20240726Final_Order_No_36279.pdf

Office of the Secretary
Service Date
July 26,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IDAHO POWER COMPANY'S ) CASE NO. IPC-E-24-21
APPLICATION FOR APPROVAL OF A )
FIRST AMENDMENT TO THE ENERGY )
SALES AGREEMENT FOR THE SALE ) ORDER NO. 36279
AND PURCHASE OF ELECTRIC ENERGY )
FROM THE SHOSHONE HYDRO )
PROJECT )
On May 24, 2024, Idaho Power Company ("Company") applied for approval of a First
Amendment to an existing energy sales agreement ("ESA") between itself and Shoshone Hydro
LP ("Seller") for energy generated by the Shoshone Hydro Project ("Facility") ("Application").
The Company requested this matter be processed by Modified Procedure.
On June 25, 2024, the Commission issued a Notice of Application and established public
comment and party reply deadlines. Order No. 36239. Commission Staff("Staff')filed comments
to which the Company did not respond.
With this Order, we approve the proposed First Amendment to the ESA as filed.
THE APPLICATION
The proposed First Amendment would adjust Article 6.2.3 regarding the Net Energy
Amount("NEA")notification requirements as well as the ESA's treatment of future modifications
to the ESA.
The proposed First Amendment would replace the language in Article 6.2.3 so that the
estimated NEA adjustment would change from the current one-month advance notice to the 25th
day of the month prior to the month where the NEA is adjusted (unless the 25th falls on a holiday
or weekend, then the NEA adjustment would need to be made the last business day before the
25th). The Company stated that the Commission has approved five-day advanced notice revisions
to the NEA in previous cases.
The Company's proposed First Amendment also includes an update to Article XXIII of the
ESA in the event the Seller modifies the Facility during the term of the ESA. This modification is
consistent with several recent Commission orders.
ORDER NO. 36279 1

STAFF COMMENTS
Staff recommended approval of the proposed First Amendment. Staff stated that the First
Amendment primarily adjusts the estimated NEA notification requirement from one-month to five
days—a change which has been approved in prior Commission orders. Additionally, Staff noted
that the First Amendment brings Article XXIII of the ESA (regarding Facility modifications) into
compliance with Commission mandates. Consistent with its recommendations in similar ESA
amendment cases, Staff recommended that regardless of the actual compensation remitted to the
Facility after modification, the Company should only be allowed to recover, through the Power
Cost Adjustment, the net power supply expenses reflecting the authorized rate for energy
delivered.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-502 and 61-
503. The Commission is empowered to investigate rates, charges,rules,regulations,practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and 61-503. The Commission also has authority under the Public Utility Regulatory
Policies Act of 1978 ("PURPA") and Federal Energy Regulatory Commission ("FERC")
regulations to set avoided cost rates, to order electric utilities to enter fixed-term obligations for
the purchase of energy from qualify facilities, and to implement FERC rules. The Commission
may enter any final order consistent with its authority under Title 61 and PURPA.
Having reviewed the record, including the Company's Application, the First Amendment
to the the ESA, and the comments in this case, the Commission finds it fair,just, and reasonable
to approve the Company's request to alter the NEA adjustment notification requirement. We also
find that it is fair,just, and reasonable to order that, if the Facility is modified, only the net power
supply expense that reflects the proper authorized rate for all energy delivered as of the first
operation date of the modified Facility be included in the Company's Power Cost Adjustment,
regardless of the compensation paid to the modified Facility. This treatment is consistent with the
Commission direction in Order No. 35705.
ORDER NO. 36279 2

ORDER
IT IS HEREBY ORDERED that the Company's proposed First Amendment to the ESA is
approved as filed.
IT IS FURTHER ORDERED that, if the Facility is modified, only the net power supply
expense that reflects the proper authorized rate for all energy delivered as of the first operation
date of the modified Facility shall be included in the Company's Power Cost Adjustment.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration.Idaho Code § 61-626.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 26th day of
July 2024. c m:-rA�L
ERIC ANDERSON, PRESIDENT
J R. HAMMOND JR., COMMISSIONER
G
EDWARD LODGE, COMN T SIONER
ATTEST:
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Commission Secretary
IALega1\ELECTRIC\IPC-E-24-21_Shoshone\orders\IPCE2421_FhW md.doex
ORDER NO. 36279 3