20120820_3814.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: AUGUST 17, 2012

SUBJECT: IDAHO POWER COMPANY’S APPLICATION FOR AN ACCOUNTING
ORDER FOR PURPA DELAY DAMAGES, CASE NO. IPC-E-12-21

On July 27, 2012, Idaho Power Company filed an Application requesting an
accounting order to address damages it receives as a result of firm energy sales agreements with
small power producers. As required by the Public Utility Regulatory Policies Act of 1978
(PURPA) Idaho Power enters into energy sales agreements with qualifying facilities (QFs),
which agreements include Idaho Power’s right to recover damages if a QF fails to perform its
contractual obligations. The Company’s Application recognizes that its recovery of these
damages may occur infrequently, but when it does, the Company requests authority to provide
100% of the recovered funds to customers through the PCA mechanism.
The Company’s Application states that it currently is seeking to collect $200,000
from Yellowstone Power, Inc. as settlement of its failure to produce energy. See Case No. IPC-
E-10-22. Similarly, in Case No. IPC-E-10-44, Idaho Power is proposing to collect damages from
Hidden Hollow Energy 2, LLC. The Application states that with the resolution of these cases by
the Commission, “the Company is compelled to seek authorization regarding the process and
accounting to flow the potential collection of these damages back to Idaho Power’s customers.”
Application, p. 2.
The Company requests that its Application for an accounting order be processed by
Modified Procedure. Staff recommends that the Commission issue a Notice of Application and
Notice of Modified Procedure to process the Company’s Application.
DECISION MEMORANDUM 2
COMMISSION DECISION
Should the Commission issue a Notice of Application and Notice of Modified
Procedure to process Idaho Power Company’s Application for an accounting order?

Weldon B. Stutzman
Deputy Attorney General

bls/M:IPC-E-12-21_ws