20200403Comments.pdf

STAFF COMMENTS 5 APRIL 3, 2020
JOHN R. HAMMOND, JR.
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5470

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 THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF THE FIRST AMENDMENT
TO THE ENERGY SALES AGREEMENT
FOR THE MUD CREEK S&S HYDRO
PROJECT
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CASE NO. IPC-E-20-09

COMMENTS OF THE
COMMISSION STAFF

STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of record,
John R. Hammond Jr., Deputy Attorney General, submits the following comments.

BACKGROUND
On February 20, 2020, Idaho Power Company (“Idaho Power” or “Company”) applied for
Commission approval of the First Amendment to its Energy Sales Agreement (“Amendment”)
with H K Hydro, LLC (“H K Hydro” or “Seller”) for the energy generated by the Mud Creek
S&S hydro project (“Facility”). The Facility is a qualifying facility (“QF”) under the Public
Utility Regulatory Policies Act of 1978 (“PURPA”).
The ESA contains provisions providing for the Seller’s Adjustment of Estimated Net
Energy Amounts in its Section 6.2.3. Id at 2. The Amendment changes when the Seller must
notify Idaho Power to revise future monthly Estimated Net Energy Amounts. Currently, Section
6.2.3 of the ESA requires the Seller to notify Idaho Power at least one month before the Seller
RECEIVED
2020 April 3,AM10:08
IDAHO PUBLIC
UTILITIES COMMISSION
STAFF COMMENTS 5 APRIL 3, 2020
revises a given month’s Estimated Net Energy Amount. The proposed Amendment states that
“[a]fter the Operation Date, the Seller 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 that is prior to the month to be revised.” Application, Attachment 1. If the 25th day
falls on a weekend or holiday, Idaho Power must receive written notice no later than the last
business day prior to the 25th day of the month.

STAFF ANALYSIS
Staff recommends approval of the proposed Amendment to the ESA between Idaho Power
and H K Hydro. 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 advance 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 that occurred February 20, 1982, Staff believes a five-
day notice for generation estimate adjustments is sufficient because the Company has a well-
established generation history for H K Hydro.

STAFF RECOMMENDATION
Staff recommends the Commission approve the Amendment to the ESA, with all other
terms and conditions unchanged.

STAFF COMMENTS 5 APRIL 3, 2020
Respectfully submitted this 3rd day of April 2020.

__________________________________
John R. Hammond, Jr.
Deputy Attorney General

Technical Staff: Rachelle Farnsworth
Yao Yin

i:umisc/comments/ipce20.9jhyyrf comments
CERTIFICATE OF SERVICE
CERTIFICATE OF SERVICE

I HEREBY CERTIFY THAT I HAVE THIS 3rd DAY OF APRIL 2020,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. IPC-E-20-09, 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