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HomeMy WebLinkAbout20260624Notice_of_Application_Order_No_37074.pdf Office of the Secretary Service Date June 24,2026 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-26-16 COMPANY'S APPLICATION FOR ) APPROVAL OF THE ENERGY SALES ) NOTICE OF APPLICATION AGREEMENT WITH BOISE PROJECT ) BOARD OF CONTROL FOR THE SALE AND ) NOTICE OF MODIFIED PURCHASE OF ELECTRIC ENERGY FROM ) PROCEDURE THE MORA DROP SMALL ) HYDROELECTRIC FACILITY ) ORDER NO. 37074 On May 29, 2026, Idaho Power Company ("Company") applied to the Idaho Public Utilities Commission ("Commission") requesting approval of the Replacement Energy Sales Agreement("ESA")between the Company and Boise Project Board of Control (`Boise Project"), under which Boise Project sells and the Company purchases electric energy generated by the Mora Drop Small Hydroelectric Facility ("Facility"), which is a Public Utility Regulatory Policies Act ("PURPA") Qualifying Facility("QF") located in Kuna, Idaho. The Company requested an order be issued approving or denying the ESA by September 15, 2026. With this Order we issue notice of the Company's Application and set public comment and Company reply deadlines. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Facility is a 1.9 megawatt("MW") QF currently operating under a 2006 ESA between the Company and Riverside Hydro, L.L.C. ("Riverside"), which has been amended three times to update energy pricing and Net Energy Amount adjustment provisions. Application at 2. YOU ARE FURTHER NOTIFIED that the existing ESA expires on September 15, 2026, coinciding with the planned transfer of facility ownership from Riverside to Boise Project. Id. at 2-3. To replace the expiring agreement, the Company and Boise Project executed a new ESA on May 14, 2026, under which the Company will purchase the facility's energy for a new 20-year term at non-levelized rates calculated for a QF in the Seasonal Hydro category pursuant to the Surrogate Avoided Resource ("SAW') avoided cost methodology as set in Case No. IPC-E-26-02, Order No. 36974.Id. at 3. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37074 1 YOU ARE FURTHER NOTIFIED that the proposed ESA incorporates provisions required under PURPA, FERC regulations, and Commission orders, including monthly energy production estimates subject to the 90/110 firmness standard and a five-day advance notice process for revising estimated energy deliveries.Id. at 5-6. YOU ARE FURTHER NOTIFIED that the proposed ESA also includes updated modification provisions consistent with recent Commission directives and establishes procedures for maintaining Seasonal Hydro status. Id. at 7-8. To qualify, at least 55% of annual energy production must occur during June, July, and August, with the Company conducting annual reviews and periodic eligibility tests. Id. at 9. Failure to meet these requirements could result in recalculated payments or reclassification to non-seasonal hydro pricing.Id. YOU ARE FURTHER NOTIFIED that because the Facility is already interconnected and operating, the replacement ESA largely relies on existing interconnection arrangements and operational information, while allowing the Company to request updates as needed. Id. at 10. The seller will remain responsible for applicable interconnection and operational charges, and the Facility must maintain its designated network resource status to comply with transmission and FERC requirements. Id. YOU ARE FURTHER NOTIFIED that the proposed ESA will become effective only upon approval by the Commission and a determination that the Company's payments under the ESA are prudently incurred for ratemaking purposes. YOU ARE FURTHER NOTIFIED that the Application and proposed ESA are available for public inspection during regular business hours at the Commission's office. The Application and proposed ESA are also available on the Commission's website at www.puc.idaho.gov. Click on the "ELECTRIC" icon, select "Open Cases," and click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37074 2 NOTICE OF MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter, and that it will proceed under Modified Procedure pursuant to the Commission's Rules of Procedure 201-204, IDAPA 31.01.01.201-.204. The Commission notes that Modified Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this Application may file a written comment explaining why the person supports or opposes the Application. Persons who would like a hearing must specifically request a hearing in their written comments and explain why written comments alone are insufficient. Persons interested in filing written comments, must do so within 21 days of the service date of this Order. Comments must be filed through the Commission's website or by e-mail unless computer access is unavailable. To comment electronically, please access the Commission's website at www.puc.idaho.gov. Click the "Case Comment Form" and complete the form using the case number as it appears on the front of this document. To file by e-mail,persons must e-mail the comments to the Commission Secretary and all parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code § 74-101(13), and all information provided by such person is available for public and media inspection. If computer access is unavailable, then comments may be mailed to the Commission and the Parties at the addresses below.Persons submitting a comment by mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code§ 74-101(13),and all information provided by such person is available for public and media inspection. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37074 3 For the Idaho Public Utilities For the Company: Commission: Commission Secretary Donovan E. Walker Idaho Public Utilities Commission Lisa C. Lance P.O. Box 83720 IPC Dockets Boise, ID 83702-0074 Energy Contracts secretarykpuc.idaho. og_v 1221 West Idaho Street (83702) P.O. Box 70 Boise, ID 83707 dwalkernidahopower.com llance gidahopower.com energycontractskidahopower.com dockets&idahopower.com YOU ARE FURTHER NOTIFIED that the Company must file any reply comments within 28 days of the service date of this Order. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set, the Commission will consider this matter on its merits and enter its final order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing. ORDER IT IS HEREBY ORDERED that this Application be processed under Modified Procedure. Persons interested in submitting written comments must do so within 21 days of the service date of this Order. The Company must file any reply comments within 28 days of the service date of this Order. IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37074 4 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 24th day of June, 2026. G EDWARD LODGE, PR F19IDENT J R. HAMMOND JR., COMMISSIONER DAYN HA IE, COMMISSIONER ATTEST: do i a a n c h e z Commission Secretary IALegaRELECTRICUPC-E-26-16_Mom Drop Hydro\orders\ntc_app_mod_em.docx NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 37074 5