20150428final_order_no_33289.pdf

Office of the Secretary
Service Date
April 28,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S APPLICATION TO APPROVE )CASE NO.IPC-E-15-11
SECOND AMENDMENT TO ITS POWER )
PURCHASE AGREEMENT WITH HIDDEN )ORDER NO.33289
HOLLOW ENERGY )
On April 2,2015,Idaho Power Company filed an Application asking the Commission
to approve the Second Amendment to its Power Purchase Agreement (PPA)with Hidden Hollow
Energy LLC.1 Hidden Hollow is a qualifying facility (QF)under the Public Utility Regulatory
Policies Act (PURPA).Amended Application at 1.Under the Agreement,Idaho Power
purchases,and Hidden Hollow sells,firm energy generated by the Hidden Hollow Landfill Gas
Project near Boise,Idaho.Order No.29928 at 1.The parties’proposed Second Amendment
“makes a change to the Net Energy Amount notification process.”Amended Application at 1.
BACKGROUND
Idaho Power first entered into a PPA with Hidden Hollow in October 2005.Id.at 2.
This Commission approved the PPA in December 2005.Id.;see Order No.29928.Paragraph
6.2 of the original PPA allows Hidden Hollow to adjust the “Initial Year Monthly Net Energy
Amounts”each quarter,or no sooner than “the end of month three and every three months
thereafter.”Id.(citing Order No.29632 at 23).This language caused confusion between the
parties as to the frequency with which Hidden Hollow could revise Net Energy Amounts.Id
PROPOSED AMENDMENT
Rather than dispute the language,Idaho Power and Hidden Hollow agreed to amend
paragraph 6.2 of the PPA “to allow [Hidden Hollow]to adjust the ‘Initial Year Monthly Net
Energy Amounts’on a monthly,rather than quarterly,basis.”Id.at 3.Under the amended
provision,Hidden Hollow would be able to “submit future revisions on a monthly basis with a
minimum of 30 days notice prior to the beginning of the next month,rather than once every three
months.”Id.
The Commission has recently approved similar changes to six PPAs between Idaho
Power and other QFs.Id.;see Order Nos.33102,33103,33104,33156,33191,and 33240.In
Order No.33102,the Commission stated,“we find that monthly,as opposed to quarterly,
Idaho Power filed an Amended Application on April 6,2015,correcting an error in paragraph 5.
ORDER NO.33289 1
reporting of energy generation estimates is a reasonably negotiated term between the parties and
not inconsistent with the Commission’s guidance and findings in Order No.29632.”
Idaho Power asked that the Amendment be approved upon Staff’s review,without
further process.
STAFF RECOMMENDATION
Based upon its review of the Application and our prior Orders,Commission Staff
submitted that the proposed Amendment is consistent with previously approved changes and
recommended that the proposed Amendment be approved without further process.
DISCUSSION AND FINDINGS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power and the
issues raised in this matter pursuant to the authority and power granted to it under Title 61 of the
Idaho Code and PURPA.The Commission has authority under PURPA and the implementing
regulations of the Federal Energy Regulatory Commission (FERC)to review and approve QF
contracts.
Given the limited scope of the Second Amendment and the parties’desire to modify
the appropriate reporting period for “Net Energy Amounts”in their existing PPA,we find the
proposed Amendment between Idaho Power and Hidden Hollow to be fair and reasonable.
Consistent with our past Orders addressing this subject,we also find it reasonable to approve the
Second Amendment without further process.
ORDER
IT IS HEREBY ORDERED that Idaho Power’s Application to approve the Second
Amendment to its Power Purchase Agreement with Hidden Hollow is granted.
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.
ORDER NO.33289 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
da ofApril 2015.
PAULKJELEAN&R,PREDENT
j ,—‘u\t
MACK A.REDFORD,COMMISSIONER
-4DA
KR-TSTINE RAPER.COMMISSIONER
ATTEST:
Jn D.Jewel
Commission Secretary
O:IPC-E-15-1 ldih
ORDER NO.33289 3