20110317Petition to Clarify Order No 32196.pdf

Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83720-0074
W. MARCUS W. NYE
RANDALL C. BUDGE
JOHN A. BAILEY, JR.
JOHN R. GOODELL
JOHN B. INGELSTROM
DANIEL C. GREEN
BRENT O. ROCHE
KIRK B. HADLEY
FRED J. LEWIS
ERIC L. OLSEN
CONRAD J. AIKEN
RICHARD A. HEARN, M.D.
LANE V. ERICKSON
FREDERICK J. HAHN, III
DAVID E. ALEXANDER
PATRICK N. GEORGE
SCOTT J. SMITH
JOSHUA D. JOHNSON
STEPHEN J. MUHONEN
CANDICE M. MCHUGH
CAROL TIPPI VOLYN
BRENT L. WHITING
JONATHON S. BYINGTON
DAVE BAGLEY
THOMAS J. BUDGE
JONATHAN M. VOLYN
MARK A. SHAFFER
JASON E. FLAIG
FERRELL S. RYAN, III
AARON A. CAARY
Dear Mrs. Jewell
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RACINE OLSON NYE BUDGE & BAILEY
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LOUIS F. RACINE (1917-2005)
WILLIAM D. OLSON, OF COUNSEL
March 15,2011
~;~.o
Re: Case No. PAC-E-10-07
Please find enclosed for filing the original and seven copies of Monsanto CompanyBetition
to Clarif Order No. 32196 and Supporting Affdavit of Randall C. Budge.
Than you for your assistance.
. BUDGE
RCB:rr
Enclosures
cc: Serice List (w/encls.)
Randall C. Budge, ISB No. 1949
RACINE, OLSON, NYE, BUDGE &
BAILEY, CHARTERED
P.O. Box 1391; 201 E. Center
Pocatello, Idaho 83204-1391
Telephone: [phone]
Fax: [phone]
rcbcmracine1aw.net
. " ('
2011 AH D... 1'"v" ~.. ; 11tH . I
(' Iu: ItO
Attorneys for Intervenor Monsanto Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
ROCKY MOUNTAI POWER FOR APPROVAL)
OF CHANGES TO ITS ELECTRIC SERVICE )
SCHEDULES AND A PRICE INCREASE OF )
$27.7 MILLION, OR APPROXIMATELY )13.7 PERCENT )
)
Case No. PAC-E-I0-07
PETITION TO CLARFY ORDER NO. 32196
COMES NOW Intervenor, Monsanto Company ("Monsanto"), through counsel, and
hereby petitions the Idaho Public Utilities Commission ("Commission") pursuant to Rule 325 of
the Rules of Procedure, IDAPA 31.01.01, to clarfy Order No. 32196 issued Febru 28,2011
("the Order") as it relates to certain terms of Monsanto's Electric Service Agreement ("ESA")
with PacifiCorp, dba Rocky Mountain Power ("RMP"; "Company"). Specifically, Monsanto
requests clarification:
(l) That the terms of Monsanto's new five-year ESA and Tarff Schedule 400 remain
the same as the prior ESA (Exhibit 251) and Tarff Schedule 400, except for the changes in the
firm and interrptible credit rates set forth in the Order.
(2) Whether the Interrptible Credit of $8.74 per kW-month established by the Order
applies to Monsanto's full load in excess of the 9 MW of firm power and energy consistent with
the previous Agreement; or, only applies to the first 162,000 kW ofInterrptible Demand as the
PETITION TO CLARIFY ORDER NO. 32196 - 1
Company now proposes.
(3) Whether the firm power and firm energy charge and Interrptible Credit remain
fixed for the five-year term of the Agreement; or, whether one or both are subject to price
adjustments during the five-year term of the ESA.
(4) Whether the index in ESA Exhibit B should be changed from "Dow Jones" to
"Intercontinental Exchange ("ICE") Day-Ahead" and Exhibit "B-3" deleted as proposed by the
Company.
This Petition is based upon the record and supporting Affidavit of Randall C. Budge fied
herewith and the exhibits attached thereto.
INTRODUCTION
In this proceeding, neither the Company, Monsanto, Staff nor any other par proposed
any changes to the terms or conditions of the curent ESA between the Company and Monsanto,
nor Tariff Schedule 400, except for the firm rate and interrptible credit for Monsanto's three
Interrptible Products. Pursuant to the Order the Commission established a total Interrptible
Product value of $17.0 Milion and stated: "The Commission expects the paries to craft an
agreement that establishes a value for Monsanto's Interrptible Product that extends for a period
of five years." Order at 67. Accordingly, Monsanto reasonably expected and anticipated the
Company would provide a new ESA updated with respect to the dates, rate and interrptible
credit, but otherwise containing the identical terms of the previous Contract, Exhibit 251.
