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Home My WebLink Aboutmodproc_app.docBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF PacifiCorp DBA UTAH POWER & LIGHT COMPANY FOR APPROVAL OF AN ELECTRIC SERVICE AGREEMENT WITH NU-WEST INDUSTRIES. ) ) ) ) ) ) ) ) ) CASE NO. PAC-E-01-17 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE YOU ARE HEREBY NOTIFIED that on December 26, 2001, PacifiCorp dba Utah Power & Light Company (PacifiCorp; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of an Electric Service Agreement (Agreement) with Nu-West Industries (Nu-West) dated December 10, 2001. The Agreement, along with a separate agreement, entered into under Electric Service Schedule No. 9, replaces an electric service agreement (Prior Agreement) dated June 9, 1998, approved by the Commission in Case No. PAC-E-00-03. Nu-West is engaged in the production of phosphate fertilizer at facilities located in Soda Springs, Idaho. The Prior Agreement governing electric service to Nu-West terminated on December 31, 2001. Rates under the Prior Agreement were 03.3¢ per kilowatt-hour for all kilowatt-hours if Nu-West used a specific minimum amount of energy. However, if Nu-West used less than the minimum amount on an annual basis, it paid 03.4339¢ per kilowatt hour for all kilowatt hours. Rates for service to Nu-West under the Agreement submitted are based, the Company contends, on the cost of serving Nu-West. Accompanying the Company’s Application is a summary of the Cost-Of-Service Study results for service to Nu-West. Due to the size of its load (approximately 20,000 kW), the Company does not have an electric service schedule applicable to service to Nu-West, thus necessitating a special contract. The Agreement, the Company contends, is effectively a customer-specific tariff schedule. By its terms the Agreement is effective January 1, 2002, subject to approval by the Commission, and will terminate on December 31, 2004, unless renewed in accordance with the Agreement’s terms. As reflected in Section 4 of the Agreement, the following monthly charges will apply to Nu-West: MONTHLY CHARGES Customer Charge $ Per Month May-October $282.89 November-April $282.89 Demand Charge $ Per kW-Month $ 11.00 $ 8.89 Energy Charge (HLH) (LLH) $ Per MWh Monday – Friday HE0800–HE2300 MPT All other hours and holidays $ 22.71 $ 17.03 $ 18.92 $ 17.03 *These contract rates will result in an effective contract rate of 3.384¢/kWh. The demand and energy charges identified in the Agreement are to be uniformly adjusted annually effective January 1, 2003 and each January 1 thereafter in accordance with the formula set out in the Agreement. A separate agreement under electric service tariff Schedule No. 9 has been entered into for service to Nu-West’s Mountain Fuel Substation, service to which was included in the Prior Agreement. The effective rate for that part of Nu-West’s service under Schedule 9 will be 4.232¢/kWh. The overall effective rate for all of Nu-West’s service (Agreement and Schedule 9) is 3.48¢/kWh. Regarding jurisdiction of regulatory authorities, Section 8 of the Agreement includes the following language: 8.1 This Agreement is subject to approval of the Commission. In the event the Commission Order approving this Agreement either requires imputation of revenue to PacifiCorp, or provides for possible future imputation of revenues to PacifiCorp, PacifiCorp may terminate this Agreement by providing Nu-West notice within 30 days of entry of the Commission’s Order. In the event the Commission Order approving this Agreement does not provide for the direct assignment of the revenues and costs of this Agreement to the Idaho jurisdiction for ratemaking purposes, PacifiCorp may terminate this Agreement by providing Nu-West notice within 30 days of the entry of the Commission’s Order. In the event that the Commission Order approving this Agreement contains any condition that is materially adverse to either party, the party adversely impacted by the condition may terminate this Agreement by providing the other party notice within 30 days of the entry of the Commission’s Order. 8.2 The electric service regulations of PacifiCorp, together with all changes and amendments thereto as approved by the Commission, are incorporated herein and made a part of the Agreement. Once the Commission approves the Agreement, the provisions of the Agreement shall take precedence over any conflicting provisions of PacifiCorp’s electric service regulations. 8.3 The parties agree that the Commission has the authority to modify the rates for service under this Agreement under the same standard that applies to tariff customers generally. Accordingly, surcharges or credits that apply to service to tariff customers generally will also apply to service under this Agreement. 8.4 In the event that the statutes of the state of Idaho are amended to provide Nu-West with the ability to choose an electric supplier other than PacifiCorp, either party may terminate the Agreement within 90 days of the effective date of the legislation by written notice delivered to PacifiCorp. PacifiCorp requests that its Application be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. PAC-E-01-17. The Commission has preliminarily determined that the public interest regarding the Company’s Application and the Nu-West Agreement may not require a hearing to consider the issues presented and that issues raised by the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to PacifiCorp’s Application and the use of Modified Procedure in Case No. PAC-E-01-17 is Friday, February 8, 2002. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission may consider the matter on its merits and may enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order on the basis of the written positions before it. Reference IDAPA 31.01.01.204. YOU ARE FURTHER NOTIFIED that the written comments concerning Case No. PACE-01-17 should be mailed to the Commission and the Company at the addresses reflected below. COMMISSION SECRETARY IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 Street Address for Express Mail: 472 W WASHINGTON ST BOISE, ID 83702-5983 DOUG LARSON PACIFICORP 201 S MAIN, SUITE 2300 SALT LAKE CITY, UT 84140-0023 JOHN ERIKSSON STOEL RIVES LLP 201 S MAIN ST STE 1100 SALT LAKE CITY UT 84111-4904 All comments should contain the case caption and case number shown on the first page of this document. Persons desiring to submit comments via e-mail may do so by accessing the Commission’s homepage located at www.puc.state.id.us under the heading “Contact Us.” Once at the “Contact Us” page, select “Email Case Comments or Questions,” fill in the case number as it appears on the front of this document, and enter your comments. YOU ARE FURTHER NOTIFIED that the Company’s Application in Case No. PAC-E-01-17 together with related Cost-of-Service Study and Agreement, may be viewed during regular business hours at the offices of the Idaho Public Utilities Commission, 472 West Washington Street, Boise, Idaho and at the Idaho offices of PacifiCorp dba Utah Power & Light Company. In addition, the Application may be viewed by accessing the Commission’s homepage at www.puc.state.id.us and choosing the headings “File Room” and then “Electric Cases.” DATED at Boise, Idaho this _________ day of January 2002. Jean D. Jewell Commission Secretary Vld/N:PACE0117_sw NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE 5 Office of the Secretary Service Date January 17, 2002