20210916Eller Supplemental Exhibit 36-Redacted.pdf

1407 W. North Temple, Suite 330
Salt Lake City, Utah 84116

September 16, 2021

VIA ELECTRONIC FILING

Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8 Suite 201A
Boise, ID 83714

Re: CASE NO. PAC-E-21-07
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER
FOR AUTHORITY TO INCREASE ITS RATES AND CHARGES IN IDAHO
AND APPROVAL OF PROPOSED ELECTRIC SERVICE SCHEDULES AND
REGULATIONS

Dear Ms. Noriyuki:

Please find for electronic filing in the above referenced matter a copy of the stipulation between
P4 and Rocky Mountain Power resolving the curtailment terms of P4’s energy service agreement.
This Stipulation and the attached ESA are provided as Supplemental Confidential Exhibit No. 36
to Mr. Craig E. Eller’s testimony and will be the basis upon which the value of these products are
to be determined.

Informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at (801) 220-
2963.

Very truly yours,

Joelle R. Steward
Vice-President of Regulation

cc: Randy Budge

RECEIVED
2021 September 16, PM 2:30
IDAHO PUBLIC
UTILITIES COMMISSION
REDACTED
Case No. PAC-E-21-07
Supplemental Exhibit No. 36
Witness: Craig M. Eller

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

ROCKY MOUNTAIN POWER

____________________________________________

REDACTED

Stipulation and Electric Service Agreement between Rocky Mountain Power and
P4 Production

September 2021

1
Emily Wegener (ISB #11614)
Rocky Mountain Power
1407 West North Temple #320
Salt Lake City, UT 84116
Telephone: [phone]
Email: [e-mail]
Attorneys for Rocky Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES IN IDAHO AND
APPROVAL OF PROPOSED ELECTRIC
SERVICE SCHEDULES AND
REGULATIONS
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CASE NO. PAC-E-21-07
PARTIAL STIPULATION ON
TERMS OF P4’S ENERGY
SERVICE AGREEMENT
This Stipulation (“Stipulation”) is entered into by and among Rocky Mountain
Power, a division of PacifiCorp (“Rocky Mountain Power” or the “Company”) and P4
Production, L.L.C., an affiliate of Bayer Corporation, (“P4”), for purposes of this
Stipulation, (the “Stipulating Parties”). The Parties submit this partial Stipulation in
resolution of the terms of the energy service agreement (“ESA”), excluding the value to
become effective January 1, 2022.
I.PROCEDURAL BACKGROUND
1.On May 27, 2021, Rocky Mountain Power filed an Application requesting
authorization to increase rates and charges in Idaho. As part of the Application, Rocky
Mountain Power filed the direct testimony of Craig M. Eller. Mr. Eller’s testimony
described the current status of the contract negotiations between Rocky Mountain Power
and P4 and provided a recommendation and analysis regarding the economic valuation of
Rocky Mountain Power
Exhibit No. 36 Page 1 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller

2
the interruptible products offered by P4 to the Company to establish the interruptible credit
amount for inclusion in P4’s electric service agreement.
2. As noted in Mr. Eller’s testimony Rocky Mountain Power and P4 have been
engaged in contract negotiations since August of 2019. Both companies are fully engaged
in seeking an agreement and have been meeting weekly to further discussions. An
agreement had not yet been reached at the time of the filing. Since then, the parties have
agreed on new terms to the ESA. Negotiations concerning the value of interruptible
products have not been resolved.
3. A copy of the ESA with the terms described herein is attached to this
Stipulation as Attachment 1. This Stipulation and the attached ESA are provided as
Supplemental Confidential Exhibit No. 36 to Mr. Craig E. Eller’s testimony and will be
the basis upon which the value of these products will be determined.
4. The Parties continue to negotiate on the value of the operating reserves
and economic curtailment product credit as described. If, parties are unable to reach an
agreement they will each present and support their valuation positions before the
Commission for the Commission rule on the curtailment product credit to be inserted in
the ESA, Exhibit A, Section 6.1.

II. TERMS AND CONDITIONS

Rocky Mountain Power
Exhibit No. 36 Page 2 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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Rocky Mountain Power
Exhibit No. 36 Page 3 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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Term of Agreement
11. The initial term of this Agreement shall commence January 1, 2022,
contingent upon Commission approval of the Agreement without modification, the initial
term of this Agreement shall end on the hour ending 2400 on . This
Agreement shall automatically renew for successive one (1) year terms unless and until
either Party gives not less than 180 days written notice of termination. Such notice may be
given at any time to terminate the Agreement at the end of any annual renewal year.
General Terms and Conditions
12. Section 248 of IDAPA 31.01.01 authorizes the Commission to approve a
settlement so long as the settlement is just and reasonable in result IDAPA 31.01.01.276. The
Rocky Mountain Power
Exhibit No. 36 Page 4 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
REDACTED

