20200925Decision Memo.pdf

DECISIONMEMORANDT]M
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONERANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE: SEPTEMBER 25,2020
SUBJECT:IN THE MATTER OF IDAHO POWER COMPANY'SAPPLICATION FOR
APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT
WITH SHAWPATIN AGCAP,LLC, FOR THE SALE AND PURCIIASE OF
ELECTRIC ENERGY FROM THE MUD CREEK WHITE HYDRO
PROJECT; CASE NO. IPC-E -20-34
On September 3, 2020,Idaho Power Company ("Idaho Power" or 'oCompany') filed
an Application requesting consideration of an Energy Sales Agreement ("ESA" or "Agreement')
with Shawpatin AgCap, LLC for enerry generated by the Mud Creek White Hydro Project
("Facility"). Application at l. The Facility is a 268.6-kilowattnameplate capacity hydro facility
near Buhl, Idaho. Id. at 4. The Facility is a qualifying facility under the Public Utility Regulatory
Policies Act of I978. Id.The Facility has a scheduledFirst Energy Date under the ESA of January
1,2021.[d. at5.
THE APPLICATION
The Facility has been delivering energy to Idaho Power in accordance with an eners/
salesagreementdatedAprill5, 1985,whichexpiresDecember3l,2020.Id.at4. TheCompany
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
energy under the ESA be allowed as prudently incurred expe,nses for ratemaking purposes. .Id. at
6.
IDECISION MEMORANDUM
STAIM'RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, setting a November I 9, 2020 comment deadline and a Decemb er 3 , 2020
reply comment deadline.
COMI/flSSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, setting a November 19, 2020 comment deadline and a December 3, 2020 reply
comment deadline?
Matt Hunter
Deputy Attorney General
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DECISION MEMORANDUM 2