20200618Motion for Reconsideration.pdf

DONOVAN E.WALKER (ISB No.5921)2 8 ŸÑ 2IdahoPowerCompany
1221 West Idaho Street (83702)
P.O.Box 70 '
Boise,Idaho 83707
Telephone:[phone]
Facsimile:[phone]
dwalker(ä)idahopower.com
Attorneyfor Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-19-38APPROVALORREJECTIONOFAN)ENERGY SALES AGREEMENT WITH BIG )MOTION FOR APPROVAL OFWOODCANALCOMPANYFORTHESALE)FIRST AMENDMENT TOANDPURCHASEOFELECTRICENERGY)ENERGY SALES AGREEMENTFROMTHESAGEBRUSHHYDRO)IN COMPLIANCE WITH ORDERPROJECT.)NO.34677 OR ALTERNATIVELY
)FOR CLARIFICATION AND/OR
)RECONSIDERATION
Idaho Power Company ("Idaho Power"),in accordance with RP 53,56,325,331,
and the applicable provisions of the Public Utility Regulatory Policies Act of 1978
("PURPA"),hereby respectfully moves the Idaho Public Utilities Commission
("Commission")for an order accepting or rejecting the First Amendment ("Amendment")
to the Energy Sales Agreement ("ESA")between Idaho Power and Big Wood Canal
Company ("Big Wood"or "Seller")under which Big Wood sells and Idaho Power
purchases electric energy generated by the Sagebrush hydro project ("Facility")located
near the city of Gooding,Idaho.This First Amendment is submitted in compliance with
Commission Order No.34677,which approved the submitted ESA in this case,but
directed that Seller be paid for capacity up to 430 kW,and the incremental 145 kW
increase in nameplate capacity not be eligible for capacity payments until Idaho Power
becomes capacity deficient,which is 2026.
Idaho Power and Big Wood have executed the submitted Amendment in order to
provide the required changes to the approved ESA necessary to provide for payment of
a different rate (no capacity)for any hourly delivery of generation in excess of 430 kW.
Alternatively,should the Commission desire a different compliance with its Final Order
No.34677,the Company seeks clarification and/or reconsideration of said order for
further guidance on compliance.
In support of this Motion,Idaho Power representsas follows:
I.INTRODUCTION AND BACKGROUND
1.Idaho Power and the Seller (jointly,"Parties")entered into an ESA on
November 22,2019,for the purchase and sale of energy produced by the Facility.The
ESA is for the purchase of generation from the 575 kW nameplate capacity Sagebrush
hydro facility.The ESA is a replacementESA to an April 1,1985 ESA for the facility that
ran its full term on May 31,2020.This ESA was approved by the Commission in this
case by Order No.34677,on May 28,2020.
2.Staff,Big Wood,and Idaho Power all filed Comments in this case.Staff
recommended approval of the ESA conditioned upon modifying the avoided cost rates in
the ESA,by treating the 145 kW increase in nameplate capacity from 430 kW (which is
the nameplate in the expired,1985 ESA)as a new project that receives capacity
payments only after the Company become capacity deficient.Staff Comments,p 2-3.
Staff proposed a blended avoided cost rate to the Facility's 575 nameplate capacity which
used the weighted-average of two sets of rates based on the different nameplate
capacities.Id.Big Wood filed comments proposing a netting of output with a different
QF facility,and disagreeing with Staff's proposed blended rate proposal.Wood Hydro
Comments.Idaho Power filed comments agreeing with Staff's recommendation that only
the nameplate capacity in the expiring contract be entitled to capacity payments during
the Company's current capacity deficiency period.Idaho Power Reply Comments,p 2.
3.In Order No.34677 the Commission approved the ESA but stated,"such
approval only allows for the Seller to receive capacity payments for the previous
nameplate capacity of the Sagebrush Facility."Order No.34677,p 5.
The Commission finds it reasonable for the Seller to be paidforcapacityupto430kWforthefulltermofthisrenewalESA.
See Order No.32697 at 21-22.They Commission also findsthatthe145kWincreaseincapacityfortheSagebrushFacility
comes at a time when the Companyis not capacity deficient.
This "new"capacity is analogous to a new QF whose outputandpricingmustbeevaluatedwhenanexecutedenergysalesagreementwithanelectricutilityisfiledwiththeCommissionforreview.Therefore,the Commission finds thattheSellershallnotreceivecapacitypaymentsforthe145kW
increase to the nameplate capacity of the Sagebrush FacilityuntiltheCompanybecomescapacitydeficient.
