20210223Notice_of_Settlement_Stipulation_Order_No_34929.pdf

NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34929 1

Office of the Secretary
Service Date
February 23, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On June 25, 2020, Wood Hydro, LLC (“Wood Hydro”) filed a formal complaint against
Idaho Power Company (“Idaho Power” or “Company”) alleging Idaho Power improperly withheld
payments due to Wood Hydro under a Firm Energy Sales Agreement (“FESA”) for the Mile 28
hydroelectric (“Mile 28 Hydro”) qualifying facility (“QF”).
On July 13, 2020, the Commission issued a Summons to Idaho Power directing the
Company to respond to the formal complaint within 21 days.
On August 3, 2020, Idaho Power filed an Answer and Cross-Complaint. The Cross-
Complaint is directed against Wood Hydro, Enel Green Power North America, Inc. (“Enel”) for
the Rock Creek #2 QF, and Central Rivers Power US, LLC (“Central Rivers”) for the Lowline #2
QF (collectively, “QF Parties”).
On August 27, 2020, the Commission issued Summonses to Central Rivers and Enel,
giving each company 21 days to respond to Idaho Power’s Cross-Complaint. The Commission
also issued a Notice of Cross-Complaint, which aligned Wood Hydro’s time to reply with that of
Central Rivers and Enel. Order No. 34764.
On September 17, 2020, Enel and Central Rivers filed separate Motions to Dismiss and
Wood Hydro filed a Reply.
On October 1, 2020, Idaho Power filed an Answer to Cross-Respondents’ Motions to
Dismiss.
On November 9, 2020, Idaho Power filed a Joint Motion to Stay.
On November 24, 2020, the Commission issued a Notice of Stay. Order No. 34846.
IN THE MATTER OF THE FORMAL
COMPLAINT OF WOOD HYDRO AGAINST
IDAHO POWER COMPANY
)
)
)
)
)
)
)
)
)
)
CASE NO. IPC-E-20-28

NOTICE OF SETTLEMENT
STIPULATION

NOTICE OF MODIFIED
PROCEDURE

ORDER NO. 34929
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34929 2

On January 25, 2021, the Company filed a Settlement Stipulation and Motion to
Approve Settlement Stipulation.
THE DISPUTE
The QF Parties each have separate but similar 35-year levelized rate PURPA QF
contracts with Idaho Power. Idaho Power claimed that the QF Parties each failed to deliver their
forecasted annual generation and therefore Idaho Power was entitled to damages under the terms
of the respective contracts because the generation shortfall was a “permanent curtailment” of
energy deliveries by the QFs. Idaho Power originally claimed that Mile 28 Hydro owed
$1,163,125 (to be offset by 90% to $116,312 pursuant to a term of Mile 28’s FESA if the QF
resumed generation within one year). Idaho Power originally claimed that Enel owed $4,059,472
for Rock Creek #2. Idaho Power originally claimed that Central Rivers owed $3,616,983 for
Lowline #2. Central Rivers and Enel each objected to Commission jurisdiction to settle the
contract disputes.
NOTICE OF SETTLEMENT STIPULATION
YOU ARE HEREBY NOTIFIED that the QF Parties and the Company have agreed to
settle the dispute for the following amounts: $14,000 for Mile 28, $44,000 for Lowline #2, and
$50,000 for Rock Creek # 2. If approved by the Commission, the Company has agreed these
amounts would be accepted in full satisfaction of the Lump Sum Repayment amounts calculated
by the Company for the historic periods of non-generation that are in dispute. Commission
approval of the settlement stipulation is a condition precedent to the stipulation becoming
effective.
YOU ARE FURTHER NOTIFIED that the Company and QF Parties represent that the
settlement is a reasonable resolution of the issues and its approval, without material change, would
be in the public interest.
YOU ARE FURTHER NOTIFIED that the QF Parties and the Company agreed to
interpret “permanent curtailment” as used in each QF’s FESA to mean “a failure to deliver Net
Energy for the entire remaining term of the FESA, and failure to deliver for a period of time less
than the entire remaining term will not be a permanent curtailment.”
YOU ARE FURTHER NOTIFIED that Rock Creek #2 and Lowline #2 do not waive
their objections to the Commission’s subject matter jurisdiction.
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34929 3

YOU ARE FURTHER NOTIFIED that under Commission Rules, “Proponents of a
proposed settlement carry the burden of showing that the settlement is reasonable, in the public
interest, or otherwise in accordance with law or regulatory policy.” IDAPA 31.01.01.275
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission’s Rules of Procedure, IDAPA
31.01.01.201 through .204. The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person or party desiring to state a position
on this Application must file a written comment in support or opposition with the Commission
within fourteen (14) days of the service date of this order. The comment must contain a
statement of reasons supporting the comment. Persons desiring a hearing must specifically request
a hearing in their written comments. Written comments concerning this Application shall be sent
electronically, unless email is not available, to the Commission, the Company, and QF Parties at
the email addresses reflected below:

For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Email: [e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714

For Idaho Power:

Donovan E. Walker
Energy Contracts
Idaho Power Company
1221 West Idaho Street 83702
P.O. Box 70
Boise, ID 83707-0070
Email: [e-mail]
[e-mail]
[e-mail]

NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34929 4

For Central Rivers:

Preston N. Carter
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Email:
[e-mail]
For Wood Hydro:

C. Thomas Arkoosh
ARKOOSH LAW OFFICES
802 W. Bannock St. Suite LP 103
P.O. Box 2900
Boise, ID 83701
Email: [e-mail]
[e-mail]

For Enel:

Gregory M. Adams
Richardson Adams PLLC
515 N. 27th St.
Boise, ID 83702
Email: [e-mail]

Comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via email may do so by accessing the
Commission’s home page located at www.puc.idaho.gov. Click the “Case Comment Form” and
complete the comment form using the case number as it appears on the front of this document.
These comments must also be sent to the Applicant.
YOU ARE FURTHER NOTIFIED that interested persons must file any reply
comments within 21 days of the service date of this order.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
O R D E R
IT IS HEREBY ORDERED that the proposed settlement shall be reviewed under the
Commission’s Rules of Modified Procedure. Interested persons have fourteen (14) days from the
service date of this order to file comments on the proposed settlement. Interested persons shall
have twenty-one (21) days from the service date of this order to file reply comments.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 34781,
issued September 17, 2020. All pleadings should be filed with the Commission electronically and
NOTICE OF SETTLEMENT STIPULATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34929 5

shall be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 23rd day
of February, 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-20-28\orders\IPCE2028_Ntc Sett Stip_ej.docx