20000612Order No 28399.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF PACIFICORP DBA UTAH POWER & LIGHT COMPANY FOR APPROVAL OF A SPECIAL CONTRACT FOR SERVICE TO NU-WEST INDUSTRIES, INC. )
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CASE NO. PAC-E-00-3

ORDER NO. 28399

On March 17, 2000, PacifiCorp dba Utah Power and Light Company (PacifiCorp; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of a Special Contract, a Master Electric Service Agreement (Agreement) dated June 9, 1998, with Nu-West Industries, Inc. (Nu-West).
Nu West is a producer of phosphate fertilizer in Soda Springs, Idaho. Nu-West’s electric load exceeds 15 MW, which requires a Special Contract in Idaho. Reference Utah Power Tariff Schedule 9; Schedule 400. Rates in the new Agreement are 3.3 ¢/kWh for all kWh if Nu-West uses a minimum amount of energy. If Nu-West uses less than the minimum on an annual basis, it pays 3.4339 ¢/kWh for all kWh.
The submitted Agreement was negotiated in 1998 for a three and one-half year minimum term that ends December 31, 2001. Thereafter, the Agreement is automatically renewed from year to year subject to the same terms and conditions … unless either party submits written termination notice… (Section 2.1) An oversight on the Company’s part resulted in the Agreement not being filed for Commission approval until this time.
On April 25, 2000, the Commission issued a Notice of Application and Modified Procedure in Case No. PAC-E-00-3. The deadline for filing written comments was May 16, 2000. Timely comments were filed by Commission Staff and Solutia Inc.
Based on its analysis, Staff concludes that the proposed contract rates cover the Company’s costs and provide the Company with a reasonable return. Staff recommends that the Agreement be approved as filed, for an effective date of July 1, 1998. Staff recommends that the Company include language in future contracts requiring Commission approval to make the contract rates effective. Staff also recommends that upon approval the Commission require the Company to file a schedule summarizing the contact rates.

Solutia, also a special contract customer, files no substantive comments regarding the Application.
COMMISSION FINDINGS
The Commission has reviewed and considered the filings of record, submitted contract and comments in Case No. PAC-E-00-3. We continue to find it reasonable to process this case pursuant to Modified Procedure, i.e., by written submission rather than by hearing. Reference IDAPA 31.01.01.204.
The Nu-West service contract is dated June 9, 1998, and its initial term expires December 31, 2001. We limit our approval in this case to the rates only. To encourage better special contract management practice by the Company, the Commission finds it reasonable to adopt Staff’s recommendation and require that all special contracts for PacifiCorp’s Idaho service territory include language requiring Commission approval to make the contract rates effective.
We find the Nu-West contract rates to be fair and reasonable and further find it reasonable to approve same for effective date July 1, 1998. The Company is directed to file a schedule with the Commission summarizing the contract rates approved.

CONCLUSIONS OF LAW
The Commission has jurisdiction over PacifiCorp dba Utah Power & Light Company, an electric utility, and its Application in Case No. PAC-E-00-3 pursuant to the authority and power granted under Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.

O R D E R
In consideration of the foregoing and as more particularly described and qualified above, IT IS HEREBY ORDERED and the Commission does hereby approve the rates set forth in the Company’s June 9, 1998, service contract with Nu-West Industries, Inc. for effective date July 1, 1998.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of June 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/O:PAC-E-00-3_sw2

ORDER NO. 28399 1

Office of the Secretary
Service Date
June 13, 2000