20150819final_order_no_33358.pdf

Office of the Secretary
Service Date
August 19,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S APPLICATION TO APPROVE )CASE NO.IPC-E-15-21
SECOND AMENDMENT TO ITS POWER )
PURCHASE AGREEMENT WITH )ORDER NO.33358
AGPOWER JEROME,LLC )
__________________________________________________________________________________
)
On July 29,2015,Idaho Power Company filed an Application asking the Commission
to approve the Second Amendment to its Power Purchase Agreement (PPA)with AgPower
Jerome,LLC.The PPA is a contract under the Public Utility Regulatory Policies Act (PURPA).
This Amendment changes the Net Energy Amount notification process,similar to the process
that the Commission recently approved for Idaho Power involving six other PPAs.Idaho Power
asks that the Commission approve its Application upon Staff’s review and without further
process.Application at 4.
BACKGROUND
The Commission approved Idaho Power’s PPA with AgPower Jerome in 2010.
Order No.32138.Under the PPA,Idaho Power purchases,and AgPower sells,energy generated
by the Double A digester project in Lincoln County,Idaho.Id.at 1.The Double A is a
qualifying facility (QF)under PURPA.See Application at 1.In 2014,the Commission
approved a first amendment to the PPA to change the definition of “Mid-Columbia Market
Energy Cost,”consistent with Order No.33053.Order No.33184.
PROPOSED AMENDMENT
In this second amendment,Idaho Power and AgPower propose a change in the Net
Energy Amount notification process,allowing monthly rather than quarterly updates.
Application at 2.Specifically,the proposed second amendment changes paragraph 6.2 of the
PPA “to allow [AgPowerj to adjust the ‘Initial Year Monthly Net Energy Amounts’on a
monthly,rather than quarterly,basis.”Application at 3.Under the amendment,AgPower “can
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.Idaho Power indicates
that,with this change,AgPower “gains more clarity and flexibility in adjusting its estimated
ORDER NO.33358 1
energy deliveries and Idaho Power maintains the stability in the estimates necessary for its
planning and operation.”Id.
The Commission recently approved six PPAs between Idaho Power and other QFs
that include the same notification provision.Order Nos.33102,33103,33104,33156,33191,
and 33240;Application at 2.In Order No.33102,the Commission stated,“we find that monthly,
as opposed to quarterly,reporting of energy generation estimates is a reasonably negotiated term
between the parties and not inconsistent with the Commission’s [earlierj guidance and findings.”
Order No.33102 at 6;Application at 3.
STAFF RECOMMENDATION
Given the limited scope of the amendment,Staff recommended the request be
approved without further process.
DISCUSSION AND FINDINGS
Consistent with our prior Orders referenced herein,we find it reasonable to amend
Idaho Power’s PPA with AgPower Jerome by shortening the Net Energy Amount notification
process to allow monthly rather than quarterly updates.We find that no further process is
needed and thus approve the Amendment as proposed.
ORDER
IT IS HEREBY ORDERED that Idaho Power’s Application to approve the Second
Amendment to its Power Purchase Agreement with AgPower Jerome,LLC is approved without
change or condition.
THIS IS A FNAL 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.33358 2
\I I IIkaId I
ARSHA H.SMITH,COMMISSIONER
--;J
KRTSINE RAPER,COMMISSIONER
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
PAUL
day of August 2015.
ATTEST:
PRESIDENT
Diane M.
Assistant Commission Secretary
O:IPC-E-I 5-2ldjh
ORDER NO.33358 .5