20170119notice_of_application_order_no_33688.pdf

Office of the Secretary
Service Date
January 19, 2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY TO
APPROVE THE FIRST AMENDMENT TO
ITSENERGYSALESAGREEMENTFOR
THE AMERICAN FALLS SOLAR II, LLC
PROJECT
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) CASE NO. IPC-E-16-35
)
) NOTICE OF APPLICATION
)
) NOTICE OF
) MODIFIED PROCEDURE
)
) ORDER NO. 33688
On December 22, 2016, Idaho Power Company filed an Application asking the
Commission to approve the First Amendment to its Energy Sales Agreement (ESA) with
American Falls Solar II, LLC (American Falls II). The ESA is a contract under the Public Utility
Regulatory Policies Act (PURP A). The Amendment deletes an inapplicable provision, corrects a
typographical error, updates and corrects information in the ESA's Appendix B, and adds an
Appendix I regarding net energy allocation. Staff recommended processing the Application by
Modified Procedure, to which the Company did not object. The Commission now issues this
notice of the Company's Application, and Notice of Modified Procedure.
BACKGROUND
Under PURPA, electric utilities must purchase electric energy from "qualifying
facilities" (QFs) at purchase or "avoided cost" rates approved by this Commission. 16 U.S.C. §
824a-3; Idaho Power Co. v. Idaho PUC, 155 Idaho 780,789,316 P.3d 1278, 1287 (2013). The
Commission has established two methods for calculating avoided costs, depending on the size of
the QF project: (1) the surrogate avoided resource (SAR) methodology, used to establish
"published" avoided cost rates; and (2) the integrated resource plan (IRP) methodology, to
calculate avoided cost rates for projects exceeding published rate limits. See Order No. 32697 at
7-8. Published rates are available for wind and solar QFs with a design capacity of up to 100
kilowatts (kW), and for QFs of all other resource types with a design capacity of up to 10
average megawatts (aMW). Id.; see also 18 C.F.R. § 292.304(c).
The Commission approved Idaho Power's ESA with American Falls II in 2014.
Order No. 33201. Under the ESA, Idaho Power purchases and American Falls II sells energy
generated by American Falls II' s solar facility (Facility) -a PURP A QF -near American Falls,
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33688 1
Idaho. Application at 2. The ESA contains prices based on the IRP avoided cost methodology.
Id. at2-3.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on December 1, 2016, Idaho Power and
American Falls II entered into an agreed Amendment to their ESA, subject to this Commission's
approval. Application at 1.
YOU ARE FURTHER NOTIFIED that in the Amendment, Idaho Power and
American Falls II agree to delete Article 3.3 of the ESA, which provides that American Falls II
will "take such steps as may be required to maintain the [QF's] status" as a solar published rate
facility. Id. at 2; see Attachment 1 to Application in Case No. IPC-E-14-35 at 10 (ESA Art. 3.3).
As noted in the Application here, the Facility "exceeds the eligibility threshold for published
avoided cost rates," thus the language of Article 3.3 does not apply. Application at 2.
YOU ARE FURTHER NOTIFIED that in the Amendment, Idaho Power and
American Falls II agree to correct Article 7.4 of the ESA to include the word "Percentage,"
inadvertently omitted from the second sentence which should read, "All pricing contained within
Appendix E for the current applicable month(s) will be multiplied by the Pricing Adjustment
Percentage .... " Id. at 3 (emphasis added). In addition, the Facility's physical characteristics
have changed since the Commission approved the ESA, which describes the Facility's
configuration, design, and construction in its Appendix B-1. Id. Accordingly, the Company and
American Falls II agree Appendix B will include "a more generalized Facility description" that is
consistent with the QF's Generator Interconnection Agreement (GIA). Id. at 2, 4.
YOU ARE FURTHER NOTIFIED that the Amendment adds Appendix I, Net Energy
Allocation. Idaho Power states that the Facility "utilizes an interconnection that is shared with
another project, American Falls Solar, LLC." Id. at 4. Idaho Power has a single point of
delivery (POD) and revenue meter for the two facilities that measures the total net energy of both
projects. Id. "Appendix I establishes the method for determining each project's Net Energy
deliveries," for administration of the ESA. Id. The Company states that the changes in the
Amendment "have no material effect to the [ESA's] terms and provisions ... and [would] not
alter the [ESA's] performance requirements or pricing," but are proposed for the ESA's proper
administration and enforcement. Id. at 5.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33688 2
YOU ARE FURTHER NOTIFIED that the Application and Amendment have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices. The Application and Amendment are also available on the
Commission's web site at \V\Vw.puc.idaho.gov. Click on the "File Room" tab at the top of the
page, scroll down to the type of "Open Electric Cases," and then click on the case number as
shown on the front of this document.
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 will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules
of Procedure, IDAPA 31.01.01.201-204. 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 in opposition with the Commission within
21 days from the service date of this Order. 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 may be mailed to the
Commission and Idaho Power at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83 720-007 4
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
Donovan E. Walker
Lead Counsel
Michael T. Darrington
Energy Contracts Leader
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: [e-mail]
[e-mail]
[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
Commission's home page located at www.puc.idaho.gov. Click the "Case Comment or Question
Form" under the "Consumers" tab, and complete the form using the case number as it appears on
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33688 3
the front of this document. These comments must also be sent to the Company at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that Idaho Power may file reply comments, if
necessary, no later than 28 days from the service date of this Order.
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
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
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 § 61-503. 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 in this matter will be
conducted pursuant to the Commission's Rules of Procedure, ID APA 31.01.01.000, et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons may file written comments no later than 21 days from the service date of this
Order. Idaho Power may file a reply, if necessary, no later than 28 days from the service date of
this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33688 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of January 2017.
Diane M. Hanian
Commission Secretary
O:IPC-E-16-35 _ djh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 33688 5
MISSIONER