20150414notice_of_application_order_no_33277.pdf

Office of the Secretary
Service Date
April 14,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S APPLICATION TO APPROVE )CASE NO.IPC-E-15-07
OR REJECT ITS ENERGY SALES )
AGREEMENT WITH THE IDAHO )NOTICE OF APPLICATION
DEPARTMENT OF WATER RESOURCES )
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33277
On March 31,2015,Idaho Power Company filed an Application asking the
Commission to approve or reject its Energy Sales Agreement (ESA)with the Idaho Department
of Water Resources (IDWR).Under that agreement,IDWR would sell,and Idaho Power would
purchase,electric energy generated by the Pristine Springs #1 hydro project (Facility)located
near Jerome,Idaho.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on March 26,2015,Idaho Power entered into
its ESA with IDWR pursuant to the terms and conditions of various Commission Orders,and
under the Public Utility Regulatory Policies Act (PURPA).Application at 2.Under PURPA,
electric utilities must purchase electric energy from “qualifying facilities”(QFs)at rates
approved by the applicable state regulatory agency —in Idaho,this Commission.16 U.S.C.§
824a-3;Idaho Power v.Idaho PUC,155 Idaho 780,789,316 P.3d 1278,1287 (2013).The
purchase or “avoided cost”rate shall not exceed the “incremental cost”to the utility,defined as
the cost of energy which,“but for the purchase from [the QF],such utility would generate or
purchase from another source.”16 U.S.C.§824a-3(d);18 C.F.R.§292.101(6)(defining
“avoided cost”).
YOU ARE FURTHER NOTIFIED that Idaho Power states that the Facility is a QF
under PURPA and has a nameplate rating of 125 kilowatts (kW).Application at 4.The Facility
is currently selling energy to Idaho Power under a 10-year agreement that was executed in 2005.
Id.at 2.This Commission approved the Facility’s existing 10-year agreement with Idaho Power
in April 2005.Order No.29766.That agreement is set to expire April 30,2015.Application at
2.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33277 1
YOU ARE FURTHER NOTIFIED that “[u]nder the terms of the replacement ESA,
IDWR elected to contract for a five-year term using non-levelized,non-seasonal hydro published
avoided cost rates as currently established by the Commission...for replacement contracts and
for energy deliveries of less than 10 [average megawatts (aMW)j.”Id.at 4 (citing Order Nos.
33084,32697,32737).
YOU ARE FURTHER NOTIFIED that Idaho Power states IDWR will be required to
provide data with which Idaho Power can confirm that under normal conditions,the Facility will
not exceed 10 aMW on a monthly basis.Id.at 4.
YOU ARE FURTHER NOTIFIED that Idaho Power also asserts the ESA “contains
revised terms and conditions”that were recently approved by the Commission in Case Nos,IPC
E-14-06,IPC-E-14-07,and IPC-E-14-12.Id.at 5.These terms include references to the
Intercontinental Exchange (ICE)index and formula,Delay Liquidated Damages and Delay
Security,and seller ownership of environmental attributes,among other provisions.Id.
YOU ARE FURTHER NOTIFIED that,according to Idaho Power,the ESA satisfies
requirements regarding execution of a Generation Interconnection Agreement,designation as a
network resource,and administration of Idaho Power’s Open Access Transmission Tariff
(OATT),in compliance with FERC.Id.at 6.The Facility’s Scheduled First Energy Date is May
1,2015.Id.at 4.The ESA will become effective only upon the Commission’s approval and
finding that all payments made by Idaho Power to IDWR for purchases of energy are “allowed as
prudently incurred expenses for ratemaking purposes.”Id.at 6-7.
YOU ARE FURTHER NOTIFIED that Idaho Power asks that this Application be
processed under Modified Procedure.Idaho Power also requests that,if approved,such approval
be effective May 1,2015,to avoid a lapse between the existing and replacement ESAs.Id.at 7.
YOU ARE FURTHER NOTIFIED that the Application and a copy of the ESA have
been filed with the Commission and are available for public inspection during regular business
hours at the Commission offices.The Application and attachments are also available on the
Commission’s web site at www.puc.idaho.gov.Click on “File Room”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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33277
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 through .204.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21)days from the date of this Notice.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 case shall be mailed to the
Commission and Idaho Power at the addresses reflected below:
Commission Secretary Donovan E.Walker,Lead Counsel
Idaho Public Utilities Commission Regulatory Dockets
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 1221 W.Idaho St.
P0 Box 70
Street Address for Express Mail:Boise,ID 83707
E-Mail:
472 W.Washington St.
Boise,ID 83702-5918
Randy C.Allphin
Energy Contract Administrator
Idaho Power Company
1221 W.Idaho St.
P0 Box 70
Boise,ID 83707
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 “Case Comment or Question
Form”under the “Consumers”tab,and complete the form using the case number as it appears on
the front of this document.These comments must also be sent to the Company at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,no later than May 14,2015.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33277 3
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
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 specifically
Idaho Code §sS 61-502 and 61-503.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 Idaho Power’s Application be processed under
Modified Procedure,Rules 201-204,IDAPA 31.01.01.201-204.Persons interested in
submitting written comments must do so within 21 days of the date of this Order.The Company
may file a reply no later than May 14,2015.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33277 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of April 2015.
PAUL KJELLA D ,PRESIDENT
),
MACK A.REDFORD,COMMISSIONER
-Q))jPA
KR TINE RAPER,COv1MISSIONER
ATTEST:
Jn D.Jewell (JCommissionSecretary
O:IPC-E-1 5-O7djh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33277