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 THE CITY OF
HAILEY, FOR THE SALE AND PURCHASE OF ELECTRIC ENERGY
FROM THE HAILEY CSPP HYDRO PROJECT; CASE NO. IPC-E-20-16

On March 17, 2020, Idaho Power Company (“Idaho Power” or “Company”) filed an
Application requesting consideration of an Energy Sales Agreement (“ESA” or “Agreement”) with
the City of Hailey for energy generated by the Hailey CSPP Hydro Project (“Facility”).
Application at 1. The Facility is a 37.3-kilowatt nameplate capacity hydro facility in Hailey, Idaho.
Id. at 4. 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 June 25, 2020. Id. at 5.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordance with an energy
sales agreement dated June 14, 1985, which expires June 24, 2020. Id. at 4. The Company states
that the Agreement contains published non-seasonal, non-levelized avoided cost rates for a 5-year
term. Id. The Company requests the Commission declare all payments for purchase of 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 14, 2020 comment deadline and a May 21, 2020 reply comment
deadline.

DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, setting a May 14, 2020 comment deadline and a May 21, 2020 reply comment deadline?

__________________________
Matt Hunter
Deputy Attorney General

I:\Legal\ELECTRIC\IPC-E-20-16\IPCE2016_dec memo_mh.docx