20210826Application.pdf

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An loAcoRP company
DONOVAN E. WALKER
Lead Counsel
dwal [e-mail]
August 26,2021
VlA ELECTRONIC MAIL
Jan Noriyuki, Secretary
ldaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 201-A
Boise, ldaho 83714
Re Case No. IPC-E-21-29
Riverside lnvestments l, LLC - Mora Drop Hydro Project
ldaho Power Company'sApplication re the Third Amendment to the
Energy SalesAgreement
Dear Ms. Noriyuki
Attached for electronic filing is ldaho Power Company'sApplication forApproval of
the Third Amendment to Energy Sales Agreement in the above entitled matter. lf you
have any questions about the attached documents, please do not hesitate to contact me.
Very truly yours,
F?i -3: *q3
2datL
Donovan E. Walker
DEW:cld
Enclosures
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221West 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 THE
THIRD AMENDMENT TO THE ENERGY
SALES AGREEMENT WTH RIVERSIDE
INVESTMENTS !, LLC FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY
FROM THE MORA DROP HYDRO
PROJECT
CASE NO. IPC-E-21-29
APPLICATION FOR APPROVAL
OF THE THIRD AMENDMENT
TO ENERGY SALES
AGREEMENT
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ldaho Power Company ("ldaho Power"), in accordance with RP 52 and the
applicable provisions of the Public Utility Regulatory Policies Act of 1978 ("PURPA),
hereby respectfully applies to the ldaho Public Utilities Commission ("Commission') for
an order accepting or rejecting the Third Amendment ("Amendment") to the Energy Sales
Agreement ('ESA") between ldaho Power and Riverside lnvestments I LLC, ("Selle/')
under which Seller sells and ldaho Power purchases electric energy generated by the
Mora Drop Hydro, project ("Facility") which is a PURPA Qualiffing Facility.
APPLICATION - 1
ln support of this Application, ldaho Power represents as follows:
I. INTRODUCTION AND BACKGROUND
1. ldaho Power and the Seller (ointly, "Parties") entered into an ESA on April
13, 2006, for the purchase and sale of energy produced by the Facility. This ESA was
approved by the Commission in Case No. IPC-E-06-13, Order No. 30088, on June 30,
2006. The Parties entered into an Amendment to the ESA on August 29,2014, to amend
the definition of Mid-Columbia market Energy Cost. The Parties entered into a Second
Amendment to the ESA on June 22, 2016, to amend Article 6.2.3 of the Agreement to
include a change to the notification of Net Energy Amount ("NEA'; monthly adjustments
from three-month advanced notice to one-month advance notice. The Parties have now
entered into this Third Amendment to the ESA to provide for notice of NEA monthly
adjustments, by the 25th of each month.
2. Section 6.2.3 of the ESA provides the Seller with the option to adjust the
monthly estimated NEA within a specified time period. After the execution and approval
of the ESA, the Seller requested a change to the time period for making the NEA
adjustments. The Seller would like to change the NEA adjustment time period in Section
6.2.3 so that they can make adjustments by the 25th day of the preceding month in which
a change is requested, similar to other such 25th day of the month provisions previously
approved by the Commission.
II. THE AMENDMENT
3. The Amendment provides for the deletion of Section 6.2.3, Seller's
Adjustment of Estimated Net Energy Amounts After the Operation Date, and replaces it
with a new Section 6.2.3 set forth in the Amendment as follows:
6.2.2 Seller's Adiustment of Estimated Net Enerov Amounts
Afterthe Operation Date-Afterthe Operation Date, the Seller
APPLICATION - 2
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. lf the 25th day of the month
falls on a weekend or holiday, then written notice must be
received on the last business day prior to the 25th day of the
month. For 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 September 25th.
a.) This revision must be submitted using the electronic
portal provided by ldaho Power if available. lf the electronic
portal is not available, then written notice must be provided
to ldaho Power by electronic notice (electronic mail) as
agreed by both parties.
b.) lf the Seller does not update the electronic portal or
provide written notice of changes to the Estimated Net
Energy Amounts, then it will be deemed to be an election of
no change from the most recently provided monthly
Estimated Net Energy Amounts. Except as otherwise
provided in this Agreement, ldaho Power is unable to accept
any requested changes to the Estimated Net Energy
Amounts if the date and time that ldaho Power receives the
requested change is after the deadline.
4. The Amendment does not otherwise change any of the obligations of the
Parties set forth in the ESA. A copy of the Amendment is attached to this Application as
Attachment 1 and is subject to the Commission's approval
III. PROCEDURE
5. ldaho Power believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under
Modified Procedure; i.e., bywritten submissions ratherthan by hearing. RP 201, ef seg.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
6. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
APPLICATION - 3
Donovan E. Walker
Lead Counsel
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
dwalker@ idahopower. com
dockets@idahopower. com
Energy Contracts
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
enerqvco ntracts@ id a hopowe r. com
V. REQUEST FOR RELIEF
7. ldaho Power respectfully requests that the Commission issue an order: (1)
authorizing that this matter may be processed by Modified Procedure and (2) accepting
or rejecting the Amendment between ldaho Power and the Seller.
