20200310_mh3.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE:MARCH 5,2020
SUBJECT:IDAHO POWER'S APPLICATION FOR APPROVAL OF THE SECOND
AMENDMENT TO THE ENERGY SALES AGREEMENT FOR THE
HAZELTON A HYDRO PROJECT;CASE NO.IPC-E-20-07
On February 20,2020,Idaho Power Company filed an Application seeking approval
of the Second Amendment ("Amendment")to its Energy Sales Agreement ("ESA")with North
Side Energy Company,Inc.("Seller").Application at 1.The ESA falls under the Public Utility
Regulatory Policies Act of 1978 ("PURPA")and is a contract for the sale and purchase of electric
energy generated by the Hazelton A hydro generation facility-a PURPA qualifying facility.Id.
The Amendment addresses when the Seller must notify the Company in order to revise future
monthly Estimated Net Energy Amounts.Id.Idaho Power asks that the Commission process its
Application by Modified Procedure.Id.
BACKGROUND
The Commission approved Idaho Power's ESA with the Seller in 2011.Order No.
32181.The ESA was first amended by Idaho Power and the Seller on May 1,2014 to change the
definition of Mid-Columbia Market Energy Cost,and the Commission approved this first
amendment in June 2014.See Order No.33053.
Section 6.2.3 of the ESA addresses when the Seller must notify the Company if it
wishes to revise any future monthly Estimated Net Energy Amounts after the Operation Date.
Application at 2.The Seller must give the Company at least three months'notice in order to revise
a given month's Estimated Net Energy Amount.See Case No.IPC-E-10-45,Application,
Attachment 1 at 12.
DECISION MEMORANDUM l
THE AMENDMENT
The Amendment changes when the Seller must notify the Company in order to revise
future monthly Estimated Net Energy Amounts.Application at 2.The current ESA requires the
Seller to give the Company at least three months'notice in order to revise a given month's
Estimated Net Energy Amount.Application,Attachment 1.The proposed Amendment states that
"[a]fter the Operation Date,the Seller must revise any future monthly Estimated Net Energy
Amounts by providing written notice no later than 5 PM Mountain Standard time on the 25th day
of the month that is prior to the month to be revised."Id.If the 25'*day falls on a weekend or
holiday,written notice must be received by the Company no later than the last business day prior
to the 25th day of the month.Id.The Amendment provides the followingexample:"...if the Seller
would like to revise the Estimated Net Energy Amount for October,they would need to submit a
revised schedule no later than September 25 or the last business day prior the September 25."Id.
STAFF RECOMMENDATION
Staff has reviewed the Application and the Amendment and recommends that the
Application be processed under Modified Procedure with an April 1,2020 comment deadline and
an April 8,2020 reply comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with an April 1,2020 comment deadline and an April 8,2020 reply comment deadline?
Matt Hunter'
Deputy Attorney General
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DECISION MEMORANDUM 2