20190215Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: FEBRUARY 14,2019
SUBJECT: APPLICATION OF IDAHO POWER FOR APPROVAL OF AN ENERGY
SALES AGREEMENT WITH KOYLE HYDRO; CASE NO. IPC-E-19-03.
On February 6,2019,Idaho Power Company ("ldaho Power" or "Company") filed an
Application seeking approval of an Energy Sales Agreement ("ESA" or "Agreement") with
Koyle Hydro Inc. ("Koyle") for energy generated by the Koyle Small Hydro Project ("Facility").
The Facility is a 1.4 MW nameplate capacity hydro facility located near Gooding, Idaho.
Application aI 4. The Facility is a qualifying facility ("QF") under the Public Utility Regulatory
Policies Act of 1978. Id. The Facility has a scheduled First Energy Date under the ESA of April
1,2019.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordance with a PPA
dated February 15, 1983, which expires March 31,2019. ld. The Company states that the
Agreement contains published avoided cost rates for non-seasonal projects of l0 aMW or less.
Id. at 2. The E,SA contains capacity payments for the entire term of the Agreement. Id. The
Agreement is for a20 year term and contains non-levelized rates. Id. at 3. The Net Energy
Amount monthly adjustment in the Application specifies a five-day ahead estimate, consistent
with the Company's application in IPC-E- I 9-01 - See Id. at 5 .
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a twenty one day comment period and a seven day reply period.
1DECISION MEMORANDUM
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a twenty one day comment period and a seven day reply period?
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Ed*r.d ffiEat
Deputy AtH.ney General
I :\Legal\ELECTRICUPC-E- I 9-03\IPCE I 903_dec memo_ej
2DECISION MEMORANDUM