20211215Motion to Approve First Amendment to ESA.pdf

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An lo ooaPcompany
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DONOVAN E. WALKER
Lead Gounsel
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December 15,2021
VIA ELECTRONIC MAIL
Jan Noriyuki, Secretary
ldaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 2O1-A
Boise, ldaho 83714
Case No. IPC-E-21-26
Trout-Co Hydro Project
ldaho Power Company's Application re the Energy Sales Agreement
Dear Ms. Noriyuki:
Attached for electronic filing is ldaho Power Company's Motion to Approve the First
Amendment to the Energy Sales Agreement in Compliance with Order No. 35239 in the
above entitled matter. lf you have any questions about the attached documents, please
do not hesitate to contact me.
Very truly yours,
SION
Re
2datL
Donovan E. Walker
DEW:cld
Enclosures
DONOVAN E. WALKER (lSB No. 5921)
Idaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
Aftorney for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OR REJECTION OF AN
ENERGY SALES AGREEMENT WITH
MICHAEL BRANCHFLOWER, FOR THE
SALE AND PURCHASE OF ELECTRIC
ENERGY FROM THE TROUT-CO HYDRO
PROJECT.
oASE NO. IPC-E-21-26
MOTION TO APPROVE THE
FIRST AMENDMENT TO THE
ENGERGY SALES AGREEMENT
IN COMPLIANCE WTH ORDER
NO.3s239.
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ldaho Power Company ('ldaho Powef), in accordance with RP 56 and the
applicable provisions of the Public Utility Regulatory Policies Act of 1978 fPURPA'),
hereby respectfully moves the ldaho Public Utilities Commission ("Commission') for an
order accepting or rejecting the First Amendment ('Amendment") to the Energy Sales
Agreement ('ESA') between ldaho Power and Michae! Branchflower (.Selle/') under
which ldaho Power purchases electric energy generated by the Trout-Co Hydro project
("Facility') located near the city of Hagermen, ldaho. This First Amendment is submitted
in compliance with Commission Order No. 35239, which approved the submitted
Replacement ESA in this case, but directed that Seller be paid for capacity up to 240 kW,
MOTION TO APPROVE THE FIRST AMENDMENT TO THE ENERGY SALES AGREEMENT IN
COMPLIANCE WTH ORDER NO. 35239.1
and the incremental 40 kW increase in nameplate capacity not be eligible for capacity
payments until ldaho Power becomes capacity deficient, which is 2026.
ldaho Power and Seller have executed the submitted First Amendment in order to
provide the required changes to the approved ESA necessary to provide for payment of
a different rate (no capacity) for any hourly delivery of generation in excess of 240 kW.
In support of this Motion, ldaho Power represents as follows:
I. INTRODUCTION AND BACKGROUND
1. ldaho Power and the Seller fiointly, "Parties") entered into an ESA on
August 12,2021, for the purchase and sale of energy produced by the Facility. The ESA
is for the purchase of generation from the 280 kW nameplate capacity Trout-Co Hydro
facility. The ESA is a replacement ESA to a January 7, 1985, ESA for the facilfty that ran
its full term on November 30, 2021. This Replacement ESA was approved by the
Commission in this case by Order No. 35239, on November 30, 2021.
2. ln Order No. 35239 the Commission approved the Replacement ESA with
the following modifications:
'1. The Replacement ESA will use two sets of avoided cost
rates between the Company and the Seller trom202l through
2025: any hourly generation equal to or less than 240 k\Ms
will receive immediate capacity payment, and any hourly
generation above 240 kWhs will not receive capacity payment
until the Company becomes capacity deficient tn 2026.
2. The 90/110 Rule will be implemented based on two sets of
avoided cost rates form 2021 through 2025 unti! the Facility
becomes eligible for capacity payments.
Order No. 35239, p 6. The Commission also directed implementation of the 90/110 with
a contract price that is blended using the same method established in Case No. IPC-E-
19-38. /d., at p 5.
