20190215Decision Memo.pdf

DECTSION 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 WOOD HYDRO; CASE NO. IPC-E-19-04.
On February 6,2079, Idaho Power Company ("ldaho Power" or "Company") filed an
Application seeking approval of an Energy Sales Agreement ("ESA" or "Agreement") with
Wood Hydro LLC ("Wood Hydro") for energy generated by the Black Canyon #3 hydro project
("Facility"). The Facility is a 150 kW nameplate capacity hydro facility located near Gooding,
Idaho. Application at 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. Id.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordance with a PPA
dated March 2, 1984, which expires March 31, 2019. Id. The currently effective PPA is
between Idaho Power and the Big Wood Canal Company. Wood Hydro is leasing the Facility
from Big Wood Canal Company and would operate the Facility and sell the electricity to Idaho
Power under the proposed ESA. Id. at 2. The Company states that the Agreement contains
published avoided cost rates for seasonal hydro projects of 10 aMW or less. Id. at2. The ESA
contains capacity payments for the entire term of the Agreement. Id. The Agreement is for a20
year term with non-levelized rates. Id. at 4.
The Application notes that Wood Hydro is aware of the provision in the Agreement
submitted in IPC-E-19-01 that adjusts the notification period of the Net Energy Amount monthly
adjustments from month ahead to five-days ahead. This Agreement contains the month ahead
IDECISION MEMORANDUM
provision, but Wood Hydro requests the option to amend the Net Energy Amount provision in
this ESA should the Commission approve the provision in IPC-E-I9-01. Id. at 5
STAFF RECOMMENDATTON
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.
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?
Edward
Deputy General
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