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HomeMy WebLinkAbout20180507notice_of_application_order_no_34051.pdfOffice of the Secretary Service Date May 7,2018 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-18-04 OF IDAHO POWER COMPANY FOR )APPROVAL OR REJECTION OF AN )NOTICE OF APPLICATION ENERGY SALES AGREEMENT WITH )EVERGREEN ENERGY,INC.,FOR THE )NOTICE OF SALE AND PURCHASE OF ELECTRIC )MODIFIED PROCEDURE ENERGY FROM THE TAMARACK CSPP )PROJECT )ORDER NO.34051 On March 29,2018,Idaho Power Company applied to the Commission for an Order approving or rejecting its Energy Sales Agreement (ESA)with Evergreen Energy,Inc. (Evergreen).The Commission now issues this Notice of Application and Notice of Modified Procedure setting comment and reply deadlines. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that under the proposed ESA,Evergreen would sell and IdahoPower would purchase electric energy generated by the Tamarack CSPP project located near Tamarack,Idaho.Application at 1.The Tamarack CSPP project is a 6.25 megawatt (MW) "qualifying facility"(QF)under the Public Utility Regulatory Policies Act (PURPA).Id at 4. YOU ARE FURTHER NOTIFIED that the parties have an existing ESA for the facility that expires on May 31,2018;the proposed ESA is a replacement contract with a new term and updated published avoided cost rates.Id at 3. YOU ARE FURTHER NOTIFIED that Evergreen elected for the ESA to have a 20- year term with levelized,Other,published avoided cost rates for energy deliveries less than 10 average megawatts.Id at 4.The ESA uses the rates established by the Commission in Order No. 33773 dated June 1,2017.Id Because the ESA is a replacement contract,its rates contain capacity payments for the entire term.Id at 3.The ESA also provides that all applicable interconnection charges and monthly operational or maintenance charges under Schedule 72 will be assessed to Evergreen.Id at 5. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.34051 1 YOU ARE FURTHER NOTIFIED that the existing ESA will expire on May 31,2018. Idaho Power requests a procedural schedule allowing for a final Commission determination prior to that date,and requests the matter be processed by Modified Procedure.Id at 6. YOU ARE FURTHER NOTIFIED that Idaho Power requests that the Commission 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 prudentlyincurred expenses for ratemaking purposes.Application at 5-6. YOU ARE FURTHER NOTIFIED that the Application and supporting documentation have been filed with the Commission and are available for public inspection during regular business hours at the Commission offices.These documents are also available on the Commission's web site at .Click on the "File Room"tab at the top of the page,then select "Electric Cases"and click on the case number as shown on the front of this document. 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 §§61-502 and 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 authorityunder 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 31.01.01.000et seq. 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 that it will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure,IDAPA 31.01.01.201 through .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 opposition with the Commission by no later NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.34051 2 than May 21,2018.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 shall be mailed to the Commission and Idaho Power at the addresses reflected below: Commission Secretary Energy Contracts and Idaho Public Utilities Commission Donovan E.Walker PO Box 83720 Idaho Power Company Boise,ID 83720-0074 1221 West Idaho Street (83702) P.O.Box 70 Street Address for Express Mail:Boise,ID 83707-0070 472 W.Washington Street E-Mail:dwalker idahopower.com Boise,ID 83702-5918 dockets idahopower.com energycontractg@idahopoweicing 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 nu a µM .Click the "Case Comment or Question Form"under the "Consumers"tab,and complete the comment form using the case number as it appears on the front of this document. YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if necessary,by no later than May 25,2018. 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. ORDER IT IS HEREBY ORDERED that the Application of Idaho Power Company be processed by Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested in submitting written comments must do so no later than May 21,2018.The Company may file a reply no later than May 25,2018. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.34051 3 DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this day of May 2018. PAUL KJELLANDER,PRESIDENT KRIS'E RAPE CO ISSIONER ERIC ANDERSON,COMMISSIONER ATTEST: Diane M.Hanian Commission Secretary IPCE1804 ep not ofapp mod proc NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO.34051 4