way in connection with, or related to, this Agreement, but only to the extent sUh injury to
or death of any person or destruction, loss or damage to property is not due to the negligence
or other breach of legal duty of such other party; provided, however, that each party shall be
solely responsible for claims of and payment to its employees for injuries occurring in
connection with their employment or arising out of any workman's compensation law. In no
event will either party be liable to the other for any indirect, special, incidental or
consequential damages, including lost profits, either in contract or in tort, whether or not the
possibility of such damages has been disclosed to the other party in advance, or could have
been reasonably foreseen by the other party.
11.2 Force Majeure. As used in this Agreement, "Force Majeure" means the
inability of either Party to perform its obligations as set forth herein for a period of thirty six
(36) hours or longer as a result of causes beyond the reasonable control of the Party claiming
Force Majeure. Force Majeure events may include, but are not limited to, fire, flood,
drought, winds, acts of the elements, insurrections or riots, breakdowns of or damage or
repairs to Idaho Power's facilities or those of third parties, acts of god or public enemy,
strikes or other labor disputes, electrical disturbances originating on or transmitted through
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 19
electrical systems with which Idaho Power's system is interconnected, or any binding order,
rule or regulation of any court, administrative agency, or governmental authority.
11.3 Force Majeure Procedures. If either party is rendered wholly or partially
unable to perform its obligations under this Agreement due to a Force Majeure event, both
parties' obligations to perform shall be suspended to the extent they are affected by the claimed
Force Majeure event, and the claiming party shall not be liable for nonperformance to the
other party, provided that: -
11.3.1 The claiming party, within forty eight (48) hours after the
commencement of the occurrence of the Force Majeure event, gives the other party written
notice describing the particulars of the Force Majeure event.
11.3.2 The suspension of performance must be of no greater scope and of no
longer duration than is required by the Force Majeure event. For example, if FMC is rendered
partially unable to take energy due to an event of Force Majeure but has the ability to accept
up to 120,000 kWh of energy, FMC's obligation under paragraph 4.2.2 to take 120,000 kWh
of energy will not be suspended by the occurrence of the Force Majeure event.
11.3.3 No obligations of either party which arose prior to the occurrence of the
Force Majeure event that gives rise to the suspension of performance will be excused as a
result of said occurrence.
11.3.4 In case of a strike, lockout or other labor disputes, the suspension of the
obligation to perform shall not exceed thirty (30) days in any consecutive twelve (12) month
period.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 20
11.4 Obligations Not Suspended. Notwithstanding the foregoing, the party claiming
a right to suspend performance due to the occurrence of a Force Majeure event shall be solely
responsible for the cost of any Second Block purchases of Energy or Related Services which
cannot be utilized by reason of the Force Majeure event, and which cannot be mitigated by
termination of the purchase or resale of the energy or Related Services.
11.5 Cancellation of Agreement Due to Force Majeure. If a suspension of
performance resulting from a claimed Force Majeure occurrence extends for a period longer
than ninety (90) days, the party which has not claimed Force Majeure shall have the right to
cancel this Agreement by giving written notice of cancellation to the party claiming the right to
suspend performance. The effective date cannot be earlier than fifteen (15) days after delivery
of the notice of cancellation.
This Agreement may not be modified except by writing, duly signed by both parties
hereto. If the terms of this Agreement are not strictly adhered to or enforced, such terms will
not thereby be deemed waived or modified, but shall at all subsequent times remain in full
force and effect.
Psi CI)P1$J 4J i.HcIIJI
Except as provided in section 6, this Agreement and the respective rights and
obligations of the parties hereunder shall be subject to (1) Idaho Power's general rules and
regulations as now or hereafter in effect and on ifie with the Commission, and (2) the
jurisdiction and regulatory authority of the Commission and the laws of the state of Idaho.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 21
F1 DEN V
This Agreement shall not become effective until the Commission has issued its final
order approving the Agreement unless such order is stayed. If the Commission's final order
approving the Agreement contains material terms or conditions that either party finds
unacceptable, within fourteen (14) days of the issuance of the Commission's order the
adversely affected party will have the right to cancel this Agreement by giving fourteen (14)
days written notice of cancellation to the other party. Upon cancellation this Agreffient shall
be void ab initio.
