20211018Comments.pdf

RILEY NEWTON
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. II2O2
IN THE MATTER OF'IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OR REJECTION OF THE
FOURTH AMENDMENT TO THE ENERGY
SALES AGREEMENT WITH RIVERSIDE
INVESTMENTS I, LLC FROM THE ARENA
DROP HYDRO PROJECT
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lL'ii 0t"i iS PH ?: 53
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Street Address for Express Mail:
I 133I W CHINDEN BLVD, BLDG 8, SUITE 2OI-A
BOISE,ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. IPC.E.2I.27
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of
record, Riley Newton, Deputy Attomey General, submits the following comments.
BACKGROUND
On August 26,202l,Idaho Power Company ("Company") applied to the Commission
requesting approval or rejection of the Fourth Amendment ("Proposed Amendment") to its
Energy Sales Agreement ("ESA") with Riverside Investments I, LLC ("Seller"). Seller sells
energy to the Company from the Arena Drop Hydro Project ("Facility"). The Facility is a
qualifuing facility under the Public Utility Regulatory Policies Act of 1978 ("PURPA").
The Commission approved the Company's ESA with the Seller on April 1,2010, for the
purchase and sale of energy from the Facility. Order No. 31060. ln2014, the Commission
approved the Company's First Amendment to the ESA which changed the definition of the
Mid-Columbia Market Energy Cost. See Order Nos. 33184 and 33053. In 2016, the
Commission approved both the Company's Second Amendment to change any references in the
STAFF COMMENTS ocroBER 18,2021
ESA from "Riverside Investments, LLC" to "fuverside Investments I, LLC" and the Company's
Third Amendment to the ESA to amend Article 6.2.3 of the ESA to include a change to the
notification of Net Energy Amount ("NEA") monthly adjustments from three-month advance
notice to one-month advance notice. See Order No. 33521.
The Proposed Amendment modifies when the Seller must notiff the Company of its
intent to revise future monthly Estimated NEA. Currently, Section 6.2.3 grants the Seller the
option to adjust the monthly estimated NEA within a specified time span. The Proposed
Amendment states that "[a]fter the Operation Date, the Seller may revise any future monthly
Estimated Net Energy Amounts by providing written notice no later than 5 PM Mountain
Standard time on the 25th day of the month that is prior to the month to be revised." Application
Ex. l, Fourth Amendment at2, $ 6.2.3. If the 25th day falls on a weekend or holiday, written
notice must be received by the Company by the last business day before the 25th day of the
month. Id. at l-2, $ 6.2.3.
The Proposed Amendment provides this example: ".... if the Seller would like to revise
the Estimated Net Energy Amount for October, they would need to submit a revised schedule no
later than September 25th or the last business day prior to Septemb er 25th." Id.
STAFF REVIEW
Staff recommends approval of the five-day advanced notice because monthly estimates
provided closer to the time of delivery can improve the accuracy of input used for short-term
operational planning. In addition, the five-day advanced notice has been authorized in prior
Commission Orders, Nos. 34263, 34870 and 34937.
There are non-substantive typographical errors in the Proposed Amendment. For
example, the "Fourth Amendment" is erroneously referred to as the "First Amendment" multiple
times. Idaho Power responded through email on September 3,2021, that since non-substantive
typographical errors do not change the effectiveness or the substance ofthe revisions, the
Company does not plan to re-file the Proposed Amendment. Instead, the Company will correct
them via handwritten changes to the Proposed Amendment. Staff believes this could be
appropriate at this stage but recommends that the Company file an updated Amendment as a
compliance filing correcting the mistakes along with adding the additional provision discussed
below.
2STAFF COMMENTS ocroBER t8,2021
Staff also notes that the ESA does not contain any provision to address modifications to
the Facility during the contract term. Therefore, Staff recommends including the following
provision, which has been included in recent PURPA contracts filed by the Company:
Any modifications to the Facility, including but not limited to the generator or
turbine, that (l) increases or decreases the Facility Nameplate Capacity, or (2)
changes the Qualifuing Facility Category, or (3) changes the Primary Energy
Source or (4) changes to the generator fuel and subsequently the Fueled Rate or
Non-Fueled Rate, will require a review of the Agreement terms, conditions and
pricing and Idaho Power, at its sole determination, may adjust the pricing or
terminate the Agreement. If the Agreement is terminated because of said
modifications, the Seller will be responsible for any Termination Damages.
STAFF RECOMMENDATIONS
Staff recommends that the Commission approve the Proposed Amendment contingent
upon including the additional provision and correcting the typographical errors discussed above.
If approved, Staff further recommends that the Commission require the Company to file the
updated, signed Amendment with the Commission as a compliance filing.
Respectfully submitted this day of October 2021
-Q Ri ewton
Attorney General
Technical Staff: Yao Yin
i:umisc/commentsl ipce2l .27 rnyy comments
JSTAFF COMMENTS ocroBER 18,2021
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 18TH DAY OF OCTOBER 202I,
SERVED THE FOREGOING COMMENTS OF TI{E COMMISSION STAFF, IN
CASE NO. IPC.E.2I-27, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING:
DONOVAN E WALKER
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL : [e-mail]
dockets@idahopower. com
TERRY DAUGHERTY
RIVERSIDE INVESTMENTS
RIVERSIDE HYDRO I LLC
PO BOX 328
ADRIAN OR 9790I
E-MAIL: [e-mail]
ENERGY CONTRACTS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: [e-mail]
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SECRETv,
CERTIFICATE OF SERVICE