20200103Decision Memo.pdf

DECISION MENIORANDUN,T
TO:COMMISSIONER KIELLANDER
COMMISSIONER RAPI.]R
COMI\{ISSIONER ANDERSON
C OMITIISSION SECRETA RY
COMMISSION STA}'T'
I,I.]GAI,
F'RON{:JOIIN R. IIAMNIOND JR.
DE,PTITY ATTORNEY GENERAL
DATE: .IANUARY 3,2020
SIJI]JF]CT:IDAHO POIVER COMPANY'S APPLICATION FOR APPROVAI, OR
REJECTION OF AN ENERGY SAI,ES AGREENIENT WITH BIG WOOD
CANAL CONIPANY; CASFI NO. IPC.E-19-37.
On December 9, 2019, Idaho Power Company ("ldaho Power" or "Company") filed an
Application seeking approval of its proposed Energy Sales Agreement ("ESA") with Big Wood
Canal Company ("Big Wood" or "Seller") for the energy generated by the Jim Knight hydro
project ("Facility"). The Facitity is a qualifying facility ("QF") under the Public Utility Regulatory
Policies Act of 1978 ("PURPA").
THE APPLICATION
The Facility operated by Big Wood is a 475 kilowatt ("kW") nameplate capacity
hydroelectric facility near Gooding, Idaho. Applicatiott at 4. The Facility currently delivers energy
to the Company under a PURPA energy sales agreement executed on April I, 1985. Id. The
existing energy sales agreement expires on May 31 ,2020. ld. The Company and Big Wood intend
the proposed ESA to replace the expiring energy sales agreement. Id. at2. The Company states
the proposed ESA complies with Commission orders regarding this type of agreement. /d. The
Company asks thc Commission to process the Application by Modified Procedure before thc
existing energy sales agreement expires. 1tL at 6.
In the proposed ESA, Big Wood has contracted for nonlevelized, seasonal hydro
published avoided cost rates as set by the Commission in Order No. 34350 lor a 2O-year term. /d.
at 4. Because this is a replacement ESA, the proposed ESA contains capacity payments for the
DECISION MEMORANDUM I
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2DECISION MEMORANDT]M
entire term ofthe Agreement. Id. at3. The Company rcquests 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
Modihed Procedure. Staff recommends the Notice of Application and Notice ol Modified
Procedure providc for a twenty-one (21) day written comment period for itself and any other
interested parties, with a seven (7) day reply comment period fbr the Company to follow.
COMMISSION DI'CISION
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 parlies followed by a seven (7) day reply comment period for the Company?