20161115notice_of_application_order_no_33651.pdf

Office of the Secretary
Service Date
November 15. 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )
APPROVAL OR REJECTION OF AN )
ENERGY SALES AGREEMENT WITH HK )
HYDRO LLC FOR THE SALE AND )
PURCHASE OF ELECTRIC ENERGY FROM )
THE MUD CREEK S&S HYDRO PROJECT )
)
-------------------)
CASE NO. IPC-E-16-25
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 33651
On November 1, 2016, Idaho Power Company filed an Application seeking a
Commission Order approving or rejecting its Energy Sales Agreement (ESA) with H K Hydro,
LLC, and if the ESA is accepted, declaring that all payments for purchases of energy under the
ESA be allowed as prudently incurred expenses for ratemaking purposes. Application at 1, 6.
The ESA would replace an existing agreement, first approved by the Commission in 1981. Id. at
2. Under the proposed ESA, Idaho Power would buy, and HK Hydro would sell, electric energy
generated by the Mud Creek S&S hydro project (Facility) located near Buhl, Idaho. Id. at 1.
The Commission now issues this Notice of Application and Notice of Modified Procedure
setting comment and reply deadlines in this matter.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on October 5, 2016, Idaho Power entered into
its ESA with H K Hydro pursuant to the terms and conditions of various Commission Orders and
under the Public Utility Regulatory Policies Act (PURPA). Id. at 2-3. Under PURPA, electric
utilities must purchase electric energy from "qualifying facilities" (QFs) at rates approved by the
applicable state regulatory agency -in Idaho, this Commission. 16 U.S.C. § 824a-3; Idaho
Power v. Idaho PUC, 155 Idaho 780,789,316 P.3d 1278, 1287 (2013).
YOU ARE FURTHER NOTIFIED that Idaho Power states that the Facility is a QF
under PURPA and has a nameplate rating of 520 kilowatts (kW). Application at 2, 4. The
Facility is currently selling energy to Idaho Power under an agreement executed in 1981, which
is to expire February 19, 2017. Id. at 2.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33651 1
YOU ARE FURTHER NOTIFIED that, under the terms of the replacement ESA,
"H K Hydro elected to contract with Idaho Power for a 20-year term using the non-levelized,
non-seasonal hydro published avoided cost rates as currently established by the Commission in
Order No. 33538 for replacement contracts and for energy deliveries of less than 10 [average
megawatts] aMW." Id. at 3-4.
YOU ARE FURTHER NOTIFIED that Idaho Power states "H K Hydro will be
required to provide data on the Facility that Idaho Power will use to confirm that under normal
and/or average conditions, the Facility will not exceed 10 aMW on a monthly basis." Id. at 4.
YOU ARE FURTHER NOTIFIED that the Facility's Scheduled First Energy Date
and Scheduled Operation Date is February 20, 2017. Id. The ESA will become effective only
upon the Commission's approval and finding that all payments made by Idaho Power to H K
Hydro for purchases of energy will be allowed as prudently incurred expenses for ratemaking
purposes. Id. at 5.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that this Application be
processed by Modified Procedure, stating that it believes a hearing is not necessary to consider
the issues presented herein. Id.
YOU ARE FURTHER NOTIFIED that the Application and a copy of the ESA have
been filed with the Commission and are available for public inspection during regular business
hours at the Commission offices. These documents are also available on the Commission's web
Click on the "File Room" tab at the top of the page, then select
"Electric Cases" and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §§ 61-502 and 61-503. The Commission has authority under PURPA and the
implementing regulations of the Federal Energy Regulatory Commission (FERC) to set avoided
costs, to order electric utilities to enter into fixed-term obligations for the purchase of energy
from qualified facilities and to implement FERC rules. The Commission may enter any final
Order consistent with its authority under Title 61 and PURP A.
YOU ARE FURTHER NOTIFIED that all proceedings m this matter will be
conducted pursuant to the Commission's Rules of Procedure, ID APA 31.01.01.000 et seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33651 2
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter, and that it will proceed under
Modified Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure,
IDAPA 31.01.01.201 through .204. The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by no
later than December 6, 2016. The comment must contain a statement of reasons supporting the
comment. Persons desiring a hearing must specifically request a hearing in their written
comments. Written comments concerning this Application shall be mailed to the Commission
and Idaho Power at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
Donovan E. Walker, Lead Counsel
Randy C. Allphin, Energy Contracts Leader
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, ID 83707-0070
E-Mail:
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Click the "Case Comment or Question
Form" under the "Consumers" tab, and complete the comment form using the case number as it
appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments, if
necessary, by no later than December 20, 2016.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33651 3
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power Company be
processed by Modified Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested
in submitting written comments must do so no later December 6, 2016. The Company may file a
reply no later than December 20, 2016.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of November 2016.
ERIC ANDERSON, COMMISSIONER
ATTEST:
O:IPC-E-16-25 cc
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33651 4