20211027Comments.pdf

Fir'i..,-r '-- .' ll i \"iERICK SHANER
DEPUTY ATTORNEY GENERAL
TDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-007 4
[phone]
IDAHO BAR NO. 5214
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OR REJECTION OF THE FIRST
AMENDMENT TO THE ENERGY SALES
AGREEMENT WTH SHOROCK HYDRO,
INC. FOR THE SALE AND PURCHASE OF
ELECTRIC ENERGY FROM THE ROCK
CREEK #1 HYDRO PROJECT
Street Address for Express Mail:
1 133I W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, TD 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. IPC-E-21-3I
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its attorney of record,
Erick Shaner, Deputy Attorney General, submits the following comments.
BACKGROUND
On August 26,z1zl,ldaho Power Company ("Company") applied to the Commission for
approval or rejection of the First Amendment to Energy Sales Agreement ("First Amendment")
with Shorock Hydro, Inc. ("Seller") for the energy generated by the Rock Creek #l Hydro
project ("Facility").
The Seller has been delivering energy to the Company under a firm Energy Sales
Agreement ("ESA") for the Facility that was executed on September 25,2017 and approved
under Commission Order No. 33949 on December 13, 2017.
1STAFF COMMENTS OCTOBER 2],2027
The First Amendment modifies when the Seller must notifo the Company to revise future
monthly Estimated Net Energy Amounts ("NEA"). Currently, First Amendment Section 6.2.3
requires the Seller to notifo the Company at least one-month before the Seller revises a given
month's Estimated NEA. The First Amendment states that "fa]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." First Amendment at l, $ 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. 1d.
The First 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 ANALYSIS
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 .
Staff also notes that the ESA does not contain any provision addressing modifications to
the Facility during the contract term. Therefore, Staff recommends updating the First
Amendment to include the following provision, which has been included in recent Public Utility
Regulatory Policies Act ("PURPA") contracts filed by the Company with the Commission:
Any modifications to the Facility, including but not limited to the generator or
turbine, that (1) increases or decreases the Facility Nameplate Capacity, or (2)
changes the Qualifoing 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.
In the alternative, if the above provision is not included in the First Amendment, Staff
recommends that the First Amendment be rejected.
2STAFF COMMENTS ocToBER 27,2021
STAFF RECOMMENDATION
Staffrecommends that the Commission approve the First Amendment with five-day
notification contingent upon including the additional provision about modifications to the
Facility discussed above. Staff also recommends that after the First Amendment is updated and
signed by both parties, the Commission require the Company to file the updated First
Amendment with the Commission as a compliance filing. In the alternative, Staffrecommends
the Commission reject the First Amendment if the provision that addresses modifications to the
Facility is not included.
Respectfully submitted this a1U day of october 2021
Erick Shaner
Deputy Attorney General
Technical Staff: Yao Yin
i:umisc:commentVipce2l.3 lesyy comments
3STAFF COMMENTS ocToBER 27,202t
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 27th DAY OF OCTOBER 202I,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFFO IN
CASE NO. IPC-E-21-31, 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
BRETT VAN WAGONER
SHOROCK HYDRO INC
PO BOX 1787
TWIN FALLS ID 83303
E-MAIL: rbvan com
ENERGY CONTRACTS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: [e-mail]
Y
CERTIFICATE OF SERVICE