20190719notice_of_application_order_no_34382.pdf

Office of the Secretary
Service Date
July 19,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-19-21
OF IDAHO POWER COMPANY FOR )
APPROVAL OF THE FIRST AMENDMENT )NOTICE OF APPLICATION
TO THE ENERGY SALES AGREEMENT )FOR THE MC6 HYDRO LLC PROJECT )NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34382
On July 3,2019,Idaho Power Company filed an Application seeking approval of the
First Amendment to its Energy Sales Agreement (ESA)with MC6 Hydro LLC.The ESA falls
under the Public Utility Regulatory Policies Act of 1978 (PURPA),and is a contract for the sale
and purchase of electric energy generated by the MC6 Hydro Project,a PURPA qualifyingfacility
(QF).The Amendment changes the Scheduled Operation Date from July 30,2019,to August 31,
2020.Idaho Power asked that the Commission process its Application by Modified Procedure,
and Staff recommended the same.The Commission now issues this notice of Idaho Power's
Application,and Notice of Modified Procedure.
BACKGROUND
Under PURPA,electric utilities must purchase electric energy from "qualifying
facilities"(QFs)at purchase or "avoided cost"rates approved by this Commission.16 U.S.C.§
824a-3;Idaho Power Co.v.Idaho PUC,155 Idaho 780,789,316 P.3d 1278,1287 (2013).The
Commission has established two methods for calculating avoided costs,depending on the size of
the QF project:(1)the surrogate avoided resource (SAR)methodology,used to establish
"published"avoided cost rates;and (2)the integrated resource plan (IRP)methodology,to
calculate avoided cost rates for projects exceeding published rate limits.See Order No.32697 at
7-8.Published rates are available for wind and solar QFs with a design capacity of up to 100
kilowatts (kW),and for QFs of all other resource types with a design capacity of up to 10 average
megawatts (aMW).Id.;see also 18 C.F.R.§292.304(c).
The Commission approved Idaho Power's ESA with MC6 Hydro LLC in 2018.Order
No.34106.The ESA contains a Scheduled Operation Date of July 30,2019.Application at 2.After
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34382 1
the ESA was executed and approved,a principle developerof the QF died unexpectedly,delaying
construction of the QF.Id.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on June 21,2019,Idaho Power and MC6 Hydro
LLC entered into an agreed Amendment to their ESA,subject to this Commission's approval.
Application at 1.
YOU ARE FURTHER NOTIFIED that in the Amendment,Idaho Power and MC6
Hydro LLC agree to delete Appendix B-3 of the ESA-titled "Scheduled First Energy and
Operation Date"-and replace it with a new Appendix B-3 that changes the Scheduled Operation
Date from July 30,2019,to August 31,2020.Id at 2;see Attachment 1 of Application in Case
No.IPC-E-18-09.Idaho Power states this change is necessary because "a principle developer of
the MC6 Facility became unexpectedly ill and subsequently passed away,delaying construction
of the facility."Application at 2.
YOU ARE FURTHER NOTIFIED that the Amendment provides that "[t]he July 30,
2019,Scheduled Operation Date will remain in effect only as the start date for calculating any
Delay Damages."Id.If the Amendment is approved,MC6 Hydro LLC's Delay Damages will be
calculated from the original Scheduled Operation Date in the ESA.Id;see Attachment 1 of
Application in Case No.IPC-E-18-09.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies,and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission's web site at www.puc.idaho.gov.Click on the
"File Room"tab at the top of the page,scroll down to "Open Electric Cases,"and then click on
the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code.The Commission may
enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000 et seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34382 2
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter and will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the Commission's Rules of Procedure.See IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by no later
than 21 days from the service date of this Order.The comment must contain a statement of
reasons supporting the comment.Written comments concerning this Application shall be mailed
to the Commission and the Idaho Power at the addresses reflected below:
For the Commission:For Idaho Power Company:
Commission Secretary Donovan E.Walker
Idaho Public Utilities Commission Michael Darrington
PO Box 83720 P.O.Box 70
Boise,ID 83720-0074 Boise,ID 83707
E-Mail:dwalker idahopower.com
Street Address for Express Mail:dockets idahopower.com
472 W.Washington Street mdarrington idahopower.com
Boise,ID 83702-5918
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at ww deho.gov.Click the "Utility Case Comment or
Question Form"under the "Consumers"tab,and complete the comment form using the case
number as it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments,if
necessary,by no later than 28 days from the service date of this Order.
ORDER
IT IS HEREBY ORDERED that the Company's Application be processed by Modified
Procedure,Rule 201-204.See IDAPA 31.01.01.201 through .204.Persons interested in submitting
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34382 3
written comments must do so by no later than 21 days from the service date of this Order.The
Company may file reply comments,if necessary,by no later than 28 days from the service date of
this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 6
day of July 2019.
PAUL K LL R,PRESIDENT
KRÍS E RAPÉR,CÖMIÃ IONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
1:\Legal\ELECTRIC\lPC-E-19-21\orders\lPCE1921_nteapp_mod_MHdocx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34382 4