20210423Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: DAYN HARDIE
DEPUTY ATTORNEY GENERAL

DATE: APRIL 23, 2021

SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR
APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT
BETWEEN IDAHO POWER COMPANY AND REYNOLDS IRRIGATION
DISTRICT; CASE NO. IPC-E-21-07

On April 2, 2021, Idaho Power Company (“Company”) applied to the Commission for
approval or rejection of an energy sales agreement (“ESA”) with Reynolds Irrigation District
(“Seller”) for the energy generated by the Reynolds Irrigation Hydro Project (“Facility”). The
Facility has a nameplate capacity of 350 kilowatts and is located near Melba, Idaho.
THE APPLICATION
The Seller has been delivering energy to the Company under a firm energy sales
agreement for the Facility that was executed on April 1, 1985. The expiration date of the 1985
energy sales agreement is April 30, 2021. The new ESA has a 20-year term with non-levelized,
non-seasonal hydro published avoided cost rates as set in Order No. 34683. The Company requests
the Commission approve the ESA and declare all payments or purchase of energy under the ESA
be allowed as prudently incurred expenses for ratemaking purposes. The Company requests that
the Commission set a procedural schedule that would result in a final Commission determination
on the ESA prior to April 30, 2021, the date when the 1985 energy sales agreement expires.
STAFF RECOMMENDATION
Staff has sent production requests to the Company and will need time to review the
Company’s responses. As a result, Staff does not believe that this case can be processed by April
30, 2021 as requested by the Company. Staff recommends the Commission issue a Notice of
DECISION MEMORANDUM 2
Application and Notice of Modified Procedure establishing a May 27, 2021 public comment
deadline and a June 3, 2021 Company reply deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure establishing a May 27, 2021 public comment deadline and a June 3, 2021 Company
reply deadline?

__________________________
Dayn Hardie
Deputy Attorney General

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