20210507Decision Memo.pdf

DECISION MEMORANDUM
TO COM]VtrSSIONER KJELLAI\DER
COMMISSIONER RAPER
COMNIIS SIOI\IER AI\DERSON
COMIVISSION SECRETARY
COMN{ISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: MAY 6,2021
STJBJECT:IN TIIE MATTER OF IDAHO POWER COMPAI\Y'S APPLICATION FOR
APPROVAL OR REJECTION OF AI\ ENERGY SALES AGREEMENT
BETWEEN IDAHO POWER COMPAI\Y AI\D LEMIII HYDRO
COMPAI\Y; CASE NO. IPC-E -21-ll.
On April 19,zUzl,Idaho Power Company ("Company") applied to the Commission
for approval or rejection of an energy sales agreement ("ESA") with Lemhi Hydro Company
("Seller") for the energy generated by the Lemhi Hydro Project ("Facility"). The Facility has a
nameplate capacity of 500 kilowatt ("kW") and is located near Salmon, Idaho.l
THE APPLICATION
The Seller has been delivering energy to the Company under a firm energy sales
agreement for the Facility that was executed on December 20, 1985. The expiration date of the
1985 energy sales agreement is July 3I,2021. The new ESA has a 20-yeartemrwith 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 forpurchases of energyunder 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
prior to July 3 1 , 2021 , the date when the I 985 energy sales agreement expires.
I At the time of construction in 1986, a generator with 450 kW nameplate capacity was installed. The Seller plans to
continue operating and maintaining the 450 kW generator.
1DECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procodure establishing a2l4ay public comment deadline and a 7-day Company reply
deadline.
COMMISSION DECISION
Does the Commission wish to iszue a Notice of Application and Notice of Modified
Procedure establishing a 2l-day public comment deadline nd a 7 -day Company reply deadline?
DepufAttorrey General
[V.SrnE ECIttC\PC-821-l lUBCEll I 1-doc-t[Ldocs
2DECISION MEMORANDUM