20220228Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:YAO YIN
RILEY NEWTON
DATE:FEBRUARY 25,2022
RE:IDAHO POWER COMPANY'S REPLACEMENT SECOND
AMENDMENT TO THE ENERGY SALES AGREEMENT BETWEEN
IDAHO POWER COMPANY AND MC6 HYDRO LLC;CASE
NO.IPC-E-21-30
BACKGROUND
Order No.35296 in Case No.IPC-E-21-30 states that the Commission finds it reasonable
for the Parties to submit an updated Energy Sales Agreement("ESA")as a compliance filing
changing paragraph 6.2 to limit compensation to the Facility for any generationover 2.1 MWhs
in any hour,and that if the Parties update paragraph 6.2 to reflect this limit,then the Parties need
not implement a bifurcated rate structure in the ESA.Idaho Power Company ("Company")
submitted the Compliance Filing to update the Second Amendment on February 11,2022.Staff
discovered clerical errors in the Compliance Filing and notified the Company.Subsequently,the
Company filed a Replacement Second Amendment on February 18,2022,to correct the errors.
STAFF ANALYSIS
Staff believes the Replacement Second Amendment to the ESA filed on February 18,
2022,fulfills the intent of Order No.35296.Althoughthe Company does not change paragraph
6.2 in the Compliance Filing,it adds the statement in paragraph 6.1,that,"[a]t no time within
i Paragraph 6.2 states:Estimated Net Energy Amounts -Neitherthe monthly estimated Net Energy amounts
providedas of the EffectiveDate of this Agreement nor monthly Adjusted Estimated Net Energy Amounts provided
during the term of this Agreement shaH exceed ten ("IO")average monthly MW nor be greater than the Maximum
Capacity Amount (measured in kW)multiplied by the hours in the applicable month.
DECISIONMEMORANDUM -1 -FEBRUARY 25,2022
any hour will the Seller's Facility generationdeliveries to Idaho Power exceed the Maximum
Capacity Amount specified in Appendix B",and another statement in paragraph 7.5.22,which
states:
(a]lthoughSeller intends to design and operate the Facility to generate no
more than the Maximum Capacity Amount and no more than ten (10)
average MW monthlyand therefore does not intend to generate and deliver
Inadvertent Energy,Idaho Power will accept Inadvertent Energy but will
not purchase or pay for Inadvertent Energy.
Staffbelieves that these two statements together will limit compensation to the Facility
for any generation over 2.1 MWhs in any hour,which is the intent of Order No.35296.
STAFF RECOMMENDATION
Staff recommends the Commission approve the Company's Replacement Second
Amendment as it was filed on February 18,2022.
COMMISSION DECISION
Does the Commission wish to approve the Company's Replacement Second Amendment
as it was filed on February 18,2022?
Yao Yin
Udmcmos/IPCE.21·30 Decision Memo
2 The Compliance Filing filed on February I I,2022 mistakenly referenced paragraph 7.7,paragraph 7.7.1,and
paragraph 7.7.2,which should have been paragraph 7.5,7.5.1,and 7.5.2.These errors have been corrected in the
Replacement Second Amendment flied on February 18,2022.
DECISION MEMORANDUM -2 -FEBRUARY25,2022