"AIM W
If in the future the laws of the United States or the state of Idaho are modified to
materially reduce or eliminate the Commission's authority to regulate all or any portion of the
rates, terms and conditions contained in this Agreement, the parties agree that only those
portions of this Agreement which by their terms are subject to the continuing jurisdiction of the
Commission shall continue to be subject to section 13 above. It is the parties' express
intention that this Agreement will survive any change in Idaho or Federal law and the legality
and enforceability of the rates, terms and conditions of this Agreement shall in no way be
affected or impaired thereby.
SECTION 16-- NOTICES
Except for notices provided under paragraphs 4.2.3, 4.2.4, and 4.2.5 and section 8 all
notices required or permitted to be given under this Agreement shall be sent by the notifying
party by certified mail to the appropriate address shown below:
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 22
Idaho Power Company
1221 West Idaho Street
P. 0. Box 70
Boise, Idaho 83707
FMC Corporation
Highway 30, West of Pocatello
P.O. Box 4111
Pocatello, ID 83202
The purchase prices contained in this Agreement do not include the cost otiny sales,
use or other similar taxes, fees or charges that may be imposed on Idaho Power in the future.
If after the date of this Agreement, any new or increased tax or taxes (other than income taxes
and taxes based on income) payable by Idaho Power are imposed upon revenues received from
FMC, or upon power and energy sold to FMC under this Agreement, FMC will be responsible
for payment of all such taxes, fees, or charges and shall reimburse Idaho Power for all such
taxes, fees or charges paid by Idaho Power.
This Agreement shall be construed and interpreted in accordance with the laws of the
State of Idaho, excluding any choice of law or rules which direct the application of laws of
another jurisdiction.
The section headings in this Agreement are for convenience only and shall not be
considered part of or used in the interpretation of this Agreement.
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 23
This Agreement may be executed in counterparts. Each executed and delivered
counterpart Agreement shall be an original, but all such counterparts shall together constitute
one and the same original instrument.
IDAHO POWER COMPANY
FMC CORPORATION
.& -A/.-
Its Plant Manager
I
ELECTRIC SERVICE AGREEMENT BETWEEN IDAHO POWER AND FMC, Page 24
SERVICE SCHEDULE A-i
AGREEMENT FOR SUPPLY OF INTERRUPTIBLE POWER AND ENERGY
FMC CORPORATION
IDAHO POWER COMPANY
This agreement, Service Schedule A-i, dated e2si120
1973, by and between FMC CORPORATION and IDAHO POWER COMPANY, is
agreed to under and as a part of Agreement for Supply of Interruptible Power and
Energy, dated 20 , 1973, between the parties, hereinafter
referred to as "Agreement". .
Section 1 - Term
This Service Schedule shall become effective on the date, of execution
hereof, and shall continue in effect through December 31, 1975. The date of
initial service shall be January 1, 1974.
Section 2 - Interruptible Primary Power and Secondary Power supplied
by Idaho Power Company
Beginning January 1, 1974, the Company shall supply Interruptible
Primary Power and Secondary Power up to 62,500 KW of Contract Amount of
power when scheduled by Customer in accordance with paragraph 2. 3 of the
Agreement.
Section 3 - Charges to be Paid
The amount to be paid monthly by Customer to Company for power and
energy supplied hereunder shall be the sum of the following charges:
(a) Demand Charges
(1) Interruptible Primary Contract Demand
$1.97 per month per KW for the first 19,375 KW
$1.78 per month per KW for the next 11,875 KW
(ii)Secondary Billing Demand
$.037 per day per KWfor the first 19,375 NW
$.034 per day per KWfor the next 11,875 KW
(iii)Excess Demand
$. 052 per each Kilowatt of Excess Demand
(b) Energy Charges
2.722 mills per KWH
(c)Power Factor Charge - If for any month the actual power
factor of Customer's total power supply be less than 0. 85,
the total demand charges hereunder (computed as specified
in Section 3(a) above) shall be multiplied by the ratio of Q
• to such actual power factor, and the excess of the product so
obtained over the total demand charges shall constitute the
power factor charge for such month. Power factor shalt be
determined for that demand interval in the month in which
the maximum demand for that month was established.
