HomeMy WebLinkAbout20131108Decision Memo.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 8, 2013
SUBJECT: IN THE MATTER OF THE APPLICATION OF PACIFICORP DBA
ROCKY MOUNTAIN POWER FOR APPROVAL OF AN ELECTRIC
SERVICE AGREEMENT WITH MONSANTO COMPANY, CASE NO.
PAC-E-13-14
On October 31, 2013, PacifiCorp dba Rocky Mountain Power (“Rocky Mountain”)
filed an Application for an Order approving the Electric Service Agreement (“ESA”) entered into
between Rocky Mountain and Monsanto Company (“Monsanto”) (collectively referred to as the
“parties”). Rocky Mountain requests that its Application be processed through Modified
Procedure.
PacifiCorp, an Oregon corporation, is an electrical corporation and public utility
doing business as Rocky Mountain in the State of Idaho and is subject to the jurisdiction of the
Commission with regard to its public utility operations. PacifiCorp also provides retail electric
service in the states of Utah, Oregon, Wyoming, Washington, and California.
APPLICATION
Rocky Mountain originally submitted the ESA for approval as part of the negotiated
Stipulation approved by the Commission in Case No. PAC-E-13-04. The Commission’s Order
in that case noted that the ESA had been executed and filed, but reserved approval of the
substance and merits of the ESA until it was submitted in a separate docket. The proposed
effective date of the parties’ ESA is January 1, 2014, the date the current electric service
agreement will expire, with an initial term lasting through December 31, 2015.
DECISION MEMORANDUM 2
Rocky Mountain included a copy of the executed ESA as “Confidential” Attachment
I to its Application. The parties agreed to extend Monsanto’s current curtailment terms and
valuation for two additional years to align the Monsanto special contract with the rate plan
implemented in PAC-E-13-04. The Company and Monsanto agreed that their existing ESA
should be amended to include a new Section 4.4 pertaining to how Monsanto’s Interruptible
Credit Annual True-up should be calculated. In the Stipulation, Monsanto specifically waived
any right to claim any true-up of Interruptible Credit for any billing periods prior to January 1,
2014, for months in which the Metered Demand was below 162 megawatts.
Section 4.1 of the new ESA was also amended to reflect the 0.77% uniform
percentage increase to the energy component of rates agreed to in the Stipulation in PAC-E-13-
04, and subsequently approved by the Commission.
COMMISSION DECISION
Does the Commission wish to process Rocky Mountain’s Application for approval of
its ESA with Monsanto through Modified Procedure?
M:PAC-E-13-14_np