20220204Compliance Filing.pdf

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DONOVAN E. WALKER
Lead Counsel
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February 4,2022
VIA ELECTRONIC MAIL
Jan Noriyuki, Secretary
ldaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 201-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 Compliance Filing re First
Amendment Edits in the above entitled matter. lf you have any questions about the
attached documents, please do not hesitate to contact me.
Very truly yours,
Re
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Donovan E. Walker
DEW:cld
Enclosures
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalker@ idahopower.com
Attorney for ldaho 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 WTH
MICHAEL BRANCHFLOWER, FOR THE
SALE AND PURCHASE OF ELECTRIC
ENERGY FROM THE TROUT-CO HYDRO
PROJECT.
CASE NO. IPC-E-21-26
IDAHO POWER COMPANY'S
COMPLIANCE FIL!NG RE:
FIRST AMENDMENT EDITS.
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ldaho Power Company ("ldaho Powed') hereby respectfully submits to the ldaho
Public Utilities Commission ("Commission") the accompanying edits to the First
Amendment ("First Amendment') to the Energy Sales Agreement ("ESA') between ldaho
Power and Michael 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 edited First Amendment is submitted in compliance with
Commission Order No. 35239, which approved the submifted Replacement ESA in this
case, subject to certain revisions, as well as the Commission's subsequent approval of
certain handwritten edits recommended by Commission Staff at its December 28,2021,
IDAHO POWER COMPANY'S COMPLIANCE F]LING RE
FIRSTAMENDMENT EDITS 1
decision meeting.
ldaho Power and Seller have made handwritten edits to the First Amendment, and
initialed the same, as recommended by Staffs December 23, 2021, Decision
Memorandum and as approved by the Commission at its December 28,2021, decision
meeting.
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 facility 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 mod ifications:
1. The Replacement ESA will use two sets of avoided cost
rates between the Company and the Seller from202'l through
2025: any hourly generation equalto or less than 240 kWhs
will receive immediate capacity payment, and any hourly
generation above 240 kWhs will not receive capacity payment
until the Company becomes capacity deficient in 2026.
2. The 901110 Rule will be implemented based on two sets of
avoided cost rates form 2021 through 2025 until the Facility
becomes eligible for capacity payments.
Order No. 35239, p 6. The Commission also directed implementation of the 90/1 10 with
a contract price that is blended using the same method established in Case No. IPC-E-
19-38. /d., at p 5.
IDAHO POWER COMPANY'S COMPLIANCE FILING RE
FIRSTAMENDMENT EDITS 2
II. THE FIRST AMENDMENT
3. ln Order No. 34677, ldaho Power and Seller executed the First Amendment
to comply with, 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 24O kW through the first capacity deficit date in 2026. The First
Amendment provides the additionaland proper rate tables as Appendix G, as wellas the
additional required language adjustments to Articles 1.8, 7.4,7.5,7.6, and Appendices E
and G, as setforth in the FirstAmendmentto the Energy SalesAgreement Between Idaho
Power Company and Seller. lmplementation of the 901110 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 set forth
in the ESA.
4. On December 15, 2021,ldaho Power filed a Motion to Approve the First
Amendment in compliance with Order No. 35239 with the Commission. Staff reviewed
the First Amendment for compliance with the Commission's order and recommended that
the Frist Amendment generally complied with the Commission directives but
recommended several corrections to the language in several paragraphs. At its
December 28,2021, decision meeting the Commission approved Staffs recommended
edits, and the Company's proposal to allow said edits to be handwriften, initialed, and
added to the executed First Amendment. lncluded as Attachment t hereto are the
handwritten and initialed corrections that conform to Staffs recommended edits.
IDAHO POWER COMPANY'S COMPLIANCE FILING RE
FIRSTAMENDMENT EDITS 3
III. REQUEST FOR RELIEF
5. ldaho Power respectfully requests that the Commission issue an order
accepting the edits to the First Amendment between ldaho Power and the Seller included
as Attachment 1 in compliance with Order No. 35239.
