20190725Application.pdf

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An IDACORP Company
DONOVAN E. WALKER
Lead Counsel
[e-mail]
July 25, 2019
VIA HAND DELIVERY
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re Case No. IPC-E-19-25
Scott and Rick Kaster - Box Canyon Hydro Project
ldaho Power Company's Application Regarding First Amendment to
Energy Sales Agreement
Dear Ms. Hanian:
Enclosed for filing in the above matter please find an original and seven (7)
copies of ldaho Power Company's Application.
ly yours,
novan E. Walker
DEW:csb
Enclosures
1221 W. ldaho St. (83702)
PO. Box 70
Boise, lD 83707
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalker@ idahopower. com
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF THE FIRST AMENDMENT
TO THE ENERGY SALES AGREEMENT
FOR THE BOX CANYON HYDRO
PROJECT.
RICEIV[D
?il19 JUL 25 PH tr: I 3
, i-r :,;"bcl,iriissrsir
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. tPC-E-19-25
APPLICATION FOR APPROVAL
OF FIRST AMENDMENT TO
ENERGY SALES AGREEMENT
ldaho Power Company ("ldaho Power"), in accordance with RP 52 and the
applicable provisions of the Public Utility Regulatory Policies Act of 1978 ('PURPA"),
hereby respectfully applies to the ldaho Public Utilities Commission ("Commission") for
an order approving the First Amendment to the Energy Sales Agreement for the Box
Canyon Hydro ("Box Canyon") project ("Amendment") between ldaho Power and a
PURPA qualifying facility ('QF"), dated July 3, 2019, filed herewith as Attachment 1.
This Amendment deletes and replaces Section 6.2.3 of the Energy Sales Agreement
('ESA"), which addresses Seller's Adjustment of Estimated Net Energy Amounts.
APPLICATION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT - 1
!n support of this Application, ldaho Power represents as follows:
I. INTRODUCTION AND BACKGROUND
1. ldaho Power and Scott and Rick Kaster fiointly, "Parties") entered into an
ESA on September 26, 2018, for the purchase and sale of energy produced by Box
Canyon, a QF hydro generation facility ("Facility") located near Buhl, ldaho. This ESA
was approved by the Commission in Order No. 34215, Case No. IPC-E-18-14, on
December 17,2018.
2. The ESA contains provisions providing for Seller's Adjustment of
Estimated Net Energy Amounts in Section 6.2.3. After the execution and approval of
the ESA, Box Canyon requested to change these notification requirements from the
monthly schedule as set forth in Section 6.2.3 to a monthly schedule structured around
providing notice by the 25th day of the preceding month in which a change is requested,
similar to other such 25th day of the month provisions previously approved by the
Commission.
3. The Parties agreed to amend the ESA in order to adjust the notification
requirements for Seller's Adjustment of Estimated Net Energy Amounts. The
Amendment does not otherwise change any of the obligations of the Parties set forth in
the ESA.
II. THE AMENDMENT
4. The Amendment provides for the deletion of Section 6.2.3, Seller's
Adjustment of Estimated Net Energy Amounts After the Operation Date, and replaces it
with a new Section 6.2.3 set forth in the Amendment as follows:
6.2.3 Seller's Adiustment of Estimated Net Eneroy Amounts
After the Operation Date - After the Operation Date, the
Seller may revise any future monthly Estimated Net Energy
Amounts by providing written notice no later than 5 PM
Mountain Standard time on the 25th day of the month that is
APPLICATION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT - 2
prior to the month to be revised. lf the 25th day of the month
falls on a weekend or holiday, then written notice must be
received on the last business day prior to the 25th day of the
month. For example, if the Seller would like to revise the
Estimated Net Energy Amount for October, they would need
to submit a revised schedule no later than September 25th or
the last business day prior to September 25th.
a.) This written notice must be provided to ldaho
Power in accordance with paragraph 25.1 or by
electronic notice as agreed to by both parties.
b.) Failure to provide timely written notice of changes
to the Estimated Net Energy Amounts will be deemed
to be an election of no change from the most recently
provided Estimated Net Energy Amounts.
5. The Amendment is subject to the Commission's approval. All other terms
and conditions of the ESA remain in full force and effect
III. PROCEDURE
6. Idaho Power believes that a hearing is not necessary to consider the
issues presented herein and respectfully requests that this Application be processed
under Modified Procedure; i.e., by written submissions rather than by hearing. RP 201,
ef seg.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
7. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
Donovan E. Walker
Lead Counsel
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
dwalker@ idahopower. com
dockets@ idahopower. com
Michael Darrington
Energy Contracts Leader
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
mdarri noton@ idahopower. com
e ne rovcontracts@ id a hopower. com
APPLICATION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT - 3
V. REQUEST FOR RELIEF
8. ldaho Power respectfully requests that the Commission issue an order
accepting the First Amendment to the Energy Sales Agreement submitted herewith
without change or condition.
Respectfully submitted this 25th day of July 2019.
