20200421_mh4.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: MATT HUNTER
DEPUTY ATTORNEY GENERAL

DATE: April 16, 2020

SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR
APPROVAL OF A FIRST AMENDMENT TO THE ENERGY SALES
AGREEMENT WITH WILLIAM ARKOOSH FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY FROM THE LITTLE WOOD
RIVER RANCH II HYDRO PROJECT; CASE NO. IPC-E-20-20

On April 3, 2020, Idaho Power Company filed an Application seeking approval of the
First Amendment (“Amendment”) to its Energy Sales Agreement (“ESA”) with William Arkoosh
(“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
Little Wood River Ranch II Hydro Project—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.at 2. Idaho Power asks that the Commission process its Application by
Modified Procedure. Id. at 3.
BACKGROUND
The Commission approved Idaho Power’s ESA with the Seller in 2014. Order No.
33103. 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 one month’s notice in order to revise a given
month’s Estimated Net Energy Amount. See Case No. IPC-E-14-06, Application, Attachment 1.
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 one month’s notice in order to revise a given month’s Estimated
DECISION MEMORANDUM 2
Net Energy Amount. Id., Attachment 1. The 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 25th 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 following example: “…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 a May 14, 2020 comment deadline and
an May 21, 2020 reply comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with a May 14, 2020 comment deadline and a May 21, 2020 reply comment deadline?

Matt Hunter
Deputy Attorney General

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