27377.docx

(text box: 1)BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT APPLI-CATION OFIDAHO POWER COMPANY AND FMC CORPORATION FOR APPROVAL OF A SPECIAL CONTRACT FOR SERVICE TO FMC CORPORATION AND A REVISED SCHEDULE 28--FMC TARIFF AND FOR APPROVAL OF REVISIONS TO THE POWER COST ADJUSTMENT OF IDAHO POWER COMPANY AS A RESULT OF THE NEW FMC CONTRACT.
)
)
)
)
)
)
)
)
)
)
)
CASE NO.  IPC-E-97-13
AMENDED NOTICE OF APPLICATION
ORDER NO.27377
On December 31, 1997, Idaho Power Company and FMC Corporation filed a Joint Application and a revised Schedule 28 (FMC tariff), to be effective January 1, 1998, requesting that the Commissionapprove a special contract for service to FMC Corporation.  Idaho Power and FMC also sought approval to revise Idaho Power Company’s Power Cost Adjustment.  They alleged these revisions were made necessary by the new FMC contract.
After reviewing the Joint Application, on January 26, 1998, the Commission suspended the proposed effective date of the contract and Schedule 28 for a period of thirty (30) days plus three (3) months and ordered the Application be processed under Modified Procedure.  The Commission issued a Notice of Application, Notice of Modified Procedure and Order of Suspension.  Order No. 27336. Comments are due March 30, 1998.
On February 20, 1998, FMC and Idaho Power modified their Joint Application.  The proposed special contract and proposed revised tariff were not modified by the February 20, 1998 filing.  However, Idaho Power and FMC withdrew the previously proposed changes to the Power Cost Adjustment and proposed other changes in their place.  After reviewing those proposed changes, the Commission finds an Amended Notice of Application should be issued.  The Commission’s Suspension Order and the Notice of Modified Procedure are unchanged.  Comments on the proposed revised Schedule 28 (FMC tariff), the proposed special contract for service to FMC Corporation and the revisions to Idaho Power Company’s Power Cost Adjustment, as modified on February 20, 1998, remain due March 30, 1998.
NOTICE OF AMENDED APPLICATION
YOU ARE HEREBY NOTIFIEDthat on February 20, 1998, Idaho Power and FMC modified their Joint Application.
YOU ARE FURTHER NOTIFIED that while the proposed special contract and proposed revised tariff were not modified by the February 20, 1998, filing, Idaho Power and FMC didmodify proposed changes to Idaho Power Company’s Power Cost Adjustment mechanism by withdrawing the earlier proposal and submitting the following changes to the Power Cost Adjustment mechanism:
1.Treat the change from primary energy to first block energy (51,840 MWh) as load growth.
2.If the change from primary energy to first block energy (51,840 MWh) is treated as load growth (Item 1 proposal), no change to the Idaho retail allocation will be necessary.
3.Although the second block energy revenue is unknown because the price will float with the market, the 16.84 m/kWh rate used for the firm load growth rate will be used for determining a normalized secondary revenue amount.  If FMC’s usage is set at normalized levels, the load growth adjustment for the first block at 16.84 mills per kWh would be offset by the second block energy decrease at 16.84 mills per kWh.
NormalizedNormalizedNormalized
   Energy        Price        Revenue  
Secondary Energy   590,678     23.00 13,585,594
Second Block Energy   538,838       16.84  9,074,032
4.Track the actual second block energy revenues, just as actual secondary revenues are tracked for Power Cost Adjustment true-up purposes.
YOU ARE FURTHER NOTIFIED that the modifications to the Joint Application have been filed with the Commission and are available for public inspection during regular business hours at the Commission offices.
YOU ARE FURTHER NOTIFIED that the previous date set for receiving comments has not been changed and all comments concerning the proposed special contract for service to FMC Corporation, proposed revised Schedule 28 (FMC tariff), and the proposed revisions to the Power Cost Adjustment mechanism, as filed on February 20, 1998, must be received by March 30, 1998, as originally ordered by the Commission in Order No. 27336.
O R D E R
IT IS HEREBY ORDERED all comments concerning the proposed special contract for service to FMC Corporation, proposed revised Schedule 28 (FMC tariff), and the proposed revisions to the Power Cost Adjustment mechanism, as filed on February 20, 1998, must be received by March 30, 1998, as originally ordered by the Commission in Order No. 27336.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this                  day of February 1998.
                                                                                      DENNIS S. HANSEN, PRESIDENT
                                                                                      RALPH NELSON, COMMISSIONER

MARSHA H. SMITH, COMMISSIONER
ATTEST:

Myrna J. Walters
Commission Secretary
O:ipce9713.cc2
COMMENTS AND ANNOTATIONS
Text Box 1:
TEXT BOXES
Office of the Secretary
Service Date
February 27, 1998