20200402Comments.pdf

STAFF COMMENTS 1 APRIL 2, 2020
DAYN HARDIE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 9917

Street Address for Express Mail:
11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714

Attorney for the Commission Staff

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER’S
APPLICATION FOR APPROVAL OF THE
FIRST AMENDMENT TO THE ENERGY
SALES AGREEMENT FOR THE HEAD OF U
HYDRO PROJECT
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CASE NO. IPC-E-20-08

COMMENTS OF THE
COMMISSION STAFF

STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of
record, Dayn Hardie, Deputy Attorney General, submits the following comments.

BACKGROUND
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 the
Seller must notify the Company in order to revise future monthly Estimated Net Energy
Amounts.
On August 21, 2014, the Commission approved the Company’s ESA with the Sellers.
Order No. 33102.
RECEIVED
2020 April 2,AM11:54
IDAHO PUBLIC
UTILITIES COMMISSION
STAFF COMMENTS 2 APRIL 2, 2020
On February 5, 2020, the Company and Sellers entered a First Amendment to the ESA,
subject to Commission approval.
In the First Amendment, the Company and Sellers agreed to delete Section 6.2.3 of the
ESA—titled “Seller’s Adjustment of 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 monthly
Estimated 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 of the month.1

STAFF ANALYSIS
Staff recommends approval of the proposed Amended Energy Sales Agreement between
Idaho Power and Head of U Hydro Project (“Head of U”). Section 6.2.3 of the existing ESA will
be replaced to allow the Seller to adjust Estimated Net Energy Amounts, which are provided to
Idaho Power to comply with 90/110 firmness requirements, with a five-day advanced notice
instead of a one-month advanced notification in the currently-approved ESA.
The Commission has approved a five-day revision to monthly generation estimates in
previous cases, recognizing that Estimated Net Energy Amounts that are closer to the time of
delivery can improve the accuracy of input used by the Company for short-term operational
planning. See, e.g., Case Nos. IPC-E-19-01, IPC-E-19-03, IPC-E-19-04, IPC-E-19-07, and
IPC-E-19-12. With an Operation Date which began June 2, 2015, Staff believes a five-day
notice for generation estimate adjustments is sufficient because the Company has a well-
established generation history for Head of U.

1 The First Amendment provides the following example: “[I]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 25th, or the last
business day prior to September 25th.”
STAFF COMMENTS 3 APRIL 2, 2020
STAFF RECOMMENDATION
Staff recommends the Commission approve the Amendment to the Energy Sales
Agreement for the Head of U hydro project, with all other terms and conditions to remain
unchanged.

Respectfully submitted this 2nd day of April 2020.

________________________________
Dayn Hardie
Deputy Attorney General

Technical Staff: Rachelle Farnsworth
Yao Yin

i:umisc/comments/ipce20.8dhyyrf comments
CERTIFICATE OF SERVICE
CERTIFICATE OF SERVICE

I HEREBY CERTIFY THAT I HAVE THIS 2nd DAY OF APRIL 2020,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. IPC-E-20-08, BY E-MAILING A COPY THEREOF, TO THE
FOLLOWING:

DONOVAN E WALKER
REGULATORY DOCKETS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: [e-mail]
[e-mail]

ENERGY CONTRACTS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: [e-mail]

/s/ Reyna Quintero __
SECRETARY