20151027final_order_no_33404.pdf

Office of the Secretary
Service Date
October 27,201 5
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
CO1PANY’S APPLICATION TO APPROVE )CASE NO.IPC-E-15-24
OR REJECT ENERGY SALES AGREEMENT )
WITH NORTH GOODING MAIN HYDRO )ORDER NO.33404
LLC )
On September 8,2015,Idaho Power Company filed an Application asking the
Commission to accept or reject its Energy Sales Agreement (ESA)with North Gooding Main
1-lydro LLC.The ESA is for the sale and purchase of electric energy generated by the North
Gooding Main Hydro Project,a “qualifying facility”as defined under the Public Utility
Regulatory Policies Act (PURPA),located near Gooding,Idaho.
The Commission issued a Notice of Application and Notice of Modified Procedure,
setting a 21-day comment period.Commission Staff was the only party to file written
comments.Idaho Power did not file a reply.The Commission now approves the Application.
LEGAL BACKGROUND
Under PURPA,electric utilities such as Idaho Power must purchase electric energy
from qualifying facilities (QFs)at rates approved by this Commission.16 U.S.C.§824a-3;
Idaho Power Conpany v.Idaho PUC.155 Idaho 780,789,316 P.3d 1278,1287 (2013),citing
FERC v.Itfississippi,456 U.S.742.751 (1982).The purchase or “avoided cost”rate must be
“just and reasonable to the electric consumers ...and in the public interest”and “shall not
discriminate against [QFsj.”16 U.S.C.§824a-3(b);18 C.F.R.§292.304.
THE AGREEMENT
On July 29,2015,Idaho Power entered into its ESA with North Gooding —subject to
the Commission’s approval —pursuant to the terms and conditions of various Commission
Orders and PURPA.Application at 3.North Gooding’s facility is a seasonal hydro project,and
a “qualifying facility”(QF)under PURPA.Id.Under the terms of the ESA.North Gooding
elected to contract with Idaho Power for a 20-year term using the levelized published avoided
cost rates as currently established by Commission Order No.33305 for energy deliveries less
than 10 aMW.Id.
The nameplate rating of North Gooding’s facility is 1.3 megawatts (MW).Id.at 4.
North Gooding will be required to provide data on the facility that Idaho Power will use to
ORDERNO.33404
confirm that under normal or average conditions,the facility will not exceed 10 ai1W on a
monthly basis.Ia North Gooding has selected April 1,2017 as the Scheduled Operation Date.
Id.Under the ESA.various requirements have been placed on North Gooding in order for Idaho
Power to accept energy deliveries from the facility.fd.Idaho Power will monitor all ongoing
requirements through the full term of the ESA.Id.
The ESA provides that all interconnection charges and monthly operational or
maintenance charges under Schedule 72 will be assessed to North Gooding.Id.Before the
facility will deliver any energy to Idaho Power,all requirements of the Schedule 72 Generator
Interconnection Agreement (GIA)must be complete,and the facility must be designated as a
network resource (DNR)to serve Idaho Power’s retail load on its system.Id.at 4-5.In its
Application,Idaho Power states that a GIA is expected to be signed by May 1,2016.Id.at 5.
By its own terms,the ESA will not become effective until the Commission has
approved all of its terms and conditions and declared that all payments made by Idaho Power to
North Gooding for purchases of energy will be allowed as prudently incurred expenses for
ratemaking purposes.Id.
STAFF COMMENTS
Staff reviewed the Application and attachments and discovered a clerical error in the
all-hours energy price for Season 2.Comments at 2.Idaho Power corrected the error,filing a
replacement page with the corrected rate.Staff determined that all other terms and conditions in
the proposed Agreement are consistent with prior Commission Orders.Staff therefore
recommended the Commission approve all the Agreement’s terms and conditions and declare
that all payments made by Idaho Power to North Gooding for purchase of energy be allowed as
prudently incurred expenses for ratemaking purposes.
DISCUSSION AND FINDINGS
The Commission has jurisdiction over Idaho Power and the issues raised in this
matter under Title 61 of the Idaho Code and PURPA.The Commission also has authority under
PURPA and Federal Energy Regulatory Commission (FERC)regulations to set avoided costs,to
order electric utilities to enter into fixed-term obligations for the purchase of energy from QFs,
and to implement FERC rules.We have reviewed the record in this case,including the
Application,its attachments,and Staffs comments.
ORDER NO.33404 2
We find that North Gooding’s facility is qualified to receive the levelized published
avoided cost rates contained in the ESA.We further find that,with the correction as to the all-
hours energy price for Season 2,the proposed ESA contains acceptable contract provisions
consistent with PURPA,FERC regulations,and this Commission’s prior Orders.Finally,we
find it reasonable to allow payments made under the Agreement as prudently incurred expenses
for ratemaking purposes.
ORDER
IT IS HEREBY ORDERED that Idaho Power’s Application to approve its Energy
Sales Agreement with North Gooding Main Hydro is granted and the Agreement is approved.
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 §61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of October 2015.
pMif KJE L 1ER,PRESIDENT
MARSHA .SMITH,COMMISSIONER
KRSTINE RAPER,CEIMMISSIONER
ATTEST:
Jewell’
ommission Secretary
O:IPC-E-1 5-24djh2
ORDER NO.33404 3