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HomeMy WebLinkAbout20230808Compliance Filing_Attachment.pdf MEGAN GOICOECHEA ALLEN Corporate Counsel mgoicoecheaallen@idahopower.com August 8, 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-23-15 SISW LFGE Project Idaho Power Company’s Application for Approval of First Amendment to the Energy Sales Agreement Dear Ms. Noriyuki: Attached for electronic filing is Idaho Power Company’s Compliance Filing 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 Tuesday, August 8, 2023 3:18:47 PM IDAHO PUBLIC UTILITIES COMMISSION IDAHO POWER COMPANY’S 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: (208) 388-5317 Facsimile: (208) 388-6936 dwalker@idahopower.com mgoicoecheaallen@idahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF A FIRST AMENDMENT TO THE ENERGY SALES AGREEMENT WITH THE SISW LFGE PROJECT ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-15 IDAHO POWER COMPANY’S COMPLIANCE FILING COMES NOW, Idaho Power Company (“Idaho Power” or “Company”) and, pursuant to Idaho Public Utilities Commission (“Commission”) Order No. 35861, hereby respectfully submits the following compliance filing pertaining to the Energy Sales Agreement (“ESA”), as amended, for the Southern Idaho Regional Solid Waste District Landfill Gas to Energy (“SISW LFGE”) Project, which is a qualifying facility (“QF” or “Facility”) under the Public Utility Regulatory Policies Act of 1978 (“PURPA”). 1. The ESA dated March 13, 2017, was approved by the Commission in Case No. IPC-E-17-04, Order No. 33772, issued on June 1, 2017. Recently, the parties entered IDAHO POWER COMPANY’S COMPLIANCE FILING - 2 into the First Amendment to the ESA (“First Amendment”) dated April 27, 2023, which was intended to correct and update certain information in the ESA but did not otherwise change any of the obligations of the parties. 2. The Company initiated the instant case to request the Commission approve the First Amendment that sought to ensure the contract description matches actual Facility parameters and to incorporate recent Commission orders addressing contract language related to different types of facility modifications. 3. On July 25, 2023, the Commission issued Order No. 35861 approving the First Amendment contingent on the parties implementing the following additional updates to the ESA and submit as a compliance filing within 14-days: (i) The parties return the original Article XXIII language, requiring Commission approval for amendments to the ESA, to the agreement in addition to the new Article XXIII language regarding facility modifications; and (ii) The parties remove the VAR Capability description from Appendix B. 4. As directed by the Commission, the Company has worked with the SISW LFGE Project to incorporate the additional modifications to the ESA and is filing herewith as Attachment 1 the fully executed Second Amendment to the ESA dated August 6, 2023, which was entered into by the parties to incorporate the direction from, and comply with, Commission Order No. 35861. More specifically, to address the issues identified by the Commission, the Second Amendment revises Appendix B, Section B-1 to omit the description of Var Capability and adds a new paragraph (23.8) to Article XXIII Facility Modification, as amended, to retain language regarding modifications to the ESA. 5. Idaho Power appreciates the Commission’s review and consideration of the IDAHO POWER COMPANY’S COMPLIANCE FILING - 3 issues in this case and the opportunity to make this compliance filing to address the Commission’s concerns. Idaho Power believes the attached and executed Second Amendment makes the necessary changes to the ESA required to implement the Commission’s directives and respectfully requests that the Commission approve the Second Amendment to the Energy Sales Agreement submitted herewith without change or condition. Respectfully submitted this 8th day of August 2023. MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company IDAHO POWER COMPANY’S COMPLIANCE FILING - 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 8th day of August 2023, I served a true and correct copy of the within and foregoing Idaho Power Company’s 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 Hand Delivered U.S. Mail Overnight Mail FAX _____ FTP Site X Email: michael.duval@puc.idaho.gov Nate Francisco Executive Director and CEO Southern Idaho Solid Waste (208)670-5777 Hand Delivered U.S. Mail Overnight Mail Fax X Email: nfrancisco@sisw.org ________________________________ Christy Davenport, Legal Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-15 