20260824Staff Comments.pdf

RECEIVED
August 24, 2026
IDAHO PUBLIC
UTILITIES COMMISSION
KELSEA E. ROSS
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83702
[phone]
IDAHO STATE BAR NO. 12050
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-26-22
APPROVAL OF THE FIRST AMENDMENT )
TO THE ENERGY SALES AGREEMENT )
BETWEEN IDAHO POWER AND PICO ) COMMENTS OF THE
ENERGY,LLC ) COMMISSION STAFF
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"),by and through its attorney of record,Kelsea E. Ross,Deputy Attorney General,
submits the following comments.
BACKGROUND
On July 6, 2026, Idaho Power Company ("Company") applied to the Commission
requesting an order approving the First Amendment ("First Amendment") to the Energy Sales
Agreement ("ESA") between the Company and Pico Energy, LLC ("Pico") regarding Pico's
cogeneration facility("Application").
The proposed First Amendment modifies the ESA to: (1) show the reduction in Nameplate
Capacity at Pico's cogeneration facility("Facility") from 2.276 megawatts("MW")to 1.138 MW;
(2) update the description of the Facility to reflect the use of a single generator; (3) update the
Maximum Capacity Amount to 1.138 MW; and(4)include language approved by the Commission
regarding Facility modifications. Id. at 2-3.
STAFF COMMENTS 1 AUGUST 24, 2026

STAFF ANALYSIS
To determine whether the proposed First Amendment is reasonable, Staff analyzed the
proposed modifications mentioned above and the proposed language contained in the amendment.
As a result of its analysis, Staff believes that although the new changes are accurately reflected in
the First Amendment, material from Appendix B-1 and Appendix B-4 of the currently approved
ESA are inaccurately cited in the First Amendment. Therefore, Staff recommends that the
Commission approve the First Amendment on the condition that the parties include the correct
language found in Appendix B-1 and Appendix B-4 from the currently approved ESA in the First
Amendment through a compliance filing. Specifically, the correct value and unit of the capacity
amounts that were stated in the currently approved ESA and that are being modified in the First
Amendment.
Reduction in Nameplate Capacity and Maximum Capacity Amount
The Facility is a cogeneration facility that previously consisted of two generators with a
total Nameplate Capacity of 2.276 MW. Application at 2. Recently, Pico has decommissioned
one generator due to the age, condition, and need for required repairs. Id. Currently, the Facility
is operating with one generator with a Nameplate Capacity of 1.138 MW. Id. This change also
reduces the Facility's Maximum Capacity Amount to 1.138 MW. Id. at 3.
When a proposed Nameplate Capacity or a proposed Maximum Capacity Amount is
greater than the Nameplate Capacity or the Maximum Capacity Amount in the original contract,
Staff believes the Commission has determined that the seller should not receive capacity payments
for the incremental amount of capacity until the first capacity deficit date. See Order Nos. 34956,
35262, and 35223. Since the proposed Nameplate Capacity and the proposed Maximum Capacity
Amount are smaller than that included the approved ESA, Staff believes that Pico's capacity
payments should not be affected by the First Amendment.
Although the proposed updates are accurately reflected in the First Amendment, Staff
believes that material from Appendix B-1 and Appendix B-4 from the approved ESA are
inaccurately cited in the First Amendment, as shown in Table No. 1 below. Therefore, Staff
recommends that the Commission approve the First Amendment on the condition that the parties
include the correct language found in Appendix B-1 and Appendix B-4 from the currently
approved ESA in the First Amendment through a compliance filing. Specifically, the correct
STAFF COMMENTS 2 AUGUST 24, 2026

value and unit of the capacity amounts that were stated in the currently approved ESA and that
are being modified in the First Amendment.
Table No. 1: Typographical Errors in First Amendment
Language from Currently
Language from First Amendment Approved ESA
"Facility Nameplate Capacity:
Appendix B-1 2.276"l "First Nameplate Capacity: 2,276
kW„2
"The Max Capacity Amount is "The Maximum Capacity Amount is
Appendix B-4 2.276...,,3 2.13 MW..."4
Article XXIII (Modification)
Staff also reviewed Article XXIII (Modification) proposed in the First Amendment that
addresses potential modifications to the Facility and believes the language complies with Order
No. 35705. Staff interprets Order No. 35705 to require energy sales agreements to include the
following: (1) language restricting a qualifying facility seller from modifying their facility from
the as-built description of the facility in the contract, without promptly notifying the Company of
that intent; (2) language requiring the seller to provide notification of planned modifications such
as changes to fuel or capacity size in the as-built description; (3) language requiring parties to
amend the contract reflecting the facility as actually modified; and (4) language ensuring that the
payment structure allows payment for only the proper authorized rates of the facility as actually
modified and as of the date when energy is first delivered as a modified facility.
Staff believes that these requirements are met by Article XXIII (Modification) in the First
Amendment. Specifically, Staff believes that the first requirement is met by Paragraph 23.2; that
the second requirement is met by Paragraph 23.2.2; that the third requirement is met by Paragraph
23.5; and that the fourth requirement is met by Paragraph 23.4.1 and Paragraph 23.6.
1 First Amendment at 4. Staff is noting that"2.276"should have been"2,276 kW"as stated in the currently
approved ESA.
2 Attachment 1 of Reply Comments in Case No.IPC-E-19-39.
3 First Amendment at 4. Staff is noting that"2.276"is not the correct value and does not specify the unit,and thus
should have been"2.13 MW"as stated in the currently approved ESA.
4 The ESA contained in the Application in Case No.IPC-E-19-39.
STAFF COMMENTS 3 AUGUST 24, 2026

STAFF RECOMMENDATION
Staff recommends that the Commission approve the First Amendment on the condition that
the parties include the correct language found in Appendix B-1 and Appendix B-4 from the
currently approved ESA in the First Amendment through a compliance filing. Specifically, the
correct value and unit of the capacity amounts that were stated in the currently approved ESA and
that are being modified in the First Amendment.
Respectfully submitted this 24th day of August 2026.
Kelsea E. Ross
Deputy Attorney General
Technical Staff. Yao Yin
I:\Utility\UMISC\COMMENTS\IPC-E-26-22 Comments.docx
STAFF COMMENTS 4 AUGUST 24, 2026

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 24th DAY OF AUGUST 2026,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. IPC-E-26-22, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING:
DONOVAN E. WALKER
LISA C. LANCE
IPC DOCKETS
ENERGY CONTRACTS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707
E-MAIL:
dwalker(cidahopower.com
llance(k idahopower.com
dockets(&,idahopower.com
energycontracts(kidahopower.com
PATRICIA JORD , SECRETARY
CERTIFICATE OF SERVICE