MOTION TO APPROVE THE FIRST AMENDMENT TO THE ENERGY SALES AGREEMENT IN
COMPLIANCE WTH ORDER NO. 35239 .2
II. THE AiIENDMENT
3. Subsequent to Commission Order No. 34677, ldaho Power and Seller
executed the FirstAmendmentto complywith, and implement, the Commission's directed
modifications to the ESA to provide for the payment of capacity up to 240 kW, and a
separate rate, without capacity, for any generation over 240 kW through the first capacity
deficit date in 2026. The Amendment provides the additional and proper rate tables as
Appendix G, as well as the additional required language adjustments to Articles 1.8,7 .4,
7.5,7.6, and Appendices E and G, as set forth in the First Amendment to the Energy
Sales Agreement Between ldaho Power Company and Seller. lmplementation of the
90/110 provision does not require amended language as described in Case No. IPC-E-
19-38. The Amendment to the ESA was executed by Seller on December 2,2021, and
by ldaho Power on December 6, 2021. The Amendment does not otherwise change any
of the obligations of the Parties setforth in the ESA. A copy of the Amendment is attached
to the Application as Attachment 1 and is subject to the Commission's approva!.
!II. PROCEDURE
4. ldaho Power believes that the First Amendment can be considered and
approved or rejected by the Commission without further procedure as a compliance filing
with the requirements of Final Order No. 35239. Alternatively, should the Commission
desire further process and procedure, the Company believes that a hearing is not
necessary to consider the issues presented herein and that this compliance filing be
processed under Modified Procedure, i.e., by written submissions rather than by hearing.
RP 201, efseg.
IV. COII,IMUNICATIONS AND SERVICE OF PLEADINGS
5. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
MOTION TO APPROVE THE FIRST AMENDMENT TO THE ENERGY SALES AGREEMENT IN
COMPLIANCE WTH ORDER NO. 35239 - 3
Donovan E. Walker
Lead Counsel
ldaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
[e-mail]
[e-mail]
Energy Contracts
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
e ne rqyco ntracts@ida hopower. com
V. REQUEST FOR RELIEF
6. ldaho Power respectfully requests that the Commission issue an order
accepting or rejecting the First Amendment between ldaho Power and the Seller in
compliance with Order No. 35239.
Respectfully submifted this 15h day of December 2021
fuzilatl<-
DONOVAN E. WALKER
Aftorney for ldaho Power Company
MOTION TO APPROVE THE FIRST AMENDMENT TO THE ENERGY SALES AGREEMENT IN
COMPLIANCE WTH ORDER NO. 35239.4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 15th day of December 20201served a true and
correct copy of the within and foregoing Motion upon the following named parties by the
method indicated below, and addressed to the following:
Michael Branchflower
Trout-Co Hydro Project
1991 S. Doe Creek Way
Boise, lD 83709
John Hammond Jr.
Deputy Attorney General
ldaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
via emailto:
M G B ra nchfl ower@ hotma il. com
via emailto:
[e-mail]
Christy Davenport, Legal Assistant
MOTION TO APPROVE THE FIRSTAMENDMENT TO THE ENERGY SALES AGREEMENT IN
COMPLIANCE WTH ORDER NO. 35239 - 5
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPC-E-21-26
IDAHO POWERCOMPANY
ATTACHMENT 1
FIRST AMENDMENT
TOTHE
ENERGY SALESAGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
MICHAEL BRANCHFLOWER
This First Amendment of thc Encrgy Sales Agreement ("First Amendment') is entered into
on this _tday of December 2021 ,by and between Idaho Power Company, an Idaho corporation
("ldaho Power"), and Michael Branchflower, an individual ("Seller") (individually a "Party" and
collectively the "Parties").
WHEREAS, Idaho Power and the Seller hold an Energy Sales Agreement ("ESA") dated
August 12,2021, for the purohase and sale of generation produced by the TrourCo Hydro PURPA
Qualifying Facility ('Facility"). The ESA contains ldaho Public LJtilities Commission
("Commission") published avoided cost prices for a replacement ESA; and
WFIEREAS, Appendix B of the ESA identifies that the Facility has incrcased the
Nameplate Capacity to 280 kilowatts ("kW"), an increase of 40 kW from the Nameplate Capacity
previously approved by the Commission in the Party's original firm energy sales agreement that
expired November 30,2021; and
WIIEREAS, on Novembe r 30,2021, the Commission approved the ESA in Order No.
