20200103Decision Memo.pdf

DECISION MEMORANDI ]1\{
Tt):COMMISSIONER KIELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
CONIMISSION STAFF
LEGAL
T'RONI:JOHN R. HAI\{N,IOND JR.
DEPTJTY A'I"I'ORNEY GENE,RAL
DATE: JANUARY3,2020
SUBJF]CT:IDAHO POIVER COMPANY'S APPI,ICATION FOR APPROVAI, OR
REJECTION OF AN ENERGY SAI,ES AGRF]EMENT WITH BIG WOOD
CANAL CONIPANY; CASFI NO. IPC-E.19-38.
On December 9, 2019, Idaho Power Company ("ldaho Power" or "Company") filed an
Application seeking approval of its proposed Energy Sales Agreement C'ESA") with Big Wood
Canal Company ("Big Wood" or "Seller") for the energy generated by the Sagebrush hydro project
("Facility"). The Facility is a qualifying facility ("QF') under the Public Utility Regulatory
Policies Act of 1978 ("PURPA").
THE APPLICATION
Thc Facility operated by Big Wood is a 575 kilowatt ("kW") nameplate capacity
hydroelectric facility near Gooding, Idaho. Applicatiort at 4. The Facility currently delivers energy
to the Company under an energy sales agreement executed on April I, 1985. Id. The existing
energy sales agreement expires on May 31,2020. Id. The Company and Big Wood intend the
proposed ESA to replace the expiring energy sales agreement. ld. at2. The Company states the
proposed ESA complies with Commission orders regarding this type of agreemenl. Id. The
Company asks the Commission to process the Application by Modified Procedure before the
existing energy sales agreement expires. 1d at 6.
In the proposed ESA, Big Wood has contracted for non-levelized, seasonal hydro
published avoided cost rates as set by the Commission in Order No. 34350 for a 20-year term. Id.
at 4. Because this is a replacement ESA, the proposed ESA contains capacity payments for the
DECISION MEMORANDI.]M I
entire term of the Agrecment. Id. al3. The Company rcquests that its Application be processed
by Modified Procedure. Id. at 6.
STAT'F RECOMMTINDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure. Staff recommends the Notice of Application and Notice of Modified
Procedure provide for a twcnty-one (2t) day written comment period for itself and any other
interested parties, with a seven (7) day reply comment period for the Company to follow.
COMNTISSION DECISION
Does the Commission wish to issue a Noticc of Application and Notice of Modified
Procedure that establishes a twenty-one (21) day written comment period for Staff and any other
interested parties followed by a seven (7) day reply comment period for the Company?
. I lammond Jr.
ty Attorney Gencral
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)DECTSION MEMORANDUM