20180619Comments.pdf

EDITH PACILLO
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5430
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR APPROVAL
OR REJECTION OF AN ENERGY SALES
AGREEMENT WITH MC6 HYDRO LLC, FOR
THE SALE AND PURCHASE OF ELECTRIC
ENERGY FROM THE MC6 HYDRO PROJECT
RECEIVED
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Street Address for Express Mail:
472W, WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORB THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. IPC.E-18.09
COMMENTS OF
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
attomey of record, Edith Pacillo, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure issued in Order No. 34068 on May 29,2018,in
Case No. IPC-E-I8-09, submits the following comments.
BACKGROUND
On May 2,20l8,Idaho Power Company applied to the Commission for an Order
approving or rejecting its Energy Sales Agreement (ESA) with MC6 Hydro LLC (MC6). 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 (PURPlt). Id. at 4.
STAFF COMMENTS JUNE 19,2OI8I
The proposed ESA is fully executed by both parties, and contains the Commission's
standard terms and conditions relating to surplus energy (90%111006") and operations and
maintenance fees. Id. at 3.
Because the Facility is a new QF, the capacity payments will begin in year 2026. Id. at2.
The proposed ESA is a new contract with a Z}-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.
STAFF ANALYSIS
Staff has reviewed the proposed rates and confirms they are correct. All other terms and
conditions contained in the proposed Agreement are consistent with prior Commission orders.
RECOMMENDATION
Staff recommends that the Commission approve all of the Agreement's terms and
conditions and declare that all payments made by Idaho Power to MC6 for purchase of energy
from the Facility will be allowed as prudently incurred expenses for ratemaking purposes.
Respecttully submitted this Iq+L day of June 2018.
ftc Edi Pacillo
Deputy Attorney General
Technical Staff: Rachelle Farnsworth
Yao Yin
i:umisc:comments/ipce I 8.9eprffy comments
2STAFF COMMENTS JUNE 19,2OI8
CERTIF'ICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 19TH DAY OF JLINE 2018, SERVED
THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO.
IPC-E-18-09, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
DONOVAN E WALKER
REGULATORY DOCKETS
IDAHO POWER COMPANY
PO BOX 70
BOrSE rD 83707-0070
E-mail : dwalker@ idahopower. com
do ck ets @ idahopowqr. cerq
MIRIAH ELLIOTT
LMC6 HYDRO LLC
IO32 GRANDVIEW DR
IVINS UT 84738
ENERGY CONTRACTS
IDAHO POWER COMPANY
PO BOX 70
BOrSE rD 83707-0070
E-mail : ener gycontracts@ idahopower. com
.jo /U*,
SECRETARY /
CERTIFICATE OF SERVICE