Id.,p 5-6.The Commission also rejected Big Wood's proposed netting with another QF
facility,and Staff's proposed blended rate.Id.,p 6.
II.THE AMENDMENT
4.Subsequentto Commission Order No.34677,Idaho Power verified that it
has the capability and was able to obtain hourly meter data for the Facility and administer
the contract so that on an hourly basis,it can pay one rate that contains both capacity
and energy for any generation delivered by the Facility up to 430 kW,and that it could
apply a different rate (that does not contain capacity)for any incremental generation
delivered over 430 kW.In order to administer both rates in the approved ESA,an
Amendment was necessary to provide an additional rate schedule,as well as some
language adjustmentsto effectuate the two different rates approved by the Commission
in Order No.34677.
5.The Amendment provides the additional and proper rate tables as Appendix
H,as well as the additional required language adjustmentsto Articles 1.8,7.4,7.5,7.6,
and Appendices E and F,as set forth in the First Amendment to the Energy Sales
Agreement Between Idaho Power Company and Big Wood Canal Company.The
Amendment to the ESA was executed by Big Wood on June 16,2020,and by Idaho
Power on June 17,2020.The Amendment does not otherwise change any of the
obligations of the Parties set forth in the ESA.A copy of the Amendment is attached to
the Application as Attachment 1 and is subject to the Commissions approval.
III.PROCEDURE
6.Idaho Power believes that the First Amendment can be considered and
approved or rejected by the Commission without further procedure as a compliance filing
with the requirements of Final Order No.34677.Alternatively,should the Commission
desire a different method of compliance than that presented by the First Amendment,
then Idaho Power seeks either Clarification and/or Reconsideration with the appropriate
process as directed by the Commission.
IV.COMMUNICATIONSAND SERVICE OF PLEADINGS
6.Communications and service of pleadings,exhibits,orders,and other
documents relating to this proceeding should be sent to the following:
Donovan E.Walker Energy Contracts
Lead Counsel Idaho Power Company
Idaho Power Company 1221 West Idaho Street (83702)
1221 West Idaho Street (83702)P.O.Box 70
P.O.Box 70 Boise,Idaho 83707Boise,Idaho 83707 [e-mail]@idahopower.com
[e-mail]
V.REQUEST FOR RELIEF
7.Idaho Power respectfully requests that the Commission issue an order
accepting or rejecting the First Amendment between Idaho Power and the Seller in
compliance with Order No.34677.
Respectfullysubmitted this 18th day of June 2020.
DONOVAN E.WALKERAttorneyforIdahoPower Company
CERTIFICATE OF SERVICE
I HEREBY CERTlFY that on the 18th day of June 2020 I served a true and correct
copy of the within and foregoing MOTION FOR APPROVAL OF FIRST AMENDMENT
TO ENERGY SALES AGREEMENT IN COMPLIANCE WITH ORDER NO.34677 OR
ALTERNATIVELY FOR CLARIFICATION AND/OR RECONSIDERATION upon the
following named parties by the method indicated below,and addressed to the following:
John Hammond Jr.email to:[e-mail]
Deputy Attorney General
Idaho Public Utilities Commission
P.O.Box 83720
Boise,ID 83720-0074
David Stephenson email to:[e-mail]
Big Wood Canal Company
409 N.Apple Street
Shoshone,Idaho 83352
Ted Sorenson email to:[e-mail]
Wood Hydro LLC
1032 Grandview Drive
Ivins,UT 84738
C.Thomas Arkoosh email to:tom.arkoosh(arkoosh.com
Arkoosh Law Offices
802 W.Bannock St.
Suite LP 103
P.O.Box 2900
Boise,ID 83701
Christy Davenport,Legal Assistant
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.IPC-E-19-38
IDAHO POWER COMPANY
ATTACHMENT 1
FIRST AMENDMENT
TO THE
ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
BIG WOOD CANAL COMPANY
This First Amendment of the Energy Sales Agreement ("First Amendment")is entered into
on this 17th day of June 2020,by and between Idaho Power Company,an Idaho corporation
("Idaho Power"),and Big Wood Canal Company,a non-profit Idaho canal company ("Seller")
(individuallya "Party"and collectively the "Parties").
