20011207Application.pdf

Mary S. Hobson ISB#: 2142
STOEL RIVES LLP
101 South Capitol Blvd., Suite 1900
Boise, ID 83702-5958
Telephone: [phone]
Fax No.: [phone]

John M. Eriksson
STOEL RIVES LLP
One Utah Center
201 South Main Street, Suite 1100
Salt Lake City, UT 84111-4904
Tel [phone]
Fax [phone]

Attorneys for PacifiCorp dba Utah
Power & Light Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

In the Matter of the Application of PacifiCorp,
dba Utah Power & Light Company for
Approval of Interim Provisions for the Supply
of Electric Service to Monsanto Company.

______________________________________
) CASE NO. PAC-E-01-16
)
) APPLICATION OF PACIFICORP
)
)
)

This Application is filed by PacifiCorp dba Utah Power & Light Company (“Utah
Power” or the “Company”) for approval of interim provisions for the supply of electric
service to Monsanto Company (“Monsanto”).
1. Utah Power is a public utility doing business in the state of Idaho and subject
to the jurisdiction of the Idaho Public Utilities Commission (“Commission”).
2. Monsanto is a Delaware corporation qualified to do business in the state of
Idaho. Monsanto operates an elemental phosphorus plant near the City of Soda Springs in

1 - APPLICATION OF PACIFICORP SaltLake-159961.1 0020017-00002
Caribou County, Idaho. The electric power requirements of the plant have been supplied by
Utah Power since 1952.
3. Communications regarding this Application should be addressed to:
Doug Larson
PACIFICORP
201 South Main, Suite 2300
Salt Lake City, Utah 84140-0023
Telephone: [phone]
Fax: [phone]

John Eriksson
STOEL RIVES LLP
201 South Main, Suite 1100
Salt Lake City, Utah 84111-4904
Telephone: [phone]
Fax No.: [phone]

4. Attached to this Application is a copy of the Power Supply Agreement
between Monsanto and Utah Power dated November 1, 1995 (the “Agreement”), which was
approved by the Commission in Case No. UPL-E-95-4.
5. On December 11, 2000, Utah Power faxed a notice of termination to
Monsanto, terminating the Agreement as of December 31, 2001 (“Notice of Termination”).
Utah Power and Monsanto have had negotiations regarding a new electric service agreement,
but have not reached agreement on terms for the continued supply of electric service to
Monsanto. On November 16, 2001, Monsanto and P4 Production, L.L.C. filed a complaint
(“Declaratory Judgment Action”) in the District Court of the Sixth Judicial District of the
State of Idaho, in and for the County of Caribou, seeking a declaratory judgment that, among
other things: (a) the parties can only exercise the option to terminate the Agreement by giving
one year’s written notice of termination after December 31, 2001; (b) the earliest date for

2 - APPLICATION OF PACIFICORP SaltLake-159961.1 0020017-00002
notice of termination of the Agreement is January 1, 2002 and the earliest possible
termination date is January 1, 2003; and (c) that Utah Power’s Notice of Termination is
invalid and of no force or effect.
6. If Utah Power prevails in the Declaratory Judgment Action, which is not
expected to be resolved until after January 1, 2001, the Agreement will indeed be considered
to have been terminated as of December 31, 2001, and there will be no agreement in place
establishing the terms for electric service to Monsanto for the period commencing January 1,
2002. Utah Power does not have an Electric Service Schedule in its tariff which, by its terms,
would be applicable to electric service to the Monsanto load, due to its size (over 200 MW).
The Company’s Electric Service Schedule No. 9, which would otherwise be applicable, is
limited to customers having a load of up to 15 MW.
In light of these circumstances, and in accordance with Idaho Code § 61-313, Utah Power
requests that the Commission approve, on an interim basis, the rates to be charged Monsanto
for electric service for the period commencing January 1, 2002, through the effective date of
rates for service to Monsanto later approved by the Commission in a final order. The
Company proposes to provide firm service to Monsanto in accordance with the Company’s
Electric Service Schedule No. 9 and the Electric Service Regulations set forth in the
Company’s tariff, except that the pricing for service to Monsanto would be based on a cost of
service study specific for Monsanto. The pricing proposed for firm service to Monsanto is as
follows:
May-Oct. Nov.-April
Customer Charge $282.89 $282.89
DemandCharge($/kW-mo.) $10.56 $8.46

