20230317IPC Extension Motion.pdf

MEGAN GOICOECHEA ALLEN
Corporate Counsel
[e-mail]

March 17, 2023

VIA ELECTRONIC MAIL

Jan Noriyuki, Secretary
Idaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 201-A
Boise, Idaho 83714

Re: Case No. IPC-E-22-28
Lower Lowline, LLC – Lowline #2 Hydro Project
Idaho Power Company’s Application re Energy Sales Agreement

Dear Ms. Noriyuki:

Attached for electronic filing is Idaho Power Company’s Motion for Extension of
Time to Make Compliance Filing in the above-entitled matter. If you have any questions
about the attached documents, please do not hesitate to contact me.

Very truly yours,

Megan Goicoechea Allen

MGA:cld
Enclosures
RECEIVED
Friday, March 17, 2023 3:38:31 PM
IDAHO PUBLIC
UTILITIES COMMISSION
IDAHO POWER COMPANY’S MOTION FOR EXTENSION OF TIME TO MAKE
COMPLIANCE FILING - 1
DONOVAN E. WALKER (ISB No. 5921)
MEGAN GOICOECHEA ALLEN (ISB No. 7623)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

Attorneys for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OR REJECTION OF AN
ENERGY SALES AGREEMENT WITH
LOWER LOWLINE LLC, FOR THE SALE
AND PURCHASE OF ELECTRIC ENERGY
FROM THE LOWLINE #2 HYDRO
PROJECT.

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CASE NO. IPC-E-22-28

IDAHO POWER COMPANY’S
MOTION FOR EXTENSION OF
TIME TO MAKE COMPLIANCE
FILING

COMES NOW, Idaho Power Company (“Idaho Power” or “Company”) and moves
the Idaho Public Utilities Commission (“Commission”) for an order granting additional time
for the Company to make its compliance filing pursuant to Order No. 35705. The grounds
and reasons for this request are as follows:
1. On March 13, 2023, the Commission issued Order No. 35705, pertaining to
the replacement Energy Sales Agreement (“ESA”) between the Company and Lower
Lowline LLC (“Lowline #2”) for energy generated by the Lowline #2 Hydro Project, a
qualifying facility (“QF”) under the Public Utility Regulatory Policies Act of 1978
(“PURPA”). The Commission’s Order addressed, in part, Staff’s recommendation related
IDAHO POWER COMPANY’S MOTION FOR EXTENSION OF TIME TO MAKE
COMPLIANCE FILING - 2
to Article XXIII “Modifications” as well as Idaho Power’s proposed revisions in response.
In recognition of Staff’s desire for clarity and consistency, the Company had proposed a
modification to Article XXIII to add more explicit language in an effort to ensure the
contract description matches actual facility parameters and more clearly incorporate the
Commission’s orders addressing the different types of facility modifications. However, the
Commission found that the Company’s proposal did not address the Commission’s
concerns: that the QF is paid the proper and authorized rate as of the first operation date
after Facility modification and that the description of the Facility reflected in the final
amendment describe the facility as actually modified. As a result, the Commission
directed that the Company file an amended ESA within 15 days of its Order.
2. The Commission’s directives set forth in Order No. 35705 have broader
implications beyond this specific case and overlap with issues raised in Staff’s comments,
also issued on March 13, 2023, in the case pertaining to the Bypass Hydro Project. Both
cases address a previously heretofore standard provision related to possible QF
modifications and identify shortcomings with both the Company’s existing and proposed
contract language. In light of the Commission’s Order, which directed that the Company
add additional language to more clearly and explicitly incorporate the Commission’s
objectives, Idaho Power has been considering the issues raised and determining how to
fulfill the Commission’s intent in both cases and in ESAs moving forward but needs
additional time to ensure a cohesive and expedient approach.
3. In addition, the Company is considering the directive (and recommendation
in Case No. IPC-E-23-02) that the Company only be allowed to include net power supply
expenses in its Power Cost Adjustment (“PCA”) that reflect the proper authorized rate for
IDAHO POWER COMPANY’S MOTION FOR EXTENSION OF TIME TO MAKE
COMPLIANCE FILING - 3
all energy delivered as of the first operation date as a modified QF regardless of what is
paid to the QF. The Company needs more time to evaluate how to mitigate and address
the far reaching ramifications and detrimental impact of the cost recovery disallowances
that could result under this proposition.
4. Because the ESA with Lowline #2 contains similar provisions as the Bypass
Hydro Project ESA, the Reply Comments in the that case will address many of the same
issues raised by the Commission’s decision in this matter and must be evaluated in
concert with the Company’s forthcoming compliance filing. In both cases, Idaho Power
believes it would be useful to work with Staff in an effort to reach alignment on the contract
amendments but has not yet been able to arrange this.
5. In order to provide the Company adequate time to work through details and
prepare both considered and appropriate filings replying to Staff’s Comments and
complying with the Commission’s directive, Idaho Power respectfully requests that the
Commission issue an order extending the deadline for the Company to make its
compliance filing to March 31, 2023.1
6. Idaho Power contacted Staff, regarding this request for extension and was
advised that Staff has no objection to extending the deadline for the Company’s
compliance filing.

1 Idaho Power also made a filing in Case No. IPC-E-23-02, seeking an extension to file its reply comments
in that case until March 31, 2023.
IDAHO POWER COMPANY’S MOTION FOR EXTENSION OF TIME TO MAKE
COMPLIANCE FILING - 4
Respectfully submitted this 17th day of March 2023.

MEGAN GOICOECHEA ALLEN
Attorney for Idaho Power Company
IDAHO POWER COMPANY’S MOTION FOR EXTENSION OF TIME TO MAKE
COMPLIANCE FILING - 5
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on the 17th of March 2023, I served a true and correct
copy of the foregoing Idaho Power Company’s Motion for Extension of Time to Make
Compliance Filing upon the following named parties by the method indicated below, and
addressed to the following:

Michael Duval
Deputy Attorney General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg No. 8,
Suite 201-A (83714)
PO Box 83720
Boise, ID 83720-0074

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Louis Zamora
Twin Falls Canal Company
P.O. Box 326
Twin Falls, Idaho 83303

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Christy Davenport
Legal Administrative Assistant