20200306Decision Memo.pdf

DECISION MEMORANDUM
TO:COMIVIISSIONER KIELLANDER
COMIVtrSSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRBTARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: MARCH 5,2020
St]BJECT:IN THE MATTER OF IDAHO POWER'S PETITION FOR APPROVAL OR
DENIAL OF AN ENERGY SALES AGREEMENT WITH LATERAL 10
VENTURES, LLC FOR THE SALE AND PURCHASE OF ELECTRIC
ENERGY FROM THE LATERAL #10 HYDRO PROJECT; CASE NO. IPC.
E-20-03.
On February l4,2020,Idaho Power Company ("Idaho Power" or "Company") filed an
Application requesting consideration of an Energy Sales Agreement ("ESA" or "Agreement") with
Lateral 10 Ventures, LLC ("Lateral 10") for energy generated by the Lateral #10 hydro project
("Facility"). The Facility is a 2.062-megawatt nameplate capacity hydro facility near Twin Falls,
Idaho. The Facility is a qualifying facility ("QF") under the Public Utility Regulatory Policies Act
of 1978. The Facility has a scheduled First Energy Date under the ESA of May 5, 2O20. The
Company requests that its Application be processed by Modified Procedure and the Commission
make its determination before the May 4,2020.
THE APPLICATION
The Facility has been delivering energy to Idaho Power under a power sales agreement
dated June 8, 1984, which expires May 4, 2020. The Company states that the replacement
Agreement contains published non-seasonal, non-levelized hydro published avoided cost rates for
aZo-year term. Additionally, the Agreement contains capacity payments for the entire term of the
Agreement. The Company requests the Commission declare all payments for purchase of energy
under the ESA be allowed as prudently incurred expenses for ratemaking purposes.
1DECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a March 31, 2020 public comment deadline and an April 7 , 2O20
Company reply comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a March 31,2020 public comment deadline and an April T, 2020 Company reply
comment deadline?
Hardie
Deputy Attorney
I:Ur8a\ELECTzuqIPC-E-20-03\MemosuPCE2003_dec_dh.docx
)DECISION MEMORANDUM