20101008Answer to Monsanto Motion.pdf

SCOTT D. WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
POBOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 1895
REC.E\,\l iJ
ininoci -8 PM 4: 15
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF PACIFICORP DBA ROCKY MOUNTAIN )
POWER FOR APPROVAL OF CHANGES TO )
ITS ELECTRIC SERVICE SCHEDULES )
)
CASE NO. PAC-E-IO-07
COMMISSION STAFF ANSWER
TO MONSANTO MOTION
COMES NOW Commission Staff, by and through its attorney of record, Scott D.
Woodbury, Deputy Attorney General, and presents the following answer to Monsanto's Motion
to Dismiss or Strike Testimony (or Reset Schedule). IDAPA 31.01.01.057.03.
The September 30, 2010, Supplemental Testimony of Paul J. Clements for
PacifiCorp in Case No. PAC-E-1O-07 addresses for the first time the three interrptible
(curtailment) products Monsanto curently provides to PacifiCorp under the existing Monsanto
service agreement that terminates on December 31,2010. His testimony also addresses for the
first time the proposed economic valuation of these three products for the period beginning
January 1,2011.
Staff asserts there are two reasons to disallow the filing of Clements Supplemental
Testimony. First, Staff contends that the Company's rate case at this late date is not the
appropriate forum for calculating the economic value of Monsanto's interrptible products
(operating reserve, economic curailment and system integrity). Staff recognizes that the
Commission in approving Monsanto's 2007 Service Agreement stated. . .
the value of interrptible products fuished by Monsanto as well as
Monsanto's cost of service wil be important considerations in establishing
COMMISSION STAFF ANSWER
TO MONSANTO MOTION 1
the net rate to Monsanto in the future. Consequently, we expect the Paries to
address interrptible product valuation in the context of a general rate case
when Monsanto's cost of service is determined.
Case No. PAC-E-06-09, Order No. 30197, p. 9. Although this rate case presented the
opportunity to consider both Monsanto's cost of service and the value of its interrptible
products, PacifiCorp in its rate case filing did not address Interrptible Credits. Nor was its
filing retured or dismissed for failng to do so. IDAPA 31.01.01.121.03; 31.01.01.065.
Presumably the contract paries Monsanto and PacifiCorp were aware of the Commission's
requirement. Despite the omission, the Company's rate case filing satisfies the requirements of
Procedural Rule 121 Form and Contents of Application to Change Rates. What is omitted is not
necessary for decision. The economic valuation of interrptible products offered by Monsanto to
the Company is not entitled at this late date to be included in this case's statutory time line for
decision.
Second, introducing this subject at this late date is prejudicial to the paries and the
process. The Staff and Intervenor scheduled prefie date for direct testimony is next week,
Thursday, October 14, 2010. Thls case is scheduled for technical hearing beginning November
30, 2010. The curent suspension period expires December 28, 2010. Order No. 32001. The
Company represents that it is unprepared to extend the suspension period for its rate case.
PacifiCorp electric tarff Schedule 400 is the schedule that reflects the price that
Monsanto pays to PacifiCorp for energy. See attached. The Interrptible Credit is not defined in
the taiff. The interrptible products Monsanto presently provides PacifiCorp and the economic
valuation of same are set out in Monsanto's November 5, 2007 Electric Service Agreement
(2008 Agreement) and are defined in a Settlement Stipulation, approved by the Commission in
Case No. PAC-E-07-05, Order No. 30482. Par of that information (including the Interrptible
Credit) was determined to be confidential and is not available for public review. The December
31, 2010 termination date for Monsanto's 2008 Service Agreement has been looming for
months. Staff recommends that the Commission require Monsanto and PacifiCorp to present
evidence on the valuation of Monsanto's interrptible products in a new case docket. Let them
continue with their confidential discussions and negotiations in conjunction with the separate
case and rely on the Commission to decide the issue if they canot reach agreement.
COMMISSION STAFF ANSWER
TO MONSANTO MOTION 2
Pursuant to Commission Rule of Procedure 121.01 PacifiCorp was required to fie its
complete case (testimony, exhibits, etc.) with its Application to change rates. The Company's
rate case Application was fied on May 28,2010. The Commission should reject the Company's
September 30, 2010 supplemental testimony fiing in Case No. PAC-E-I0-07, establish a
separate docket for consideration of Monsanto's interrptible products and the derivation of the
interrptible credit and proceed with the Company's case in chief pursuant to established
scheduling.
Respectfully submitted this g11 day of October 2010.
Sco D. Woodbur
Deputy Attorney General
blsI:PAC-E-IO-07 sw Answer
COMMISSION STAFF ANSWER
TO MONSANTO MOTION 3
~~l~OUNTA'N
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Dec. 7, 2009 Jan. 1,2010
Jean D. Jewell Secretary
I.P.U.C. No.1
Fourth Revision of Sheet No. 400.1
CancelingThird Revision of Sheet No. 400.1
ROCKY MOUNTAI POWER
ELECTRC SERVICE SCHEDULE NO. 400
STATE OF IDAHO
Special Contract
PUROSE: The purose of this Schedule is to describe generally the terms and conditions
provided by the Company pursuant to a Special Contrct approved by the Idaho Public Utilty
Commission.
Special Contract Dated May 18,2006.