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Parties agree that the provisions of this Stipulation and the ESA as a whole are just and
reasonable in result and in the public interest.
13. All negotiations related to this Stipulation are confidential, and no Party shall
be bound by any position asserted in negotiations. Except as expressly provided in this
Stipulation, neither the execution of this Stipulation nor the order adopting it shall be deemed
to constitute an admission or acknowledgment by any Party of the validity or invalidity of any
principle or practice of regulatory accounting or ratemaking; nor shall they be construed to
constitute the basis of an estoppel or waiver by any Party; nor shall they be introduced or used
as evidence for any other purpose in a future proceeding by any Stipulating Party except in a
proceeding to enforce this Stipulation.
14. The Parties agree that no part of this Stipulation or the formulae and
methodologies used in developing the same or a Commission order approving the same shall
in any manner be argued or considered as precedential in any future case except with regard to
issues expressly called-out and resolved by this Stipulation. This Stipulation does not resolve
and does not provide any inferences regarding, and the Parties are free to take any position
with respect to any issues not specifically called-out and settled herein. Nothing in this
Stipulation shall be construed to modify or supersede existing settlement agreements entered
into by or among Parties to this Stipulation.
15. The Parties agree that if any person challenges the approval of this Stipulation
or requests rehearing or reconsideration of any order of the Commission approving this
Stipulation, each Stipulating Party will use its best efforts to support the terms and conditions
of this Stipulation. In the event any person seeks judicial review of a Commission order
approving this Stipulation, no Party shall take a position in that judicial review proceeding in
opposition to the Stipulation.
Rocky Mountain Power
Exhibit No. 36 Page 5 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
RESPECTFULLY SUBMITTED: September_&_, 2021. Mountai, Randall C. Budge, Attorn P4 Production, L.L.C. 6 Rocky Mountain Power
Exhibit No. 36 Page 6 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
Attachment 1
Rocky Mountain Power
Exhibit No. 36 Page 7 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
ELECTRIC SERVICE AGREEMENT 1
ELECTRIC SERVICE AGREEMENT
BETWEEN
ROCKY MOUNTAIN POWER
AND
P4 PRODUCTION

RECITALS

AGREEMENT

Rocky Mountain Power
Exhibit No. 36 Page 8 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 2

Rocky Mountain Power
Exhibit No. 36 Page 9 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 3

Rocky Mountain Power
Exhibit No. 36 Page 10 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 4

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 5

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 6

Rocky Mountain Power
Exhibit No. 36 Page 13 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 7

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 8

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 9

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 10

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 11

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 12

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 13

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 14

Rocky Mountain Power
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ELECTRIC SERVICE AGREEMENT 15

Rocky Mountain Power
Exhibit No. 36 Page 22 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 16

Rocky Mountain Power
Exhibit No. 36 Page 23 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 17

Rocky Mountain Power
Exhibit No. 36 Page 24 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 18

1 Note to Form: Prior to execution of this agreement, the Parties will insert the annual Curtailment Products Credit
amount, as agreed by the Parties or as otherwise directed by the Idaho Public Utilities Commission.
Rocky Mountain Power
Exhibit No. 36 Page 25 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 19

Rocky Mountain Power
Exhibit No. 36 Page 26 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 20

Rocky Mountain Power
Exhibit No. 36 Page 27 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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ELECTRIC SERVICE AGREEMENT 21

Rocky Mountain Power
Exhibit No. 36 Page 28 of 28 Case No. PAC-E-21-07 Witness: Craig E. Eller
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Page 1 of 2
CERTIFICATE OF SERVICE
I hereby certify that on this 16th of September, 2021, I caused to be served, via email a true and correct copy of Rocky Mountain Power’s Supplemental Exhibit No. 36 in Case No. PAC-E-21-07 to the following:

Case No. PAC-E-21-07

COMMISSION STAFF
Dayn Hardie (C)
John Hammond, Jr. (C)
Deputy Attorneys General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg No. 8,
Suite 201-A (83714)
PO Box 83720
Boise, ID 83720-0074
[e-mail]
[e-mail]

IDAHO IRRIGATION PUMPERS ASSOCIATION, INC.
Eric L. Olsen (C)
Echo Hawk & Olsen PLLC
505 Pershing Ave., Suite 100
PO Box 6119
Pocatello, ID 83205
[e-mail]

Anthony Yankel (C)
12700 Lake Avenue, Unit 2505
Lakewood, OH 44107
[e-mail]

BAYER CORPORATION
Randall C. Budge (C)
Thomas J. Budge (C)
Racine Olson, PLLP
201 E. Center
PO Box 1391
Pocatello, ID 83204-1391
[e-mail]
[e-mail]

Brian C. Collins (C)
Maurice Brubaker (C)
Brubaker & Associates
16690 Swingley Ridge Rd., #140
Chesterfield, MO 63017
[e-mail]
[e-mail]

[e-mail] (C)
[e-mail] (C)
[e-mail] (C)
[e-mail] (C)
[e-mail] (C)
[e-mail] (C)
[e-mail] (C)

Page 2 of 2
PACIFICORP IDAHO INDUSTRIAL CUSTOMERS
Ronald L. Williams (C)
Williams Bradbury, P.C.
PO Box 388
Boise, ID 83701
[e-mail]

[e-mail] (C)
[e-mail]
[e-mail]
[e-mail]

IDAHO CONSERVATION LEAGUE
Benjamin J. Otto (C)
Idaho Conservation League
710 N. 6th Street
Boise, ID 83702
[e-mail]

COMMUNITY ACTION PARTNERSHIP ASSOCIATION OF IDAHO
Brad M. Purdy (C)
Attorney at Law
2019 N. 17th Street
Boise, ID 83702
[e-mail]

Dated this 16th day of September, 2021.

__________________________________
Katie Savarin
Coordinator, Regulatory Operations