20141022final_order_no_33156.pdf

Office of the Secretary
Service Date
October 22,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-14-23
APPROVAL OR REJECTION OF AN )
ENERGY SALES AGREEMENT WITH )
BLACK CANYON BLISS,LLC,FOR THE )ORDER NO.33156
SALE AND PURCHASE OF ELECTRIC )
ENERGY FROM THE BLACK CANYON )
BLISS HYDRO PROJECT.)
On August 27.2014,Idaho Power Company filed an Application requesting that the
Commission accept or reject an Agreement between Idaho Power and Black Canyon Bliss,LLC
(Black Canyon),for the sale and purchase of electric energy generated by the Black Canyon
Bliss Hydro Project.Idaho Power requested that its Application be processed by Modified
Procedure.On September 9,2014,the Commission issued a Notice of Application and Notice of
Modified Procedure setting a comment deadline of October 2,2014.Commission Staff was the
only person or party to file comments.
By this Order,we approve the Agreement between Idaho Power and Black Canyon
Bliss,LLC,for the sale and purchase of electric energy.
THE APPLICATION
On August 19,2014,Idaho Power and Black Canyon 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 Black Canyon proposes to
operate and maintain a 24.82 kilowatt (kW)non-seasonal hydro energy facility to be located near
Bliss,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).
Under the terms of the Agreement,Black Canyon 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.33084 for energy deliveries of less than 10 average
MW (aMW).As defined in paragraphs 1.21 and 4.1 .4 of the Agreement,Black Canyon 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
ORDERNO.33156
Power will accept the inadvertent energy that does not exceed the maximum capacity amount,
but will not purchase or pay for inadvertent energy.
Black Canyon has selected November 15,2014,as the project’s Scheduled Operation
Date.Various requirements have been placed upon Black Canyon 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.
The Agreement provides that all applicable interconnection charges and monthly
operational or maintenance charges under Schedule 72 will be assessed to Black Canyon.A
Schedule 72 Generator Interconnection Agreement (GIA)between Black Canyon and Idaho
Power was executed on April 22,2013.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.
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 Black Canyon for purchases of energy will be allowed as prudently incurred expenses
for ratemaking purposes.
COMMENTS
Commission Staff was the only person or party to file comments in this case.Staff
confirmed that the Agreement includes the non-levelized published avoided cost rates for non
seasonal hydro facilities in accordance with Order No.33084.Staff also noted the Agreement
utilizes July 2021 as Idaho Power’s first capacity deficit year.Staff asserted that the terms and
conditions in the proposed Agreement are consistent with prior Commission Orders and,
therefore,recommended that the Commission approve the Agreement.
FINDINGS AND CONCLUSIONS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power,an electric
utility,and the issues raised 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
ORDERNO.33156 2
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 has reviewed the record in this case,including Idaho Powefs
Application,the August 19,2014 Agreement,and comments filed by Commission Stall We
find that the proposed Agreement submitted in this case contains acceptable contract provisions
including the non-levelized published avoided cost rates approved by the Commission in Order
No.33084 for energy deliveries of less than 10 average MW (aMW).We further find that the
Agreement is just,reasonable and in the public interest.
Therefore,we approve the Agreement between Idaho Power and Black Canyon Bliss,
LLC without material change or condition.We find it reasonable to allow payments made under
the Agreement as prudently incurred expenses for ratemaking purposes.
ORDER
IT IS HEREBY ORDERED that the Agreement between Idaho Power Company and
Black Canyon Bliss is approved without change or condition.
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.
ORDERNO.33156 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of October 2014.
I
PAUL KJELLJLNDR1 1RIDENT
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Barbara Barrows
Assistant Commission Secretary
0:IPC-E-1 4-23_ks2
ORDERNO.33156 4