20131210Comments.pdf

NEIL PRICE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 6864
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-59I8
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIBS COMMISSION
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
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through
attorney of record, Neil Price, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure issued in Order No.32927 on November 19, 2013,
in Case No. PAC-E-13-14, submits the following comments.
BACKGROUND
On October 31,2013, PacifiCorp dba Rocky Mountain Power ("Rocky Mountain") filed
an Application for an Order approving an Electric Service Agreement ("ESA") entered into
between Rocky Mountain and Monsanto Company ("Monsanto") (collectively referred to as the
"Parties"). On November 12,2013 Monsanto filed to join with Rocky Mountain in the
Application requesting ESA approval. The parties request an effective date of January 1, 2074,
the date the current electric service agreement will expire. The parties also request an initial term
lasting through December 31,2015, the date that Rocky Mountain Power's Commission approved
STAFF COMMENTS DECEMBER IO,2013
rate plan ends (PAC-E-13-04). Rocky Mountain included a copy of the executed ESA as
"Confidential" Attachment 1 to its Application.
STAFF ANALYSIS AND RECOMMENDATION
The proposed ESA is substantially the same as the current ESA except for changes made
to Section 4: Payment for Power and Energy. Sections 4.1.1 and 4.l.2were updated to include
base rate changes ordered by the Commission in Case No. PAC-E-I3-04.
The Parties also agreed that the proposed ESA should include a new Section 4.4
Intemrptible Credit Annual True-up. This section resolves an on-going billing dispute between
Monsanto and Rocky Mountain Power. The new terms provide for an annual true-up of the
intemrptible credit amount and an additional credit to be provided by Rocky Mountain to
Monsanto of $50,000 in2014 and $50,000 in 2015.
Staff recommends Commission approval of the ESA. It is reasonable to include the new
rates in the proposed ESA and it is reasonable and desirable that differences in contract
interpretation and unsettled billing disputes be resolved in a new ESA. Other Rocky Mountain
customers are not impacted by the proposed ESA changes.
Respecttully submitted this \ Cy day of December 2013.
Neil Price
Deputy Attorney General
Technical Staff: Keith Hessing
i:umisc:comments/pacel3. l4npkh comments
STAFF COMMENTS DECEMBER 10,2OI3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS loth DAY oFDECEMBER2OI3,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. PAC.E-13.14, BY E-MAILING AND MAILING A COPY THEREOF, POSTAGE
PREPAID, TO THE FOLLOWING:
DANIEL E SOLANDER
SENIOR COLINSEL
ROCKY MOUNTAIN POWER
201 S MAIN ST STE 23OO
SALT LAKE CITY UT 84111
RANDALL C BUDGE
RACINE OLSON NYE BUDGE
& BAILEY CHARTERED
PO BOX l39l
POCATELLO ID 83204
DATA REQUEST RESPONSE CENTER
E.MAIL ONLY:
datarequest@fracifi c orp. com
\
SECRETARY
CERTIFICATE OF SERVICE