20200306Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KIELLANDER
COMMISSIOI\ER RAPER
COMNIISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE: MARCH 5,2020
SUBJECT:IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION FOR
APPROVAL OF AN ENERGY SALES AGREEMENT WITH MARCO
POWER COMPANY, FOR SALE AND PURCHASE OF ELECTRIC
ENERGY FROM THE MARCO RANCHES HYDRO PROJECT; CASE NO.
rPC-E-20.06
On February l4,2021,Idaho Power Company ("Idaho Power" or "Company") filed an
Application requesting consideration of an Energy Sales Agreement ("ESA" or "Agreement") with
Marco Power Company for energy generated by the Marco Ranches hydro project ("Facility").
The Facility is a 1,200-kilowatt nameplate capacity hydro facility near Jerome, Idaho. Application
at 4. The Facility is a qualifying facility under the Public Utility Regulatory Policies Act of 1978.
Id. at l. The Facility has a scheduled First Energy Date under the ESA of August I,2O2O. Id. at
3.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordance with an energy
sales agreement dated February 28, 1985, which expires August 1,2020. Id. at2. The Company
states that the Agreement contains published non-seasonal, non-levelized avoided cost rates for a
2}-year term. Id. at 4. The Company requests the Commission declare all payments for purchase
of energy under the ESA be allowed as prudently incurred expenses for ratemaking purposes. /d.
at 6.
IDECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set an April l, 2020 comment deadline and an April 8, 2020 reply
comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set an April l, 2020 comment deadline, and an April 8, 2O2O reply comment
deadline?
Matt Hunter
Deputy Attorney General
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2DECISION MEMORANDUM