20140110Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: JANUARY 7, 2014

SUBJECT: IDAHO POWER’S APPLICATION FOR COMMISSION ACCEPTANCE
OR REJECTION OF AN ENERGY SALES AGREEMENT WITH
BANNOCK COUNTY, IDAHO, CASE NO. IPC-E-13-24

On December 5, 2013, Idaho Power Company filed an Application requesting
Commission acceptance or rejection of an Energy Sales Agreement between the Company and
Bannock County, Idaho. Under the Agreement, Bannock County would sell electric energy
generated by the Bannock County Solid Waste Department Landfill Gas to Energy Project to the
Company.
Bannock County proposes to operate a 3.2 megawatt (MW) landfill gas to energy
plant located near Pocatello, Idaho. The County plans to initially install a 1.6 MW generation
unit and may install another 1.6 MW generation unit within 60 months of the operation date of
the Agreement. The generating facility will be a qualifying facility under the applicable
provisions of PURPA. The Agreement provides for a 20-year term using non-levelized “other”
published avoided cost rates currently established by the Commission in Order No. 32817 for
energy deliveries of less than 10 aMW. The Agreement was signed by Bannock County on
November 5, 2013, and was subsequently signed by Idaho Power on November 13, 2013. The
scheduled operation date for the project is May 1, 2014.
On January 3, 2014, Idaho Power filed three replacement pages for the Agreement,
along with a letter signed by the Bannock County Commissioners approving the replacement
DECISION MEMORANDUM 2
pages. The new pages replace Appendix E to the Agreement containing the non-levelized
energy prices initially stated in the Agreement.
Idaho Power requests that its Application be processed by Modified Procedure
pursuant to Commission Rules of Procedure 201-204. IDAPA 31.01.01.201-204. Staff
recommends the Commission issue a Notice of Application and Notice of Modified Procedure,
providing a 21-day comment period to process Idaho Power’s Application.
COMMISSION DECISION
Should the Commission issue a Notice of Application and Notice of Modified
Procedure to process Idaho Power’s Application for approval or rejection of a 20-year Energy
Sales Agreement between Idaho Power and Bannock County, Idaho?

Weldon B. Stutzman
Deputy Attorney General

bls/M:IPC-E-13-24_ws