WHEREAS,Idaho Power and the Seller hold an Energy Sales Agreement ("ESA")dated
November 22,2019,for the purchase and sale of generation produced by the Sagebrush Hydro
PURPA Qualifying Facility ("Facility").The ESA contains Idaho Public Utilities Commission
("Commission")published avoided cost prices for a replacement ESA;and
WHEREAS,Appendix B of the ESA identifies that the Facility has increased the
Nameplate Capacity to 575 kilowatts ("kW"),an increase of 145 kW from the Nameplate Capacity
previously approved by the Commission in the Party's original firm energy sales agreement that
expired May 31,2020;and
WHEREAS,on May 28,2020,the Commission approved the ESA in Order No.34677,
which states,"The Commission finds it reasonable for the Seller to be paid for capacity up to 430
kW for the full term of this renewal ESA....the Commission finds that the Seller shall not receive
capacity payments for the 145 kW increase to the nameplate capacity of the Sagebrush Facility
until the Company becomes capacity deficient";and
WHEREAS,Seller and Idaho Power desire to amend the ESA to include the appropriate
published avoided cost appendices for pricing generation deliveredby the Facility to Idaho Power
applicable to the 145 kW increase in Nameplate Capacity.
NOW,THEREFORE,in consideration of the foregoing,and for other good and valuable
consideration,the receipt and adequacy of which are hereby acknowledged,and intending to be
legally bound,the Parties hereto agree as follows:
1.Incorporation of Recitals.The above-stated recitals are incorporated into and made a part of
this ESA by this reference to the same extent as if these recitals were set forth in full at this point.
2.Article I.The followingsection of Article I shall be modified as written below:
1.8 "Delay Price"-The current month's Mid-Columbia Market Energy Cost minus the
current month's All Hours Energy Price specified in Appendix E,md,F and H of this
Agreement.If this calculation results in a value less than zero (0),the result of this
calculation will be zero (0).
Energy Sales Agreement
Project:31515105 Sagebrush Hydro Project
First Amendment -Page 1 of 5
3.Article VH.Sections 7.4,7.5 and 7.6 of Article VII of the ESA shall be deleted in their entiretyandreplacedwiththefollowingsectionsaswrittenbelow:
7.4 Base Energy HeavyLoad Purchase Price -For all Base Energy received up to 430kWduringHeavyLoadHours,Idaho Power shall pay the monthlynon-levelized BaseEnergyHeavyLoadPurchasePriceasspecifiedinAppendixEorF.For all Base Energyreceivedbetween431kWand575kWduringHeavyLoadHoursforcalendaryears2020-2025,Idaho Power pay the monthlynon-levelizedBase Energy Heavy Load PurchasePrice
as specified in Appendix H.For all Base Energy received between 431 kW and 575 kWduringHeavyLoadHoursforcalendaryears2026throughtheremainingtermoftheESA,Idaho Power pay the monthlynon-levelizedBase Energy Heavy Load Purchase Price asspecifiedinAppendixEorF.
7.5 Base Energy Light Load Purchase Price -For all Base Energy received up to 430kWduringLightLoadHours,Idaho Power shall pay the monthlynon-levelized BaseEnergyLightLoadPurchasePriceasspecifiedinAppendixEorF.For all Base Energyreceivedbetween431kWand575kWduringLightLoadHoursforcalendaryears2020-2025,Idaho Power pay the monthly non-levelizedBase Energy Light Load PurchasePrice
as specified in Appendix H.For all Base Energy received between 431 kW and 575 kWduringLightLoadHoursforcalendaryears2026throughtheremainingtermoftheESA,Idaho Power pay the monthlynon-levelizedBase Energy Light Load Purchase Price asspecifiedinAppendixEorF.
7.6 All Hours Energy Price --The price to be used in the calculation of the SurplusEnergyPriceandDelayPriceshallbethemonthlynon-levelized All Hours Energy PriceinAppendixEorFforgenerationreceivedupto430kW,and the All Hours Energy PriceinAppendixHforgenerationreceivedbetween431and575kWforcalendaryears2020-2025.For calendar years 2026 through the remaining term of the ESA,the price to be usedinthecalculationoftheSurplusEnergyPriceandDelayPriceshallbethemonthlynon-levelizedAll Hours Energy Price in Appendix E or F.
4.Appendix E,F and H.Appendix E and Appendix F of the ESA shall be modified as writtenbelowandtheESAshallincludeanewAppendixH.