35293, which states, "The Commission fufther finds that the Facility's eligibility for capacity
payments in the Replacement ESA bc based on the nameplate in the original contract, The
additional incremental nameplate capacity (40 kW) will not receive capacity payments until the
frrst deficit dated identified at the time of this contract renewal (2026). See Order No. 34956.";
and
WIIEREAS, Seller and ldaho Power desire to amend the ESA to include the appropriate
published avoided cost appendices for pricing generation delivered by the Facility to ldaho Power
applicable to the 40 kW increase in Nameplate Capacity.
NOW, THEREFORE, in consideration of the foregoing, and fbr other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, the Parties hereto agree as follows:
L Incorporation of Recitals. The abovc-stated recitals are incorporated into and made a part of
this ESA by this reference to the same extent as if these recitals werc sct fo(h in full at this point.
2. Article I. The following section of Article I shallbe modified as written below:
1.8 "Delay Price" - The cunent month's Mid-Columbia Market Energy Cost rninus the
current month's All Hours Energy Price specifred in Appendix E arul-, (ilt of this
Agreement. lf this catculation results in a value less lhan zero (0), the result of this
calculation will be zero (0).
Energy Sales Agreement
Projcct: 31415030 Trout-Co Hydro Project
F'irst Amendnrent - Page I o[5
3. Article VII. Sections7.4,7.5 and 7.6 of Artiole VII ofthe ESA shall be deleted in their entirety
and replaced with the following sections as written below:
7.4 llase [inergv I leavy l.oad Purchasc Price - For all Base linergy received up to 240
kW during Heavy Load Hours, Idaho Power shall pay the monthly non-levelized Base
Energy Heavy Load Purchase Pricc as specified in Appendix E. For all Base Energy
received between 241 kWand280 kWduring Heavy Load Hours forcalendar years2021-
2025, Idaho Power shall pay the monthly non-levelized Base Energy Heavy Load Purchase
Pricc as specified in Appendix G. For all Base Energy received belween 241 kW and 280
kW during Heavy lnad Hours for calendar yearc202(t through the remaining term of the
ESA, Idaho Power shall pay the monthly non-levelized Basc Energy lleavy Load Purchase
Prioe as specified in Appendix E.
7.5 Base Enerqv Light Load Purchase Price - For all Base Energy received up to 240
kW during Light Load Hours, Idaho Power shall pay the monthly non-leveliz.ed Base
Encrgy Light Load Purchase Price as specified in Appendix E. For all Base Energy
received between 241 kW and 280 kW during Light Load Hours for calendar yearsZ}Zl-
2025, Idaho Power shall pay the monthly non-levelized Base Energy Light Load Purchase
Price as specified in Appcndix G. For all Base Energy received between 241 kW and 2E0
kW during Light Load Hours for calendar years 2026 through the remaining term of the
ESA, ldaho Power shall pay the monthly non-levelized Base Energy Light Load Purchase
Price as specified in Appcndix E.
1.6 All l'lours Energy Price -The price to be used in the calculation of the Surplus
Energy Price and Delay Price shall be the monthly non-levelized All Ilours Energy Pricc
in Appcndix h, for gcneration received up to 240 kW, and the All Hours Energy Price in
Appendix G for generation received between 241 and 280 kW for calendar years 2021-
2025. For calcndar years2026 through the remaining term of the ESA, the price to be used
in the calculation of the Surplus Energy Price and Delay Price shall be the monthly non-
levelized AllHours Energy Price in Appendix E.
4. Appendix E and G. Appendix E of the ESA shallbe modified as written below and the ESA
shall include a new Appendix G.
