20221213Final_Order_No_35622.pdf

ORDER NO. 35622 1

Office of the Secretary
Service Date
December 13, 2022 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On September 12, 2022, Idaho Power Company (“Company” or “Idaho Power”) and
Cassia Wind Farm, LLC (“Seller”) (collectively, the “Parties”), applied requesting approval of the
Second Amendment (“Second Amendment”) to their Energy Sales Agreement (“ESA”) under
which the Seller sells the Company “electric energy generated by Seller’s wind [powered]
generating facility” (“Facility”) located near Hagerman, Idaho. Application at 1. The Facility is a
qualifying facility (“QF”) under the Public Utility Regulatory Policies Act of 1978.
On October 7, 2022, the Commission issued a Notice of Application and Modified
Procedure, setting public comment and Party reply deadlines. Commission Staff (“Staff”) filed
comments, and the Company filed a Notice of No Comments. No other comments were received.
Having reviewed the record, we now approve the Second Amendment as discussed below.
BACKGROUND
On June 30, 2006, the Commission approved the Parties’ ESA. Order No. 30086. Under
the ESA, the Seller provided electricity to the Company via “5 Suzlon, model S88 Wind turbines
with individual generator ratings of 2.1 [megawatts (“MW”)] for each unit, for a total Facility
generator rating of 10.5 MW.” Application at 2. On June 11, 2013, the pricing schedule of the
original ESA was modified because the Seller’s actual operation date was 27 months after its
previously estimated operation date. Order No. 32850.
PROPOSED SECOND AMENDMENT
The Company represented that one of the Facility’s five turbines (“Tower 5”) became
inoperable due to a fire. The Company stated that the Seller was unable to find a comparable
model, or replacement turbine, for Tower 5. Because Tower 5 will not be replaced, the new
maximum total Facility generator rating is 8.4 MW with only four operable Suzlon model S88
units instead of five. The Company sought to amend and update the ESA accordingly.

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF A SECOND AMENDMENT
TO THE ENERGY SALES AGREEMENT
WITH CASSIA WIND FARM, LLC
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CASE NO. IPC-E-22-23

ORDER NO. 35622
ORDER NO. 35622 2

STAFF COMMENTS
Staff recommended approval of the Second Amendment “because (1) it reflects the actual
nameplate capacity of the Facility; and (2) the update does not affect pricing.” Staff Comments at
2.
1. Nameplate Capacity
Staff believed that the Second Amendment necessarily updates the Facility’s actual
nameplate capacity of 8.4 MW to properly reflect the loss of Tower 5. Staff believed that the
Seller’s prompt notice to the Company, and the subsequent collaboration between the Parties,
“minimized impacts of the loss of Tower 5 on the Company’s planning process.” Id. at 2-3. While
Staff agreed with the Company that the ESA doesn’t “contain any obligations tied to the total
nameplate capacity,” Staff believed that updating the nameplate capacity information, rather than
postponing that update for three years, is good practice and appreciates the Parties doing so
proactively. Id.
2. Pricing and Compensation for Avoided Cost
Staff believed this Second Amendment would continue to fairly compensate the Seller
because, despite the reduction in output, the Seller will still receive the avoided cost rates
enumerated in the ESA based upon a dollar per kilowatt-hour basis.
COMMISSION FINDINGS AND DISCUSSION
The Commission has jurisdiction over this matter under Title 61 of the Idaho Code. 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, 61-
503. The Commission also has authority under PURPA and Federal Energy Regulatory
Commission (“FERC”) regulations to set avoided cost rates, to order electric utilities to enter fixed-
term obligations for the purchase of energy from QFs, and to implement FERC rules. The
Commission may enter any final order consistent with its authority under Title 61 and PURPA.
The Commission has reviewed the record, including the Application, proposed Second
Amendment, and Staff’s comments. The Commission agrees with the Company’s and Staff’s
recommendation to approve the Second Amendment of the ESA as filed. This is due to the reality
that the proposed Second Amendment “reflects the actual nameplate capacity of the Facility and…
does not affect pricing” as the price is structured upon a dollar per kilowatt-hour basis. Staff
ORDER NO. 35622 3

Comments at 2. We appreciate the Parties being proactive and updating their ESA to correct the
nameplate capacity.
O R D E R
IT IS HEREBY ORDERED that the Second Amendment to the ESA is approved as filed.
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 about 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 13th day of
December 2022.

__________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN CHATBURN, COMMISSIONER

__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-22-23 Cassia Wind\orders\IPCE2223_final_md.docx