DONOVAN E. WALKER
Attorney for ldaho Power Company
APPLICATION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT.4
CERT!FICATE OF SERVICE
I HEREBY CERTIFY that on the 25th day of July 2019 I served a true and correct
copy of the within and foregoing APPLICATION FOR APPROVAL OF FIRST
AMENDMENT TO ENERGY SALES AGREEMENT upon the following named parties
by the method indicated below, and addressed to the following:
Box Canyon Hydro Project
Scott and Rick Kaster
1429 East 4300 North
Buhl, ldaho 83316
_Hand DeliveredX U.S. Mail
_Overnight Mail
_ FAXX Email [e-mail]
scottkaste160@icloud. com
Christa nt
APPLICATION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT - 5
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPG-E-19-25
IDAHO POWER COMPANY
ATTACHMENT 1
FIRST AMENDMENT
TO THE
ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
SCOTT KASTER AND RICK KASTER
This First Amendment of the Energy Sales Agreement ("First Amendment") is entered into
on this 3rd day of July 2019, by and between Idaho Power Company, an Idaho corporation ("ldaho
Power"), and Scott Kaster and Rick Kaster, ("Seller") (individually a "Party" and collectively the
"Parties").
WHEREAS, Idaho Power and Seller entered into an Energy Sales Agreement ("ESA") on
September 26th,2018, (the "Agreement") for the purchase and sale of generation produced by the
Seller's Box Canyon Hydro PURPA Qualifying Facility with a Maximum Capacity Amount of
.3 MW that was approved by the Idaho Public Utility Commission's ("IPUC") Order No. 34215;
WHEREAS, on February 28,2019, the IPUC issued Order No. 34263 approving the ESA
between Idaho Power and J.R. Simplot Company that included a change to the notification of Net
Energy Amount monthly adjustments. In Order No. 34263, the Commission stated that they would
continue to evaluate the reasonableness ofthese provisions on a case-by-case basis; and
WHEREAS, Seller and Idaho Power desire to amend Article 6.2.3 of the Agreement to
include a change to the notification of Net Energy Amount monthly adjustments from one-month
advanced notice to the 25th day of the month that is prior to the month to be revised. If the 25th day
of the month falls on a weekend or holiday, then written notice must be received on the last
business day prior to the 25th day of the month;
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, the Parties hereto agree as follows:
l. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part of
this Agreement by this reference to the same extent as if these recitals were set forth in full at this
point.
2. Definitions. Article 6.2.3 shall be deleted in its entirety and the following section shall be
substituted in its stead:
6.2.3 Seller's Adjustment of Estimated Net Energy Amounts After the Operation Date - After
the Operation Date, the Seller may revise any future monthly Estimated Net Energy
Amounts by providing written notice no later than 5 PM Mountain Standard time on the
25th day of the month that is prior to the month to be revised. If the 25th day of the month
falls on a weekend or holiday, then written notice must be received on the last business
day prior to the 25th day of the month. For example, if the Seller would like to revise the
Energy Sales Agreement
Project: 3 l4l60l 5 Box Canyon Hydro
First Amendment - Page I of 3
Estimated Net Energy Amount for October, they would need to submit a revised schedule
no later than September 25'h or the last business day prior to Septemb er 25th.
a.) This written notice must be provided to [daho Power in accordance with
paragraph25.l or by electronic notice as agreed to by both parties.
b.) Failure to provide timely written notice of changes to the Estimated Net
Energy Amounts will be deemed to be an election of no change from the
most recently provided Estimated Net Energy Amounts.
3. Commission Approval. The obligations of the Parties under this First Amendment are subject
to the IPUC's approval of this First Amendment and such approval being upheld on appeal, if any,
by a court of competent jurisdiction. The Parties will submit this First Amendment to the IPUC
and request approval or rejection in its entirety pursuant to RP 274.
4. Effect of Amendment. Except as expressly amended by this First Amendment, the Agreement
shall remain in full force and effect.
5. Capitalized Terms. All capitalized terms used in this First Amendment and not defined herein
shall have the same meaning as used in the Agreement.
6. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit
of the Parties hereto, and their respective heirs, executors, administrators, successors, and assigns,
who are obligated to take any action which may be necessary or proper to carry out the purpose
and intent thereof.
7. Authority. Each Party represents and warrants that (i) it is validly existing and in good
standing in the state in which it is organized, (ii) it is the proper party to amend the Agreement,
and (iii) it has the requisite authority to execute this First Amendment.
8. Counterparts. This First Amendment may be executed in any number of counterparts, each
of which shall be deemed an original and all of which taken together shall constitute a single
instrument.
Energy Sales Agreement
Project: 31416015 Box Canyon Hydro
First Amendment - Page 2 of 3
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be duly
executed as of the date above written.
SCOTT KASTER RICK KASTER
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Title: 4a .- d er n qf Title: C e' C' tu, 11 € r^
Date 6-/T-/7
By:
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IDAHO POWER C ANY
By:
Name
Title
Date:
Energy Sales Agreement
Project: 31416015 Box Canyon Hydro
First Amendment - Page 3 of 3
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