20200918Final_Order_No_34782.pdf

ORDER NO. 34782 1

Office of the Secretary
Service Date
September 18, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On July 21, 2020, Idaho Power Company (“Idaho Power”) filed an Application asking
the Commission to approve or reject the first amendment (“Amendment”) to Idaho Power’s Energy
Sales Agreement (“ESA”) with North Gooding Main Hydro, LLC (“Seller”). 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 North Gooding Main Hydro project—a PURPA
qualifying facility. The Amendment addresses when the Seller must notify Idaho Power to revise
future monthly Estimated Net Energy Amounts.
On August 6, 2020, the Commission issued a Notice of Application and Modified
Procedure, setting an August 27, 2020 comment deadline and a September 3, 2020 reply comment
deadline. Commission Staff filed the only comments, and Idaho Power did not file reply
comments.
Having reviewed the record, we now approve the Amendment as discussed below.
BACKGROUND
The Commission approved Idaho Power’s ESA with the Seller in 2015. Order No.
33404. Section 6.2.3 of the ESA addresses when the Seller must notify Idaho Power if it wishes to
revise any future monthly Estimated Net Energy Amounts after the Operation Date. The Seller
must give Idaho Power at least one month’s notice in order to revise a given month’s Estimated
Net Energy Amount. See Case No. IPC-E-15-24, Application, Attachment 1.
THE AMENDMENT
The Amendment changes when the Seller must notify Idaho Power in order to revise
future monthly Estimated Net Energy Amounts. The current ESA requires the Seller to give Idaho
Power at least one month’s notice in order to revise a given month’s Estimated Net Energy
Amount. The Amendment states that “[a]fter the Operation Date, the Seller must revise any future
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OR REJECTION OF A FIRST
AMENDMENT TO THE ENERGY SALES
AGREEMENT FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY FROM
NORTH GOODING MAIN HYDRO, LLC
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CASE NO. IPC-E-20-31

ORDER NO. 34782
ORDER NO. 34782 2

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 at
2. If the 25th day falls on a weekend or holiday, written notice must be received by Idaho Power
no later than the last business day prior to the 25th day of the month. The Amendment provides the
following example: “…if the Seller would like to revise the Estimated Net Energy Amount for
October, they would need to submit a revised schedule no later than September 25 or the last
business day prior the September 25.” Id.
STAFF COMMENTS
Staff recommended the Commission approve the Amendment. Staff noted 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.” Staff Comments
at 2; 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. Additionally, Staff noted that Idaho Power explained to Staff via email that it prefers five-day
advanced notice because “the benefits of more accurate monthly estimates in short-term operations
provided by the five-day notice outweigh the need for month-ahead adjustments from monthly
estimates.” Staff Comments at 2. Therefore, Staff believes that “a five-day advanced notice is
appropriate for all QF projects regardless of how long a QF has operated.” Id.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-502 and 61-
503. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code §§
61-502 and 61-503. The Commission also has authority under PURPA and Federal Energy
Regulatory Commission (“FERC”) regulations to set avoided cost rates, to order electric utilities
to enter fixed-term obligations for the purchase of energy from QFs, and to implement FERC rules.
The Commission may enter any final order consistent with its authority under Title 61 and PURPA.
The Commission has reviewed the record, including the Application, proposed
Amendment, and the comments of Staff. In multiple cases, the Commission has allowed a five-
day advanced notification to adjust monthly Estimated Net Energy Amounts, recognizing that
adjustments made closer to the time of delivery can improve the accuracy of input used by Idaho
ORDER NO. 34782 3

Power 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. Based on our review, we find it fair, just, and reasonable
to approve Idaho Power’s Amendment modifying the advance notice required for the monthly
Estimated Net Energy Amounts.
O R D E R
IT IS HEREBY ORDERED that the Amendment to Idaho Power’s ESA with North
Gooding Main Hydro, LLC—changing from a one-month advanced notice to a five-day advanced
notice for adjusting Estimated Net Energy Amounts—is approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 18th
day of September 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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