20160909Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF

FROM: DAPHNE HUANG
DEPUTY ATTORNEY GENERAL

DATE: SEPTEMBER 6, 2016

SUBJECT: IDAHO POWER’S APPLICATION TO APPROVE FIRST AMENDMENT
TO THE ENERGY SALES AGREEMENT WITH BOISE CITY SOLAR,
LLC, CASE NO. IPC-E-16-20

On September 1, 2016, Idaho Power Company filed an Application seeking approval
of the First Amendment to its Energy Sales Agreement (ESA) with Boise City Solar, LLC. The
ESA falls under the Public Utility Regulatory Policies Act of 1978 (PURPA), and is a contract
for the sale and purchase of electric energy generated by the Boise City Solar Project, a PURPA
qualifying facility (QF). The Amendment changes the QF’s name in the ESA, corrects a
typographical error in Article 7.4 of the ESA, and updates Appendix B to the ESA with corrected
information. 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 Agreement with Boise City Solar, LLC in
2014. Order No. 33180. In 2015, the parties to the ESA executed an Assignment and
Assumption Agreement, whereby Boise City Solar, LLC was assigned and transferred to ID
Solar 1, LLC. Application at 2. ID Solar 1, LLC wishes to change the project/QF’s name, as set
forth in the ESA, from “Boise City Solar, LLC,” to “ID Solar 1.” Id.
The parties have identified a typographical error in the ESA, in which the word
“Percentage” was omitted from the second sentence of Article 7.4, which should read “Pricing
Adjustment Percentage.” Id. The parties also agree that the ESA’s Appendix B has incorrect
and outdated facility description information. Id.
DECISION MEMORANDUM 2
PROPOSED AMENDMENT
The proposed Amendment changes the name of the project or QF to “ID Solar 1,” to
reflect that ID Solar 1 was assigned, and assumed the ESA, from Boise City Solar. Id. at 2-3. In
addition, the Amendment corrects the second sentence of Article 7.4 to properly read “Pricing
Adjustment Percentage,” where the word “Percentage” was inadvertently omitted. Id. at 3.
Also, since the ESA was approved, the QF’s physical characteristics, including its
“configuration, design, . . . construction of the Facility, [and] its location” were changed. Id.
The changes include that the facility was constructed as a 40 MWac (megawatts converted to
alternating current) single axis tracking system, rather than a 39.989 MWac dual axis tracking
system, as described in the original ESA. Id. According to the Application, the “modified
nameplate capacity of 40 . . . is consistent with the Generator Interconnection Agreement.” Id.
Further, “the change to a single axis tracking system provides no change to the performance
requirements of the ESA.” Id.
The proposed Amendment deletes the original Appendix B in its entirety, and
replaces it with “Replacement Appendix B,” which includes updated and corrected information.
Id. at 3-4. None of the proposed changes alter the contracting parties’ obligations, nor the terms
and conditions of the ESA. Id. at 4.
STAFF RECOMMENDATION
Given the limited scope of the Amendment, Staff recommends that the Application be
approved without further process.
COMMISSION DECISION
Does the Commission wish to approve the Application without further process?

M:IPC-E-16-20_djh