20180529notice_of_application_order_no_34068.pdf

Office of the Secretary
Service Date
May 29,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
THE APPLICATION OF IDAHO POWER )CASE NO.IPC-E-18-09
COMPANY FOR APPROVAL OR )REJECTION OF AN ENERGY SALES )NOTICE OF APPLICATION
AGREEMENT WITH MC6 HYDRO LLC,)FOR THE SALE AND PURCHASE OF )NOTICE OF
ELECTRIC ENERGY FROM THE MC6 )MODIFIED PROCEDURE
HYDRO PROJECT )
)ORDER NO.34068
On May 2,2018,Idaho Power Company applied to the Commission for an Order
approving or rejecting its Energy Sales Agreement (ESA)with MC6 Hydro LLC (MC6).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,MC6 would sell and
Idaho Power would purchase electric energy generated by the MC6 Hydro project near Kuna,
Idaho (the Facility).Application at 1.The MC6 project is a new 2.1 megawatt (MW)"qualifying
facility"(QF)under the Public Utility Regulatory Policies Act (PURPA).Id at 4.
YOU ARE FURTHER NOTIFIED that the proposed ESA is fully executed by both
parties,and contains the Commission's standard terms and conditions relating to surplus energy
("90%/110%")and operationsand maintenance fees.Id.at 3.
YOU ARE FURTHER NOTIFIED that because the Facility is a new QF,the capacity
payments will begin in year 2026.Id.at 2.The proposed ESA is a new contract with a 20-year
term using the rates calculated by Commission Staff for a QF in the non levelized,non-seasonal
hydro category pursuant to the surrogate avoided resource methodology,as directed by the
Commission in Order No.33898.Id at 4.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that the Commission
issue an Order accepting or rejecting the proposed ESA and,if accepted,declaring that all
payments for purchases of energy under the proposed ESA be allowed as prudently incurred
expenses for ratemaking purposes.Application at 5-6.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34068 1
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 wwmigov.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 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.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determinedthat 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
than 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 shall be mailed to the
Commission and Idaho Power at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34068 2
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:[e-mail]
Boise,ID 83702-5918 [e-mail]
energycoñtmetygidahopowersom
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 .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 14 days from the comment deadline.
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 21 days from the service date of this
Order.The Company may file a reply no later than 14 days from the comment deadline.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34068 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of May 2018.
PAUL KJELLÅN6gÈ,PRËŠIIfENT
KRIblINERAP 1½MISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
IPCE1809_ntc of app mod pmc ep
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34068 4