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HomeMy WebLinkAbout20240815Staff Comments.pdf RECEIVED Thursday, August 15, 2024 9.08.36 AM IDAHO PUBLIC UTILITIES COMMISSION MICHAEL DUVAL DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0320 IDAHO BAR NO. 11714 Street Address for Express Mail: 11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A BOISE, ID 83714 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S APPLICATION FOR ) CASE NO. IPC-E-24-24 APPROVAL OF A SECOND AMENDMENT ) TO THE POWER PURCHASE SALES ) AGREEMENT BETWEEN IDAHO POWER ) COMMENTS OF THE AND TELOCASET WIND POWER ) COMMISSION STAFF PARTNERS ) COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission, by and through its Attorney of record, Michael Duval, Deputy Attorney General, submits the following comments. BACKGROUND On June 21, 2024, Idaho Power Company("Company") applied for approval of a Second Amendment to a power purchase agreement ("PPA")between itself and Telocaset Wind Power Partners, LLC ("Seller") for energy generated by the Elkhorn Wind Park("Facility") ("Application"). The Facility is not a qualifying facility under the Public Utility Regulatory Policies Act of 1978. The Company and the Seller(collectively, "the Parties") entered into the PPA with a 20- year term on December 15, 2006, but the 20-year term started when the Facility first became STAFF COMMENTS 1 AUGUST 15, 2024 operational on December 28, 2007, and did not include pricing for 2027, effectively the last year of the 20-year contract. STAFF ANALYSIS The current PPA contains two pricing options: Post-Operation Date Pricing and Post- Operation Date Alternative Pricing. Both options contain prices from 2007 through 2026 but do not include pricing for the last year(i.e. 2027) of the 20-year term. See Appendix A of the PPA. The Company has been using the Post-Operation Date Alternative Pricing since 2012. Application at 2. The Company proposes the Post-Operation Date Alternative Pricing for 2027 in the Second Amendment to the PPA. Staff confirmed that the proposed 2027 pricing uses the approved method authorized by the Commission in Order No. 30259. STAFF RECOMMENDATION Staff recommends that the Commission approve the Second Amendment. Respectfully submitted this 15th day of August 2024. Michael Duval Deputy Attorney General Technical Staff: Yao Yin Seungjae Lee I:\Utility\UMISC\COMMENTS\IPC-E-24-24 Comments.docx STAFF COMMENTS 2 AUGUST 15, 2024 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS _L6 7DAY OF AUGUST 2024, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. IPC-E-24-24, BY &MAILING A COPY THEREOF, TO THE FOLLOWING: MEGAN GOICOECHEA ALLEN ENERGY CONTRACTS DONOVAN E WALKER IDAHO POWER COMPANY IDAHO POWER COMPANY PO BOX 70 PO BOX 70 BOISE ID 83707-0070 BOISE ID 83707-0070 E-MAIL: energycontracts&idahopower.com E-MAIL: mgoicoecheaallengidahopower.com dwalkerkidahopower.com docketsgidahopower.com BRUNO SUBIETA E-MAIL: bruno.subietakedp.com /v! PATRICIA JORDAN CERTIFICATE OF SERVICE