3 - APPLICATION OF PACIFICORP SaltLake-159961.1 0020017-00002
On-Peak Energy($/MWh) $19.57 $16.31
Off-Peak Energy($/MWh) $14.68 $14.68
The basis for the Company providing firm, rather than interruptible service to Monsanto, and
the pricing therefor, is set forth in the testimony of David L. Taylor, submitted herewith.
7. Utah Power further proposes that the rates charged and the amounts paid by
Monsanto for service beginning January 1, 2002, pursuant to this Commission’s order
regarding this matter, will be subject to true-up in accordance with a final order by the
Commission regarding the appropriate charges for service during the period of January 1,
2002 through the effective date of the charges established by such final order. Accordingly, if
the Commission determines that the charges during such period should be higher than the
interim prices approved by the Commission, Monsanto shall pay PacifiCorp the difference
applicable to all electric service provided during that period. Similarly, if the Commission
determines that the charges during such period should be lower than the interim prices
approved by the Commission, PacifiCorp shall pay Monsanto the difference applicable to all
electric service provided during that period. Further, if Monsanto were to prevail in the
Declaratory Judgment Action, there would be a similar true-up for electric service provided
during the additional year of the Agreement. The Company proposes that interest on any
underpayments or overpayments accrue at the weighted average cost of capital utilized in the
cost of service study (8.42%), and that either such payment shall be made within 30 days of
invoice.
8. Whatever rates are charged by the Company or paid by Monsanto pursuant to a
Commission order in this matter will not be a basis for waiver or estoppel in the Declaratory
Judgment Action.

4 - APPLICATION OF PACIFICORP SaltLake-159961.1 0020017-00002
9. In order to have a determination of interim service provisions by January 1,
2002, Utah Power requests that this application be processed under Modified Procedure
pursuant to RP 201-204. Written comments by interested parties should be sufficient for
purposes of the Commission’s review.
WHEREFORE, Utah Power respectfully requests that the Commission process
this Application under Modified Procedure and issue an Interim Order that:
a) Utah Power shall provide firm electric service to Monsanto under the
provisions of its Electric Service Schedule No. 9 and the Electric Service Regulations set forth
in its tariff, except that the pricing for such service shall be as set forth above; and
b) the charges and the amounts paid by Monsanto for service beginning January
1, 2002, pursuant to such Interim Order, will be subject to true-up in accordance with a final
order by the Commission regarding the appropriate charges for service during the period of
January 1, 2002 through the effective date of the charges established by such final order.
Payment pursuant to such true-up shall be made as described in the Company’s Application.
Dated: December ____, 2001

Respectfully submitted,
STOEL RIVES LLP

By______________________________
Mary S. Hobson
John M. Eriksson

Of Attorneys for PacifiCorp,
dba Utah Power & Light Company

5 - APPLICATION OF PACIFICORP SaltLake-159961.1 0020017-00002

6 - APPLICATION OF PACIFICORP SaltLake-159961.1 0020017-00002
CERTIFICATE OF SERVICE

I hereby certify that on this 7th day of December, 2001, I caused to be served, via
facsimile transmission, a true and correct copy of the Application of Pacificorp and Direct
Testimony of David L. Taylor to the following:

Randy Budge
RACINE, OLSON, NYE, BUDGE
& BAILEY
Facsimile No.: [phone]

In addition, I certify I cause to be served a true and correct copy of the Application of
Pacificorp and Direct Testimony of David L. Taylor together with Exhibits 1-3 to Mr.
Taylor’s testimony to the following:

Randy Budge
RACINE, OLSON, NYE, BUDGE
& BAILEY
Center Plaza—Corner First & Center
P.O. Box 1391
Pocatello, Idaho 83204-1391

_____________________________