20200310_jh3.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R.HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE:MARCH 5,2020
SUBJECT:IDAHO POWER COMPANY'S APPLICATION FOR APPROVAL OF
FIRST AMENDMENT TO ENERGY SALES AGREEMENT WITH MUD
CREEK S&S HYDRO PROJECT;CASE NO.IPC-E-20-09.
On February 20,2020,Idaho Power Company ("Idaho Power"or "Company")applied
for Commission approval of the First Amendment to its Energy Sales Agreement ("Amendment")
with HK Hydro,LLC ("HK Hydro"or "Seller")for the energy generated by the Mud Creek S&S
hydro project ("Facility").The Facility is a qualifying facility ("QF")under the Public Utility
Regulatory Policies Act of 1978 ("PURPA").
THE APPLICATION
Idaho Power and HK Hydro entered into an energy sales agreement ("ESA")on
October 5,2016,for the purchase and sale of energy produced by Mud Creek.The ESA was
approved by the Commission in Order No.33692.
The Company states the ESA contains provisions providing for the Seller's Adjustment
of Estimated Net Energy Amounts in Section 6.2.3.Idaho Power and HK Hydro have agreed to
amend Section 6.2.3 of the ESA in order to adjust the notification requirements in this Section.
Idaho Power asserts the Amendment does not otherwise change any of the obligations of the
Company or the Seller.Idaho Power requests that its Application be processed by Modified
Procedure.
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 for the Company?
John ammond Jr.
Depu Attorney General
DECISION MEMORANDUM 2