20200107_jh2.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R.HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE:JANUARY 3,2020
SUBJECT:IDAHO POWER COMPANY'S APPLICATION FOR APPROVAL OR
REJECTION OF AN ENERGY SALES AGREEMENT WITH BIG WOOD
CANAL COMPANY;CASE NO.IPC-E-19-37.
On December 9,2019,Idaho Power Company ("Idaho Power"or "Company")filed an
Application seeking approval of its proposed Energy Sales Agreement ("ESA")with Big Wood
Canal Company ("Big Wood"or "Seller")for the energy generated by the Jim Knight hydro
project ("Facility").The Facility is a qualifying facility ("QF")under the Public Utility Regulatory
Policies Act of 1978 ("PURPA").
THE APPLICATION
The Facility operated by Big Wood is a 475 kilowatt ("kW")nameplate capacity
hydroelectric facility near Gooding,Idaho.Application at 4.The Facility currentlydelivers energy
to the Company under a PURPA energy sales agreement executed on April 1,1985.Id.The
existing energy sales agreement expires on May 31,2020.Id.The Company and Big Wood intend
the proposed ESA to replace the expiring energy sales agreement.Id.at 2.The Company states
the proposed ESA complies with Commission orders regarding this type of agreement.Id.The
Company asks the Commission to process the Application by Modified Procedure before the
existing energy sales agreement expires.Id.at 6.
In the proposed ESA,Big Wood has contracted for non-levelized,seasonal hydro
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
DECISION MEMORANDUM i
entire term of the Agreement.Id.at 3.The Company requests that its Application be processed
by Modified Procedure.Id.at 6.
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 for the Company?
on R.Hammond Jr.
puty Attorney General
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DECISION MEMORANDUM 2