20191213Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER zuT]LI,ANDI.]R
COMMISSIONER RAPER
COMN{ISSIONER ANDERSON
CON,IMISSION SECRE,TA RY
CON{N{ISSION STAI'I'
LEGAL
FRON,I:
DATIj: DECIiI\'IBIiRll,20l9
SUB.IE,C'I':In- THE I\IATTER OF IDAIIO POWIIR'S PI,ITITION FOR APPROVAL OR
DENIAL OT'AN ENER(;Y SAI,ES AGREENIENT WITH LITTLE WOOD
IRRIGATION DISTRICT FOR THE SALE AND PURCHASE OP
ELECTRIC ENERGY T'ROI\I TIII' I,I'I"I'I,F] WOOD RIVI.]R RESERVOIR
HYDRO PROJECT; CASIT NO. IPC-E-19-35.
On November 8, 2019, Idaho Power Company ("ldaho Power" or "Company") filed
an Application requesting consideration of an Energy Sales Agreement ("ESA" or "Agreement")
with Liltle Wood Irrigation District ("Little Wood") for energy generated by the Little Wood River
Reservoir Hydro project ("Facility"). The Facility is a 2.85 megawatt nameplate capacity hydro
facility near Carey, 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
March 1,2020. The Company requests thal ils Application be processed by Modified Procedure
and the Commission make its determination before the February 29,2020.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordancc with a power
sales agreement dated August l'7, 1984, which expires February 29, 2O2O. The Company states
that the Agreement contains published non-seasonal, non-levelized hydro published avoided cost
rates for a 20-year term. The Company requests the Commission declare all payments for purchase
ofenergy under the ESA be allowed as prudently incurred expenses for ratemaking purposes.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Noticc of Application and Notice of
Modified Procedure and set a 2l-day comment deadline and a 7-day reply comment deadline.
DECISION MEMORANDUM
DAYN HARDIF]
DEPTITY ATTORNEY GENERAL
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a 2l-day comment deadline and a 7-day reply comment deadline'i
Dcputy Attorney General
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)DECISION MEMORANDLIM