20200417Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: MATT HUNTER
DEPUTY ATTORNEY GENERAL

DATE: APRIL 16, 2020

SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR
APPROVAL OF AN ENERGY SALES AGREEMENT WITH WHITE
WATER POWER COMPANY INC, FOR THE SALE AND PURCHASE OF
ELECTRIC ENERGY FROM THE WHITE WATER RANCH HYDRO
PROJECT; CASE NO. IPC-E-20-13

On March 10, 2020, Idaho Power Company (“Idaho Power” or “Company”) filed an
Application requesting consideration of an Energy Sales Agreement (“ESA” or “Agreement”) with
White Water Power Company Inc for energy generated by the White Water Ranch Hydro Project
(“Facility”). Application at 1. The Facility is a 170-kilowatt1 (“kW”) nameplate capacity hydro
facility near Gooding, Idaho. Id. at 4; see Motion for Approval of First Amendment to Energy
Sales Agreement, Case No. IPC-E-20-13. The Facility is a qualifying facility under the Public
Utility Regulatory Policies Act of 1978. Id. The Facility has a scheduled First Energy Date under
the ESA of August 1, 2020. Id. at 5.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordance with an energy
sales agreement dated February 24, 1984, which expires July 31, 2020. Id. at 4. The Company
states that the Agreement contains published non-seasonal, non-levelized avoided cost rates for a
20-year term. Id. The Company requests the Commission declare all payments for purchase of

1 On April 3, 2020, Idaho Power filed a motion to amend the ESA to correct the nameplate capacity of the Facility.
The ESA filed with the Commission on March 10, 2020 stated the Facility’s nameplate capacity as 160 kW, but White
Water Power Company Inc later provided information to Idaho Power that showed the Facility’s nameplate capacity
has been 170 kW since 1988.
DECISION MEMORANDUM 2
energy under the ESA be allowed as prudently incurred expenses for ratemaking purposes. Id. at
6.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, setting a May 13, 2020 comment deadline and a May 20, 2020 reply comment
deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, setting a May 13, 2020 comment deadline and a May 20, 2020 reply comment deadline?

__________________________
Matt Hunter
Deputy Attorney General

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