APPENDTX E,
NON.SEASONAL HYDRO FACII,ITY FNERGY PRICES
(Prices based on the Maximum Capacity Amount of 280 240-kW (Yqars 2021-2025le!-d280 tll{-(Ysarq
?020-rcrtrairflrg_l'c11n), Non-Fueled Rates)
APPENDIX G
NON-SEASONAL }IYDRO FACILITY ENERGY PRICES
WTHOUT CAPACITY, YEARS 2O2I THROUGH 2025
(Prices based on the Maximum Capacity Amount of 280 kV/, Non-Fueled Rates)
Energy Sales Agrcoment
Projcct: 31415030'l'rout-Co Hydrc Project
First Amendment - Page 2 of 5
G-l Bgse Enaryv Hqavy Lod Purchasg Price- Forall Base Energr received during Heavy Lood Hours,
Idaho Power will pay the nonJevelized energy price in accordance with Commission Order No.
35052 effective June l, 2021, and seasonalization factors applied:
Season I - (73.50%) Season2-(l20.NW Scason3 -(100.00%)
Year Mills/kwh MillykWh Mills/kwh
G-2 Base Enerpy Light Loed Purchrse Price - For all Base Energy received during Light Load Hours,
ldaho Power will pay the non-levelized energSr price in accordance with Commission Order No.
35052 effective June l, 202l,wrd seasonalization factors applied:
Season I - (73.50ol") Season 2-(120.00Yo) Season3 - (100.000/o)
Year MillVkWh MinYkWh Mills/kWh
2021
2022
2027
2024
2025
22.91
n.4'7
22.78
2t.74
22.99
37.40
3t.32
37.20
35.49
37.53
28.66
29.59
28.46
26.7s
28.80
33.51
34.43
33.31
31,60
33.65
3 l.l7
3l .93
31.00
29,57
31.28
23.89
24.6s
23.72
22.29
24.00
27.93
28.69
27,76
26.33
28.04
2021
2022
2023
2024
2025
17.s6
18.12
17.43
r6.39
17.64
C-3 All Hours Enerev Price - The price to be used in the calculation of the Surplus Energy Price and
Delay Damage hice shall be the non-levelized energy price in accordance with Commision Order
35052 effective JunG l, 2021, and seasonalization factors applied:
Season I - (73.50 yo) Season 2 -(l20,O0yo) Season 3 - (100.00 %)
Ycar Mills/kwh Mills/kWh Mills/kwh
2021
2022
2023
2024
2025
20.53
2t.09
20.40
19.35
20.61
Energy Sales Agrocment
Projoct 3 1415030 Trout{o Hydro Projert
First Amendment - Page 3 of 5
5. Commi$ion Approval. The obligations of the Parties under this First Amendment are subject
to the Commission's approval of this First Amendment and such approval being upheld on appeal,
if any, by a court of competent jurisdiction. The Parties will submit this First Amendment to the
IPUC and rcquest approval or rejection in its entirety pursusnt to RP 274.
6. Efrcct of Amendment Bxcept as expressly amended by this First Amendment thc ESA shall
rcmain in full force and effect.
7. Capitelizcd Tcrms. All capitalized terms used in this First Amendment and not defined herein
shall have the same meaning as used in the ESA.
E. Scope of Amendmcnt. This First Amendment shall be binding upon and inurc to fte benefit
of the Parties hcrutq and their respective heirs, executorg administratom, suoscssors, and assigns,
who arr obligated to takc any action which may be necessary or proper to carry out the purpose
and intent thereof.
9. Authority. Each Party represents and warrants ttrat (i) it is validly existing and in good
standing in the state in which it is organized, (ii) it is 0re proper party to amend thc ESA, and (iii)
it has thc rcquisirc authority to exeoute this Fint Amendment.
10. Counterparb. This First Amendment muy be executed in any number of counterparts, each
of which shall bc deemed an original and all of which taken together shall constitute a single
instrume,nt.
Energy Sales Agreuncnt
Project 314t5030 Trwt-Co Hydro Projcct
First Amsndmcnt - Prge 4 of 5
WITNESS WHEREOF, ttre Parties herelo have caused this First Amendment to be duly
executed as of the date above written.
IDAHO P(COMPANY
By:
l|t*u, \r^r,\owl BrrqlrscDls*sp l.7Z*,4t 4",,Name: _
Titlc:
Datel 2
Title:
Date;
ht!\\S Y2 htr"
--!!Ibr
Energy SalOs Agrcement
Prcjcot: 31415030 Tmt-G l.lydro
First Amendment - Page5of 5
Projcct
icy