20130415_4026.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: KRISTINE SASSER
DEPUTY ATTORNEY GENERAL

DATE: APRIL 12, 2013

SUBJECT: IDAHO POWER’S REQUEST TO AMEND ITS FIRM ENERGY SALES
AGREEMENT WITH CLARK CANYON, CASE NO. IPC-E-13-07

On March 20, 2013, Idaho Power Company filed a Motion to Amend its Firm Energy
Sales Agreement (Agreement) with Clark Canyon, LLC (Clark Canyon) dated May 20, 2011.
The amendment provides for a revised first energy and scheduled operation date, a right of first
refusal to purchase the project, the payment of delay liquidated damages, and the continued
maintenance of delay damage security.
THE AMENDMENTS
The Agreement entered into on May 20, 2011, contains a First Energy Date of
November 1, 2012, and a Scheduled Operation Date of March 31, 2013. On or about December
11, 2012, Clark Canyon requested an extension of its First Energy Date to November 30, 2013,
and an extension of its Scheduled Operation Date to December 31, 2013. The amendment also
adds a provision granting Idaho Power a first right of purchase should the facility be sold and
provides for payment of liquidated damages and continued maintenance of delay security.
Idaho Power asserts that the amendment is fair and equitable and in the public
interest. The Company maintains that the avoided cost rates contained in the Agreement are
substantially similar to the avoided cost rates that the project would receive if it entered into a
new contract at today’s rates. Idaho Power further states that the existing Agreement splits
renewable energy credits equally between the Company and the project.
The amendment states that Clark Canyon will pay $211,500 in delay liquidated
damages and maintain the posting of liquid financial security in the amount of $211,500 with an
expiration no sooner than April 30, 2014.
DECISION MEMORANDUM 2
Idaho Power requests that its Motion be processed without further procedure or, in the
alternative, as expeditiously as possible 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?

M:IPC-E-13-07_ks