20191227Decision Memo.pdf

DECISION MEMORANDUM
COMNIISSIONER KIELLANDER
COMMSSIONER RAPER
COMMISSIONER ANDERSON
COMMSSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: DECEMBER 11,2019
SIJBJECT:IN THEMATTEROFIDAHO POWER'S PETITION FOR APPROVALOR
DENIAL OT AN ENERGY SALES AGREEMENT WITH LITTLE WOOD
IRRIGATION DISTRICT FOR TTIE SALE AND PURCTIASE OF
ELECTRIC ENERGY FROM THE LITTLE WOOD RIVER RESERVOIR
HYDRO PROJECT; CASE 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 Little Wood Irrigation District ("Little Wood") forenergy generated by the Liule 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 schcduled First Energy Date under the ESA of
March l, 2020. The Company requests that its 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 ldaho Power in accordance with a power
sales agreement dated August 17, lg8y', 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 Notice of Application and Notice of
Modified Procedure and set a 2l-day comment deadline and a 7{ay reply comment deadline.
DECISION MEMORANDUM
TO:
I
COMMISSION DECISION
Does ttrc Commission wish to issue a Notice of Application and Notice of Modified
Procedurc and set a 2 I day comment deadline and a Tday reply comrnent deadline?
Deputy Attorney General
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'tDECISION MEMORANDUM