20200929_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: SEPTEMBER 25 , 2020

SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR
APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT
WITH SHAWPATIN AGCAP, LLC, FOR THE SALE AND PURCHASE OF
ELECTRIC ENERGY FROM THE MUD CREEK WHITE HYDRO
PROJECT; CASE NO. IPC -E-20 -34

On September 3 , 2020 , Idaho Power Company (“Idaho Power” or “Company”) filed
an Application requesting consideration of an Energy Sales Agreement (“ESA” or “Agreement”)
with Shawpatin AgCap, LLC for energy generated by the Mud Creek White Hydro Project
(“Facility”). Application at 1. The Facility is a 268.6 -kilowatt nameplate capacity hydro facility
near Buhl, Idaho. Id. at 4. The Facility is a qualifying facility under the Public Utility Regulatory
Policies Act of 1978. Id. The Facility has a scheduled First Ene rgy Date under the ESA of January
1 , 202 1 . Id. at 5.
THE APPLICATION
The Facility has been delivering energy to Idah o Power in accordance with a n energy
sales agreement dated April 15 , 1985, which expires December 31 , 2020 . Id. at 4. The Company
states that the Agreement contains published non -seasonal, non -levelized avoided cost rates for a
20-year term. Id . The Company requests the Commission declare all payments for purchase of
energy under the ESA be a llowed as prudently incurred expenses for ratemaking purposes. Id. at
6.

DECISION MEMORANDUM 2
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure , setting a November 19, 2020 comment deadline and a December 3, 2020
reply comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, setting a November 19 , 2020 comment deadline and a December 3 , 2020 reply
comment deadline?

__________________________
Matt Hunter
Deputy Attorney General

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