200132_jh.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
JEAN JEWELL
DON HOWELL
BILL EASTLAKE
LOU ANN WESTERFIELD
RANDY LOBB
DAVE SCHUNKE
TERRI CARLOCK
MICHAEL FUSS
BEVERLY BARKER
RON LAW
TONYA CLARK
WORKING FILE

FROM: JOHN R. HAMMOND

DATE: MARCH 2, 2001

RE: IN THE MATTER OF THE APPLICATION OF PACIFICORP FOR AUTHORITY TO ACQUIRE REDUCTIONS IN ELECTRICAL DEMAND AND ASSOCIATED CONSUMPTION OF ELECTRICAL ENERGY FROM IRRIGATION CUSTOMERS. CASE NO. PAC-E-01-4.

On February 23, 2001, PacifiCorp dba Utah Power and Light Company (“PacifiCorp”) filed an Application seeking Commission authorization of its Electric Service Schedule No. 72, Irrigation Curtailment Program Rider (the “Program”). PacifiCorp states that through this Program it will pay qualifying irrigation customers a fixed price of 0.085 cents a kWh to reduce their consumption of electrical energy during the 2001 irrigation season. The Company states that this Program will expire on September 15, 2001. Application, Attachment at 2. PacifiCorp states that because of the impending need of irrigators to make decisions and investments for the upcoming irrigation season, good cause exists for approval of this Application on less than 30 days notice. Accordingly, PacifiCorp requests that the Commission consider this matter on an expedited basis and enter an Order approving the Company’s Application by March 6, 2001.
BACKGROUND
On February 12, 2001, the Commission granted PacifiCorp’s Application for a deferred accounting order that authorized the deferral of extraordinary excess net power costs it incurs. Case No. PAC-E-00-5, Order No. 28630. PacifiCorp states that if the Program is successful it will benefit all ratepayers by reducing excess power costs, incurred by the Company, which will be given deferred accounting treatment. PacifiCorp has stated it will seek to recover any deferred costs in a future proceeding.
PacifiCorp states that any irrigation customer who has total pumping operations of 16 horsepower or greater and receives service under Electric Service Schedule No. 10 will be eligible to participate in the Program. The Company also states that eligible customers who are obligated for minimum energy usage related to line extension agreements or guarantees will be exempt from such contracts for the 2001 irrigation season so they may participate.
PacifiCorp states that eligible customers will be required to enter into an “Irrigation Curtailment Program Customer Agreement” with the Company prior to May 1, 2001, which requires various commitments from participating customers. PacifiCorp states these agreements will allow participating customers to continue to use other energy sources for pumping such as diesel generators, propane or diesel engines to directly drive their pumping systems.
Staff Recommendation
The Commission Staff has reviewed the Company's Application and makes the following recommendations to the Commission.
Staff recognizes the time sensitive nature of PacifiCorp’s Application and recommends it be processed in an expedited manner because irrigators must make decisions regarding the 2001 growing season in the coming weeks. However, Staff also recognizes that this is a new program and many details regarding its implementation are unknown. Therefore, Staff recommends the use of Modified Procedure and suspension of the proposed effective date beyond March 6, 2001 to allow a shortened period of time for interested persons and parties to comment. Staff proposes that a period of ten (10) days be allowed for comments. After the comment period has expired Staff proposes that this Application come before the Commission for a final decision on March 19, 2001.
COMMISSION DECISION
Does the Commission wish to process PacifiCorp’s Application in an expedited manner?
Does the Commission wish to process PacifiCorp’s Application by the use of Modified Procedure under the Commission’s Rules of Procedure?
Does the Commission wish to shorten the comment period from twenty-one (21) days to ten (10) days in an effort to expedite PacifiCorp’s Application?
Does the Commission wish to suspend issuance of an Order addressing this Application beyond March 6, 2001, the date which PacifiCorp has requested?

John R. Hammond
Deputy Attorney General

Staff: Michael Fuss

M:pace0104_jh2
PacifiCorp identifies this period of time as June 1 through September 15, 2001.
In Case No. PAC-00-5 the Company projected that its actual costs will exceed Idaho’s allocated share by $8,000,000 for the 2001 calendar year.

Because of this exemption for 2001 the Company states an additional year will be added to any existing contract for minimum usage a participating customer has entered into. Application, Attachment A at 1.

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