20190118Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: JANUARY 18,2019
SUBJECT:IN THE MATTER OF THE APPLICATION OF IDAHO POWER FOR
APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT
WITH J.R. SIMPLOT COMPANY - POCATELLO COGENERATION
AND SMALL PURCHASED POWER PROJECT; CASE NO. IPC-E-19-01
On January 2, 2019, Idaho Power Company ("Company") filed an application
seeking approval of an Energy Sales Agreement ("ESA" or "Agreement") with the J.R. Simplot
Company ("Simplot"). Under the Agreement, Idaho Power would purchase electric energy
generated by the Simplot-Pocatello cogeneration and small power project ("Facility"). The
Facility is a qualiffing facility under the Public Utility Regulatory Policies Act of 1978. The
parties request the Commission process the case through modified procedure and issue a final
order prior to February 28,2019.
THE APPLICATION
The ESA is a renewal contract for a 2016 agreement approved by the Commission in
Order No. 33471 . See Application at 4. The Facility has a nameplate capacity of 15.9 MW, but
is operated so as not to exceed l0 aMW on a monthly basis under normal conditions. 1d. In the
event the Facility exceeds l0 aMW, Idaho Power will accept but not pay for the excess energy.
Id. The Company states that the ESA contains published avoided cost rates for projects of l0
aMW or less adjusted to compensate for capacity payments for the entire term of the Agreement
because it is a replacement contract. Id. aI2. The ESA contains modifications to Simplot's
generation forecasting requirements and Simplot's obligations to report generation disruptions.
Id. at 5. The term of the Agreement is three years. Agreement at 12.
IDECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, with a 2l-day comment period and a7-day reply period.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure that establishes a 2l-day comment period and a7-day reply period?
E- .rr
ra*ara (ji*et-
Deputy Attorney General
I U-etsaI,ELECTRICUPC-E-19-01\memos\lPCEl90l_dec memo l_ej doc
2DECISION MEMORANDUM