20190814notice_of_application_order_no_34412.pdf

Ofñce of the Secretary
Service Date
August 14,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-19-25
OF IDAHO POWER COMPANY FOR )APPROVAL OF THE FIRST AMENDMENT )NOTICE OF APPLICATION
TO THE ENERGY SALES AGREEMENT )FOR THE BOX CANYON HYDRO )NOTICE OF
PROJECT )MODIFIED PROCEDURE
)ORDER NO.34412
On July 25,2019,Idaho Power Company filed an Application seeking approval of the
First Amendment to its Energy Sales Agreement (ESA)with Scott and Rick Kaster (the Sellers).
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 Box Canyon Hydro project,a PURPA
qualifying facility (QF).The Amendment addresses when the Sellers must notify Idaho Power in
order to revise future monthly Estimated Net Energy Amounts.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).
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34412 1
Section 6.2.3 of the ESA addresses when the Sellers must notify the Company if the
Sellers wish to revise any future monthlyEstimated Net Energy Amounts after the Operation Date.
The Sellers must notify Idaho Power in writing no later than 5 p.m.on the last business day of the
month two months before the month to be revised.'See Case No.IPC-E-18-14,Attachment 1 of
Application at 15.After the ESA was executed and approved,the Sellers and Idaho Power agreed
to adjust the notification requirements for revising future monthlyEstimated Net Energy Amounts.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on July 25,2019,Idaho Power and the Sellers
entered into an agreed Amendment to their ESA,subject to this Commission's approval.
YOU ARE FURTHER NOTIFIED that in the Amendment,Idaho Power and the Sellers
agree to delete Section 6.2.3 of the ESA-titled "Seller's Adjustment of Estimated Net Energy
Amounts after the Operation Date"-and replace it with a new Section 6.2.3 that changes when
the Sellers must notify Idaho Power in order to revise future monthly Estimated Net Energy
Amounts.The Amendment states that "[a]fter the Operation Date,the Seller[s]must revise any
future monthlyEstimated Net Energy Amounts by providing written notice no later than 5 p.m.
Mountain Standard time on the 25th day of the month that is prior to the month to be revised."If
the 25th day falls on a weekend or holiday,written notice must be received by the Company by the
last business day before the 25th day of the month.
YOU ARE FURTHER NOTIFIED that the Amendment provides the following
example:"...if the Seller[s]would like to revise the Estimated Net Energy Amount for October,
they would need to submit a revised schedule no later than September 25 or the last business day
prior the September 25."
YOU ARE FURTHER NOTIFIED that the Application and any 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.These documents are
also available on the Commission's web site at www gue 2ov.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.
I Example:under the current ESA,the Sellers must notify Idaho Power by the last day of August,2019 if they want
to revise the Estimated Net Energy Amounts for October,2019 or any future months.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34412 2
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdictionunder Title 61 of the Idaho Code.The Commission may
enter any final order consistent with its authorityunder Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determinedthat 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 September 4,2019.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
Street Address for Express Mail:docketágaho2 rion1
472 W.Washington Street m urgt9 1WO'^yncDL1
Boise,ID 83702-5918 energycontract idahopower.com
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 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34412 3
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,by no later than September 11,2019.
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
written comments must do so by no later than September 4,2019.The Company may file reply
comments,if necessary,by no later than September 11,2019.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /T
day of August 2019.
PAUL KJELLAN R,PRESIDENT
KRISTINE RAPER,COM SSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I:\Legal\ELECTRIC\IPC-E-19-25\Orders\IPCE1925_nte_appmod MH.docx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34412 4