20150427_4655.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER RAPER
COMMISSION SECRETARY
COMMISSION STAFF

FROM: DAPHNE HUANG
DEPUTY ATTORNEY GENERAL

DATE: APRIL 21, 2015

SUBJECT: IDAHO POWER’S APPLICATION TO APPROVE SECOND
AMENDMENT TO ITS POWER PURCHASE AGREEMENT WITH
HIDDEN HOLLOW ENERGY, CASE NO. IPC-E-15-11

On April 2, 2015, Idaho Power filed an Application asking the Commission to
approve the Second Amendment to its Power Purchase Agreement (PPA) with Hidden Hollow
Energy LLC.1 Hidden Hollow is a qualifying facility (QF) under the Public Utility Regulatory
Policies Act (PURPA). Amended Application at 1. Under the Agreement, Idaho Power
purchases, and Hidden Hollow sells, firm energy generated by the Hidden Hollow Landfill Gas
Project near Boise, Idaho. Order No. 29928 at 1. The parties’ proposed Second Amendment
“makes a change to the Net Energy Amount notification process.” Amended Application at 1.
BACKGROUND
Idaho Power first entered into a PPA with Hidden Hollow in October 2005. Id. at 2.
The Commission approved the PPA in December 2005. Id.; see Order No. 29928. Paragraph
6.2 of the original PPA allows Hidden Hollow to adjust the “Initial Year Monthly Net Energy
Amounts” each quarter, or no sooner than “the end of month three and every three months
thereafter.” Id. (citing Order No. 29632 at 23). This language caused confusion between the
parties as to the frequency with which Hidden Hollow could revise Net Energy Amounts. Id.
PROPOSED AMENDMENT
Rather than dispute the language, Idaho Power and Hidden Hollow entered into the
Second Amendment to the PPA, which changes paragraph 6.2 “to allow [Hidden Hollow] to
adjust the ‘Initial Year Monthly Net Energy Amounts’ on a monthly, rather than quarterly,

1 Idaho Power filed an Amended Application on April 6, 2015, correcting an error in paragraph 5.
DECISION MEMORANDUM 2
basis.” Id. at 3. Under the amended provision, Hidden Hollow would be able to “submit future
revisions on a monthly basis with a minimum of 30 days notice prior to the beginning of the next
month, rather than once every three months.” Id.
The Commission has recently approved similar changes to six PPAs between Idaho
Power and other QFs. Id.; see Order Nos. 33102, 33103, 33104, 33156, 33191, and 33240. In
Order No. 33102, the Commission stated, “we find that monthly, as opposed to quarterly,
reporting of energy generation estimates is a reasonably negotiated term between the parties and
not inconsistent with the Commission’s guidance and findings in Order No. 29632.”
Idaho Power asks that the Amendment be approved upon Staff’s review, without
further process.
STAFF RECOMMENDATION
Given the limited scope of the Amendment, Staff recommends that the request be
approved without further process.
COMMISSION DECISION
Does the Commission wish to approve the Amendment without further process?

Daphne Huang
Daphne Huang
Deputy Attorney General

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