20211026_rn3.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: RILEY NEWTON
DEPUTY ATTORNEY GENERAL

DATE: OCTOBER 25, 2021

SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR
APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT
WITH IDAHO POWER COMPANY AND J.R. SIMPLOT COMPANY FOR
THE SALE AND PURCHASE OF ELECTRIC ENERGY FROM THE
SIMPLOT – POCATELLO CSPP PROJECT; CASE NO. IPC-E-21-33.

On October 6, 2021, Idaho Power Company (“Company”) applied to the Commission
for approval of an energy sales agreement (“ESA”) with J.R. Simplot Company (“Seller”) for the
energy generated by the Simplot – Pocatello CSPP project (“Facility”). The Company states that,
“[p]rior to the Effective Date of [the proposed] ESA th[e] Facility has been delivering energy to
[the Company] in accordance with an ESA dated December 21, 2018.” Application at 4. The
expiration date of the 2018 ESA is February 28, 2022. The Company further states that the
proposed ESA has a “3-year term using the non-levelized, Other published avoided cost rates as
currently established by the Commission in Order No. 35052 for replacement contracts and for
energy deliveries of less than 10 average megawatts.” Id. at 3-4. The Company requests the
Commission reject or approve the ESA and, if accepted, declare all payments for purchases of
energy under the ESA be allowed as prudently incurred expenses for ratemaking purposes. The
Company requests that the Commission set a procedural schedule that would result in a final
Commission determination prior to February 28, 2022.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure establishing a twenty-one (21) day public comment period and a seven (7)
day Company reply.
DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure establishing a twenty-one (21) day public comment period and a seven (7) day Company
reply?

__________________________
Riley Newton
Deputy Attorney General

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