20170609Decision Memo.pdf

DECISION MEMORAI\IDUM
TO:COMMISSIONER ISELLAI\IDER
COMN{ISSIONER RAPER
COMMISSIONER Ai\DERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DAPHNE HUAI\G
DEPUTY ATTORNEY GENERAL
DATE: JUNE 8,2017
ST]BJECT:IDAHO POWER'S APPLICATION TO APPROVE AMENDMENTS TO
ITS ENERGY SALES AGREEMENT FOR THE MT. HOME SOLAR 1,
LLC PROJECT, CASE NO.IPC-E-17-09
On June 6,2017,Idaho Power Company filed an Application asking the Commission
to approve the Second and Third Amendments to its Energy Sales Agreement with Mt. Home
Solar l, LLC. The Agreement is a contract under the Public Utility Regulatory Policies Act
(PLJRPA). The Amendments correct a typographical error and update information in Appendix
B to the Agreement. Idaho Power asks that the Commission approve its Application upon Staff s
review and without further process. Application at 4.
BACKGROT]I[D
The Commission approved Idaho Power's Agreement with Mt. Home Solar in 2015.
Order No. 33206. Under the Agreement, Idaho Power purchases, and Mt. Home Solar sells,
energy generated by Mt. Home's solar generation facility (Facility) near Mountain Home, Idaho.
Application at2. The Facility is a qualiffing facility (QF) under PURPA. Id. at l. [r 2015, the
Commission approved a first amendment to the Agreement to change the contracting party and
project name from "Mountain Home Solar, LLC" to Mt. Home Solar 1, LLC." Order No. 33434.
PROPOSED AMENDMENTS
In the Second Amendment, Idaho Power and Mt. Home propose to correct Article 7.5
of the Amendment which omitted the word "Percentage" from the second sentence. Application
at2-3. The corrected sentence reads, "All pricing contained within Appendix E for the current
applicable month(s) will be multiplied by the Pricing Adjustment Percentage and the resulting
revised prices will replace the prices contained within Appendix E. ." Id. at 3 (correction
underlined).
IDECISION MEMORANDUM
The Third Amendment makes changes to the Agreement's Appendix B to update
descriptions of the Facility's physical characteristics to be more general to ensure it matches the
equipment studied and accepted in the Generator Interconnection Agreement between the
contracting parties. Id. at2-3.
ldaho Power states that the proposed Amendments "have no material effect to the
terms and provisions of the [Agreement] and do not alter the performance requirements or
pricing contained in the [Agreement]." Id. at 3-4. The Company also indicated, "The changes
are only needed to property administer and enforce the [Agreement]." Id. at 4.
STAFF RECOMMENDATION
Given the limited scope of the Amendments, Idaho Power requested that the
Amendments be approved without furttrer process. Staff has reviewed the Application and
attachments and concurs with the Company as to the limited scope and impact of the proposed
agreed Amendments. Accordingly, Staff recommends that the request be approved without
further process.
COMhIISSION DECISION
Does the Commission wish to approve the Application without further process?
Huang
Deputy Attomey
M:IPC-E-17-09_djh
2DECISION MEMORANDUM