20160330final_order_no_33489.pdf

Office of the Secretary
Service Date
March 30,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S APPLICATION TO APPROVE )CASE NO.IPC-E-16-04
SECOND AMENDMENT TO ITS FIRM )
ENERGY SALES AGREEMENT WITH NEW )
ENERGY ONE,LLC )ORDER NO.33489
________________________________________________________________________________________
)
On March 17,2016,Idaho Power Company filed an Application asking the
Commission to approve the Second Amendment to its Firm Energy Sales Agreement (FESA)
with New Energy One,LLC.The FESA 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 at least
eight other Energy Sales Agreements.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 FESA with New Energy One in 2010.
Order No.32025.Under the FESA,Idaho Power purchases,and New Energy One sells,energy
generated by the Rock Creek Dairy project near Filer,Idaho.Application at 2.Rock Creek
Dairy is a qualifying facility (QF)under PURPA.Id.at 1.In 2014,the Commission approved a
First Amendment to the FESA to change the definition of “Mid-Columbia Market Energy Cost,”
consistent with Order No.33053.Order No.33184.
PROPOSED AMENDMENT
In the Second Amendment,Idaho Power and New Energy One propose a change in
the Net Energy Amount notification process (paragraph 6.2 of the FESA),allowing monthly
rather than quarterly updates.Application at 2.Under the Amendment,New Energy One “can
submit future revisions of its Monthly Net Energy Amounts 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.at 3-4.Idaho Power indicates that,with this change,New Energy One “gains more
clarity and flexibility in adjusting its estimated energy deliveries and Idaho Power maintains
stability with the required year of monthly estimates as well [as]more accurate monthly
forecasts,which are useful in the operational integration of QF generation.”Id.at 4.
ORDER NO.33489 1
The Commission recently approved at least six Energy Sales Agreements between
Idaho Power and other QFs that include the same provision.Order Nos.33102,33103.33104.
33156.33191.and 33240.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.In August 2015,the Commission approved two FESA amendments
similar to the one proposed here,Order Nos.33358,33359.
STAFF RECOMMENDATION
Given the limited scope of the Amendment,Staff recommended that 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 FESA with New Energy One 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 Firm Energy Sales Agreement with New Energy One,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.33489 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this ZO
day of March 201 6
ATTEST:
0
KRISTINE RAPER,COMMISSIONER
/1 K [U
/L..j
Jean D Jexel1
Commission Seretary
0:IPCE I 6-04 dj h
PRESIDENT
ERIC ANDERSON,COMMISSIONER
ORDER NO.33489 -5