20160823final_order_no_33574.pdf

Office of the Secretary
Service Date
August 23, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY'S APPLICATION TO APPROVE ) CASE NO. IPC-E-16-16
THE THIRD AMENDMENT TO ITS FIRM )
ENERGY SALES AGREEMENT WITH )
RIVERSIDE INVESTMENTS I, LLC, FOR ) ORDER NO. 33574
_F_AR_G_O_D_R_O_P_H_YD_R_O ________ )
On August 12, 2016, Idaho Power Company filed an Application asking the
Commission to approve the Third Amendment to its Firm Energy Sales Agreement (FESA) with
Riverside Investments I, LLC. The FESA is a contract under the Public Utility Regulatory
Policies Act (PURPA) for generation from the Fargo Drop hydro facility, a PURPA qualifying
facility (QF). This Amendment changes the Net Energy Amount notification process, similar to
the process that the Commission has approved for Idaho Power involving more than 20 other
energy sales agreements. Idaho Power asked that the Commission approve its Application upon
Staffs review and without further process. Application at 4.
BACKGROUND
The Commission approved Idaho Power's Agreement with Riverside Investments I,
LLC in 2012. Order No. 32451. In 2014, the Commission approved the Company's First
Amendment, which changed the definition of the Mid-Columbia Market Energy Cost in the
Agreement consistent with a Commission-approved stipulation. Order Nos. 33184, 33053. In
March 2016, the Commission approved the Company's Second Amendment, which changed
references in the Agreement from "Riverside Investments, LLC" to "Riverside investments I,
LLC." Order No. 33521 . Idaho Power and Riverside Investments I, LLC (hereafter "Riverside")
agreed to the Third Amendment on June 22, 2016.
PROPOSED AMENDMENT
In the Third Amendment, Idaho Power and Riverside propose a change in the Net
Energy Amount notification process to allow Riverside "to adjust the 'Initial Year Monthly Net
Energy Amounts' on a monthly, rather than quarterly, basis." Application at 3. Under the
amendment, Riverside "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 that with this change Riverside "gains more clarity and flexibility in
ORDER NO. 33574
adjusting its estimated energy deliveries and Idaho Power maintains the stability in the estimates
necessary for its planning and operation.', Id. at 4.
Idaho Power notes that, since August 2014, the Commission has approved more than
20 FESAs/ESAs between Idaho Power and QFs that allow the QFs to change the Initial Year
Monthly Net Energy Amounts on a monthly basis. Id. at 2. Also, the Commission has approved
FESA/ESA amendments similar to that here. Id. at 3, citing Order Nos. 33358, 33359. 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 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 Riverside 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 Third
Amendment to its Firm Energy Sales Agreement with Riverside Investments I, 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§ 61-626.
ORDER NO. 33574 2
"3d DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ~
day of August 2016.
, PRESIDENT
sERAPER, coMM ss10NER
ERIC ANDERSON, COMMISSIONER
ATTEST:
~&~
Diane Holt
Assistant Commission Secretary
O:IPC-E-16-16_djh
ORDER NO. 33574 3