20240822Staff Comments.pdf

RECEIVED
Thursday, August 22, 2024 10:35:42 AM
IDAHO PUBLIC
UTILITIES COMMISSION
MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
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 THE APPLICATION )
OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-24-28
APPROVAL OF A SECOND AMENDMENT )
TO THE ENERGY SALES AGREEMENT FOR )
THE SALE AND PURCHASE OF ELECTRIC ) COMMENTS OF THE
ENERGY FROM THE LOWLINE #2 HYDRO ) COMMISSION STAFF
PROJECT )
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"), by and through its Attorney of record, Michael Duval, Deputy Attorney
General, submits the following comments.
BACKGROUND
On July 1, 2024, Idaho Power Company ("Company") filed an application with the
Commission requesting an order approving the Second Amendment("Second Amendment") to
the Energy Sales Agreement("ESA")between the Company and Lower Lowline LLC ("Seller")
for electric energy generated by the Seller's Lowline#2 Hydro Project ("Facility").
The Company and the Seller entered into the ESA on October 13, 2022, a First
Amendment with an effective date of March 30, 2023, and a Replacement First Amendment with
an effective date of April 7, 2023. The amended ESA was approved by the Commission in
Order No. 35767.
STAFF COMMENTS 1 AUGUST 22, 2024

STAFF ANALYSIS
Staff s review focused on the evaluation timeframe for seasonal hydro rates and the new
paragraph 23.8 of Article XXIII Modification. Staff recommends approval of the Second
Amendment.
Evaluation Timeframe for Seasonal Hydro Rates
The Seller is paid for the energy from the Facility at seasonal hydro avoided cost rates.
To qualify for the seasonal hydro rates, the Facility must produce at least 55% of its annual
generation during the months of June through August per each calendar year. Order No. 32802
at 5 and 6. The Second Amendment proposes that the evaluation timeframe change from each
calendar year to an annual timeframe from June 1 through May 31.
Staff believes the proposed evaluation timeframe from June 1 through May 31 is
acceptable because it has been previously allowed by the Commission for the purpose of
determining whether the 55%requirement is met. Order No. 35908 at 5 and 6.
Paragraph 23. 8 of Article XXIII Modification
Although the existing language in Article XXIII Modification of the ESA complies with
Order No. 35705, the Second Amendment proposes inclusion of a new paragraph 23.8:
No modification to this Agreement shall be valid unless it is in writing and signed
by both Parties and subsequently approved by the Commission.
This paragraph has appeared in many ESAs, and it reflects the significance of
Commission approval. Staff believes it is reasonable to include the paragraph.
Additionally, if the Facility is modified, Staff recommends that 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 Seller of the modified Facility. This treatment is consistent with
the Commission direction in Order No. 35705.
STAFF COMMENTS 2 AUGUST 22, 2024

STAFF RECOMMENDATION
Staff recommends the Commission approve the Second Amendment to the ESA between
the Company and the Seller for electric energy generated by the Seller's Lowline#2 Hydro
Project.
If the Facility is modified, Staff recommends that 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 Seller of the modified Facility.
Respectfully submitted this 22nd day of August 2024.
Michael Duval
Deputy Attorney General
Technical Staff: Yao Yin
I:\Utility\UMISC\COMMENTS\IPC-E-24-28 Comments.docx
STAFF COMMENTS 3 AUGUST 22, 2024

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS yV DAY OF AUGUST 2024,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. IPC-E-24-28, BY E-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 a,idahopower.com
E-MAIL: mg_oicoecheaallengidahopower.com
dwalkergidahopower.com
docketskidahopower.com
LOUIS ZAMORA
E-MAIL: Izamoragtfcanal.com
PATRICIA JORDAN
CERTIFICATE OF SERVICE