20191217_dh1.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE:DECEMBER 11,2019
SUBJECT:IN THE MATTER OF IDAHO POWER'S PETITION FOR APPROVAL OR
DENIAL OF AN ENERGY SALES AGREEMENT WITH LITTLE WOOD
IRRIGATION DISTRICT FOR THE SALE AND PURCHASE OF
ELECTRIC ENERGY FROM THE LITTLE WOOD RIVER RESERVOIR
HYDRO PROJECT;CASE NO.IPC-E-19-35.
On November 8,2019,Idaho Power Company ("Idaho Power"or "Company")filed
an Application requesting consideration of an Energy Sales Agreement ("ESA"or "Agreement")
with Little Wood IrrigationDistrict ("LittleWood")for energy generated by the Little Wood River
Reservoir Hydro project ("Facility").The Facility is a 2.85 megawatt nameplate capacity hydro
facility near Carey,Idaho.The Facility is a qualifying facility ("QF")under the Public Utility
Regulatory Policies Act of 1978.The Facility has a scheduled First Energy Date under the ESA of
March 1,2020.The Company requests that its Application be processed by Modified Procedure
and the Commission make its determination before the February 29,2020.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordance with a power
sales agreement dated August 17,1984,which expires February 29,2020.The Company states
that the Agreement contains published non-seasonal,non-levelized hydro published avoided cost
rates for a 20-year term.The Company requests the Commission declare all payments for purchase
of energy under the ESA be allowed as prudentlyincurred expenses for ratemaking purposes.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a 21-day comment deadline and a 7-day reply comment deadline.
DECISION MEMORANDUM l
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a 21-day comment deadline and a 7-day reply comment deadline?
ayn Har °
Deputy AttorneyGeneral
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DECISION MEMORANDUM 2