Respectfully submitted this 26th day of August 2021.
fuzdarq-
DONOVAN E. WALKER
Attorney for ldaho Power Company
APPLICATION -4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 26th day of August 2021,1 served a true and
correct copy of the within and foregoing APPLICATION FOR APPROVAL OF THE THIRD
AMENDMENT TO ENERGY SALES AGREEMENT upon the following named parties by
the method indicated below, and addressed to the following:
Terry Daugherty
Riverside Investments l, LLC
Riverside Hydro l, LLC
P.O. Box 328
Adrian, OR 97901
_Hand Delivered
_U.S. Mail
_Overnight Mail
_ FAXX Email - [e-mail]
Christy Davenport, Legal Assistant
APPLICATION - 5
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-21-29
IDAHO POWER COMPANY
ATTACHMENT 1
THIRD AMEI\DMENT
TO THE
FIRM ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPAI\Y
AND
RTVERSIDE TTYDRO \LLC
This Third Amendment of the Firm Energy Sales Agreement ("Third Amendment") is
entered into on this llft day of August 2021, by and between Idaho Power Company, an ldaho
corporation ("Idaho Power"), and Riverside Hydro l, LLC, an Idaho limited liability company
("Riverside" or "Seller") (individually a uParty" and collectively the "Parties").
WHEREAS, Idaho Power entered into the Firm Energy Sales Agreement on April 13,
2006, (the "FESA") for the purchase and sale of generation produced by the Mora Drop Hydro
PURPA Qualiffing Facility with a Maximum Capacity Amount of 1900 kW that was approved by
the Idaho Public Utilities Commission's ("IPUC") in Order No. 30088 issued on June 30,2006;
and
WHEREAS, Idaho Power entered into a First Amendment to the FESA on August 29,2014
with (Riverside Hydro I, LLC) to amend the definition of Mid-Columbia Market Energy Cost; and
WHEREAS, Idaho Power entered into a Second Amendment to the FESA on June 22,
2016, with (Riverside Hydro I, LLC) to amend Article 6.2.3 of the Agreement to include a change
to the notification ofNet Energy Amount monthly adjustments from three-month advanced notice
to one-month advance notice; and
WHEREAS, Seller and Idaho Power desire to amend Article 6.2.3 of the Agreement to
include a change to the notification of Net Energy Amount monthly adjusfrnents from one-month
advanced notice to the 256 day of the month that is prior to the month to be revised. If the 25ft day
of the month falls on a weekend or holiday, then written notice must be received on the last
business day prior to the 256 day of the month;
NOW, THEREFORE, in consideration of the foregoing, and for 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:
1. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part of
this Agreement, as amended, by this reference to the same extent as if these recitals were set forth
in full at this point.
2. Definitions. Article 6.2.3 shall be deleted in its entirety and the following section shall be
substituted in its stead:
6.2.3 Seller's Adjustment of Estimated Net Enere.v Amounts After the Operation Date - After
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
25h day of the month that is prior to the month to be revised. If the 25n day of the month
Finn Energy Sales Agreement
Project 21615200 Mora Drop Hydro Project
Third Amendment - Page I of 3
falls on a weekend or holiday, then written notice must be received on the last business
day prior to the 25n day of the month. For 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 25tr or the last business day prior to Septonber 25ft.
a.) This revision must be submitted using the electronic portal provided by
Idaho Power if available. If the electronic portal is not available, then
written notice must be provided to Idaho Power by electronic notice
(electronic mail) as agreed by both Parties.
b.) If the Seller does not update the electronic portal or provide written notice
of changes to the Estimated Net Energy Amounts, then it will be deemed to
be an election of no change from the most recently provided monthly
Estimated Net Energy Amounts. Except as otherwise provided in the
Agreement, Idaho Power is unable to accept any requested changes to the
Estimated Net Energy Amounts if the date and time that Idaho Power
receives the requested change is after the deadline.
3. Commission Approval. The obligations of the Parties under this First Amendment are subject
to the IPUC'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 request approval or rejection in its entirety pursuant toRP 274.
4. Effect of Amendment. Except as expressly amended by this First Amendment, the Agreement
shall remain in full force and effect.
5. Capitalized Terms. All capitalized terms used in this First Amendment and not defined herein
shall have the same meaning as used in the Agreement.
6. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit
of the Parties hereto, and their respective heirs, executors, administrators, successors, and assigns,
who are obligated to take any action which may be necessary or proper to carry out the purpose
and intent thereof.
7. Authority. Each Party represents and warrants that (i) it is validly existing and in good
standing in the state in which it is organized, (ii) it is the proper party to amend the Agreement,
and (iii) it has the requisite authority to execute this First Amendment.
8. Counterparts. This First Amendment may be executed in any number of counterparts, each
of which shall be deerned an original and all of which taken together shall constitute a single
instrument.
Firm Energy Sales Agreement
Project 21615200 Mora Drop Hydro Project
Third Amendment - Page 2 of 3
IN WTTNESS WI{EREOF, the Parties hErcto have caused this Third Amendment to be
duly executed as of the date above written.
RIVERS [, LLC IDAHO PO R
By:
Narne:Name:/t/,
Title
Datc:El,lnt --Date:
Pirm Enorgy Saler Agrcement
Project 21615200 Mora Drop Hydro Pmject
Third Amendment - Pagc 3 of 3