20190712Decision Memo.pdf

DECISION MBMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONBR TTAPBR
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM MATT HUNTER
DEPUTY ATTORNEY GENBRAL
DATE: JULY 17,2019
SUBJECT: IDAHO POWER'S APPLICATION TO APPROVE FIRST AMENDMENT
TO THE ENERGY SALES AGREEMENT WITH MC6 HYDRO LLC, CASE
NO. IPC-E-19-21
On July 3, 20t9, Idaho Porver 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 I978 (PURPA), and is a contract for the sale
and purchase of electric energy generated by the MC6 Flydro Project, a PURPA qualiffing facility
(Qf). The Amendment changes the Scheduled Operation Date from July 30,2019, to August 31,
2020. Idaho Power asks that the Commission process its Application by Modified Procedure,
Application at 3.
BACKGROUND
The Commission approved Idaho Power's ESA with MC6 Hydro LLC in 20i8. Order
No. 34106. The ESA contains a Scheduled Operation Date of July 30, 201 9. Application at 2. After
the ESA was executed and approved, a principle developer of the QF died unexpectedly, delaying
construction of the QF. /d.
TROPOSED AMENDMENT
The proposed Amendment changes the Scheduled Operation Date from July 30,
2019, to August 31,2A20. ld. at2. However, the July 30,2019 Scheduled Operation Date will
remain in effect for calculating any Delay Damages. Application Attachment at L The preamble
to the Amendment states that MC6 Hydro LLC "will pay for any Delay Damages as defined and
calculated in accordance with the Agreernent between the original July 30,2019, Scheduled
Operation Date and the actual Operation Date of the Project." /d.
DECISION MEMORANDUM
STAFF RECOMMENDATION
Staff has reviewed the Application and attachment and recommends that the
Application be processed under Modified Procedure with a ?l-day comment period, and a7-day
reply period.
COMMISSION DECISION
Does the Commission rvish to issue a Notice of Application and Notice of Modified
Procedure with a 2l-day comment period and 7-day reply period?
Matt Hunter
Deputy Attorney General
l: LcgaII,ELf,CTRIOIPC-E-19-Jl',memosr.lPCll92l orh doc
1DECISION MEMORANDUM