20220307Decision Memo.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: DAYN HARDIE
DEPUTY ATTORNEY GENERAL

DATE: MARCH 8, 2022

RE: IDAHO POWER’S COMPLIANCE FILING REGARDING FIRST
AMENDMENT EDITS; CASE NO. IPC-E-21-26.

BACKGROUND
Order No. 35239 approved the Replacement Energy Sales Agreement (“ESA”)
between Idaho Power and Michael Branchflower for the Trout-Co Hydro project (“Project” or
“Facility”) with two modifications. First, the Replacement ESA will use two sets of avoided cost
rates from 2021 through 2025. Any hourly generation less than or equal to 240 kilowatt-hours
(“kWhs”) will receive immediate capacity payments, and any hourly generation above 240 kWhs
will not receive capacity payments until after the Company becomes capacity deficient starting in
2026. Second, the 90/110 Rule will be implemented based on two sets of avoided cost rates from
2021 through 2025 until the Facility becomes eligible for capacity payments.
On December 15, 2021, Idaho Power filed a Motion to Approve the First Amendment
(“Amendment”) with the Commission in compliance with Order No. 35239. Staff reviewed the
Amendment for compliance with Order No. 35239 and recommended that the Amendment
generally complied with the Commission’s directives but recommended several corrections to the
language. See Staff’s Decision Memo filed on December 27, 2021.
At its December 28, 2021, decision meeting, the Commission approved the
Amendment subject to Staff’s proposed modifications being made and the Facility’s agreement.
On February 4, 2022, the Company filed a Compliance Filing to reflect Staff’s
recommended edits with signatures from both parties.

DECISION MEMORANDUM 2

STAFF ANALYSIS
Staff has reviewed the Company’s Compliance Filing and believes that the edits to the
First Amendment filed on February 4, 2022, reflect Staff’s proposed edits and is in full compliance
with the Commission’s directives and Order No. 35239.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Company’s edits to the First
Amendment as filed on February 4, 2022.
COMMISSION DECISION
Does the Commission wish to approve the Company’s edits to the First Amendment as
filed on February 4, 2022?

Dayn Hardie
Deputy Attorney General

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