20200306Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KIELLANDER
COMI\ISSIONER RAPER
COM]VtrSSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: MARCH 5,2020
SI]BJECT:IN THE MATTER OF IDAHO POWER'S APPLICATION FOR
APPROVAL OF TTTE FIRST AMENDMENT TO THE ENERGY SALES
AGREEMENT FOR THE HEAD OF U HYDRO PROJECT; CASE NO.IPC-
E-20.08.
On February 20, 2020, Idaho Power Company ("Company") filed an Application
seeking approval of the First Amendment to its Energy Sales Agreement ("ESA") with North Side
Energy Company, Inc. ("Sellers"). The ESA falls under the requirements of 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 the Sellers must notify the Company in order to revise future monthly
Estimated Net Energy Amounts. The Company requests the Commission process its Application
by Modified Procedure.
BACKGROUND
The Commission approved Idaho Power's ESA with the Sellers in 2014. Order No.
33L02. Section 6.2.3 of that ESA addresses when the Sellers must notify the Company if the Sellers
wish to revise future monthly Estimated Net Energy Amounts after the Operation Date. Pursuant
to the approved ESA dated Aprll23,20l4, the Sellers must notify the Company in writing no later
than 5 PM on the last business day of the month one full month before the month to be revised.l
^See Case No. IPC-E-14-07 Attachment 1 of Application at 15. Subsequently, the Sellers and the
I Example: under the current ESA, the Sellers must notify the Company by the last day of April 2O2O if they want to revise the
Estimated Monthly Net Energy Amounts for June 2020, or any future months.
DECISION MEMORANDUM I
Company agreed to adjust the notification requirements for revising future monthly Estimated Net
Energy Amounts. 2 3
PROPOSED AMENDMENT
The proposed Amendment modifies when the Sellers must notify the Company in order
to revise future monthly Estimated Net Energy Amounts. Whereas the current ESA requires the
Sellers to notify the Company in writing by 5 PM on the last business day of the month one full
month before the month to be revised, the proposed Amendment alters this notice requirement.
The proposed Amendment states, "[a]fter the Operation Date, the Seller[s] must revise any future
monthly Estimated Net Energy Amounts by providing written notice no later than 5 PM Mountain
Standard time on the 25th day of the month [immediately preceding] the month to be revised." If
the 25th day falls on a weekend or holiday, the Company must receive written notice no later than
the last business day prior to the 25m day of the month. The Amendment provides this example:
"...if 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 25 or the last business day prior the
September 25."
STAFF RECOMMENDATION
Staff has reviewed the Application and attachment and recommends that the
Application be processed under Modified Procedure with an April 2, 2020 public comment
deadline and an April9, 2020 Company reply deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with an Aprll2,2O2O public comment deadline and an April 9, 2020 Company reply
deadline?
yn Hardie
Deputy Attorney General
l:UrBal\EI-ECTzuOIPC-E-20-08vnemosUPC2008-dec-dh.docx
2In Order No. 34263, the Commission approved an ESA between the Company and J.R. Simplot Company that included a change
to the notification of Net Energy Amount monthly adjustments and indicated that it would continue to evaluate the reasonableness
of such provisions on a case-by-case basis.
3In Order No. 3$M2,theCommission approved the First Amendment to the ESA for Box Canyon hydro project like the amendment
in the Company's Application.
2DECISION MEMORANDUM