20220429Final_Order_No_35386.pdf

ORDER NO. 35386 1

Office of the Secretary
Service Date
April 29, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On February 4, 2022, Idaho Power Company (“Company”) requested Commission
approval or rejection of a replacement Energy Sales Agreement (“ESA”) between the Company
and Shingle Creek LLC (“Seller”) concerning the purchase of energy generated from the Shingle
Creek Hydro Project (“Facility”) located near the town of Riggins, Idaho. Application at 1. The
Facility is a qualifying facility (“QF”) under the Public Utility Regulatory Policies Act of 1978
(“PURPA”). Id.
On March 1, 2022, the Commission issued Notice of Application and Notice of
Modified Procedure and established deadlines for interested persons to comment on the
Application and for the Company to reply.
Staff filed the only comments in this case.
With this Order, we approve the Company’s Application.
APPLICATION
The Facility has been delivering energy to the Company in accordance with a PURPA
energy sales agreement executed on May 8, 2017, and expiring on July 31, 2022. (“2017 ESA”).
Id. at 4.
The Company stated that, on January 24, 2022, it and the Seller entered the ESA for a
five-year term using the non-levelized, non-seasonal hydro published avoided cost rates
established in Order No. 35052 for replacement contracts and for energy deliveries of less than ten
average megawatts. Id. at 3-4. In the ESA, the Company and the Seller agreed to a maximum
capacity amount of 222 kilowatts (“kW”) which is equal to the capacity amount in the 2017 ESA.
The Company stated that the ESA is a new contract for a new term but still maintains the same
terms and conditions from the 2017 ESA. Id. at 2.
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION REGARDING
THE ENERGY SALES AGREEMENT WITH
SHINGLE CREEK LLC, FOR THE SALE
AND PURCHASE OF ELECTRIC ENERGY
FROM THE SHINGLE CREEK HYDRO
PROJECT
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CASE NO. IPC-E-22-02

ORDER NO. 35386
ORDER NO. 35386 2

The Company indicated that the ESA contains payment for capacity during the full
term of the ESA. The Company stated that the Facility is currently interconnected and selling
energy to the Company and that the ESA specifies a Scheduled First Energy Date and Scheduled
Operation Date for the Facility of August 1, 2022. Id. at 5.
STAFF COMMENTS
Staff reviewed: (1) the Facility’s eligibility for and the amount of capacity payments;
(2) the 90/110 Provision with at least five-day advanced notice for adjusting estimated Net Energy
Amounts (“NEA”); and (3) the avoided cost rates and recommended approval of the ESA as filed.
Staff Comments at 2.
Staff noted that the 2017 ESA designated both the Facility nameplate capacity and
maximum capacity amount as 222 kW, but that the ESA correctly denotes the nameplate capacity
and the maximum capacity amount as 224 kW and 222 kW, respectively. Id. Staff noted that, even
though the nameplate capacity should be 224 kW, the parties had agreed to payments for capacity
only up to 222 kW in the ESA. Id. at 3.
Staff confirmed the ESA contains the 90/110 Provision and requires the Seller to give
the Company at least five-day advanced notice if the Seller planned to adjust its estimated NEA to
comply with the 90/110 Provision. Id. at 3-4. Staff verified the avoided cost rates in the ESA were
correct. Id. at 4.
FINDINGS AND DISCUSSION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502
and -503. The Commission is empowered to investigate rates, charges, rules, regulations, practices,
and contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and -503.
Having reviewed the record, we find the ESA to be fair, just, and reasonable. We find
the Facility’s eligibility for capacity payments, the implementation of the 90/110 Provision with
the five-day estimated NEA adjustment period, and the avoided cost rates in the ESA to be
consistent with our previous orders, and within the public interest.
ORDER
IT IS HEREBY ORDERED that the Company’s Application is approved.
ORDER NO. 35386 3

THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 29th day
of April 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-22-02 Shingle Creek\orders\IPCE2202_final_rn.docx