20220318Comments.pdf

TAYLOR BROOKS
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11542
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION REGARDING
TIIE SECOND AMENDMENT TO THE FIRM
ENERGY SALES AGREEMENT WITH TWIN
FALLS ENERGY COMPANY,INC FOR THE
SALE AND PURCHASE OF ELECTRIC
ENERGY FROM THE LOW LNIE MIDWAY
ITYDRO PROJECT
CASE NO. IPC-E-22.04
COMMENTS OF THE
COMMISSION STAFF
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Street Address for Express Mail:
I 1331 W CHINDEN BLVD, BLDG 8, SUITE 2OI-A
BOISE,ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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COMES NOW the Staff of the Idaho Public Utilities Commission ("Staff'), by and
through its Attorney of record, Taylor Brooks, Deputy Attorney General, and submits the
following comments:
BACKGROT]NI)
On February ll,2022,Idaho Power Company ("the Company") applied to the Idaho
Public Utilities Commission ("Commission") for approval or rejection of the Second
Amendment to the Firm Energy Sales Agreement ("FESA") between the Company and Twin
Falls Energy Company, Inc. ("Seller"). The FESA provides for the purchase of electric energy
generated by the Low Line Midway Hydro Project ("Facility") which is a qualiffing facility
("QF") under the Public Utility Regulatory Policies Act of 1978 ("PURPA"). Id.
ISTAFF COMMENTS MARCH 18,2022
The Company and Seller ("Parties") entered into a FESA on June 27,2005, and the
FESA was approved on September 8, 2005, in Order No. 29863. Section 6.2.3 of the FESA
allows Seller to adjust the monthly estimated Net Energy Amounts within a specified time-
periodl.
The Second Amendment to the FESA proposes to delete Section 6.2.3 and replace it with
new language that describes an adjustment period of at least five days in advance. The Second
Amendment to the FESA was executed by the Parties on February 8,2022 and February 9,2022,
and it does not change other obligations or provisions in the original FESA.
STAFF REVIEW
Staff recommends approval of the five-day advanced notice because monthly estimates
which are 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 such as Order Nos. 34263,34870 afi34937.
STAFF RECOMMENDATIONS
Staff recommends that the Commission approve the Second Amendment to the FESA as
filed on February 11,2022.
Respectfully submitted this lth day of Mar ch2022
Technical Staff: Yao Yin
i :umisc/commentsl ipce22.4tbyy corrments
I Section 6.2.3.2 states "[b]eginning with the end of the 3'd month after the Operation Date and at the end of every
third month thereafter: (l) the Seller may not revise the immediate next three months of previously provided Net
Energy Amounts, (2) but by written notice given to Idaho Power in accordance with paragraph 28.1, no later than
5:00 PM of the 5m day following the end of the previous month, the Seller may revise all other previously Net
Energy Amounts."
2STAFF COMMENTS MARCH 18,2022
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS ISth DAY OF MARCH 2022,
SERVED THE FOREGOING COMMENTS OF TIIE COMMISSION STAFF, IN
CASE NO. IPC-E-22.04, 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]
[e-mail]
ROGER BLASS DIRECTOR
TWIN FALLS ENERGY INC
LOW LINE MIDWAY HYDRO
PO BOX 826
TWIN FALLS ID 83303
MICHAEL DARRINGTON
ENERGY CONTRACTS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: [e-mail]
energycontracts@ idahopower. com
LOUIS ZAMORA
TWIN FALLS ENERGY INC
LOW LINE MIDWAY HYDRO
PO BOX 826
TWIN FALLS ID 83303
E-MAIL : [e-mail]
CERTIFICATE OF SERVICE