Availabilty
This schedule is available for firm and interrptible retail service of electric power and energy
delivered for aU service required on the Customer's premises by customers contrcting for not less
than i 50,000 kW as of May 18,2006 and as provided in the Electrc Service Agreement between
the two parties.
Term
Initial term though December 31, 2009, then subject to annual renewals. Any electric service
PacifiCorp provides to the Customer after the Termination Date shall be on terms and conditions
and at prices in accordance with Electric Service Schedule No. 400 or its successor then in effect
until such time as the Commission establishes or approves other terms and conditions and prices.
Monthly Charge
Firm Power and Energy:
Firm Energy Charge: 23.81 mils per kilowatt hour
Customer Charge: $1,227 per Biling Period
Fir Demand Charge: $12.27 per kW
Interrptible Power and Energy:
Interruptible Energy Charge: 23.81 mils per kilowatt hour
Interrptible Demand Charge: Fir Demand charge minus Interrptible Credit
(Continued)
Submitted Under Advice No. 09-06
ISSUED: November 30, 2009 EFFECTIV: Januar 1,2010
~~\;~OUNTAIN
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Jan. 7, 2008 Jan. 1, 2008
Per O.N. 30482
Jean D. Jewell Secretary
I.P.U.C. No.1
First Revision of Sheet No. 400.2
Canceling Original Sheet No. 400.2
ELECTRC SERVICE SCHEDULE NO. 400 - Continued
Replacement Energy:
Adjusted Index Price multiplied by Replacement Energy.
Adjustment: The charges specified in this Section shall be adjusted January 1, 2009 and 2010 in
accordance with the Electric Service Agreement. No other changes shall be made prior to January 1,201 i.
This shall be the sole and exclusive means of adjustment to the unit charges contained herein.
Tariff Rates: The Commission approved rates applicable to the Special Contract Customer, including, but
not limited to, customer charges, demand charges, energy charges, surcharges, and credits, as specified in
Idaho Electric Service Schedule No. 400 or its successor.
Submitted Under Order No. 30482
ISSUED: December 28,2007 EFFECTIVE: January 1, 2008
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 8TH DAY OF OCTOBER 2010,
SERVED THE FOREGOING COMMISSION STAFF ANSWER TO MONSANTO
MOTION, IN CASE NO. PAC-E-1O-07, BY E-MAILING A COPY THEREOF TO THE
FOLLOWING:
TED WESTON
ID REGULATORY AFFAIRS MANAGER
ROCKY MOUNTAIN POWER
201 S MAIN ST STE 2300
SALT LAKE CITY UT 84111
(FED EX)
E-MAIL: ted.weston(ßpacificorp.com
E-MAIL: ONLY
MARK C MOENCH
DANIEL E SOLANDER
ROCKY MOUNTAIN POWER
E-MAIL: markmoench(ßpacificorp.com
daniel.solander(ßpacificorp.com
RANDALL C BUDGE
RACINE OLSON NYE ET AL
PO BOX 1391
POCATELLO ID 83204-1391
(FED EX)
E-MAIL: rcb(ßracinelaw.net
E-MAIL: ONLY
JAMES R SMITH
MONSANTO COMPANY
E-MAIL: jim.r.smith(ßmonsanto.com
ANTHONY Y ANKEL
29814 LAK ROAD
BAY VILLAGE OH 44140
(FED EX)
E-MAIL: tony(ßyanel.net
PAUL J HICKEY
HICKEY & EVANS LLP
1800 CAREY AVE., SUITE 700
PO BOX 467
CHEYENNE WY 82003
(FED EX)
E-MAIL: phickey(ßhickeyevans.com
E-MAIL: ONLY
DATA REQUEST RESPONSE CENTER
PACIFICORP
E-MAIL: datarequest(ßpacificorp.com
E-MAIL: ONLY
KATIE IVERSON
BRUBAKER & ASSOCIATES
E-MAIL: kiverson(ßconsultbaLcom
ERIC L OLSEN
RACINE OLSON NYE ET AL
PO BOX 1391
POCATELLO ID 83204-1391
(FED EX)
E-MAIL: elo(ßracinelaw.net
CERTIFICATE OF SERVICE
TIM BULLER
JASON HARRS
AGRIUMINC
3010 CONDA RD
SODA SPRINGS ID 83276
(FED EX)
E-MAIL: tbuller~agrium.com
jaharris~agrium.com
BENJAMIN J OTTO
IDAHO CONSERVATION LEAGUE
710 N 6TH STREET
PO BOX 844
BOISE ID 83702
(HAND CARRIED)
E-MAIL: botto~idahoconservation.org
E-MAIL: ONLY
DR. DON READING
E-MAIL: dreading~mindspring.com
MELINDA J DAVISON
DAVISON V AN CLEVE, P.C.
333 SW TAYLOR, SUITE 400
PORTLAND, OR 97204
(FED EX)
E-MAIL: mjd~dvclaw.com
RONALD L WILLIAMS
WILLIAMS BRADBURY, P.C.
1015 W HAYS STREET
BOISE ID 83702
(HAND CARRIED)
E-MAIL: ron~willamsbradbury.com
BRAD M PURDY
ATTORNEY AT LAW
2019N 17TH STREET
BOISE ID 83702
(HAND CARRED)
E-MAIL: bmpurdy~hotmail.com
~~
SECRETARY
CERTIFICATE OF SERVICE