HomeMy WebLinkAbout20161107_5115.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: CAMILLE CHRISTEN
DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 3, 2016
SUBJECT: THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL
OR REJECTION OF AN ENERGY SALES AGREEMENT WITH H K
HYDRO LLC, CASE NO. IPC-E-16-25
On November 1, 2016, Idaho Power Company filed an Application seeking a
Commission Order approving or rejecting its Energy Sales Agreement (ESA) with H K Hydro,
LLC, and if the ESA is accepted, declaring that all payments for purchases of energy under the
ESA be allowed as prudently incurred expenses for ratemaking purposes. Application at 1, 6.
Under the proposed ESA, Idaho Power would buy, and H K Hydro would sell, electric energy
generated by the Mud Creek S&S hydro project located near Buhl, Idaho. Id. at 1. The project
is an existing “qualifying facility” (QF) under the Public Utility Regulatory Policies Act
(PURPA). Id. at 4. The ESA would replace an existing agreement first approved by the
Commission in 1981. Id. at 2. The proposed ESA, signed by the parties on October 5, 2016, is a
replacement contract with a 20-year term and non-levelized, non-seasonal, hydro published
avoided cost rates.1 Id. at 3-4. Idaho Power asks that the Application be processed under
Modified Procedure, with which Staff agrees.
1 The Application states that the contract’s rates are as established by Commission Order No. 33538 for replacement
contracts and for energy deliveries of less than 10 aMW. Application at 4.
DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with a 21-day comment period, followed by a 14-day period for reply comments by
the Company?
M:IPC-E-16-25_cc