20211013Comments.pdf

DAYN HARDIE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, TDAHO 83720-007 4
[phone]
IDAHO BAR NO. 9917
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 FARGO
DROP HYDRO PROJECT
CASE NO. IPC-E-2I-28
COMMENTS OF THE
COMMISSION STAFF
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Street Address for Express Mail:
I133I W CHINDEN BLVD, BLDG 8, SUITE 2OI-A
BOISE, TD 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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STAFF OF the Idaho Public Utilities Commission ("Staff'), by and through its Attorney
of record, Dayn Hardie, Deputy Attorney 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 to its Energy Sales Agreement
("ESA") with Riverside Investments I,LLC ("Riverside" or "Seller"). Riverside sells energy to
the Company from the Fargo Drop Hydro Project ("Facility"). The Facility is a qualiffing
facility under the Public Utility Regulatory Policies Act of 1978 ("PURPA").
The Commission approved the Company's ESA with the Seller on February 1,2012, for
the purchase and sale of energy from the Facility. Order No. 3245 I . In 2074, 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 March 2016,the
1STAFF COMMENTS ocToBER 13,2021
Commission approved the Company's Second Amendment to change any references in the ESA
from "Riverside Investments, LLC" to "Riverside Investments I, LLC." See Order No. 33521.
In August 2016, the Commission approved 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. 33574.
The Fourth Amendment modifies when the Seller must notifu the Company of its intent
to revise future monthly estimated NEA. Currently, Section 6.2.3 of the ESA grants the Seller
the option to adjust the monthly estimated NEA with at least one-month advance notice. The
Fourth Amendment states that "[a]fter the Operation Date, the Seller may revise any future
monthly estimated NEA 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 revise d." Application Attachment 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 25tr'day of the month. ,Id
at2-3, $ 6.2.3.
The Amendment provides this example: ".... if the Seller would like to revise the
Estimated [NEA] for October, they would need to submit a revised schedule no later than
September 25th or the last business day prior to September 25th." Id. at3, $ 6.2.3.
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, including Order Nos. 34263 ,34870, and 34937 .
There are non-substantive typographical errors in the proposed Fourth Amendment: the
Fourth Amendment is referred to as the First Amendment multiple times. Idaho Power
responded through email communication on September 3,2021, that because these are non-
substantive typographical errors that do not change the effectiveness or the substance of the
revisions, the Company does not plan to re-file the Amendment. Instead, the Company will
correct them via handwritten changes to the Amendment. While Staff believes this is acceptable,
2STAFF COMMENTS ocToBER 13,202t
Staff recommends updating the Amendment to correct the mistakes and to include an additional
provision based on the discussions below.
Staff notes the ESA does not contain any provision addressing modifications to the
Facility during the contract term. Therefore, Staff recommends updating the Amendment by
including the following provision, which has been included in recent PURPA contracts filed by
the Company with the Commission:
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 Qualiffing 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 Amendment with five-day
notification contingent upon including the additional provision and correcting the typographical
errors discussed above. If approved by the Commission, Staff also recommends that after the
Amendment is updated and signed by both parties, the Commission require the Company to file
the updated Amendment with the Commission as a compliance filing.
rcFRespectfully submitted this day of October 2021
Dayn
Deputy Attorney General
Technical Staffi Yao Yin
i: umisc/comments/ipce2l.28dhyy colnments
JSTAFF COMMENTS ocToBER 13,2021
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 13th DAY OF OCTOBER 2021,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. IPC.E-21.28, BY E.MAILING A COPY THEREOF, TO THE FOLLOWING:
DONOVAN E WALKER
IDAHO POWER COMPANY
PO BOX 70
BOISE rD 83707-0070
E-MAIL: [e-mail]
dockets@idahopower. com
TERRY DAUGHERTY
RIVERSIDE INVESTMENTS
RTVERSIDE 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]
CERTIFICATE OF SERVICE