20190315Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJf, LLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SICRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWI,LL
DEPUTY ATTORNEY GENERAL
DATE: MARCH t5,2019
SUBJECT:APPLICATION OF IDAHO POWBR FOR APPROVAL OF AN ENERCY
SALES AGR"BEMENT WITH RAYENSCROTT HYDRO TOR ENERGY
FROM THE MALAD IUVER HYDRO PROJECT; CASI NO. IPC-E-19-07.
On February 27,2Al9,ldaho Power Company ("ldaho Power" or "Company") filed
an Application seeking approval of an Energy Sales Agreement ("ESA" or "Agreement") with
Ravenscroft Hydro for energy generated by the Malad River Hydro Project ("Facility"). The
Facility is a l.l7 MW nameplate capacity hydro f'acility located near Tuttle, Idaho. See
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 May
l,20lg.
THE APPLICATTON
The Facility has been delivering energy to ldaho Power in accordance rvith a power
sales agreement dated September 2, 1982, which expires April 30, 2019. Id. The Company
states that the Agreement contains published avoided cost rates for non-seasonal hydro projects
of l0 aMW or less. ld. at2. The ESA contains capacity payments tbr the entire term of the
Agreement. /d. The Agreement is fora20 yearterm and contains non-levelized rates. ld. ar3.
The Application requesb that the Net Energy Amount monthly adjustments be reduced from
one-month advanced notice to the 25m day of the month prior to the forecasted month, consistent
with the Company's application approved by the Commission in IPC-E-19-01. See Id. at 5.
DECISION MEMORANDUM I
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,
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a trventy'one day comment period and a seven day reply period?
eF,(
Edward
Deputy General
I \LcgTELECTRlallf C.f - I 9.07,llCE I 90r" dc ocno cj
:)DECISION MEMORANDUM