20070828Comment.pdf

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O. Box 775
Soda Springs, Idaho 83276
[phone]
EARL SOMSEN
Commissioner District #2
LLOYD M. RASMUSSEN, Chairman
Commissioner District #3
R. DOUGLAS HOGAN
Commissioner District #1
August 22, 2007
Attn: Paul Kjellander, Mack Redford, and Marsha Smith
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Idaho Public Utilities Commission
472 West Washington Street
Boise ill 83702
RE: PacifiCorp
Dear Commissioners:
With much concern, we respectfully write this letter to you in regards to PacifiCorp
upcoming rate case. We are keenly aware of the impact that your decision will have on
Caribou County, the southeast region ofIdaho, its residents, the farmers who irrigate their
crops and on the industries in this area.
It is our understanding that much of the costs that PacifiCorp is intending to pass on to
Caribou County and southeast Idaho customers come from new electrical generation.
While we understand the need for new generation plants and the updating of old assets
much of this new generation is being built to serve new load in the region. It seems
wrong that the cost of assets built to serve growth in other states or even here in Idaho
should be born by industries and. customers in Caribou County and southeastern Idaho
that have, if anything, reduced energy demands through closure, efficiency or
conservation over the last 40 plus years. Furthermore, while other counties are
experiencing economies that are growing, Caribou County has experienced dramatic
declines in jobs. Weare extremely concerned that the constant increasing of the cost of
electricity will result in the closure of another plant here in the Caribou County and
others in southeastern Idaho. Our estimates of the regional economic loss of a Monsanto
closure could be as high as $700 million dollars annually. This would absolutely
devastate Caribou County. To those that say that Monsanto would never close its Soda
Springs plant down, we need only point to a similar nearby plant, the FMC plant in
Pocatello.
If you approve this proposed increase, Monsanto s rates will have raised 38% since the
rates they paid in 2006, and it is our understanding that Monsanto s rates will have
increased 71% since ITom the rates they were paying in 2002. Additionally, we are also
aware that Monsanto has also given up curtailment or the right to run its operations for
000 hours to the power company to hold down its electrical costs. We understand that
this provides reliability to all customers, at a high cost to Monsanto for lost production.
Also, the farmers who use irrigation for their crops recently incurred a 51 % increase after
loss ofBP A credits.
As Idaho Public Utilities commissioners, you have the mandate to set rates that are "fair
just and reasonable We believe this gives you a broader latitude to consider all issues
in your decisions. We ask you to consider the economic impact your decision may have
on the jobs and people that live in Caribou County and southeastern Idaho. We are
working diligently to attract new business to Caribou County, but all of our efforts could
never replace the loss of a Monsanto, Agrium, or Simplot plant.
Respectfully, we ask that you consider these facts as you make your decision.
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L1 ~ Rasmussen Chairman Earl Somsen
Commissioner District 3 Commissioner District 2
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Commissioner District 1