20200312Notice_of_Application_Order_No_34581.pdf

Office of the Secretary
Service Date
March 12,2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER'S )CASE NO.IPC-E-20-08
APPLICATION FOR APPROVAL OF THE )FIRST AMENDMENT TO THE ENERGY )NOTICE OF APPLICATION
SALES AGREEMENT FOR THE HEAD OF )
U HYDRO PROJECT )NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34581
On February 20,2020,Idaho Power Company ("Company")applied for approval of
the First Amendment to its Energy Sales Agreement ("ESA")with North Side Energy Company,
Inc.("Sellers").The ESA falls under the Public Utility Regulatory Policies Act of 1978
("PURPA")and is a contract for the sale and purchase of electric energy generated by the Head of
U Hydro Project,a PURPA qualifying facility ("QF").The Amendment addresses when Sellers
must notify the Company in order to revise future monthly Estimated Net Energy Amounts.The
Company asked that the Commission process its Application by Modified Procedure with Staff
recommending the same.
The Commission now issues this Notice of Application and Notice of Modified
Procedure setting public comment and Company reply deadlines.
BACKGROUND
Under PURPA,electric utilities must purchase electric energy from "qualifying
facilities"(QFs)at purchase or "avoided cost"rates approved by this Commission.16 U.S.C.§
824a-3;Idaho Power Co.v.Idaho PUC,155 Idaho 780,789,316 P.3d 1278,1287 (2013).The
Commission has established two methods for calculating avoided costs,depending on the size of
the QF project:(1)the surrogate avoided resource ("SAR")methodology,used to establish
"published"avoided cost rates;and (2)the integrated resource plan ("IRP")methodology,to
calculate avoided cost rates for projects exceeding published rate limits.See Order No.32697 at
7-8.Published rates are available for wind and solar QFs with a design capacity of up to 100
kilowatts (kW),and for QFs of all other resource types with a design capacity of up to 10 average
megawatts (aMW).Id.;see also 18 C.F.R.§292.304(c).
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34581 1
On August 21,2014,the Commission approved the Company's ESA with Sellers.
Order No.33102.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on February 5,2020,the Company and Sellers
entered a First Amendment to the ESA,subject to this Commission's approval.
YOU ARE FURTHER NOTIFIED that in the First Amendment,the Company and
Sellers agreed to delete Section 6.2.3 of the ESA-titled "Seller's Adjustmentof Estimated Net
Energy Amounts after the Operation Date"-and replace it with a new Section 6.2.3 that changes
when the Sellers must notify the Company in order to revise future monthly Estimated Net Energy
Amounts.The First Amendment states that "[a]fter the Operation Date,the Seller[s]must revise
any future monthlyEstimated Net Energy Amounts by providing written notice no later than 5
p.m.Mountain Standard Time on the 25th day of the month that is prior to the month to be revised."
If the 25th falls on a weekend or holiday,written notice must be received by the Company by the
last business day before the 25th day of the month.'
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission's office.The Application is also
available on the Commission's web site at www.puc.idaho.gov.Click on the "ELECTRIC"tab at
the top of the home page,then click on "Open Cases,"and then locate and click on the case number
as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code.The Commission may
enter any final order consistent with its authority under Title 61 and PURPA.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter and will proceed under Modified Procedure
i The First Amendment provides the following example:"[1]f the Seller[s]would like to revise the Estimated Net Energy Amount
for October,they would need to submit a revised schedule no later than September 256,or the last business day prior to September
251
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34581 2
pursuant to Rules 201 through 204 of the Commission's Rules of Procedure.See IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application must file a written comment in supportor opposition with the Commission by
April 2,2020.The comment must contain a statement of reasons supporting the comment.Persons
desiring a hearingmust specifically request a hearingin their written comments.Written comments
concerning this Application shall be mailed to the Commission and the Company at the addresses
reflected below:
For the Commission:For Idaho Power:
Commission Secretary Donovan E.Walker
Idaho Public Utilities Commission 1221 West Idaho Street (83702)
PO Box 83720 P.O.Box 70
Boise,ID 83720-0074 Boise,ID 83707-0070
dwalker idahopower.com
Street Address for Express Mail:
11331 W.Chinden Blvd.energycontracts idahopower.corn
Building 8,Suite 201-A
Boise,ID 83714
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at www.p_ucidaho.goy.Click the "Consumers"tab then click
the "Case Comment Form"and complete the comment form using the case number as it appears
on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
April 9,2020.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its Order
without a formal hearing.If written comments are received within the time limit set,the
Commission will consider them and,in its discretion,may set the same for formal hearing.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34581 3
ORDER
IT IS HEREBY ORDERED that the Company's Application be processed by Modified
Procedure,Rule 201-204.See IDAPA 31.01.01.201 through .204.Persons interested in submitting
written comments must do so by April 2,2020.The Company must file any reply comments by
April 9,2020.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of March 2020.
PAUL KJELL ElÌ,PRESIDENT
ERIC ANDERSON,dOMMISSIONER
Diane M.Hanian
Commission Secretary
I:\Legal\ELECTRIC\IPC-E-20-08\orders\IPCE2008_ntcappmod_dh.docx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34581 4