(d)Minimum Monthly Charge - The minimum monthly charge
shall be an amount sufficient to make the total charge for
service under this Service Schedule for the 12 months period
ending with the current month equal to 12 times the product
of the maximum Interruptible Primary Contract Demand and
Secondary Billing Demand established during the entim
elapsed term of this agreement times the Demand Charges
under Section 3(a) above in effect at the time.
Section 4 - Applicability of Agreement
Except for matters herein otherwise specifically provided for, this
Service Schedule is subject to the terms and provisions of the Agreement.
Section 5 - Jurisdiction of Regulatory Authorities
This Service Schedule A-4, is subject to the regulatory authority
of the Idaho Public Utilities Commission.
Executed in duplicate as of ___, 1973.
(CORPORATE SEAL)
ATTEST:
S-eorotnry—
Acsit.an. ; r.y
FMC. ORPO ON
By—
Vice President
IDAHO POWER COMPANY
By
President
(CORPORATE SEAL)
ATTEST:
Secretary
SERVICE SCIIEDULEA-2
AGREEMENT FOR SUPPLY OF INTERRUPTIBLE POWER AND ENERGY
FMC CORPORATION
- IDAHO POWER COMPANY
This agreement, Service Schedule A-2, dated ________________
1973, by and between FMC CORPORATION and IDM P IO OWER COMPANY, is
agreed to under and as a art of Agreement for Supply of Interruptible Power and
Energy, dated 20 , 1973, between the parties, hereinafter
referred to as "Agreement".
Section 1 - Term
This Service Schedule shall become effective on the date of execution
hereof, and shall continue in effect through December 31, 1977.Thedate of
initial service shall be January 1, 1974.
Section 2 - Interruptible Primary Power and Secondary Power supplied
by Idaho Power Company
Beginning January 1, 1974, the Company shall supply Interruptible
Primary Power and Secondary Power up to 62,500 KW of Contract Amount of
power when scheduled by Customer in accordance with paragraph 2.. of the
Agreement.
*Section 3 - Charges to be Paid
The amount to be paid monthly by Customer to Company for power and
energy supplied hereunder shall be the sum of the following charges:
(a) Demand Charges
(1) Interruptible Primary Contract Demand
$1.97 per month per KW for the first 19,375 KW
$1.78 per month per KW for the next 11,875KW`
(ii)Secondary Billing Demand
$.037 per day per KW for the first 19,375 KW
$.034 per day per KWfor the next 11,875KW
(iii)Excess Demand
$. 052 per each Kilowatt of Excess Demand
(b) Energy Charges
2. 722 mills per KWH
-2-
(c)Power Factor Charge - If for any month the actual power
factor- of Customer's total power supply be less than O.,
the total demand charges hereunder (computed as. specified
in Section 3(a) above) shall be multiplied by the ratio of 0. 85
to such actual power factor, and the excess of the product so
obtained over the total demand charges shall constitute the
power factor charge for such month. Power factor shall be
determined for that demand interval in the month in which
the maximum demand for that month was established.
(d)Minimum Monthly Charge - The minimum monthly charge
shall be an amount sufficient to make the total charge for
service under this Service Schedule for the 12 months period
ending with the current month equal to 12 times the product
of the maximum Interruptible Primary Contract Demand and
Secondary Billing Demand established during the entire
elapsed term of this agreement times the Demand Carges
under Section 3(a) above in effect at the time.
Se ction 4 - Applicability of Agreement
Except for matters herein otherwise specifically provided for, this
Service Schedule is subject to the terms and provisions of the Agreement.
Section 5 - Jurisdiction of Regulatory Authorities
This Service Schedule A-i1 is subject to the regulatory authority
of the Idaho Public Utilities Commission.
'ZoExecuted in duplicate as of , 1973.
(CORPORATE SEAL)
ATTEST,i'.
Assiit?r
FMC CORPOR TION
By
Vice President
IDAHO POWER COMPANY
By___________________________
President
(CORPORATE SEAL)
ATTEST:
A-_
Secretary
SERVICE SCHEDULE A-3
AGREEMENT FOR SUPPLY OF INTERRUPTIBLE POWER AND ENERGY
FMC CORPORATION
IDAHO POWER COMPANY
This agreement, Service Schedule A-3, dated 20
1973, by and between FMC CORPORATION and IDAH P W O ER COMPANY, i's
agreed to under and as a part of Agreement for Supply of Interruptible Power and
Energy, dated 20 - , 1973, between the parties, hereinafter
referred to as "Ag cement".
