20250520Staff Comments.pdf

RECEIVED
May 20, 2025
ERIKA K. MELANSON IDAHO PUBLIC
DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11560
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-25-19
APPROVAL OF A FIRST AMENDMENT TO )
THE ENERGY SALES AGREEMENT FOR )
THE SALE AND PURCHASE OF ELECTRIC ) COMMENTS OF THE
ENERGY FROM THE BIRCH CREEK ) COMMISSION STAFF
HYDRO PROJECT )
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"),by and through its Attorney of record, Erika K. Melanson, Deputy Attorney
General, submits the following comments.
BACKGROUND
On April 8, 2025, Idaho Power Company("Company") applied to the Commission
requesting approval of the First Amendment to the Energy Sales Agreement, between the
Company and Birch Creek Trout, Inc. ("Birch Creek Trout"), for the sale and purchase of
electric energy generated by the Birch Creek Hydro Project("Facility").
The Company and Birch Creek Trout entered into an Energy Sales Agreement("ESA")
on July 3, 2019, for the sale and purchase of electric energy generated by the Facility located
STAFF COMMENTS 1 MAY 20, 2025

near Hagerman, Idaho. The ESA was approved by the Commission in Case No. IPC-E-19-23 on
October 4, 2019, through Order No. 34456.
The Company states that it entered into a Consent, Assignment, and Assumption
Agreement, effective as of January 23, 2025 ("Agreement"), with Birch Creek Trout to transfer
Birch Creek Trout's interest in the Facility to Birch Creek Land and Water, LLC ("Birch Creek
Land and Water"). The Company states that pursuant to the terms of the Agreement, Birch
Creek Trout has assigned, and Birch Creek Land and Water has assumed the ESA and the rights
and obligations of the Seller.
The Company states that the Amended ESA correctly identifies the Seller as Birch Creek
Land and Water, and revises "Article XXIII Modification" to be in conformity with language
previously approved by the Commission.
STAFF ANALYSIS
Staff reviewed the proposed First Amendment and believes that the proposed amendment
is reasonable. Therefore, Staff recommends that the Commission approve the proposed First
Amendment.
First, Staff believes that the proposed First Amendment has accurately reflected that
Birch Creek Trout's interest in the Facility has transferred to Birch Creek Land and Water and
has thus correctly identified the new Seller.
Second, Staff reviewed the proposed "Article XXIII Modification" in the First
Amendment, which addresses potential modifications to the Facility. Staff believes the language
complies with Order No. 35705. However, Staff also recommends that if the Facility is
modified, the Company only include the net power supply expense that reflects the proper
authorized rate of the Facility as actually modified for all energy delivered as of the first
operation date of the modified Facility in the Company's Power Cost Adjustment, regardless of
the compensation paid to the Seller. This places the ownership for monitoring the contract and
any modifications made to the Facility on the Company to ensure the proper rate is paid to the
Seller if and when modifications are made to the Facility. This treatment is consistent with the
Commission direction in Order No. 35705.
STAFF COMMENTS 2 MAY 20, 2025

STAFF RECOMMENDATION
Staff recommends that the Commission approve the proposed First Amendment. Staff
also recommends that if the Facility is modified, the Commission order the Company to only
include the net power supply expense that reflects the proper authorized rate of the Facility as
actually modified for all energy delivered as of the first operation date of the modified Facility in
the Company's Power Cost Adjustment, regardless of the compensation paid to the Seller.
Respectfully submitted this 20th day of May 2025.
EOW aAk-Q-�--
Enka K. Melanson
Deputy Attorney General
Technical Staff: Yao Yin
1:\Utility\UMISC\COMMENTS\IPC-E-25-19 Comments.doex
STAFF COMMENTS 3 MAY 20, 2025

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS oL.O DAY OF MAY 2025, SERVED
THE FOREGOING COMMENTS OF THE COMMISSION STAFF , IN
CASE NO. IPC-E-25-19, BY &MAILING A COPY THEREOF, TO THE FOLLOWING:
DONOVAN E. WALKER
MEGAN GOICOECHEA ALLEN
IDAHO POWER COMPANY
1221 WEST IDAHO STREET
PO BOX 70
BOISE ID 83707-0070
E-MAIL:
dwalkergidahopower.com
mgoicoecheaallengidahopower.com
docketsgidahopower.com
energ_ycontractsgidahopower.com
PATRICIA JORDAN, ECRETARY
CERTIFICATE OF SERVICE