20200630_dh1.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: DAYN HARDIE
DEPUTY ATTORNEY GENERAL

DATE: JUNE 26, 2020

SUBJECT: IN THE MATTER OF ROCKY MOUNTAIN POWER’S APPLICATION
FOR APPROVAL OF A POWER PURCHASE AGREEMENT BETWEEN
PACIFICORP AND FALL RIVER ELECTRIC COOPERATIVE, INC;
CASE NO. PAC-E-20-10

On June 9, 2020, Rocky Mountain Power (“Company”), a division of PacifiCorp,
applied for consideration of a Power Purchase Agreement (“Agreement”) with Fall River Electric
Cooperative, Inc. for energy generated by the Felt Hydro Facility1 (“Facility”), a small hydro
facility in Teton County, Idaho. Application at 1. The Facility is a qualifying facility under the
Public Utility Regulatory Policies Act of 1978 (“PURPA”) and has a nameplate capacity of 7.45
megawatts. Id. at 2.
THE APPLICATION
The Facility has been delivering energy to the Company in accordance with a PURPA
contract dated December 4, 1984. Id. at 3. The existing PURPA contract will expire at midnight
on March 31, 2021. Id. The Company states that the Agreement contains non-seasonal hydro
avoided cost rates based on the surrogate avoided resource cost methodology for a 20-year term.
Id. The replacement Agreement2 also contains capacity payments for the entire term of the
Agreement with no sufficiency period. Id. at 2-3. The Company requests the Commission declare
all payments for purchase of energy under the Agreement be allowed as legitimate expenses for
ratemaking purposes, all of which the Commission will allow the Company to recover in Idaho in
the event other jurisdictions deny recovery for their proportionate shares. Id. at 3 and 5.

1 The Facility was previously known as CDM Hydro.
2 The Company references both Power Purchase Agreement and “ESA” (Energy Sales Agreement) throughout its Application.
DECISION MEMORANDUM 2
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, setting an August 17, 2020 comment deadline and an August 24, 2020 reply
comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, setting an August 17, 2020 comment deadline and an August 24, 2020 reply comment
deadline?

__________________________
Dayn Hardie
Deputy Attorney General

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