20170601notice_of_application_order_no_33774.pdf

Office of the Secretary
Service Date
June 1,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-17-08
OF IDAHO POWER TO APPROVE OR )
REJECT ITS ENERGY SALES )NOTICE OF APPLICATION
AGREEMENT WITH SHINGLE CREEK )
LLC FOR THE SALE AND PURCHASE OF )NOTICE OF
ELECTRIC ENERGY FROM THE )MODIFIED PROCEDURE
SHINGLE CREEK HYDRO PROJECT )
______________________________
)ORDER NO.33774
On May 17,2017,Idaho Power Company filed an Application asking the
Commission to approve or reject its Energy Sales Agreement with Shingle Creek LLC.The
Agreement falls under the Public Utility Regulatory Policies Act of 1978 (PURPA),and is a
contract for the sale of electric energy purchased by Idaho Power and generated by Shingle
Creek’s hydro project (“Facility”)near Riggins,Idaho.Idaho Power asked that its Application
be processed by Modified Procedure.
With this Order,the Commission provides notice of the Company’s Application,and
notice that the matter will be processed by Modified Procedure,with deadlines to submit
comments about the Application as set forth herein.
BACKGROUND
Under PURPA,electric utilities must purchase electric energy from “qualifying
facilities”(QFs)at 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 purchase or “avoided cost”
rate shall not exceed the “incremental cost’to the purchasing utility of power which,but for the
purchase of power from the QF,such utility would either generate itself or purchase from
another source.”Order No.32697 at 7,citing Rosebud Enterprises v.Idaho PUC,128 Idaho 624,
917 P.2d 781 (1996);18 C.F.R.§292.101(b)(6)(defining “avoided cost”).
The Commission has established two methods of calculating avoided costs,
depending on the size of the QF project:(1)the surrogate avoided resource (SAR)methodology,
and (2)the integrated resource plan (IRP)methodology.See Order No.32697 at 7-8.The
Commission uses the SAR methodology —which applies to the Facility in this case —to establish
“published”avoided cost rates.Id Published rates are available for wind and solar QFs with a
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33774 1
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.
In calculating avoided costs,the Commission has found it “reasonable,appropriate
and in the public interest to compensate QFs separately based on a calculation of not only the
energy they produce,but the capacity that they can provide to the purchasing utility.”Order No.
32697 at 16.In calculating capacity,the Commission considers “each utility’s capacity
deficiency based on load and resource balances found in each utility’s [Integrated Resource Plan]
IRP,”as well as “a QF’s ability to contribute to a utility’s need for capacity.”Id.at 16,21.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power and Shingle Creek first entered
into a PURPA agreement in 1982.Application at 2.That contract is set to expire July 31,2017.
Id.The Agreement at issue in this matter is a new contract that was entered into by Idaho Power
and Shingle Creek on May 8,2017.Id.Under the Agreement’s terms,Shingle Creek elected to
contract with Idaho Power for a five-year term using the non-levelized,non-seasonal,hydro
published avoided cost rates,as established by the Commission (Order No.33538)for
replacement contracts and energy deliveries of less than 10 aMW.Id.at 3-4.
YOU ARE FURTHER NOTIFIED that the nameplate rating of the Facility is 222
kilowatts (kW),and Shingle Creek agrees it will not exceed 10 aMW on a monthly basis.Id.at
4.The Facility “is already interconnected and selling energy to Idaho Power.”Id.Nonetheless,
the Agreement specifies its Scheduled First Energy Date and Scheduled Operation Date as
August 1,2017.Id.The terms and provisions of the Agreement include that “applicable
interconnection charges and monthly operational or maintenance charges under Schedule 72 will
be assessed to [Shingle Creek].”Id.at 5.Also,PURPA QF generation “must be designated as a
network resource (“DNR”)to serve Idaho Power’s retail load on its system.”Id.
YOU ARE FURTHER NOTIFIED that to maintain DNR status under the Agreement,
“there must be a power purchase agreement associated with [the Facility’s]transmission service
request in order to maintain compliance with Idaho Power’s non-discriminatory administration
of its Open Access Transmission Tariff (OATT)and maintains compliance with [Federal Energy
Regulatory Commission]FERC requirements.”Id.
YOU ARE FURTHER NOTIFIED that,under its terms,the Agreement will not
become effective “until the Commission has approved all of [its]terms and conditions and
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ORDER NO.33774 2
declared that all payments Idaho Power makes to Shingle Creek for purchases of energy will be
allowed as prudently incurred expenses for raternaking purposes.”Id at 5.
YOU ARE FURTHER NOTIFIED that the Application and a copy of the Agreement
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices.The Application and attachments are also available
on the Commission’s web site at wvw.puc.idaho.gov.Click on the “File Room”tab at the top of
the page,then select “Electric Cases”and click on the case numbers 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 3 1.01.01.201-204.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 Donovan E.Walker,Lead Counsel
Idaho Public Utilities Commission Idaho Power Company
P0 Box 83720 1221 West Idaho Street (83702)
Boise,ID 83720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-mail:[e-mail]
dockets’iiidahopower.com
472 W.Washington Street energycontractsidahopower.com
Boise,ID 83702-59 18
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
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ORDER NO.33774 3
Form”under the “Consumers”tab,and complete the form using the case number as it appears on
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 PURPA.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 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.33774 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of June 2017
ATTEST:
Diane M.Hanian
Commission Secretary
O:IPCE I 7O8djh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33774
PAUL KJELtANIDER,PRESIDENT
ERIC ANDERSON,COMMISSIONER
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