20040621_872.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:KEITH HESSING
DATE:JUNE 18, 2004
RE:CASE NO. IPC-04-14 (Idaho Power)
60-DA Y EXTENSION OF J.R. SIMPLOT SPECIAL CONTRACT
On June 15, 2004, Idaho Power Company filed an Application to extend the term of an
August 27, 1973 Agreement that it has with J.R. Simplot Company for the supply of power and energy
to Simp lot's Pocatello fertilizer plant. Idaho Power represents that the JR Simp lot Company agrees
with the request for a 60-day extension. Without the extension, the Agreement terminates June 30
2004. The parties are negotiating in good faith and progress is being made on a new contract, but the
time remaining under the existing Agreement may not be enough to finalize it.
The Application presents the request as follows. "The parties herewith respectfully request
that the terms and conditions of the existing Agreement, as amended, remain in full force and effect
and that the Term of the Agreement be extended to the earlier of either August 2004 or to a date on
which the Commission approves a new Agreement between Idaho Power and the lR. Simp lot
Company for electric service in accordance with tariff Schedule 29 and its successor schedules." See
Schedule 29 attached.
STAFF REVIEW AND RECOMMENDATIONS
Staff has reviewed the Application and recommends approval of the extended contract term
(60 days). The electric rates that Idaho Power charges J.R. Simplot are not currently established by
contract. They are established under the tariff standard and, as such, were recently re-established as a
result of the Company s general rate case with an effective date of June 1 , 2004. Staff does not believe
that any other person will be disadvantaged by Commission approval of the contract extension. Staff
believes it to be in the public interest to approve the extension without further procedure. Does the
Commission agree?