20240314IPC to Staff 1_Attachment.pdf

MEGAN GOICOECHEA ALLEN
Corporate Counsel
[e-mail]

March 14, 2024

VIA ELECTRONIC MAIL

Commission Secretary
Idaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 201-A
Boise, Idaho 83714

Re: Case No. IPC-E-24-09
Rock Creek II Hydro Project
Idaho Power Company’s Application for Approval or Rejection of an Energy
Sales Agreement with BP Hydro Associates for the Sale and Purchase of
Electric Energy from the Rock Creek II Hydro Project

Dear Commission Secretary:

Attached for electronic filing is Idaho Power Company’s Response to the First
Production Request of the Commission Staff in the above-entitled matter. If you have any
questions about the attached documents, please do not hesitate to contact me.

Very truly yours,

Megan Goicoechea Allen

MAG:cd
Enclosures
RECEIVED
Thursday, March 14, 2024 3:05PM
IDAHO PUBLIC
UTILITIES COMMISSION
An IDACORP Company
IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE
COMMISSION STAFF - 1

MEGAN GOICOECHEA ALLEN (ISB No. 7623)
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

Attorneys for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OR REJECTION OF AN
ENERGY SALES AGREEMENT WITH BP
HYDRO ASSOCIATES FOR THE SALE
AND PURCHASE OF ELECTRIC ENERGY
FROM THE ROCK CREEK II HYDRO
PROJECT.

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CASE NO. IPC-E-24-09

IDAHO POWER COMPANY’S
RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE
COMMISSION STAFF

COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and in
response to the First Production Request of the Commission Staff to Idaho Power
Company dated March 12, 2024, herewith submits the following information:

IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE
COMMISSION STAFF - 2
STAFF REQUEST FOR PRODUCTION NO. 1: The current 1987 contract will
expire on April 2, 2024, and it is likely that the proposed Energy Sales Agreement ("ESA")
will not be approved by the Commission before the expiration date. Article XXI of the ESA
states that "[t]his Agreement shall only become effective upon the Commission's approval
of all terms and provisions hereof without change or condition and declaration that all
payments to be made to Seller hereunder shall be allowed as prudently incurred
expenses for ratemaking purposes." This will likely lead to a lapsed-contract period.
Please respond to the following:
a. Does the Facility plan to continuously operate during the lapsed-contract
period?
b. Page 12 of the Application states that "the Company proposes to pay the
Seller for any generation delivered from the Facility during the potential
lapsed contract period (April 3, 2024, until the service date of the final order
issued by the Commission) at the Surplus Energy Price as defined in
Section 7.2 of the Replacement ESA." Have the Company and the Seller
agreed to this arrangement?
RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 1:
a. Yes, it is the Company’s understanding that the Facility plans to
continuously operate during the lapsed-contract period.
b. Yes, consistent with the approach taken in Case No. IPC-E-21-08 (as
approved by the Commission in Order No. 35067), the Parties have
agreed that the Company will pay for any generation delivered from the
Facility during the potential lapsed contract period (April 3, 2024, until

IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE
COMMISSION STAFF - 3
the service date of the final order issued by the Commission) at the
Surplus Energy Price as defined in Section 7.2 of the Replacement ESA
subject to any true-up, adjustment, or rejection of terms and provisions,
or the contract itself, by the Commission. See March 11, 2024, Letter
Agreement that was executed by the Seller on March 12, 2024, provided
as Attachment 1.
The response to this Request is sponsored by Camille Christen, Resource
Acquisition, Planning and Coordination Manager, Idaho Power Company.

Respectfully submitted this 14th day of March 2024.

MEGAN GOICOECHEA ALLEN
Attorney for Idaho Power Company

IDAHO POWER COMPANY’S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE
COMMISSION STAFF - 4
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 14th day of March 2024, I served a true and
correct copy of the within and foregoing Idaho Power Company’s Response to the First
Production Request of the Commission Staff upon the following named parties by the
method indicated below, and addressed to the following:

Adam Triplett
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg No. 8
Suite 201-A (83714)
PO Box 83720
Boise, ID 83720-0074

Hand Delivered
U.S. Mail
Overnight Mail
FAX
FTP Site
X Email - [e-mail]

Courtesy Copy Sent via e-mail to:

Cory Lagerstrom
BP Hydro Associates
Rock Creek II Hydro
4603 Homestead Drive
Prairie Village, KS 66208
[e-mail]

________________________________
Christy Davenport, Legal Assistant

BEFORE THE

IDAHO PUBLIC UTILITIES COMMISSION

CASE NO. IPC-E-24-09

IDAHO POWER COMPANY

ATTACHMENT 1

March 11, 2024
Sent Via U.S. Mail and electronic mail: [e-mail]
Cory Lagerstrom
BP Hydro Associates
Rock Creek II Hydro
4603 Homestead Drive
Prairie Village, KS 66208
RE: Rock Creek II Hydro Project (1.9 MW)
Interim Letter Agreement – As Delivered Generation
Replacement Energy Sales Agreement #20240403
Dear Cory,
Idaho Power Company (“Idaho Power” or “the Company”) and BP Hydro Associates (“Seller”) entered
into a replacement Energy Sales Agreement (“ESA”) on February 27, 2024. The ESA replaces an
expiring contract that the Seller’s Rock Creek II Hydro Project (“Project”) has delivered generation
under for thirty-five (35) years. In accordance with Article 21.1 of the ESA, “This Agreement shall only
become finally effective upon the Idaho Public Utilities Commission’s (“Commission”) approval of all
terms and provisions hereof without change or condition and declaration that all payments to be made to
Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes.”
Due to the timing of when the ESA was fully executed by both parties and submitted to the Commission
on February 29, 2024, for its approval or rejection of the ESA, it is not possible for the Commission to
complete its review of the ESA before the existing agreement expires and the replacement ESA’s First
Energy Date and Commercial Operation Date occur on April 03, 2024. However, due to operational
circumstances, and considering that the existing facility has delivered generation to Idaho Power for 35
years and that the Seller desires to continue providing generation during the interim period from April
03, 2024, until such time as the Commission has issued an order approving or rejecting the ESA
(“Interim Period”).
Therefore, pursuant to this letter agreement, and provided that all ESA First Energy Date and
Commercial Operation Date requirements have been satisfied, Idaho Power will accept delivery of
generation from the Seller’s facility from April 03, 2024, until the Commission has either approved or
rejected the ESA. For any generation delivered during the Interim Period, Idaho Power shall pay the
Surplus Energy Price as defined in Article 7.2 of the ESA subject to any true-up, adjustment, or rejection
of terms and provisions, or the contract itself, by the Commission.
Idaho Power reserves the right to terminate this letter agreement at any time. Should this letter
agreement be terminated by the Company, Seller shall immediately stop making any deliveries of
generation to Idaho Power.
If you agree and accept this offer, please sign in the appropriate location below and return a copy to me
no later than March 15, 2024 at [e-mail].
DocuSign Envelope ID : CECD20DC-011C-41AD-9A0B-E9E15F5D955E
~-B_IDAHO __ POWE __ R_® __
1221 W . Idaho St . (83702)
P.O. Box 70
Bo ise, ID 83707
Page 2 of 2 March 11, 2024
Understood, Agreed and Accepted:
BP Hydro Associates
Signed:____________________________________________________
Name:_____________________________________________________
Date:______________________________________________________
Sincerely,
William Hatch
Senior Energy Contracts Coordinator
Idaho Power
cc: Pat Donahue
Chad Thompson
DocuSign Envelope ID : CECD20DC-011C-41AD-9A0B-E9E15F5D955E
Cory Lagerstrom
3/12/2024