Respectfully submitted this 4th day of February 2022.
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DONOVAN E. WALKER
Attorney for ldaho Power Company
IDAHO POWER COMPANY'S COMPLIANCE FILING RE
FIRSTAMENDMENT EDITS 4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 4th day of February 2022 I served a true and
correct copy of the within and foregoing ldaho Power Company's Compliance Filing re
First Amended Edits 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
Dayn Hardie
Deputy Aftomey General
ldaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
IDAHO POVVER COMPANY'S COMPLIANCE FILING RE
FIRSTAMENDMENT EDITS 5
via emailto:
MG Branchfl [e-mail]
via emailto:
davn.hardie@puc. idaho.oov
Christy Davenport, Legal Assistant
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPC-E-21-26
IDAHO POWER COMPANY
ATTACHMENT 1
trIRSTAMENDMENT
TOTHE
ONERG Y SALES AGRF,E MENT
BETWEEN
IDAHO FOWERCOMPANY
ANI)
MICHAEI, BRANCHFLOWER
This First Amendment of thc Encrgy Sales Agreement ("First Amendment") is enEred inlo
on this. .!b'lday of December202l,by and bctwccn ldaho Power Companyr an ldrho corporatiun
("Idaho Power"), and Michrel Branchflowcr, an individual ("Seller') (individually a "Party" and
collectively lhe "Parties').
WHEREAS, ldaho Powcr and the Scllcr hold an Energy Salus Agreancnt f'ESA") daled
August 12,2021, for the purchasc and sale of gcncration produced by the 'l'rout-Co Hydnr P|JRPA
Qualifying Facility ('Facilily'). Thc ESA contains ldaho Public Utilities Commission
f'Commission") published avoided cost priccs for a replacement ESA; and
WHEREAS, Appcndix B of thc ESA identifies that the Facility has incrcased the
Nameplate Capacity to 280 kilowalts ("kW"), an incrcase of 40 kW from thc Nameplale Capacity
pttviousty approved by the Commission in the Party's original firm encrgy salcs agrecmcnt that
expired November 30, 2021i and
WHEREAS, on Novembcr 30, 2021, lhc Commission approved the ESA in Order No.
35293, which states, "The Commission further finds that thc Facility's eligibility for capacity
paymcnts in the Rcplacemcnt IISA bc bascd on thc namcplate in the original contract, The
additional incremental nameplate capacity (40 kW) will not recivo capacity payments until the
first dcficit datcd identificd at thc time of this contract renewal (2026). See Order No. 349.56.";
and
Wl ltiREAS, Seller and ldaho Power desire to amend thc ILSA kl include the appropriatc
published avoided cost appcndiccs forpricing gcneration delivered by the Facility ro tdaho Powcr
applicable to the 40 kW increase in Nameplate Capacity.
NOW, TIIEREFORE, in considcration of the forrgoing, and tbr othcr good and valuable
consideration, the receipl and adcqruoy of which arc lrcrrby acknowledgcd, and intcnding to bc
legally bound, the Parties hereto agree as follows:
I . Incorporetion of Rccitll$ The abovc-stated r€citals are incorporated into and madc 0 trrrt of
this ESA by this retbrcncc lo the same cxtenl as if thesc rccitals wcrc sct forth in full at this point.
2, Articlc t. The following scotion of Articlc I shall be modified as writton below:
1.8 "l}:lny ltricc" - The cunent month's Mid-Cotumbia Market Encryy Cost miqu;$ea,
curnent month's All llours Energy Price specified in Appendix E enfl til66l'lFis*
Agreemcnt. lf this calculation rcsults in a value less than zero (0), th€ rcsult of thls
calculation will be zcro (0).
