20150410Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER RAPER
COMMISSION SECRETARY
COMMISSION STAFF

FROM: DAPHNE HUANG
DEPUTY ATTORNEY GENERAL

DATE: APRIL 10, 2015

SUBJECT: IDAHO POWER’S APPLICATION TO APPROVE FIRST AMENDMENT
TO ITS UNIFORM AGREEMENT WITH FISHERIES DEVELOPMENT
CO., CASE NO. IPC-E-15-12

On April 2, 2015, Idaho Power filed an Application asking the Commission to
approve the First Amendment to its Uniform Agreement for the Purchase of Non-Firm Energy
from Cogeneration and Small Power Production Projects with Fisheries Development Co. Under
the Agreement, Idaho Power purchases, and Fisheries sells, non-firm energy generated by a
small hydroelectric facility near Hagerman, Idaho. Application at 2. The parties’ proposed
Amendment “reflect[s] a new Point of Delivery, which was necessitated by the installation of
updated metering and disconnection equipment.” Id. at 1.
BACKGROUND
The Fisheries project was built in 1989, and put into service under its 1990
Agreement with Idaho Power pursuant to the Public Utility Regulatory Policies Act (PURPA).
Id. at 1-2. The project’s equipment was originally located “in the basement of the penstock
house at the facility.” Id. According to Idaho Power, this structure has flooded on three
occasions through the years, “leaving the breaker and electrical interconnection package” under
about six feet of water. Id. Also, “as a usual part of the facility’s operation,” water sprays “from
the penstock coupling,” also reaching the electrical panels. Id. The breaker has often failed,
causing generation outages that require Idaho Power technicians to conduct on-site repairs,
which due to the wet environment, presents serious safety concerns. Id.
PROPOSED AMENDMENT
To address these problems and safety concerns, the parties have agreed “to update the
metering and disconnection equipment and facilities and locate them to a safer location.” Id.
DECISION MEMORANDUM 2
These changes, including a new Point of Delivery about “100 feet outside of the powerhouse,”
are reflected in the proposed Amendment. Id. The Amendment also reflects “the loss
calculation for the new Point of Delivery.” Id. at 3.
Idaho Power asks that the Amendment be approved upon Staff’s review, without
further process.
STAFF RECOMMENDATION
Given the limited scope of the amendment, Staff recommends that the request be
approved without further process.
COMMISSION DECISION
Does the Commission wish to approve the Amendment without further process?

Daphne Huang
Daphne Huang
Deputy Attorney General
M:IPC-E-15-12_djh