20030523Minute Order.pdf

Office of the Secretary
Service Date
May 23, 2003
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.
MINUTE ORDER
CASE NO. PAC-Ol-
On December 10 2001 , PacifiCorp dba Utah Power & Light Company (PacifiCorp;
Company) filed an Application with the Idaho Public Utilities Commission (Commission)
regarding supply of electric service to Monsanto Company (Monsanto). Monsanto s Soda
Springs facility produces elemental phosphorous and is PacifiCorp s largest Idaho customer with
an electric load of over 200 megawatts. PacifiCorp and Monsanto are engaged in litigation in
federal District Court regarding the contract termination date of a Commission-approved 1995
Power Supply Agreement (Agreement). Reference Case No. UPL-95-, Order No. 26282.
The Commission by Order No. 28918 issued December 21 , 2001 , denied the
Company s interim rate request. As reflected in the Commission s Order No. 28918, the
procedure and process adopted by the Commission in this case was to establish a permanent rate
going forward for Monsanto. A true-up mechanism retroactive to the termination date of the
existing Agreement as determined by the federal District Court will be used to adjust the
difference between the existing rate and the new rate.
On January 27, 2003 , the Commission issued final Order No. 29157 in Case No.
PAC-01-16 deciding relevant contract and rate issues for a new service agreement. As
reflected in the Commission s Order
, "
the Commission resolution of issues, while
determinative, is not in lieu of a new service agreement which the Commission expects the
parties to negotiate, finalize and file for approval."
On February 18 , 2003 , PacifiCorp filed a Petition for Reconsideration and
Clarification of Order No. 29157. On March 14, 2003 , the Commission issued Final Order On
Reconsideration No. 29206 denying PacifiCorp s Petition for Reconsideration and providing
clarification on some limited points. The parties were encouraged to negotiate in good faith and
MINUTE ORDER
to submit a signed service agreement conforming with the Commission s Orders for Commission
consideration and approval.
On May 13 , 2003 , an Electric Service Agreement between PacifiCorp and Monsanto
was filed with the Commission. The contract parties contend that the Agreement complies with
the terms of Commission Order Nos. 29157 and 29206.
Commission Findings
PacifiCorp and Monsanto Company have submitted an Electric Service Agreement
effective January 1, 2003 and terminating December 31 , 2006, for retail electric service to the
Monsanto Soda Springs Plant. The Commission has reviewed the submitted Electric Service
Agreement between PacifiCorp and Monsanto and finds that it comports in all material respects
with the rates and terms established and defined in the Commission s Orders in Case No. PAC-
01-16. The Agreement by its terms is subject to the approval of the Commission. The
submitted Agreement is effective January 1 , 2003 and terminates on December 31, 2006. We
find it reasonable to approve the Electric Service Agreement without change or modification.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over PacifiCorp dba Utah
Power & Light Company, an electric utility, and the issues presented in this case pursuant to
Idaho Code, Title 61 and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
MINUTE ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED and the Commission does hereby acknowledge and accept the Electric
Service Agreement between PacifiCorp and Monsanto for retail electric service to the Monsanto
Soda Springs Plant for an effective date of January 1 , 2003. By this Order we acknowledge that
the Agreement complies with the terms of Commission Order Nos. 29157 and 29206 in Case
No. PAC-01-16.
MINUTE ORDER
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;/.3,.,J.
day of May 2003.
~L J ~A
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. Jewell
ission Secretary
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MINUTE ORDER