Section 1 - Term
This Service Schedule shall become effective on the date of execution
hereof, and shall continue in effect through December 31, 1979 .—The date of
initial service shall be January 1, 1974.
Section 2 - Interruptible Primary Power and Secondary Power supplied
by Idaho Power Company
Beginning January 1, 1974, the Company shall supply Interruptible
Primary Power and. Secondary Power up to 62,500 KW of Contract Amount of
power when scheduled by Customer in accordance with paragraph 2. 3 of the
Agreement.
Section 3 - Charges to be Paid
The amount to be paid monthly by Customer to Company for power and
energy supplied hereunder shall be the sum of the following charges:
(a) Demand Charges
(i)Interruptible Primary Contract Demand
$1.97 per month per KW for the first 19,375 KW
$1. 78 per month per .KW for the next 11, 875 KW
(ii)Secondary Billing Demand
$.037 per day per KW for the first 19,375KW
$.034 per day per KW for the next 11,875KW
(iii)Excess Demand
$. 052 per each Kilowatt of Excess Demand
(b) Energy Charges
2. 722 mills per KWH
-p
-2-
(c)Power Factor Charge - If for any month the actual power
factor of Customer's total power supply be less than 0. 85,
the total demand charges hereunder (computed as specified
in Section 3(a) above) shall be multiplied by the ratio of 0. 85
to such actual power factor, and the excess of the product so
obtained over the total demand charges shall constitute the
power factor charge for such month. Power factor shall be
determined for that demand interval in the month in which
the maximum demand for that month was established.
(d)Minimum Monthly Charge - The minimum monthly charge
shall be an amount sufficient to make the total charge for
service under this Service Schedule for the 12 months period
ending with the current month equal to 12 times the product
of the maximum Interruptible' Primary Contract Demand and
Secondary Billing Demand established during the entire -
elapsed term of this agreement times the Demand Charges
under Section 3(a) above in effect at the time.
Section 4 - Applicability of Agreement
- Except for matters herein otherwise specifically provided for, this
Service Schedule is subject to the terms and provisions of the Agreement.
Section 5 - Jurisdiction of Regulatory Authorities
This Service Schedule A-2, is subject to the regulatory authority
Of the Idaho Public Utilities Cbmmissioci.
Executed in duplicate as of 4LAZ-, 1973.
FMC CORPORA,TI N
(CORPORATE SEAL) B aj
ATTEST:,'1
/ Vice President
eretryf/
IDAHO POWER COMPANY
By
President
(CORPORATE SEAL)
ATTEST:
Secretary
SERVICE SCHEDULE A-4
ACI I:I•;MENT FOR SUPPLY OF INTERRUPTIBLE POWER AND ENERGY
FMC CORPORATION
IDAHO POWER COMPANY
This agreement, Service Schedule A-4, dated 20
1973, by and between FMC CORPORATION and IDAHO P WER COMPANY, is
agreed to under and as a p rt of Agreement for Supply of Interruptible Power and
Energy, dated ' 20 , 1973. between the parties, hereinafter
referred to as "Agreement".
-. Section 1 - Term
This Service Schedule shall become effective on the date-f execution
hereof, and shall continue in effect through December 31, 1981. The date of
initial service shall be January 1, 1974.
Section 2 - Interruptible Primary Power and Secondary Power supplied
by Idaho Power Company
Beginning January 1, 1974, the Company shall supply Interruptible
Primary Power and Secondary Power up to 62, 500 KW of Contract Amount of
power when scheduled by Customer in accordance with paragraph 2.3 of the
Agreement.
Section 3 - Charges to be Paid
The amount to be paid monthly by Customer to Company for power and
energy supplied hereunder shall be the sum of the following charges:
(a) Demand Charges
(1) Interruptible Primary Contract Demand
$1.97 per month per KW for the first 19,375 KW
$ 1. 78 per month per KW for the next 11, 875 KW
(ii)Secondary Billing Demand
$.037 per day per KW for the first 19,375 KW
$.034 per day per KWfor the next 11,875KW
(iii)Excess Demand
$. 052 per each Kilowatt of Excess Demand
(b) Energy Charges
2.722 mills per KWH
-2-
(c)Power Factor Char - If for any month the actual power
factor of Customer's total power supply be less than 0. 85,
the total demand charges hereunder (computed as specified
in Section 3(a) above) shall be multiplied by the ratio of 0. 85
to such actual power, factor, and the excess of the product so
obtained over the total demand charges shall constitute the
power factor charge for such month. Power factor shall be
determined for that demand interval in the month in which
the maximum demand for that month was established.
