20180119Decision Memo.pdf

DICISTON MEMORANDTJM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAF'F
FROM:CAMILLE, CHRISTEN
DEPUTY ATTORNEV GENERAL
DATE: JAIYUARY 19,2018
SUBJECT:THE APPLICATION OF'IDAHO POWER COMPA}IY T'OR APPROVAL
OR REJECTION OF AN ENERGY SALES AGREEMENT WITH DOUG
AND NANCY HULL FOR THE SALE AIID PURCHASE OF ELECTRIC
ENERGY TROM THE CURRY CATTLE COMPANY ffYDRO PROJECT,
cAsE NO.IPC-E-18-01.
On January 10, 2018, Idaho Power Company applied to the Commission for an order
approving or rejecting its Energy Sales Agreement (ESA) with Doug and Nancy Hull (Hull),
under which Hull would sell and Idalro Power would purchase eleckic energy generated by the
Curry Cattle Company hydro project. Application at l. The Curry Cattle Company hydro
project is a 250 kilowatt (kW) "qualiffing facilify" (QF) under the Public Utility Regulatory
Policies Act (PURPA). Id. at 4.
The parties have an existing ESA for the facility that expires on June 16, 2018; the
proposed ESA is a replacement contract with a new term and updated published avoided cost
rates. .{d. at 2. Hull elected for the ESA to have a lS-year term using the non-levelized rates for
non-seasonal hydro pmjects smaller than l0 average megawatts. Id. at 4. The ESA uses the
rates established by the Commission in Order No. 33773 dated June l, 2017. Id. Because the
ESA is a replacement contract, its rates contain capacity payments for the entire term. /d. at 3.
Because the existing ESA will expire on June 16, 2018, Idaho Power requests a
procedural schedule that will allow for a final Commission determination prior to that date, and
requests the matter be processed by Modified Proccdure. Id. at 5-6. In surn, ldaho Power
requests that the Comrnission issue an order accepting or rejecting the ESA and, if accepted,
declaring that all payments for purchases of energy under the ESA be allowed as prudently
incurred expenses for ratemaking purposes. Application at 6.
IDECISION MEMORANDUM
STAFF RECOMMENDATION
Staffrecommends that the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due within 2l days of the date of the order, and reply
comments, if any, due within 7 days of the comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with comments due within 2l days of the date of the order, and reply commcnts, if
any, due within 7 days of the comment deadline?
Carnille Christen
Deputy Attorney General
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