However, the Company submitted its proposed ESA to Monsanto on March 2, 2011,
which contains certain new and different terms in paragraphs 2.2 and 4.1.2 and has since
submitted a new and different Tariff Schedule 400, neither of which comply with the Order.
These new changes were never par of the Company's filing in this case nor any testimony or
evidence presented at the hearing. In response, Monsanto proposed its ESA to the Company
without change to the previous ESA except for the firm rate and interrptible credit which
Monsanto believes is in compliance with the Order. However, the Company is not willng to
accept Monsanto's proposed ESA and insists upon its new changes. Furhermore, the Company
insists that if Monsanto does not sign the Company's proposed ESA that the Company wil not
PETITION TO CLARIFY ORDER NO. 32196 - 2
interrpt Monsanto, that Monsanto will not be provided any interrptible credit and instead will
be biled for all power used at firm rates. See, R. Budge AfJ, Ex 1.
Monsanto remains wiling to execute an ESA which complies with the Order as clarfied
by the Commission as a result of this Petition. In the meantime it is Monsanto's intent to
continue to provide all interrptible products to the Company as per the Order. Until such time
as the Company executes a new ESA with Monsanto incorporating the terms of the Order and
providing the clarifications requested by this Petition, the Commission should incorporate in
Schedule 400 by reference the terms and conditions of the existing ESA to insure that Monsanto
continues to receive the interrptible credits.
THE COMPANY'S PROPOSED CHANGES TO THE ESA AND TARFF
SCHEDULE NO. 400 SHOULD BE REJECTED
The Company seems intent upon either: (1) imposing upon Monsanto its own creative
interpretation of the Order and unilaterally modifying the terms and conditions of the previous
ESA (Exhibit 251) by adding new terms and conditions not authorized by the Commission; or (2)
converting Monsanto to a firm customer by refusing the Commission's directive to execute a
new five-year contract to continue Monsanto as an interrptible customer as it always has been.
The ESA which the Company proposes purortedly in compliance with the Order
changes the dates, the reference to the Company's name to "PacifiCorp" to "Rocky Mountain
Power", and deleted certain language no longer relevant, to which Monsanto has no objection.
See, R. Budge AfJ, Exs 1, 2, ESA ~ 2.2, 4.1, 4.1.2. However, the Company's proposed ESA
includes three new changes and additions to ESA paragraphs 2.2 and 4.1.2 as follows:
(1) Paragraph 2.2: The following language was added at the end of the first
sentence in paragraph 2.2: "Excluding the Interrptible Credit of $8.74 per kW
which shall remain fixed for the term of this Agreement." The effect of this
change is to subject Monsanto's firm rates to adjustments but not Monsanto's
Interrptible Credit to adjustments durng the five-year term of the ESA.
(2) Paragraph 4.1.2: The Company added two new bullet points as follows:
PETITION TO CLARIFY ORDER NO. 32196 - 3
. "For up to the 162,000 kW ofInterrptible Demand:"
. "For the portion of Interrptible Demand that exceeds 162,000 kW: Firm
Demand Charge."
The effect of this change is to subject more of Monsanto's load to the firm
demand charge than has ever been considered previously. This change was
never requested by PacifiCorp until the proposed ESA of March 2,2011, and
was never brought up at anytime during the entire proceeding.
(3) Exhibits "B" and "B-3": The Company proposed to change the index in ESA
Exhibit B from "Dow Jones" to "Intercontinental Exchange ("ICE") Day-Ahead" and to
delete Exhibit "B-3". The impact of this change is unown but potentially problematic
since Monsanto has subscribed to and relies upon the Dow Jones index to make buy-
through decisions under the ESA. Monsanto is curently evaluating this proposed change
to determine the effect and if none will withdraw this objection.
These new changes proposed by the Company were not a par of the Company's original fiing in
this case nor any subsequent testimony or exhibits presented by the Company or any other pary.
As such they are clearly improper and contrar to the Order.
Monsanto submitted on March 9, 2011, its proposed ESA in redline format to show the
changes made to the Company's proposed ESA by deleting the Company's new additions
described above. R. Budge Aff, ~5, 6, Exs. 3, 4. Additionally, upon review of the existing Tarff
Schedule 400, Monsanto believes that no changes are necessar and that it is in compliance with
the Order as well as Monsanto's proposed ESA. R. Budge Aff, ~5, Ex. 5.
The Company has rejected Monsanto's proposed ESA and has submitted a new and
different Tariff Schedule 400. Accordingly, Monsanto has fied this Petition to Clarify Order No.
32196 to resolve the disagreement between the paries over the terms of Monsanto's Special
Contract and provide direction concerning the implementation of the Order.
