20181026Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: OCTOBER 26,2018
SUBJECT:IN THE MATTER OF THE APPLICATION OF IDAHO POWER
COMPANY FOR APPROVAL OF AN ENERGY SALES AGREEMENT
WITH SCOTT AND RICK KASTER FOR THE PURCHASE OF
ELECTRIC ENERGY FROM THE BOX CANYON HYDRO PROJECT;
CASE NO. IPC.E.18-14.
On October 15,2018, Idaho Power Company ("Idaho Power" or "Company") filed an
Application seeking approval of an Energy Sales Agreement ("ESA") signed by the Company
and Scott and Rick Kaster for the Box Canyon Hydro Project ("Box Canyon" or "Project"). The
Project is a quali$ing facility ("QF") under the Public Utility Regulatory Policies Act of 1978
("PURPA").
THE APPLICATION
Box Canyon is a 300 kilowatt ("kW") nameplate capacity hydroelectric facility
located near Buhl, Idaho. Application at 4. The Project currently delivers energy to the Company
under an ESA dated October 7 , 1983. Id. The current ESA expires on February I I , 2019. Id. The
Company requests the Application be processed by the Commission before the expiration of the
current ESA. 1d. at 5.
In the proposed ESA, Box Canyon has elected non-levelized, non-seasonal
hydroelectric published avoided cost rates as set by the Commission in Order No. 34062 for a
2}-year term. Id. at 3-4. Because this is a replacement ESA, the proposed ESA contains capacity
payments for the entire term of the Agreement. Id. at 2. The Company requests that its
Application is processed by Modified Procedure.
IDECISION MEMORANDUM
./
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, with comments due on November 21,2018 and reply comments, if any, due
on November 28,2018.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure that establishes a comment deadline of November 21,2018 and a reply comment
deadline of November 28,2018?
@4"*L(Ea;;'d J. J6;F
Deputy a,,offiGeneral
I \Legal\ELECTRIC\IPC-E-18-14'JPCEl8l4_dec memo l_ej.doc
2DECISION MEMORANDUM