IDAHO POWER COMPANY ATTACHMENT 1 Project Number 20170214– SISW LFGE Second Amendment Page 1 of 2 SECOND AMENDMENT TO THE ENERGY SALES AGREEMENT FOR THE SISW LFGE PROJECT This Second Amendment of the Energy Sales Agreement (“Second Amendment”) is effective as of August 6, 2023 (“Effective Date”) and is entered into by and between Idaho Power Company (“Idaho Power”), an Idaho corporation, and CAFCo Idaho Refuse Management LLC (“Seller”) (individually a “Party” and collectively the “Parties”). WHEREAS, Idaho Power and Seller entered into the Energy Sales Agreement (“ESA”) on March 13, 2017, for the purchase and sale of energy from the Southern Idaho Regional Solid Waste District Landfill Gas to Energy (“SISW LFGE”) Project (“Project”), a landfill gas to energy facility with a five megawatt (“MW”) Maximum Capacity Amount to be located near Burley, Idaho. The ESA was approved by the Idaho Public Utilities Commission (“the Commission”) in Case No. IPC-E-17-04, Order No. 33772, issued on June 1, 2017; and WHEREAS, Idaho Power and Seller entered into a First Amendment to the Agreement on April 27, 2023, to: (1) revise Appendix B, specifically Section B-1, Description of Facility, and Section B-4, Maximum Capacity Amount, to accurately reflect the Facility as built, and make corresponding changes to other definitions and Appendix E that referenced the original design; and (2) revise Article XXIII Modification in conformity with the language, which was approved by the Commission in Order No. 35861 subject to the Parties implementing additional updates as recommended by Commission Staff and directed by the Commission; and WHEREAS, as a result, the Parties desire to enter into this Second Amendment to incorporate the direction from, and comply with, Commission Order No. 35861, by amending Appendix B, Section B-1 to omit the description of Var Capability and adding a new paragraph to Article XXIII Facility Modification, as amended, to retain language regarding modifications to the ESA. NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, the Parties hereto agree as follows: 1.Incorporation of Recitals. The above-stated recitals are incorporated into and made a part of the ESA, as amended, by this reference to the same extent as if these recitals were set forth in full at this point. 2.Amendments. A. Appendix B: Section B-1, Description of Facility, of Appendix B of the ESA is hereby amended as follows: (Deleted language uses strikethrough).         Project Number 20170214– SISW LFGE Second Amendment Page 2 of 2 Var Capability (Both leading and lagging of initial unit): Leading is 0.8, Lagging is 0.8 B. Article XXIII: Facility Modification: A new paragraph 23.8 is added to Article XXIII to follow existing provision 23.7: 23.8 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. 3. Commission Approval. The obligations of the Parties under this Second Amendment are subject to the Commission’s approval of this Second Amendment and such approval being upheld on appeal, if any, by a court of competent jurisdiction. 4. Effect of Amendment. Except as expressly amended by this Second Amendment, the terms and conditions of the ESA, as amended, remain unchanged. 5. Capitalized Terms. All capitalized terms used in this Second Amendment and not defined herein shall have the same meaning as in the ESA. 6. Scope of Amendment. This Second Amendment shall be binding upon and inure to the benefit of the Parties hereto, and their respective heirs, executors, administrators, successors, and assigns, who are obligated to take any action which may be necessary or proper to carry out the purpose and intent hereof. 7. Authority. Each Party represents and warrants that as of the Effective Date: (i) it is validly existing and in good standing in the state in which it is organized, (ii) it is the proper party to amend the ESA, and (iii) it has the requisite authority to execute this Second Amendment. 8. Counterparts. This Second Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken together shall constitute a single instrument. IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be duly executed as of the date above written. IDAHO POWER COMPANY By: _________________________________ Name: _______________________________ Title: ________________________________ CAFCO IDAHO REFUSE MANAGEMENT LLC By: _________________________________ Name: _______________________________ Title: ________________________________ DocuSign Envelope ID: 9A11F05C-B808-4AA0-88E3-68E1DDD41188 Nate Francisco Executive Director & CEO Ryan N. Adelman VP, Power Supply