APPENDIX E
SEASONAL HYDRO FACILITY ENERGY PRICES(Prices based on the Maximum CapacityAmount of EM4_30_kW (Years 2020-2025)and 575 kW (Years2026-remainink Term),Non-FueledRates)
APPENDIX F
NON-SEASONAL HYDRO FACILITY ENERGY PRICES(Prices based on the Maximum Capacity Amount of 5-754 30 kW (Years 2020-2025)and 575 kW (Years2026-remainingTerm),Non-FueledRates)
Energy Sales Agreement
Project:31515105 Sagebrush Hydro Project
First Amendment -Page 2 of 5
APPENDIX H
SEASONAL AND NON-SEASONAL HYDRO FACILITY ENERGY PRICES
WITHOUT CAPACITY,YEARS 2020 THROUGH 2025
(Prices based on the Maximum Capacity Amount of 575 kW,Non-FueledRates)
H-1 Base Energy HeavyLoadPurchase Price -For all Base Energy receivedduring HeavyLoadHours,
Idaho Power will pay the non-levelized energy price in accordance with Commission Order No.
34350 effective June 1,2019,and seasonalization factors applied:
Season 1 -(73.50 %)Season 2 -(120.00 %)Season 3 -(100.00 %)
Year Mills/kWh Mills/kWh Mills/kWh
2020 23.53 38.42 32.02
2021 23.75 38.78 32.31
2022 24.79 40.47 33.72
2023 26.52 43.30 36.08
2024 28.66 46.80 39.00
2025 30.77 50.23 41.86
H-2 Base Energy Light Load Purchase Price -For all Base Energy receivedduring Light Load Hours,
Idaho Power will pay the non-levelized energy price in accordance with Commission OrderNo.
34350 effectiveJune 1,2019,and seasonalization factors applied:
Season 1 -(73.50%)Season 2 -(120.00 %)Season 3 -(100.00%)
Year Mills/kWh Mills/kWh Mills/kWh
2020 18.18 29.68 24.74
2021 18.40 30.04 25.03
2022 19.44 31.73 26.44
2023 21.17 34.56 28.80
2024 23.31 38.06 31.72
2025 25.42 41.50 34.58
H-3 All Hours Energy Price -The price to be used in the calculation of the Surplus Energy Price and
Delay Damage Price shall be the non-levelizedenergy price in accordance with Commission Order
34350 effective June 1,2019,and seasonalization factors applied:
Season 1 -(73.50 %)Season 2 -(120.00 %)Season 3 -(100.00 %)
Energy Sales Agreement
Project:31515105 Sagebrush Hydro Project
First Amendment -Page 3 of 5
Year Mills/kWh Mills/kWh Mills/kWh
2020 21.15 29.68 24.74
2021 21.37 30.04 25.03
2022 22.41 31.73 26.44
2023 24.14 34.56 28.80
2024 26.28 38.06 31.72
2025 28.39 41.50 34.58
5.Commission Approval.The obligationsof the Parties under this First Amendment are subjecttotheCommission's approval of this First Amendment and such approval being upheld on appeal,if any,by a court of competent jurisdiction.The Parties will submit this First Amendment to theIPUCandrequestapprovalorrejectioninitsentiretypursuanttoRP274.
6.Effect of Amendment.Except as expressly amended by this First Amendment,the ESA shallremaininfullforceandeffect.
7.Capitalized Terms.All capitalized terms used in this First Amendment and not defined hereinshallhavethesamemeaningasusedintheESA.
8.Scope of Amendment.This First Amendment shall be binding upon and inure to the benefitofthePartieshereto,and their respective heirs,executors,administrators,successors,and assigns,who are obligated to take any action which may be necessary or proper to carry out the purposeandintentthereof.
9.Authority.Each Party represents and warrants that (i)it is validly existing and in goodstandinginthestateinwhichitisorganized,(ii)it is the proper party to amend the ESA,and (iii)it has the requisite authority to execute this First Amendment.
10.Counterparts.This First Amendment may be executed in any number of counterparts,eachofwhichshallbedeemedanoriginalandallofwhichtakentogethershallconstituteasinglemstrument.
Energy Sales Agreement
Project:31515105 Sagebrush Hydro Project
First Amendment -Page 4 of 5
IN WITNESS WHEREOF,the Parties hereto have caused this First Amendment to be duly
executed as of the date above written.
BIG WOOD CANAL COMPANY IDAHO POWER COMPANY
By:By:
Name:p Name:
Title:Title:
Date:(-y 7y Date:
Energy Sales Agreement
Project:31515105 Sagebrush Hydro Project
First Amendment -Page 5 of 5
IN WITNESS WHEREOF,the Parties heretohavecaused this First Amendment to be dulyexecutedasofthedateabovewritten.
BIG WOOD CANAL COMPANY IDAllO POWER CO PA Y
By:By:
Name:Name:
Title:Title:
Date:Date:410
Energy Sales Agreement
Project:31515105 Sagebrush Hydro ProjectFirstAmendment-Page 5 of 5