20150819final_order_no_33359.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-15-22
THIRD AMENDMENT TO ITS POWER )
PURCHASE AGREEMENT WITH )ORDER NO.33359
AGPOWER DCD,LLC )
_________________________________________________________________________________________
)
On July 29,2015,Idaho Power Company filed an Application asking the Commission
to approve the Third Amendment to its Power Purchase Agreement (PPA)with AgPower DCD,
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 Staffs review and without further process.
Application at 4.
BACKGROUND
In 2010,the Commission approved the initial PPA between Idaho Power and Cargill
Incorporated (the original seller).Order No.31034.Under the PPA,Idaho Power purchases
energy generated by the Bettencourt Dry Creek Biofactory near Hansen,Idaho.Id.at 1.
Bettencourt is a qualifying facility (QF)under PURPA.See Application at 1.In June 2014,the
Commission approved a first amendment to the PPA,transferring ownership of Bettencourt,and
all rights,interests,and obligations,under the PPA to AgPower.Id.In August 2015,Idaho
Power and AgPower entered into a second amendment to change the definition of “Mid-
Columbia Market Energy Cost”in the PPA,consistent with Order No.33053.Order No.33184.
PROPOSED AMENDMENT
In this third 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 third 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 4.Under the third 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
ORDER NO.33359 1
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 3.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,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 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 Third Amendment as proposed.
ORDER
IT IS HEREBY ORDERED that Idaho Power’s Application to approve the Third
Amendment to its Power Purchase Agreement with AgPower DCD,LLC is approved without
change or condition.
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.33359
424tLi
KRI TINE RAPER,COMMISSIONER
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2015
ATTEST:
—C)j
MARSHA H.SMITH,COMMISSIONER
Diane M.Holt
Assistant Commission Secretary
O:IPC-E-I 5-22djh
ORDER NO.33359 3