PETITION TO CLARIFY ORDER NO. 32196 - 4
MONSANTO'S POSITION ON CLARIFICATION
Monsanto respectfully submits that the Commission should provide clarfication, ruling
as follows with respect to the issues submitted:
1. That except for the changes in the firm and interrptible credit rates as set forth in
the Order, the terms of Monsanto's new five-year ESA with the Company and Tarff Schedule
400 should remain unchanged.
2. That the Interrptible Demand Charge of$4.71 ($13.45 firm rate less the credit of
$8.74) established in the Order should apply to Monsanto's full load in excess of the 9 MW of
firm power and energy consistent with the previous Agreement.
3. That the firm power and energy charges and interrptible credit should remain
fixed for the five-year terms of the Agreement; or, that both should be subject to adjustments
during the five-year term of the ESA.
4. The Dow Jones index in Exhibit B should remain unchanged.
Monsanto remains willng to execute an ESA with the Company that complies with the
Order as clarified by the Commission in response to this Petition and in the meantime wil
continue to provide interrptible products in the meantime per the Order and prior ESA.
Anticipating that the Company may refuse to sign any ESA with Monsanto the Commission
should order the Company to do so and until such time incorporate all terms of the approved
ESA in Schedule 400 to provide certainty that Monsanto wil continue to make available its
interrptible products and receive the approved interrptible credit.
Oral arguent is not requested by Monsanto on its Petition, but Monsanto is happy to
present oral argument or fuher evidence to the Commission if desired.
RESPECTFULLY SUBMITTED this /day of March, 2011.
PETITION TO CLARIFY ORDER NO. 32196 - 5
PETITION TO CLARIFY ORDER NO. 32196 - 6
RACINE, OLSON, NYE, BUDGE &
BAILEY, CHATERED
By ~Lr;~
CERTIFICATE OF MAILING
. fA
I HEREBY CERTIFY that on this !õ day of March, 2011, I served a true, correct
and complete copy of the foregoing document, to each of the following, via the method so
indicated:
Jean D. Jewell, Secretar (original and 9)
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
E-mail: jjewell~puc.state.id.us U.S. Mail
Ted Weston
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, Utah 841 1 1
E-mail: ted.weston(iacificorp.com E-Mail
Paul J. Hickey
Hickey & Evans, LLP
1800 CareyAve., Ste 700
PO Box 467
Cheyenne, WY 82003
E-mail: phickeycmhickeyyans.com E-Mail
Mark C. Moench
Daniel Solander
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, Utah 84111
E-mail: mark.moenchcmpacificorp.com
danel.solandercmpacificorp.com
E-Mail
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, Oregon 97232
E-mail: datarequestcmpacificorp.com
E-Mail
Scott Woodbur
Deputy Attorney General
PETITION TO CLARIFY ORDER NO. 32196 - 7
Idaho Public Utilties Commission
P. O. Box 83720
Boise, Idaho 83720-0074
E-mail: scott. woodburcmpuc.idaho.gov
E-Mail
Katie Iverson
Brubaker & Associates
17244 W. Cordova Cour
Surrise, Arizona 85387
E-mail: kiversoncmconsultbai.com
E-Mail
James R. Smith
Monsanto Company
P. O. Box 816
Soda Springs, Idaho 83276
E-mail: jim.r.smithcmmonsanto.com
E-Mail
Eric L. Olsen
Racine, Olson, Nye, Budge & Bailey
P.O. Box 1391
Pocatello, Idaho 83204-1391
E-mail: elocmracinelaw.net
E-Mail
Anthony Yanel
29814 Lake Road
Bay Vilage, Ohio 44140
E-mail: tonyCianeLnet
E-Mail
Tim Buller
Jason Haris
Agrium, Inc.
3010 Conda Road
Soda Springs, Idaho 83276
E-mail: tbullercmagrium.com
j aharscmagrium.com
E-mail
Benjamin J. Otto
Idaho Conservation League
P. O. Box 844
Boise, Idaho 83702
E-mail: bottocmidahoconservation.org
E-Mail
PETITION TO CLARIFY ORDER NO. 32196 - 8
. )
Dr. Don Reading
6070 Hil Road
Boise, ID 83703
E-mail: dreadingcmmindspring.com
Melinda J. Davison
Davison Van Cleve, P.C.
333 SW Taylor, Suite 400
Portland, Oregon 97204
E-mail: mjdcmdvclaw.com
Ronald L. Wiliams
Willams Bradbur, P.C.
1015 W. Hays Street
Boise, Idaho 83702
E-mail: roncmwillamsbradbur.com
Brad M. Purdy
Attorney at Law
2019N. 17th Street
Boise, Idaho 83702
E-mail: bmpurdycmhotmail.com
PETITION TO CLARIFY ORDER NO. 32196 - 9
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