Energy Sales Agrccmcnt
Pojcct: 31415030 Tmut-Co Hydro Pojcct
t'lrtt Amendnlent - Page I ol5
Cf.orf ?.0
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3. ArtlcleVII. ScctionsT.4,T.SandT.6ofArticlcVltofthcESAshallbcdclacdinthcirentirety
and rcplaccd with thc following sections as written bclow:F*t57.4 llasc l'ncrgy llcavy l,oad Purchav: Pticc lior all Base F)nergy rcceived up to 240
k\&furing llcavy Load llours. ldaho Powcr shatl pay thc monthly non-levclized Basc
Encryy l{cavy Load Purghasc Pricc ps spccificd in ippendix E. For allXEifehnrtgr
rcoeivcd botwccn 241 kwllrrd 280 k$lituring Heavy l.oai I lours for calendar years 202-i-
2025, ldnho Powcr shall pay thc monthlyaon-lpvclizcd tlase Energy I lcavy l.oad Purchase
Priqc-as specified in nppendix c. r,or aFffietl.lnergy rcceived fr*,r"n iq t tw??ra ztO
k\tr?uring lleavy Load Hours for calendar years 2026 thrcugh the rcmaining term of the
ESA, ldaho Power shall pay lhc monthly non-levclizcd Basc Encrgy l{eavy Load Purchase
Pricc as specified in Appcndix E.
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7.5 - l.lasc lincruv Ught l.oad l'urchnsr: Pricc - For at(basc fYnergy rcccived up ro 240
tulfufre milLoad Hours. ldaho Powcr shall pay thc monthly non-lpv-qlj76d Basc
Uneryy Ui-ght
-Loart Purchase Pricc q1 spccihed in Appendix E. For allfa? Encrgy
reoeived bctwcen 24 I kW?nd 2E0 k Wf,uring LiBht L,oad Hours for calendar ycars 202 I -
2025, tdaho Power shall pay the monthl{lSftftvelized Basc Encrgy l,ight Load f^urdtase
Prigc- as spccified in Appcndix G. For allBase-Unergy rcrcivcd between 2,1I kVfftd 2E0
kW?uring Light Load llours for calendar years 2026 through thc rcmaining term of the
ESA, ldaho Powcr shall pay the monthly non-levclizcd Base Energy Light t,oad Purchase
Price as specified in Appendix E.
7.6 All llours l:norly l)rice - The pricc to be used in the calculation of tho Surplus
Energy Price and Qelay Plicc shall be thc monthly non-levclizcd All llours Encryy Pricc
in Aipcntlix n fprt8ffirf,ion reccivcd up to 2a0-k$!nd thc {,ll ltours Encrgy-Pricc in
nppeiaix c fort'Sfrfton received bctwr:cn 24lh8ii?2sO r\Ffur calendar yLrs 2021-
2025. For calcndar years 2026 through thc rcmaining term of the ESA, the pricc to be used
in the calculation of thc Surplus Energy hice and Delay Pricc shall be thc monthly non-
lcvclizcd All Houn Encrgy Pricc in Appendix F,.
4. Appendix E and G. Appcndix E, of thc tiSA shall bc moditied as wrhtcn below and the ESA
shall includc a new Appendix c. T\,\r& t^e"nJ,rrrltazr arit: !'o'r1-
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^ppENDrLE
I;;;*Ie f ita D@,\vu zs'|zo?-,lLU Lcjsio,r il^.A,\d. W (4*u,..fi
NON-SEASONAL HYDRO FACII.ITY F.NERCY PRICES PA^^O It1NT
(Prices based on thc Maxlmurn Capaci$ Amount of 2t0 2,10 kW (fears 202 1.2025) en-d-LE0-.k!t-CI-elt:t
202$rr:nrai;f ng ll'crrn.), Non-Fueled Rates)
aPP!N.9,lx 0
NON.STJASONAL TIYDRO FACILITY ENIJRGY PRICES
WITI{OUT CAPACITY, YE,ARS 2021 TITROUGH 2O2S
(Prices based on the MEximum Capacity Amount o[2t0 kW, Non-Fueled Rales)
Rrrgy Selcs Agrcemcnt
Proic-t: 3 t4 15030't'rout-Co Hydro Projcct
First Amcndmrnt - Pagc 2 of 5