HomeMy WebLinkAbout20160328_4936.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM: DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
DATE: MARCH 21, 2016
SUBJECT: IDAHO POWER’S APPLICATION TO APPROVE SECOND
AMENDMENT TO ITS FIRM ENERGY SALES AGREEMENT WITH
NEW ENERGY ONE, LLC, CASE NO. IPC-E-16-04
On March 17, 2016, Idaho Power Company filed an Application asking the
Commission to approve the Second Amendment to its Firm Energy Sales Agreement (FESA)
with New Energy One, LLC. The FESA is a contract under the Public Utility Regulatory
Policies Act (PURPA). This Amendment changes the Net Energy Amount notification process,
similar to the process that the Commission recently approved for Idaho Power in more than 20
other Energy Sales Agreements. Idaho Power asks that the Commission approve its Application
upon Staff’s review and without further process. Application at 4.
BACKGROUND
The Commission approved Idaho Power’s FESA with New Energy One in 2010.
Order No. 32025. Under the FESA, Idaho Power purchases, and New Energy One sells, energy
generated by the Rock Creek Dairy project near Filer, Idaho. Application at 2. Rock Creek
Dairy is a qualifying facility (QF) under PURPA. Id. at 1. In 2014, the Commission approved a
First Amendment to the FESA to change the definition of “Mid-Columbia Market Energy Cost,”
consistent with Order No. 33053. Order No. 33184.
PROPOSED AMENDMENT
In the Second Amendment to the FESA, Idaho Power and New Energy One propose a
change in the Net Energy Amount notification process (paragraph 6.2 of the FESA), allowing
monthly rather than quarterly updates. Application at 2. Under the amendment, New Energy
One “can submit future revisions of its Monthly Net Energy Amounts on a monthly basis, with a
minimum of 30 days’ notice prior to the beginning of the next month, rather than once every
DECISION MEMORANDUM 2
three months.” Id. at 3-4. Idaho Power indicates that, with this change, New Energy One “gains
more clarity and flexibility in adjusting its estimated energy deliveries and Idaho Power
maintains stability with the required year of monthly estimates as well [as] more accurate
monthly forecasts, which are useful in the operational integration of QF generation.” Id. at 4.
Since August 2014, the Commission has approved more than 20 Energy Sales
Agreements between Idaho Power and QFs that allow QFs to change Monthly Net Energy
Amounts on a monthly basis. Id. at 3. The Commission has also approved amendments to eight
Energy Sales Agreements between Idaho Power and other QFs that include the same provision.
Order Nos. 33102, 33103, 33104, 33156, 33191, 33240, 33358, and 33359. In Order No. 33102,
the Commission stated, “we find that monthly, as opposed to quarterly, reporting of energy
generation estimates is a reasonably negotiated term between the parties and not inconsistent
with the Commission’s [earlier] guidance and findings.” Order No. 33102 at 6.
STAFF RECOMMENDATION
Given the limited scope of the amendment, and consistent with the Commission’s
prior Orders, as cited above, Staff recommends that the request be approved without further
process.
COMMISSION DECISION
Does the Commission wish to approve the Application without further process?
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