20190329Decision Memo.pdf

DBCISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: MARCH 29,2019
SUBJECT:IN THE MATTER OF THE APPLICATION OF IDAHO POWER F'OR
CONSIDERATION OF AN ENERGY SALES AGREEMENT WITH
LITTLE MAC POWER COMPANY FOR THE SALE AND PURCHASE
OF ELECTRIC ENERGY FROM THE CEDAR DRAW HYDRO
PROJECT; CASE NO. IPC-E-19-12.
On March 19,2019,Idaho Power Company ("Idaho Power" or "Company") filed an
Application requesting consideration of an Energy Sales Agreement ("ESA" or "Agreement")
with Little Mac Power Company, Inc. ("Little Mac") for energy generated by the Cedar Draw
Hydro Project ("Cedar Draw Hydro" or "Facility"). The Facility is a 1.55 MW nameplate
capacity hydro facility near Twin Falls, Idaho. The Facility is a qualifying facility ("QF") under
the Public Utility Regulatory Policies Act of 1978. The Facility has a scheduled First Energy
Date under the ESA of June 1,2019.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordance with a PPA
dated May 10, 1984, which expires May 31,2019. The Company states that the Agreement
contains published non-seasonal, non-levelized avoided cost rates for a 20 year term. The
Company requests the Commission declare all payments for purchase of energy under the ESA
be allowed as prudently incurred expenses for ratemaking purposes.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a May 8, 2019 comment deadline and a May 15, 2019 reply
comment deadline.
DECISION MEMORANDUM I
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a May 8, 2019 comment deadline and a May 15, 2019 reply comment
deadline?
Deputy General
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2DECISION MEMORANDUM