HomeMy WebLinkAbout20101206_3173.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
FROM: KRISTINE SASSER
DEPUTY ATTORNEY GENERAL
DATE: DECEMBER 2, 2010
SUBJECT: IDAHO POWER’S APPLICATION FOR APPROVAL OF A FIRM
ENERGY SALES AGREEMENT WITH J.M. MILLER ENTERPRISES,
CASE NO. IPC-E-10-37
On November 15, 2010, Idaho Power Company filed an Application with the
Commission requesting approval of a 10-year Firm Energy Sales Agreement (“Agreement”)
between Idaho Power and J.M. Miller Enterprises, Inc. (J.M. Miller) dated November 1, 2010.
The Application states that J.M. Miller would sell and Idaho Power would purchase electric
energy generated by the Sahko Hydro Project ( “Facility”) located near Filer, Idaho.
THE AGREEMENT
The Application states that J.M. Miller is currently selling energy from this Facility to
Idaho Power under a Schedule 86 non-firm agreement dated September 7, 2005, approved by the
Commission in September 2005. Order No. 29874. Application at 2. The Agreement specifies
that the existing agreement shall be terminated at the time the Facility achieves its Operation
Date as specified within the presently submitted Agreement.
The Agreement is for a term of 10 years and contains the current non-levelized
published avoided cost rates established by the Commission in Order No. 31025 for energy
deliveries of less than 10 average megawatts (“aMW”). The nameplate rating of the Facility is
0.5 MW.1 Interconnection for this Facility was completed in association with the existing
Schedule 86. Id. at 4. Therefore, all applicable interconnection charges and monthly operation
1 Although Idaho Power filed a Joint Petition with the Commission on November 5, 2010, seeking a reduction in the
published avoided cost rate eligibility cap from 10 aMW to 100 kW, Idaho Power does not believe that this
Agreement should be impacted by that filing. Id. at 2.
DECISION MEMORANDUM 2
and maintenance charges have already been assessed and collected from J.M. Miller regarding
this Facility.
As this Facility is already providing energy to Idaho Power under an existing
Schedule 86 agreement, J.M. Miller selected a Scheduled Operation Date of 30 days past the date
this Agreement is approved by the Commission. By its own terms, the Agreement will not
become effective until the Commission has approved all of the Agreement’s terms and
conditions and declares that all payments made by Idaho Power to J.M. Miller for purchases of
energy will be allowed as prudently incurred expenses for ratemaking purposes. Agreement ¶
21.1.
Idaho Power requests that its Application be processed by Modified Procedure
pursuant to Commission Rules of Procedure 201-204. IDAPA 31.01.01.201-.204.
STAFF RECOMMENDATION
Staff recommends that the case be processed by Modified Procedure.
COMMISSION DECISION
Does the Commission wish to process this case under Modified Procedure?
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