20210611Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: ERICK SHANER
DEPUTY ATTORNEY GENERAL

DATE: JUNE 11, 2021

SUBJECT: IN THE MATTER OF THE APPLICATION OF IDAHO POWER
COMPANY FOR APPROVAL OR REJECTION OF AN ENERGY SALES
AGREEMENT WITH ARKOOSH HYDRO INC, FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY FROM THE LITTLE WOOD
RIVER RANCH 1 HYDRO PROJECT; CASE NO. IPC-E-21-16.

On May 18, 2021, Idaho Power Company (“Company”) applied to the Commission for
approval or rejection of an energy sales agreement (“ESA”) with Arkoosh Hydro Inc. (“Seller”)
for the energy generated by the Little Wood River Ranch 1 Hydro Project (“Facility”). The Facility
has a nameplate capacity of 1014 kilowatts and is located near the city of Gooding, 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 June 11, 1985. The 1985 energy sales agreement
expires on July 31, 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 July 31, 2021.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure establishing a July 7, 2021, public comment deadline and a July 14, 2021,
Company reply deadline.
DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure establishing a July 7, 2021, public comment deadline and a July 14, 2021, Company
reply deadline?

__________________________
Erick Shaner
Deputy Attorney General

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