20150814Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER RAPER
COMMISSION SECRETARY COMMISSION STAFF
FROM: DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 5, 2015
SUBJECT: IDAHO POWER’S APPLICATION TO APPROVE SECOND
AMENDMENT TO ITS POWER PURCHASE AGREEMENT WITH
AGPOWER JEROME, LLC, CASE NO. IPC-E-15-21 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 [AgPower] to adjust the ‘Initial Year Monthly Net Energy Amounts’ on a
monthly, rather than quarterly, basis.” Application at 3. Under the amendment, AgPower “can
DECISION MEMORANDUM 2
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
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 [earlier] guidance and findings.”
Order No. 33102 at 6; Application at 3.
STAFF RECOMMENDATION
Given the limited scope of the amendment, and consistent with the Commission’s
prior Orders, as cited above, Staff recommends that the request be approved without further
process.
COMMISSION DECISION
Does the Commission wish to approve the Application without further process?

Daphne Huang
Deputy Attorney General

M:IPC-E-15-21_djh
Daphne Huang