20201120Decision Memo.pdf

DSCISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 20,2020
SUBJECT:IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION
FOR APPROVAL OR REJECTION OF AN ENERGY SALES
AGREEMANT WITH THE CITY OF POCATELLO; CASE NO. IPC-E-20-
37.
On November 12, 2070.ldaho Power Cornpany ("ldaho Power" or "Company") filed
an Application seeking approval of its proposed Energy Sales Agreement ("ESA") with the Cify
of Pocatello. Idaho ("Pocatello" or "Seller") Ibr the energy generated by the Pocatello Waste
Project ("Facility"). The Facility is a qualilying facility ("QF") under the Public Utility Regulatory
Policies Act o1'1978 ("PURPA").
THE APPLICATION
The Facility operated by Pocatello has a 500 kilowatt ("kW") nameplate capacity. The
Facility has two Caterpillar motors operated by methane gas from the Pocatello Wastewater
Treatment Plant. Application at 4. ldaho Power asserts these motors have powered a 500 kW
generator since 199311994. The Facility currently delivers energy to the Company under an energy
sales agreement dated April 24. 1985. Id.The existins enerqv sal aqreernent exoires on
December 31.2020. Id. TIie Company and Pocatello intend the proposed ESA to replace the
expiring energy sales agreement. Id. al2. The Companl, states the proposed ESA complies with
Cornrnission orders regarding this type of agreemenl.. Id.
In the proposed ESA, Pocatello has contracted fbr non-levelized, "Other" published
avoided cost rates for a 20-year tenrl. ld. at 41. see Order No. 34683. Idaho Power states that
because this is a replacement ESA. the proposed ESA contains capacity payments for the entire
DECISION MEMORANDUM
term of the Agreement. Id. at 5. The Company requests that its Application be processed by
Modified Procedure. Id. at8.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure. Staff recommends the Notice of Application and Notice of Modified
Procedure provide for a twenty-one (21) day written comment period for itself and any other
interested parties, with a seven (7) day reply comment period for the Company to follow.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure that establishes a twenty-one (21) day written comment period for Staff and any other
interested parties followed by a seven (7) day reply comment period for the Company?
Hammond Jr.
Attomey General
I \Lcgal\ELECTRICUPC-E-20178UPC8:037-dc mcmojrh dc
2DECISION MEMORANDUM