20190716_MH1jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE:JULY 12,2019
SUBJECT:IDAHO POWER'S APPLICATION TO APPROVE FIRST AMENDMENT
TO THE ENERGY SALES AGREEMENT WITH MC6 HYDRO LLC,CASE
NO.IPC-E-19-21
On July 3,2019,Idaho Power Company filed an Application seeking approval of the
First Amendment to its Energy Sales Agreement (ESA)with MC6 Hydro LLC.The ESA falls
under the Public UtilityRegulatory Policies Act of 1978 (PURPA),and is a contract for the sale
and purchase of electric energy generated by the MC6 Hydro Project,a PURPA qualifying facility
(QF).The Amendment changes the Scheduled Operation Date from July 30,2019,to August 31,
2020.Idaho Power asks that the Commission process its Application by Modified Procedure.
Application at 3,
BACKGROUND
The Commission approved Idaho Power's ESA with MC6 Hydro LLC in 2018.Order
No.34106.The ESA contains a Scheduled Operation Date of July 30,2019.Application at 2.After
the ESA was executed and approved,a principle developer of the QF died unexpectedly,delaying
construction of the QF.Id.
PROPOSED AMENDMENT
The proposed Amendment changes the Scheduled Operation Date from July 30,
2019,to August 31,2020.Id at 2.However,the July 30,2019 Scheduled Operation Date will
remain in effect for calculating any Delay Damages.Application Attachment at 1.The preamble
to the Amendment states that MC6 Hydro LLC "will pay for any Delay Damages as defined and
calculated in accordance with the Agreement between the original July 30,2019,Scheduled
Operation Date and the actual Operation Date of the Project."Id.
DECISION MEMORANDUM l
STAFF RECOMMENDATION
Staff has reviewed the Application and attachment and recommends that the
Application be processed under Modified Procedure with a 21-day comment period,and a 7-day
reply period.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with a 21-day comment period and 7-day reply period?
Matt Hunter
Deputy Attorney General
I:lLegaEELECTRIC\lPC-E-19-211memosilPCE1921 mh doc
DECISION MEMORANDUM 2