20190813_jh2jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R.HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE:August 9,2019
SUBJECT:IDAHO POWER COMPANY'S APPLICATION FOR APPROVAL OR
REJECTION OF AN ENERGY SALES AGREEMENT WITH BIRCH
CREEK TROUT,INC.;CASE NO.IPC-E-19-23.
On July 18,2019,Idaho Power Company ("Idaho Power"or "Company")filed an
Application seeking approval of its proposed Energy Sales Agreement ("ESA")with Birch Creek
Trout,Inc.,for the Birch Creek Hydro Project ("Birch Creek"or "Project").The Project is a
qualifying facility ("QF")under the Public Utility Regulatory Policies Act of 1978 ("PURPA").
The proposed ESA would replace an existing ESA that is set to expire in October,2019.
THE APPLICATION
Birch Creek is a 65 kilowatt ("kW")nameplate capacity hydroelectric facility near
Hagerman,Idaho.Application at 4.The Project currentlydelivers energy to the Company under
an ESA dated July 1,1983.Id The current ESA expires on October 31,2019.Id.The Company
and Birch Creek intend the proposed ESA to replace the expiring ESA.The Company states the
proposed ESA complies with Commission orders regarding this type of agreement.Id.at 2.The
Company asks the Commission to process the Application before the current ESA expires.Id at
5-6.
In the proposed ESA,Birch Creek has contracted for non-levelized,non-seasonal
hydroelectric published avoided cost rates as set by the Commission in Order No.34350 for a 20-
year term.Id at 4.Because this is a replacement ESA,the proposed ESA contains capacity
payments for the entire term of the Agreement.Id at 3.The Company requests that its Application
be processed by Modified Procedure.Id.at 6.
DECISION MEMORANDUM 1
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure.Staff recommends the Notice of Application and Notice of Modified
Procedure provide for a twenty-one (21)day written comment period for itself and any other
interested parties,with a seven (7)day reply comment period for the Company to follow.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure that establishes a twenty-one (21)day written comment period for Staff and any other
interested parties followed by a seven (7)day reply comment period fo the Company?
R.Hammond Jr.
puty AttorneyGeneral
I:\Legal\ELECTRIC\lPC-E-19-23\IPCEI923deememo1 jrh.doc
DECISION MEMORANDUM 2