(d)Minimum Monthly Charge - The minimum monthly charge
shall be an amount sufficient to make the total charge for
service under this Service Schedule for the 12 months period
ending with the current month equal to 12 times the product
of the maximum Interruptible Primary Contract Demand and
Secondary Billing Demand established during the entire
elapsed term of this agreement times the Demand iargs
under Section 3(a) above in effect at the time.
Section 4 - ADlicability of Agreement
Except for matters herein otherwise specifically provided for, this
Service Schedule is subject to the terms and provisions of the Agreement.
Section 5 - Jurisdiction of Regulatory Authorities
This Service Schedule A-3, is subject to the regulatory authority
of the Idaho Public Utilities Commission.
Executed in duplicate as of 1973.
(CORPORATE SEAL)
ATTE5T:
(CORPORATE SEAL)
FMC .cORPORRON
BjJL LLcA
/ Vice President
IDAHO POWER COMPANY
By
President
• ATTEST:
".__J Secretary
AMENDMENT TO AGREEMENT DATED APRIL 20, 1973 FOR SUPPLY
OF INTERRUPTIBLE POWER AND ENERGY BETWEEN IDAHO
POWER COMPANY AND FMC CORPORATION
FMC Corporation and Idaho Power Company, parties to a certain
"Agreement for Supply of Interruptible Power and Energy" made and
entered into on the 20th day of April, 1973, as amended from.ime-to
time (hereinafter sometimes referred to as the 11 1973 Agreement"),
in consideration of the promises and mutual covenants contained
herein, and for other good and valuable consideration, do now
agree, effective January 1, 1982, and subject to approval by the
Idaho Public Utilities Commission, to amend that Agreement as
follows:
1. Paragraph 3.3 of the 1973 Agreement 9hall be amended to
read as follows:
11 3.3 Service Schedules - Not less than twelve (12)
months prior to the expiration of the term of each
Service Schedule, Customer shall notify the Company in
writing whether or not it desires to renew the expiring
Service Schedule. Such written notification requesting
renewal shall have the effect of renewing the expiring
Service Schedule for a term Of eight (8) years. In the
event that termination of any Service Schedule is
elected, the Contract Amount applicable to such Service
Schedule shall be terminated on the expiration date for
1
that Service Schedule. The Contract Amount for any
Service Schedule, upon renewal, will be the same as the
Contract Amount for each, of the remaining Service
Schedules in effect at the time of renewal. In the event
it is necessary to segregate the total demand and energy
deliveries between the Service Schedules for any purpose,
the division shall be accomplished by dividing--the
Contract Amount, Interruptible Primary Contract Demand,
Secondary Billing Demand and kilowatt-hours associated
therewith by the number of Service Schedules in effect at
the time."
2.The phrase 11 30 days" in the third line of paragraph 6.4
of the 1973 Agreement at page 18 shall be amended to read 11 15 days."
3.A new paragraph 11.2 shall be added to the 1973 Agreement
which reads as follows:
11 11.2 The rates set forth in this agreement are
subject to the continuing jurisdiction of the Idaho
Public Utilities Commission. The rates under this
agreement are subject to change and revision by order of
the Commission upon a finding, supported by substantial
competent evidence, that such rate change or revision is
just, fair, reasonable, sufficient, nonpreferential 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
.1
judicial review of any revisions or changes in rates,
will be the same standards that are applicable to Idaho
intrastate tariff rates.It
Al]. other terms and conditions of the 1973 Agreement shall
remain intact and in full force and effect, it being the intention
Of the parties hereto that, except as is set forth in paragraph 11.2
as to rates only, FMC shall continue to receive service asa special
contract customer of Idaho Power Company under the terms and
conditions of the 1973 Agreement as amended.
This amendatory agreement shall become effective on January 1,
1982, upon approval by the Idaho Public Utilities Commission.
