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HomeMy WebLinkAbout20190716_MH1jo.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY COMMISSION STAFF FROM:MATT HUNTER DEPUTY ATTORNEY GENERAL DATE:JULY 12,2019 SUBJECT:IDAHO POWER'S APPLICATION TO APPROVE FIRST AMENDMENT TO THE ENERGY SALES AGREEMENT WITH MC6 HYDRO LLC,CASE NO.IPC-E-19-21 On July 3,2019,Idaho Power Company filed an Application seeking approval of the First Amendment to its Energy Sales Agreement (ESA)with MC6 Hydro LLC.The ESA falls under the Public UtilityRegulatory Policies Act of 1978 (PURPA),and is a contract for the sale and purchase of electric energy generated by the MC6 Hydro Project,a PURPA qualifying facility (QF).The Amendment changes the Scheduled Operation Date from July 30,2019,to August 31, 2020.Idaho Power asks that the Commission process its Application by Modified Procedure. Application at 3, BACKGROUND The Commission approved Idaho Power's ESA with MC6 Hydro LLC in 2018.Order No.34106.The ESA contains a Scheduled Operation Date of July 30,2019.Application at 2.After the ESA was executed and approved,a principle developer of the QF died unexpectedly,delaying construction of the QF.Id. PROPOSED AMENDMENT The proposed Amendment changes the Scheduled Operation Date from July 30, 2019,to August 31,2020.Id at 2.However,the July 30,2019 Scheduled Operation Date will remain in effect for calculating any Delay Damages.Application Attachment at 1.The preamble to the Amendment states that MC6 Hydro LLC "will pay for any Delay Damages as defined and calculated in accordance with the Agreement between the original July 30,2019,Scheduled Operation Date and the actual Operation Date of the Project."Id. DECISION MEMORANDUM l STAFF RECOMMENDATION Staff has reviewed the Application and attachment and recommends that the Application be processed under Modified Procedure with a 21-day comment period,and a 7-day reply period. COMMISSION DECISION Does the Commission wish to issue a Notice of Application and Notice of Modified Procedure with a 21-day comment period and 7-day reply period? Matt Hunter Deputy Attorney General I:lLegaEELECTRIC\lPC-E-19-211memosilPCE1921 mh doc DECISION MEMORANDUM 2