20141126notice_of_application_order_no_33186.pdf

Office of the Secretary
Service Date
November 26,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-14-39
APPROVAL OR REJECTION OF AN )
ENERGY SALES AGREEMENT WITH )NOTICE OF APPLICATION
BLIND CANYON AQUARANCH,INC.FOR )
THE SALE AND PURCHASE OF )NOTICE OF
ELECTRIC ENERGY.)MODIFIED PROCEDURE
)
__________________________
)ORDER NO.33186
On November 13,2014,Idaho Power Company filed an Application with the
Commission for approval or rejection of an Energy Sales Agreement with Blind Canyon
Aquaranch,Inc.for the sale and purchase of electric energy from the Blind Canyon Hydro
Proj ect.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power requests that the Commission
accept or reject the Energy Sales Agreement between Idaho Power and Blind Canyon
Aquaranch.Inc.(Blind Canyon).under which Blind Canyon would sell and Idaho Power would
purchase electric energy generated by the project’s 1.625 megawatt (MW)non-seasonal hydro
facility located near Wendell,Idaho.The Agreement between the parties was executed on
October 31,2014.The Agreement is for a term of 20 years.
YOU ARE FURTHER 1’OTIF1ED that Blind Canyon is currently selling energy to
Idaho Power under a 20-year PURPA agreement that was executed in 1994 and approved by the
Commission in January 1995.Order No.25852.Blind Canyon has requested a new 20-year
agreement as a PURPA qualifying facility for a non-seasonal hydro project smaller than 10
average megawatts (aMW).The Agreement between Idaho Power and Blind Canyon includes
full capacity payments pursuant to Commission Order No.32697 as a replacement contract.
YOU ARE FURTHER NOTIFIED that the nameplate rating of this facility is 1.625
MW.Blind Canyon will be required to provide data 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.
Should the facility exceed 10 aMW on a monthly basis,Idaho Power will accept the inadvertent
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33186 1
energy that does not exceed the maximum capacity amount,but will not purchase or pay for the
inadvertent energy.
YOU ARE FURTHER NOTIFIED that Blind Canyon has selected December 15,
2014,as its Scheduled First Energy Date and Scheduled Operation Date in order to maintain
uninterrupted operation after the expiration of its existing agreement.All applicable
interconnection charges and monthly operation and maintenance charges under Schedule 72 will
be assessed to Blind Canyon.
YOU ARE FURTHER NOTIFIED that the new Agreement contains revised terms
and conditions pursuant to the Commission’s final Orders in Case No.GNR-E-11-03.These
revised conditions are the same or similar to those recently approved by the Commission in Case
Nos.IPC-E-14-06,IPC-E-14-07 and IPC-E-14-12.The changes include:reference to the ICE
index and formula;modified provisions regarding delay liquidated damages and delay security;
ownership of environmental attributes;provisions providing for revision of initial year monthly
net energy amounts on a monthly rather than quarterly basis;and several other minor changes
consistent with Commission Orders.
YOU ARE FURTHER NOTIFIED that,as with all PURPA QF generation,the
project must be designated as a network resource (DNR)to serve Idaho Power’s retail load on its
system.Consequently,the Agreement contains provisions requiring completion of a Generator
Interconnection Agreement (GIA),compliance with GIA requirements,and designation as an
Idaho Power network resource as conditions of Idaho Power accepting delivery of energy and
paying for the same under the Agreement.In order for the project to maintain its DNR status,
there must be a power purchase agreement associated with its transmission service request that
maintains compliance with Idaho Power’s non-discriminatory administration of its Open Access
Transmission Tariff (OATT)and maintains compliance with FERC requirements.
YOU ARE FURTHER NOTIFIED that Article 21 of the Agreement provides that the
Agreement will not become effective until the Commission has approved all of the Agreement’s
terms and conditions and declared that all payments Idaho Power makes to Blind Canyon for
purchases of energy will be allowed as prudently incurred expenses for ratemaking purposes.
YOU ARE FURTHER NOTIFIED that Idaho Power requested that its Application
be processed by Modified Procedure.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33186
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 31.01.01.201-204.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 Tuesday,December 9,2014.The comment must contain a statement of reasons
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 83 707-0070
E-mail:[e-mail]
Street Address for Express Mail:Randy C.Aliphin
472 W.Washington Street Energy Contract Administrator
Boise,ID 83702-5918 Idaho Power Company
P0 Box 70
Boise,ID 83707-0070
E-mail:rallphinidahopower.corn
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 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,
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33186 3
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
31.01.01.204,
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 wwwpuc.idaho.gov.Click on the “File Room”tab at the top of the
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 December 9,2014.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33186 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this til
day of November 2014.
I
7’i t;’j EJPAULKJELLAT’DER PRESIDENT
MACK A.REDFORD,COMMISSIONER
ATTEST:
jb.jeji
Co’mmission Secretary
O:IPC-E-14-39ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33186
a7L4tL
MARSHA H.SV1ITH.COMMISSIONER
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