HomeMy WebLinkAbout20151221_4862.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER RAPER
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: DON HOWELL
DEPUTY ATTORNEY GENERAL
DATE: DECEMBER 18, 2015
SUBJECT: JOINT MOTION BY IDAHO POWER AND HIDDEN HOLLOW
ENERGY TO APPROVE SETTLEMENT AND DISMISS COMPLAINT,
CASE NO. IPC-E-12-18
In July 2012, Hidden Hollow Energy 2 filed a complaint against Idaho Power
Company alleging that Idaho Power had acted unlawfully in terminating a Power Purchase
Agreement (PPA) for a landfilled gas project at Ada County’s Hidden Hollow Landfill. Hidden
Hollow generally alleged that two force majeure events had occurred which negated Hidden
Hollow’s failure to produce and sell energy to Idaho Power.1 In its complaint, Hidden Hollow
requested that the Commission order Idaho Power to retract the termination of the PPA and
return $144,000 in delay liquidated damages to Hidden Hollow.
The Commission issued a Summons and Idaho Power timely answered the complaint
in August 2012. Hidden Hollow initiated discovery and then the parties informally asked that
action on the complaint be stayed.
On December 18, 2015, the parties filed a “Joint Motion to Approve Settlement
Stipulation for Dismissal [of the Complaint] with Prejudice.” Under the settlement, the Power
Purchase Agreement is terminated; Idaho Power agreed to return the deposit to Hidden Hollow
and that the complaint be dismissed.
1 The two force majeure events were related to Hidden Hollow’s failure to obtain a timely air quality permit and the
County’s contract with Dynamis Energy. The Dynamis contract undermined the available fuel source for Hidden
Hollow’s landfill gas project by allegedly directing trash stock to Dynamis for burning.
DECISION MEMORANDUM 2
The parties assert that settlement is in the public interest because it avoids protracted
and costly litigation involving multiple claims of force majeure and the collection of liquidated
damages. Hidden Hollow also remains in litigation with Ada County regarding certain items that
were the subject of Hidden Hollow’s complaint before the Commission. First Amended Motion
at 3-4. The parties further insist that the settlement is reasonable and in the public interest
because it “conclusively terminates a long-term [PPA] that contains terms and conditions that
have subsequently been found by the Commission to be no longer just and reasonable nor in the
public interest for new [PPA] going forward. . . .” Id. at 4.
COMMISSION DECISION
Based upon the parties settlement does the Commission find that the settlement is
reasonable and in the public interest?
Does the Commission approve the settlement, and the dismissal of the underlying
complaint without further proceedings?
/s/ Don Howell
Don Howell
Deputy Attorney General
bls/M:IPC-E-12-18_dh