IN WITNESS WHEREOF, the parties have caused this amendatory
agreement to be executed this 0 day of 1982.
IDAHO POWER COMPANY
WITNESS
By:
Title
ecutive
Chief
Paul L Jaureau± / I
Vice Presiden , cretaI)nd General FMC CORPORATION
• Counsel
WITNESSED:
• :__________________________
Title: Resident Plant Manager,
Pocatello Plant
Manager, Electrical Energy
IDAHO POWER COMPANY FOURTH REVISED SHEET NO. 28-1
IDAHO PUBLIC UTILITIES COMMISSI
CANCELS
APPROVED EFFECTIVE
I.P.U.C. NO. 26, TARIFF NO. 101 THIRD REVISED SHEET NO. 28-1
MY 16'97 MAY 16'97
SECRETAR
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
SCHEDULE 28
FOR
FMC CORPORATION
AGREEMENT FOR SUPPLY OF
INTERRUPTIBLE POWER AND ENERGY
DATED APRIL 20. 1973
MONTHLY CONTRACT RATE
(Applicable to Service Schedule A-i, A-2, A-3. and A-4)
Demand Charaes
(I) Interruptible Primary Contract Demand
$6.992 per month per kW for the first 19.375 kWU)
$6.321 per month per kW for the first 11.875 kW(2)
(ii)Secondary Billing Demand
$0.00 per day per kW for the first 19.375 kW()
$0.00 per day per kW for the first 11.875 kW()
(iii)Excess Demand
$0.204 per each kW of Excess Demand(5)
Enerav Charges
Primary Energy:
Power Cost Revenue Sharing Effective
Base Rate Adiustmenr Adiustment Rate*
11.432 <1.552> <0.258> 9.622 mills per kWh(')
Secondary Energy:
23.000 mills per kWhV)
* This Power Cost Adjustment (Schedule 55). Revenue Sharing Adjustment (Schedule 56). and
Effective Rate expire on May 15. 1998.
CONTRACT CHANGES IN SERVICE SCHEDULES A-i, A-2, A-3, AND A-4
Section 3(a) (i)
(1)No Change
(2)No Change
Section 3(a) (ii)
(3)No Change
(4)No Change
Section 3(a) (iii)
(5)No Change
Section 3(b)
(6)Change 9.797milts per kWh to 9.622 mills per kWh of primary energy
(7)No Change
IDAHO Issued by IDAHO POWER COMPANY
Issued -April 15, 1997 D.H. Jackson. vice President. Retail Services
Effective -May 16, 1997 1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY FIFTH REVISED SHEET NO. 28-1
CANCELS
I.P.U.C. NO. 26, TARIFF NO. 101 FOURTH REVISED SHEET NO. 28-1
IDAHO POWER COMPANY
ELECTRIC SERVICE AGREEMENT
SCHEDULE 28
FOR
FMC CORPORATION
SPECIAL CONTRACT DATED DECEMBER 30. 1997
MONTHLY CHARGES
FIRST BLOCK MONTHLY CHARGES
Contract Demand Chare
$3.70 per kW for the first 120,000 kW
Enerav Charge
Power Cost Revenue Sharing
Base Rate Adiust ment* Adjustment*
1.665 <0.1552> <0.0258>
Effective
Rate*
1.4840 per kWh
* This Power Cost Adjustment (Schedule 55), Revenue Sharing Adjustment (Schedule 56), and
Effective Rate expire on May 15, 1998.
The First Block of Energy is 120,000 kW per hour for every hour during the Billing Period.
ECOND BLOCK MONTHLY CHARGES
Contract Demand Charge
$1.39 per kW for the next 130,000 kW
Delivery Charge
0.1 42o per kWh delivered
Commodity Charge
The cost of providing energy to FMC, including, but not limited to, energy purchases, off-system
transmission, reserves, replacement of losses and energy balancing.
Oeratina Reserves Charae
$0.22 per kW per day for Reserves for load supplied in Second Block of Energy which was not
pre-committed and pre-supplied by the Company.
Excess Demand Charge
$0.102 per kW for all kW over 250,000 kW in any Demand Interval
IDAHO
Issued by IDAHO POWER COMPANY
Issued - December 31, 1997 Kip W. Runyan, Vice President, Delivery
Effective - January 1, 1998 1221 West Idaho Street, Boise, Idaho