20190809Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 9,2019
SUBJECT:IN THE MATTER OF THE APPLICATION OF IDAHO POWER FOR
CONSIDERATION OF AN ENERGY SALES AGREEMENT WITH
PIGEON COVE POWER COMPANY FOR THE SALE AND PURCHASE
OF ELECTRIC ENERGY FROM THE PIGEON COVE HYDRO
PROJECT; CASE NO. IPC-E-19-24.
On July 24,2019,ldaho Power Company ("Idaho Power" or "Company") filed an
Application requesting consideration of an Energy Sales Agreement ("ESA" or "Agreement")
with Pigeon Cove Power Company ("Pigeon Cove") for energy generated by the Pigeon Cove
Hydro project ("Facility"). The Facility is a 1.75 MW nameplate capacity hydro facility near
Filer, 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
November 1,2019.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordance with a power
sales agreement dated May I l, 1983, which expires October 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.
STAF'F RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a2l-day comment deadline and a 7-day reply comment deadline.
DECISION MEMORANDUM 1
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a27-day comment deadline and a 7-day reply comment deadline?
Matt Hunter
Deputy Attorney General
I:\Legal\ELECTNC\IPC-E- I 9-24UPCE I 924_dec memo_mh doc
2DECISION MEMORANDUM