HomeMy WebLinkAbout20140626notice_of_application_order_no_33063.pdfOffice ofthe Secretary
Service Date
June 26,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-14-12
OF IDAHO POWER COMPANY FOR )
APPROVAL OR REJECTION OF AN )NOTICE OF APPLICATION
ENERGY SALES AGREEMENT WITH )
EIGHTMILE HYDRO CORPORATION )NOTICE OF
FOR THE SALE AND PURCHASE OF )MODIFIED PROCEDURE
ELECTRIC ENERGY FROM THE )
EIGHTMILE HYDRO PROJECT.)ORDER NO.33063
On May 27,2014,Idaho Power Company filed an Application requesting that the
Commission accept or reject an Agreement between Idaho Power and Eightmile Hydro
Corporation (Eightmile Hydro),for the sale and purchase of electric energy generated by the
Eightmile Hydro Project.Idaho Power asks that its Application be processed by Modified
Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that,on May 5,2014,Idaho Power and Eightmile
Hydro entered into an Agreement pursuant to the terms and conditions of various Commission
Orders applicable to PURPA agreements for non-seasonal hydro projects.Idaho Power states
that Eightmile Hydro proposes to operate and maintain a 360 kilowatt (kW)non-seasonal hydro
energy facility to be located near Leadore,Idaho.The Company maintains that the project will
be a qualified facility (QF)under the applicable provisions of the Public Utility Regulatory
Policies Act (PURPA).
YOU ARE FURTHER NOTIFIED that,under the terms of the Agreement,Eightmile
Hydro elected to contract with Idaho Power for a 20-year term using the non-levelized other
published avoided cost rates as currently established by the Commission in Order No.32817 for
energy deliveries of less than 10 average MW (aMW).As defined in paragraphs 1.20 and 4.1.4
of the Agreement,Eightmile Hydro will be required to provide data on the facility that Idaho
Power will use to confirm that under normal and/or average conditions,the facility will not
exceed 10 aMW on a monthly basis.As described in paragraph 7.5 of the Agreement,should the
facility exceed 10 aMW on a monthly basis,Idaho Power will accept the inadvertent energy that
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33063 1
does not exceed the maximum capacity amount,but will not purchase or pay for inadvertent
energy.
YOU ARE FURTHER NOTIFIED that Eightmile Hydro has selected August 30,
2014,as the project’s Scheduled Operation Date.Various requirements have been placed upon
the project in order for Idaho Power to accept energy deliveries from this facility.Idaho Power
will monitor compliance with these requirements.Idaho Power will continue to monitor the
ongoing requirements throughout the term of the Agreement.
YOU ARE FURTHER NOTIFIED that the Agreement provides that all applicable
interconnection charges and monthly operational or maintenance charges under Schedule 72 will
be assessed to Eightmile Hydro.A Schedule 72 Generator Interconnection Agreement (GIA)
between Eightmile Hydro and Idaho Power was executed on December 4,2013.Idaho Power
states that PURPA QF generation must be designated as a network resource (DNR)to serve
Idaho Power’s retail load on its system.In order for the facility to maintain its DNR status and
maintain compliance with Idaho Power’s non-discriminatory administration of its Open Access
Transmission Tariff (OATT)and FERC requirements there must be a power purchase agreement
(PPA)associated with its transmission service request.
YOU ARE FURTHER NOTIFIED that Idaho Power explains that the recent hydro
agreements are the first hydro-based agreements submitted for approval “that contain revised
terms and conditions subsequent to the Commission’s final and reconsideration orders from Case
No.GNR-E-11-03.As such,the form of the [Agreement]has several terms and conditions that
vary from previously approved agreements in order to comply with the Commission’s recent
orders.”Application at 4.
YOU ARE FURTHER NOTIFIED that Idaho Power and Eightmile Hydro also
agreed to changes in some standard provisions that the parties now propose for Commission
approval.Idaho Power identifies the major changes as follows:
Change to the definition of “Mid-Columbia Market Energy Cost”to
replace reference to the Dow Jones index with reference to the
Intercontinental Exchange (ICE)index and formula consistent with the
proposed settlement in Case No.IPC-E-13-251;
This change is relevant to the 90/110 performance requirement.The settlement was approved by the Commission
on June 10,2014.Order No.33053.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33063 2
•Addition of definitions and provisions,paragraphs 1.29,1.38,1.39,3,4
and 7.6 to incorporate definitions of “non-seasonal hydro facility”and
“seasonal hydro facility”as well as “seasonal hydro facility test periods”
to incorporate and maintain separate rates for seasonal and non-seasonal
hydro projects and to ensure that seasonal hydro projects perform within
the requirements of generating 55 percent of their annual generation in the
months of June,July and August;
•Removal of the provisions providing for delay liquidated damages and
maintained provisions to provide for delay security and actual delay
damages as provided for by the Commission’s adoption of the partial
stipulation in Commission Order No.32697;
•Change to Article VIII,“Environmental Attributes,”to indicate that
Eightmile Hydro owns all Environmental Attributes or Renewable Energy
Credits/Certificates;
•Change to paragraph 6.2 to allow Eightmile Hydro to adjust the “Initial
Year Monthly Net Energy Amounts”on a monthly,rather than quarterly,
basis;
•Revision to paragraph 12.4 relating to Scheduled Maintenance;and
•Several other minor revisions in an attempt to add clarity.
YOU ARE FURTHER NOTIFIED that Article 21 of the Agreement provides that the
PPA will not become effective until the Commission has approved all terms and conditions and
declared that all payments Idaho Power makes to Eightmile Hydro for purchases of energy will
be allowed as prudently incurred expenses for ratemaking purposes.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
of Procedure,IDAPA 3 1.01.01.201-204.The Commission notes that Modified Procedure and
written comments have proven to be an effective means for obtaining public input and
participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or in opposition with the Commission no
later than Thursday,July 24,2014.The comment must contain a statement of reasons
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33063 3
supporting the comment.Persons desiring a hearing must specifically request a hearing in their
written comments.Written comments concerning this Application may be mailed to the
Commission and Idaho Power at the addresses reflected below:
Commission Secretary Donovan E Walker
Idaho Public Utilities Commission Lead Counsel
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 P0 Box 70
Boise,ID 83707-0070
E-mail:dwalker(ZIidahopower.com
Street Address for Express Mail:Randy C.Allphin
472 W.Washington Street Energy Contract Administrator
Boise,ID 83702-5918 Idaho Power Company
P0 Box 70
Boise,ID 83 707-0070
E-mail:rallphin@idahopower.com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www,puc.idaho.gov.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the front of this document.These comments must also be sent to Idaho Power at the
e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that reply comments may be filed no later than
Thursday,July 31,2014.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline,the Commission may consider the matter on its merits and may
enter its Order without a formal hearing.If comments or protests are filed within the deadline,
the Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it.IDAPA
3 1.01.01.204.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices.The Application is also available on the
Commission’s web site at www.puc.idaho.gov.Click on the “File Room”tab at the top of the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33063 4
page.scroll down to “Open Electric Cases,”and then click on the case number as shown on the
front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure.IDAPA 31.01.01.000,et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than July 24,2014.
IT IS FURTHER ORDERED that reply comments be filed no later than July 31,
2014.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of June 2014.
‘S
MACK A.REófr COMMISSIONER
Uak-IIf\5I
IVfARSHA H.SMITH,COMMISSIONER
ATTEST:
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feaii D.Jewell ,i
Cbi’nmission Secretary
O:IPC-E-14-l2ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33063 5