20200103Decision Memo.pdf

DECISION MEMORANDUM
TO:COMNIISSIONER KIELLANDER
CON{N{ISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAF'}'
I,EGAI,
FROI\I:.IOIIn- R. HAI\{N,{OND JR.
DEPIITY ATTORT-HY GENERAI,
DATE: JANUARY3,2020
SUBJEC'I':IDAHO POWF]R COI\{PANY'S APPLICATION FOR APPROVAL OR
REJECTION OF AN ENERGY SAI,tiS AGREEI\IH,NT WITII SOT]TH
I'ORKS JOINT VENT[IRE; CASII NO. IPC-E-19-36.
On December 9,2019, Idaho Power Company ("Idaho Power" or "Company") filed an
Application seeking approval of its proposed Energy Sales Agreement ("ESA") with South Forks
Joint Venture ("South Forks" or "Seller") for the energy generated by the Low Line Canal hydro
project ("Facility"). The Facility is a qualifying facility ("QF') under the Public Utility Regulatory
Policies Act of 1978 ("PURPA").
THE APPLICATION
The Facility operated by South Forks is an 8,200 kilowatt ("kW") nameplate capacity
hydroelectric facility near Gooding, Idaho. Application at 4. The Facility currently delivers energy
to the Company under a PURPA energy sales agreement executed on June 8, 1984. Id. The
existing energy sales agreement expires on April 30, 2020. Id. The Company and South Forks
intend the proposed ESA to replace the expiring energy sales agreement. Id. at2. The Company
states the proposed ESA conrplies with Commission orders regarding this type of agreement. 1d.
The Company asks the Commission to process the Application by Modified Procedure before the
existing energy sales agreement expires. Id at 6.
In the proposed ESA, South Forks has contracted for non-levelized, seasonal hydro
published avoided cost rates as set by the Commission in Order No. 34350 fbr a z0-year teffn. Id.
at 4. Because this is a replacement ESA, the proposed ESA contains capacity payments for the
DECISION MF,MORANDUM
entire term of the Agreement. ld. at3. The Company requcsts that its Application be processed
by Modified Procedure. Id. at 6.
STAFF RECOMMENDATION
Staff recommends the Cornmission issue a Notice of Application and Notice of
Modified Procedure. Staff recommends the Notice of Application and Noticc of Modificd
Procedure provide tbr a twenty-one (21) day written comment period for itself and any other
interested partics, with a seven (7) 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
intercsted parties followed by a seven (7) day reply comment period for the Company?
J
ty Attorney General
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2.DECISION N{EMORANDLJN{
Hammond Jr.