20260609Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: YAO YIN, COMMISSION STAFF
JEFF LOLL, DEPUTY ATTORNEY GENERAL
DATE: JUNE 9, 2026
RE: IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION FOR
APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT
WITH FOSSIL GULCH WIND PARK, LLC FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY FROM THE FOSSIL GULCH
WIND PARK; CASE NO. IPC-E-25-31.
BACKGROUND
On March 5, 2026, the Idaho Public Utilities Commission ("Commission") issued Order
No. 36956, conditionally approving the energy sales agreement ("ESA") between Idaho Power
Company ("Company") and Fossil Gulch Wind Park, LLC ("Seller") for energy generated by the
Fossil Gulch Wind Park in Twin Falls County, Idaho. The order required the Company and the
Seller to include several modifications in the ESA and file an updated ESA through a compliance
filing. Order No. 36956 at 5.
On May 4, 2026, the Company filed First Amendment to the ESA through a compliance
filing to reflect the modifications required by the Commission.
STAFF REVIEW
Staff reviewed the Company's compliance filing and believes that the First Amendment
has reflected all the required modifications, except for the requirement that avoided cost rates shall
be calculated based on the updated generation profile. Order No. 36956 at 4. However, Staff
believes that the generation profile used in the compliance filing is reasonable.
The updated generation profile referenced in Order No. 36956 was the data used to develop
the Initial Year Monthly Net Energy Amounts in the ESA, with a total annual generation amount
DECISION MEMORANDUM - 1 - JUNE 9, 2026

of 24,072 megawatt hours. Staff Comments at 7. However, when the Seller provided the Initial
Year Monthly Net Energy Amounts in the ESA at the monthly level, it did not provide an 8,760-
hour generation profile at the hourly level. Therefore, the generation profile that the Commission
required the parties to use to re-calculate avoided cost rates was not available. Therefore, in the
compliance filing, the parties re-calculated the avoided cost rates based on a new 8760-hour
generation profile produced after Order No. 36956 was issued. The parties also updated the Initial
Year Monthly Net Energy Amounts according to the new generation profile. Due to the
unavailability of hourly data necessary to meet the requirements in Order No. 36956, Staff believes
it is reasonable to use the new hourly generation profile for re-calculating the avoided cost rates.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Company's compliance filing filed on
May 4, 2026.
COMMISSION DECISION
Does the Commission wish to approve the Company's compliance filing filed on May 4,
2026?
-YL rt
Yao Yin
Utilities Analyst II
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