20200623_mh1.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: JUNE 18, 2020

SUBJECT: IN THE MATTER OF ROCKY MOUNTAIN POWER’S APPLICATION
FOR APPROVAL OF A POWER PURCHASE AGREEMENT BETWEEN
PACIFICORP AND BIRCH HYDRO COMPANY; CASE NO. PAC-E-20-07

On June 3, 2020, Rocky Mountain Power (“Company”), a division of PacifiCorp,
applied for consideration of a power purchase agreement (“PPA”) with Birch Hydro Company for
energy generated by a small hydro facility in Clark County, Idaho (“Facility”). 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 2.65 megawatts. Id.
THE APPLICATION
The Facility has been delivering energy to the Company in accordance with a PURPA
contract dated August 21, 1984. Id. at 2. By letter dated March 30, 2006, the Company and Birch
Hydro Company agreed the existing PURPA contract will expire at midnight on March 31, 2022.
Id. The Company states that the PPA contains non-seasonal, non-levelized avoided cost rates for
a 20-year term. See Id. at 3, Attachment 1, Exhibit K. The Company requests the Commission
declare all payments for purchase of energy under the PPA be allowed as prudently incurred
expenses for ratemaking purposes. Id. at 5.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, setting an August 10, 2020 comment deadline and an August 17, 2020 reply
comment deadline.

DECISION MEMORANDUM 2

COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, setting an August 10, 2020 comment deadline and an August 17, 2020 reply comment
deadline?

__________________________
Matt Hunter
Deputy Attorney General

I:\Legal\ELECTRIC\PAC-E-20-07\memos\PACE2007_dec memo_mh.docx