20190809Decision Memo.pdf

DECISION MEMORANDUM
COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 9,2019
SUBJECT:IDAHO POWER'S APPLICATION TO APPROVE FIRST AMENDMENT
TO THE ENERGY SALES AGREEMENT FOR THE BOX CANYON
HYDRO PROJECT; CASE NO. IPC-E-19-21.
On July 25,20l9,ldaho 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
qualiffing facility (QF). The Amendment addresses when the Sellers must noti$r the Company in
order to revise future monthly Estimated Net Energy Amounts. Idaho Power asks that the
Commission process its Application by Modified Procedure. Application at 3.
BACKGROUND
The Commission approved Idaho Power's ESA with the Sellers in 2018. Order No.
34215. Section 6.2.3 of the ESA addresses when the Sellers must notifu the Company if it the
Sellers wish to revise any future monthly Estimated Net Energy Amounts after the Operation Date.
Application at 2. The Sellers must notify the Company in writing no later than 5 PM on the last
business day of the month two months before the month to be revised.l See Case No. IPC-E-18-
14, Attachment I of Application at 15. After the ESA was executed and approved, the Sellers and
the Company agreed to adjust the notification requirements for revising future monthly Estimated
Net Energy Amounts. Application at 2.
I Example: under the current ESA, the Sellers must notifu the Company by the last day of August,2019 if they want
to revise the Estimated Net Energy Amounts for October, 2019 or any future months.
DECISION MEMORANDUM
TO:
1
PROPOSED AMENDMENT
The proposed Amendment changes when the Sellers must notify the Company in order
to revise future monthly Estimated Net Energy Amounts. Id. The current ESA requires the Sellers
to notiff the Company in writing no later than 5 PM on the last business day of the month two
months before the month to be revised. Id. The proposed Amendment states that "[a]fter the
Operation Date, the Seller[s] must 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 revise d.- Id. at 2-3.If the 25th day falls on a weekend or holiday,
written notice must be received by the Company no later than the last business day prior to the 25ft
day of the month. Id. 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." Id. at 3.
STAFF RECOMMENDATION
Staff has reviewed the Application and attachment and recommends that the
Application be processed under Modified Procedure with a 2l-day comment period, and a 7-day
reply period.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with a 2l-day comment period and 7-day reply period?
Matt
Deputy Attorney General
I:\LegaI\ELECTRICVPC-E- I 9-25\.lvlemosuPcEl925 mh.docx
2DECISION MEMORANDUM