20191004Decision Memo.pdf

DECTSION MEMORANDUM
TO COMMISSIONER KIELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: October 4,2019
SUBJECT:IDAHO POWER COMPANY'S APPLICATION FOR APPROVAL OR
REJECTION OF AN ENERGY SALES AGREEMENT WITH SNAKE
RMR POTTERY POWER COMPANY,INC.; CASE NO. IPC-E-19-29.
On August 2l ,2OL9,Idaho Power Company ("Idaho Power" or "Company") filed an
Application seeking approval of its proposed Energy Sales Agreement ("ESA") with Snake River
Pottery Power Company, Inc., ("Snake River" or "Seller") for the Snake River Pottery Power
Hydro Project ("Facility"). The Project is a qualifying facility ("QF") under the Public Utility
Regulatory Policies Act of 1978 ("PURPA").
THE APPLICATION
The Facility owned by Snake River is an 86 kilowatt ("kW") nameplate capacity
hydroelectric facility near Bliss, Idaho. Appltcation at 4. The Project currently delivers energy to
the Company under a Firm Energy Sales Agreement executed July 6, 1984. Id. The Firm Energy
Sales Agreement expires on November 30, 2019. Id.The Company and Snake River intend the
proposed ESA to replace the expiring Firm Energy Sales Agreement. The Company states the
proposed ESA complies with Commission orders regarding this type of agreement. Id. at 2. The
Company asks the Commission to process the Application before the Firm Energy Sales
Agreement expires. Id. at 5-6.
In the proposed ESA, Snake River has contracted for non-levelized, non-seasonal hydro
published avoided cost rates as set by the Commission in Order No. 34350 for an 8-year term.
ESA at 13. Because this is a replacement ESA, the proposed ESA contains capacity payments for
IDECISION MEMORANDUM
the entire term of the Agreement. Id. at 3. The Company requests that its Application be processed
by Modified Procedure. Id. at 6.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure. Staff recommends the Notice of Application and Notice of Modified
Procedure provide for a twenty-one (21) day written comment period for itself and any other
interested parties, with a seven (1) day reply comment period for the Company to follow.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure that establishes a twenty-one (21) day written comment period for Staff and any other
interested parties followed by a seven (7) day reply comment for Company?
J Hammond Jr.
Attorney General
I:UJgat\ELECTRICUPC-E- I 9-29VrcE I 929_dcc mcmo jrh.doc
2DECISION MEMORANDUM
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