20150210notice_of_application_order_no_33223.pdf

Office of the Secretary
Service Date
February 10,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-15-02
OF IDAHO POWER COMPANY FOR )
APPROVAL OR REJECTION OF AN )NOTICE OF APPLICATION
ENERGY SALES AGREEMENT WITH J.R.)
SIMPLOT COMPANY FOR THE SALE )NOTICE OF
AND PURCHASE OF ELECTRIC ENERGY )MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.33223
On January 30,2015,Idaho Power Company filed an Application requesting that the
Commission accept or reject an Energy Sales Agreement between Idaho Power and J.R.Simplot
Company for the sale and purchase of electric energy generated by the Simplot-Pocatello
cogeneration Project located near Pocatello,Idaho.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on January 30,2015,Idaho Power and Simplot
entered into an Agreement pursuant to the terms and conditions of various Commission Orders
applicable to this PURPA agreement for “other”projects.Under the terms of the Agreement,
Simplot elected to contract with Idaho Power for a one-year term using the non-levelized other
published avoided cost rates as currently established by Commission Orders for energy deliveries
of less than 10 average megawatts (aMW).
YOU ARE FURTHER NOTIFIED that,prior to the negotiation of this Agreement,
this project has been delivering energy to Idaho Power in accordance with an agreement dated
February 13,2013,that expires on March 1,2015.Simplot proposes to continue to operate and
maintain its 15.9 MW energy facility.The facility is a QF under the applicable provisions of
PURPA.The nameplate rating of the project is 15.9 MW.Simplot 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.Furthermore,should the
facility exceed 10 aMW,Idaho Power will accept the energy (inadvertent energy)that does not
exceed the maximum capacity amount,but will not purchase or pay for the inadvertent energy.
YOU ARE FURTHER NOTIFIED that,as the facility is already interconnected and
selling energy to Idaho Power,the Agreement specifies a Scheduled First Energy Date and
NOTiCE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33223 1
Schedule Operation Date of March 1,2015,but shall be no later than 120 days after the
Commission issues a final,non-appealable Order approving the Agreement.The parties
recognize that information provided under the previous agreement may still be applicable to this
replacement Agreement.As specified in the Agreement,Idaho Power shall review the
previously provided information and will accept the information as previously submitted,request
updates to that information,and/or require new information to satis1 compliance with the
various requirements for Simplot to be granted a First Energy Date and Operation Date for this
replacement Agreement.In addition,Idaho Power will monitor the ongoing requirements
through the full term of this Agreement.
YOU ARE FURTHER NOTIFIED that the Agreement,as signed and submitted by
the parties,contains non-levelized published avoided cost rates in conformity with applicable
Commission Orders.All applicable interconnection charges and monthly operation and
maintenance charges under Schedule 72 will be assessed to Simplot.
YOU ARE FURTHER NOTIFIED that Idaho Power explains that the Agreement
contains several terms and conditions that vary from previously approved agreements in order to
comply with the Commission’s recent Orders.The changes include:reference to the
Intercontinental Exchange (ICE)index and formula;modified provisions regarding delay
liquidated damages and delay security;reference to Simplot ownership of environmental
attributes;provisions providing for revision of initial year monthly net energy amounts on a
monthly rather than quarterly basis;provisions allowing Simplot the option to claim maintenance
will be scheduled at the same time each year with one notification;and several other minor
provisions.
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,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,by its own terms,the Agreement will not
become effective until the Commission has approved all of the Agreement’s terms and
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33223 2
conditions and declares that all payments made by Idaho Power to Simplot for purchases of
energy will be allowed as prudently incurred expenses for ratemaking purposes.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that its Application be
processed by Modified Procedure.
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 Friday,February 20,2015.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 83 720-0074 P0 Box 70
Boise,ID 83707-0070
E-mail:[e-mail]
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 83707-0070
E-mail:[e-mail]
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 “Comments and Questions”
icon,and complete the comment form,using the case number as it appears on the front of this
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33223 3
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,
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 www.puc.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 3 1.01.01.000,etseq.
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 February 20,2015.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33223 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of February 2015.
ATTEST:
L4L
MARSHA H.SMITH,COMMISSIONER
Je D.Jewell
Commission Secretary
O:IPCE-1 5-O2ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33223 5