20150220Staff Comments.pdf

DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 8370
Street Address for Express Mail:
472 W, WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
IDAHO POWER COMPANY FOR APPROVAL ) CASE NO. IPC-E-15-02
OR REJECTION OF AN ENERGY SALES )
AGREEMENT WITH J.R. SIMPLOT COMPAII-Y) COtvtMENTS OF THE
FOR THE SALE AND PURCHASE OF ) COIvIMISSION STAFF
ELECTRIC ENERGY. )
)
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Daphne Huang, Deputy Attorney General, and in response to the Notice of
Application and Notice Modified Procedure issued in Order No. 33223 on February 10, 2015, in
Case No. IPC-E-15-02, submits the following comments.
BACKGROUND
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
ooother" 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).
STAFF COMMENTS FEBRUARY 20,2OI5
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.
As the facility is already interconnected and selling energy to Idaho Power, the Agreement
specifies a Scheduled First Energy Date and 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 satisff
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.
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.
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 for revising of initial-year monthly net energy
amounts on a monthly rather than quarterly basis; provisions allowing Simplot to claim
maintenance will be scheduled at the same time each year with one notification; and several other
minor provisions.
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.
STAFF COMMENTS FEBRUARY 20,2OI5
By its own terms, the Agreement will not become effective until the Commission has
approved all of the Agreement's terms and 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.
STAFF ANALYSIS
Staff has reviewed the proposed rates and confirms they are correct. All other terms and
conditions contained in the proposed Agreement are consistent with prior Commission orders.
RECOMMENDATIONS
Staff recommends that the Commission approve all of the Agreement's terms and
conditions and declare that all payments made by Idaho Power to Simplot for purchase of energy
will be allowed as prudently incurred expenses for ratemaking purposes.
Respecttully submitted this 2OY day of Febru ary 2015.
Daphne uang
Deputy Attorney General
Technical Staff: Yao Yin
Rick Sterling
i : umisc:comments/ipce I 5.2djhrpsyy comments
STAFF COMMENTS FEBRUARY 2O,2OI5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 2O'h DAY OF FEBRUARY 2015,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. IPC-E.15.02, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO
THE FOLLOWING:
DONOVAN E. WALKER
REGULATORY DOCKETS
IDAHO POWER COMPANY
P.O. BOX 70
BOISE, TD 83707
E-MAIL: [e-mail]
dockets@idahopower. com
RANDY C. ALLPHIN
ENERGY CONTRACT ADMINISTRATOR
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL : [e-mail]
CERTIFICATE OF SERVICE