20161130Comments.pdf

DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 8370
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
~ECEIVED
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
IDAHO POWER COMPANY TO APPROVE ITS )
ENERGY SALES AGREEMENT WITH )
SHOSHONE HYDRO, L.P. )
) ___________________ )
CASE NO. IPC-E-16-27
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Daphne Huang, Deputy Attorney General, and submits the following
comments.
BACKGROUND
On November 1, 2016, Idaho Power Company filed an Application seeking approval of
its Energy Sales Agreement (ESA) with Shoshone Hydro, L.P. Application at 1. The ESA
would replace an existing agreement, first approved by the Commission in 1981. Order No.
12746. Under the ESA, Idaho Power buys, and Shoshone Hydro sells, electric energy generated
by the Shoshone Hydro project (Facility) located near Shoshone, Idaho. Application at 1.
On October 31 , 2016, Idaho Power entered into its ESA with Shoshone Hydro pursuant
to the terms and conditions of various Commission Orders, and under the Public Utility
Regulatory Policies Act (PURP A). Application at 3. Under PURP A, electric utilities must
STAFF COMMENTS 1 NOVEMBER 30, 2016
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).
Idaho Power states that the Facility is a QF under PURP A and has a nameplate rating of
360 kilowatts (kW). Application at 4. The Facility is currently selling energy to Idaho Power
under an agreement executed in 1981, and set to expire February 15, 2017. Id.
Under the terms of the replacement ESA, "Shoshone 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.
Idaho Power states "Shoshone 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.
The Facility's Scheduled First Energy Date and Scheduled Operation Date is February
16, 2017. Id. The ESA will become effective only upon the Commission's approval and finding
that all payments made by Idaho Power to Shoshone Hydro for purchases of energy are "allowed
as prudently incurred expenses for ratemaking purposes." Id. at 5.
STAFF AN AL YSIS
Staff reviewed the Application and identified a clerical error where the capacity of the
project was mistakenly reported as 370 kW in Attachment 1 (Appendix D) to the Application.
On November 18, 2016, Idaho Power submitted a replacement page 46 to the ESA which
correctly identifies the projects capacity as 360 kW. Staff confirms that all rates are correct and
that all other terms and conditions contained in the proposed Agreement are consistent with prior
Commission orders.
RECOMMENDATION
Staff recommends that the Commission approve all of the corrected Agreement's terms
and conditions and declare that all payments made by Idaho Power to Shoshone Hydro located
near the city of Shoshone, Idaho, for purchase of energy and capacity will be allowed as
prudently incurred expenses for ratemaking purposes.
STAFF COMMENTS 2 NOVEMBER 30, 2016
201;) Respectfully submitted this 7 day of November 2016 .
~ Deputy Attorney General
Technical Staff: Yao Yin
i:umisc:comments/ipce l 6.27djhyy comments
STAFF COMMENTS 3 NOVEMBER 30, 2016
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 30TH DAY OF NOVEMBER 2016,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF IN
CASE NO. IPC-E-16-27, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO
THE FOLLOWING:
DONOVAN E WALKER
LEAD COUNSEL
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-mail: [e-mail]
[e-mail]
JOHN J STRAUBHAR
SHOSHONE HYDRO LP
STE 200
111 SHOSHONE ST N
TWIN FALLS ID 83301
E-mail: [e-mail]
RANDY C ALLPHIN
ENERGY CONTRACTS LEADER
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-mail: [e-mail]
SECRETAR
CERTIFICATE OF SERVICE