20151222final_order_no_33442.pdf

Office of the Secretary
Service Date
December 22,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
HIDDEN HOLLOW ENERGY 2 LLC,)
)CASE NO.IPC-E-12-18
COMPLAINANT,)
)
vs.)
)
IDAHO POWER COMPANY,)ORDER NO.33442
)
RESPONDENT )
In July 2012,Hidden Hollow Energy 2 filed a complaint against Idaho Power
Company alleging that Idaho Power had acted unlawfully in terminating a Power Purchase
Agreement (PPA)for a landfill gas project at Ada County’s Hidden Hollow Landfill.Hidden
Hollow generally alleged that two force majeure events had occurred which excused Hidden
Hollow’s failure to produce and sell energy to Idaho Power.’In its complaint,Hidden Hollow
requested that the Commission order Idaho Power to retract the termination of the PPA and
return $144,000 in delay liquidated damages to Hidden Hollow.The Commission issued a
Summons and Idaho Power timely answered the complaint in August 2012.Hidden Hollow
initiated discovery and then the parties informally asked that action on the complaint be stayed.
THE PROPOSED SETTLEMENT
On December 18,2015,the parties filed an amended “Joint Motion to Approve
Settlement Stipulation for Dismissal [of the Complaintj with Prejudice.”Under the proposed
settlement,the parties agreed to terminate the Power Purchase Agreement.Idaho Power will
return the liquidated damages to Hidden Hollow,and the complaint will be dismissed.
The parties assert that the proposed settlement is in the public interest because it
avoids protracted and costly litigation involving multiple claims of force majeure and the
collection of liquidated damages.Hidden Hollow also remains in litigation with Ada County
regarding certain items that were the subject of Hidden Hollow’s complaint before the
Commission.First Amended Motion at 3-4.The parties further insist that the settlement is
reasonable and in the public interest because it “conclusively terminates a long-term [PPA]that
The two force majeure events were related to Hidden Hollow’s failure to obtain a timely air quality permit and the
subsequent Ada County contract to supply Dynamis Energy with trash stock.According to Hidden Hollow,the
Dynamis contract undermined the available fuel source for Hidden Hollow’s landfill gas project.
ORDER NO.33442 1
contains terms and conditions that have subsequently been found by the Commission to be no
longer just and reasonable nor in the public interest for new [PPAsJ going forward Id.at 4.
The proposed settlement also contains a provision stating that all terms and conditions
of the Settlement Stipulation are subject to approval by this Commission.The settlement will
become valid and effective only after the Commission approves the settlement without material
change or modification.Id.at 5.Both parties believe that the amended settlement is a fair and
equitable resolution to this matter,and in the public interest.
COMMISSION FINDINGS
The Commission has jurisdiction in this matter pursuant to the authority and power
granted it under Title 61 of the Idaho Code and the Public Utility Regulatory Policies Act of
1978 (PURPA).The Commission has authority under PURPA and the implementing regulations
of the Federal Energy Regulatory Commission (FERC)to set avoided costs,to order electric
utilities to enter into fixed-term obligations for the purchase of energy from qualified facilities
(QFs)and to implement FERC rules.
The Commission considers proposed settlements under our Rules 274-277,IDAPA
31.01.01.274-277.When a settlement is presented to the Commission,the Commission will
determine the procedures appropriate to review of the settlement.For example,the Commission
may accept settlement of a private dispute upon the written request of the parties.Rule 274,
IDAPA 3 1.01.01.274.In this case,it is the parties that cany the burden of showing that the
settlement is reasonable and in the public interest.Rule 275,IDAPA 31.01.01.275.The
Commission “will independently review any settlement proposed to it to determine whether the
settlement is just,fair and reasonable,in the public interest,or otherwise in accordance with law
or regulatory policy.”Rule 276,IDAPA 3 1.01.01.276.
The Commission has thoroughly reviewed the record in this case and finds that the
Settlement Stipulation provides a reasonable basis for settlement on the terms proposed by the
parties.In particular,we find that the parties’settlement avoids further litigation in this matter
and benefits ratepayers by avoiding a long-term contract that is not needed at this time.Based on
the foregoing considerations,we find that the terms of the proposed settlement are fair,just and
reasonable to all parties,including Idaho Power’s ratepayers.
ORDER NO.33442
ORDER
IT IS HEREBY ORDERED that the amended Joint Motion to Approve Settlement
Stipulation entered into between Idaho Power Company and Hidden Hollow Energy 2 is granted.
The Settlement Stipulation is approved in its entirety without material change or condition.
IT IS FURTHER ORDERED that Hidden Hollow’s complaint against Idaho Power
be and is hereby dismissed with prejudice.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this t2
day of December 2015.
PAUL KJEL A R,PRESIDENT
MARSHA H.SMITH,COMMISSIONER
4w)QJA
KRI INE RAPER,COMMISSIONER
ATTEST:
4Cf1
4dan D.Jewellfl
dommission Secretary
O:IPC-E-1 2-18 don
ORDER NO.33442 3