20230725Final_Order_No_35861.pdf

ORDER NO. 35861 1
Office of the Secretary
Service Date
July 25, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF A FIRST AMENDMENT
TO THE ENERGY SALES AGREEMENT
WITH THE SISW LFGE PROJECT
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CASE NO. IPC-E-23-15

ORDER NO. 35861

On April 28, 2023, Idaho Power Company (“Company”) applied to the Commission
requesting approval of the First Amendment (“Amendment”) to its Energy Sales Agreement
(“ESA”) with CAFCo Idaho Refuse Management LLC Idaho (“CAFCo”) (“Application”). The
proposed Amendment would update several key descriptions of the Southern Idaho Regional Solid
Waste District Landfill Gas to Energy Project (“Facility”)—including the Facility’s nameplate
capacity. The Company asked that its Application be processed by Modified Procedure.
On May 31, 2023, the Commission issued a Notice of Application and established public
comment and party reply deadlines. Order No. 35805. Commission Staff (“Staff”) filed comments
to which the Company replied. No other comments were received.
With this Order, we approve the Amendment.
BACKGROUND
On June 1, 2017, the Commission approved the Parties’ ESA whereby the Company agreed
to purchase electric energy generated by CAFCo’s Facility near Burley, Idaho. The Facility was
described then as having an initial Maximum Capacity of five megawatts (“MW”).
The original ESA indicated that the Facility would initially consist of a single 2.6 MW unit
with an option of adding an additional 2.4 MW unit within 60 months of the Facility’s initial
operation date. This unit was never added.
THE APPLICATION
The Company represented that the Facility as built deviated slightly from the description
above. The Facility consisted of two 1.307 MW generation units, instead of a single 2.6 MW unit.
Also, an additional 1.307 MW generation unit was added instead of a 2.4 MW generation unit.
Accordingly, if approved, the nameplate capacity for the Facility would be 3.921 MW instead of
five MW. The Parties requested Commission approval for this proposed Amendment to the ESA
ORDER NO. 35861 2
updating the Maximum Capacity of the Facility and revise Article XXIII Modification in
conformity with the language recently approved by the Commission.
The Company stated that the proposed change does not affect rates or other related portions
of the ESA.
STAFF COMMENTS
Staff confirmed that the additional unit was added within the 60 months of the Facility’s
initial operation date. Staff believed that the rates for the Facility do not require modification
because the additional 1.307 MW unit is smaller than the initially planned 2.4 generation unit.
Staff also verified the description of the Facility accurately reflects that it has three 1.307 MW
units.
While Staff believed that additional language proposed by the Company to Article XXIII
complied with recently approved Commission mandates (See Order Nos. 35767 at 1 and 35750 at
4), Staff also believed that certain language in the Company’s proposed Amendment that was
removed from the original ESA should remain. Specifically, Staff felt the proposed Amendment
should retain the provision in Article XXIII regarding modifications to the ESA. Staff noted that
the updated language regarding modifications to the Facility cannot replace the language that sets
forth the parameters for modifying the ESA as those are two different concepts. Staff also
recommended that the Company’s proposed amendment should omit the description of the Volt-
Amps Reactive (“VAR”) Capability from Appendix-B: Section B-1 as the description contained
inaccuracies and does not affect rates.
COMPANY REPLY
The Company agreed with Staff’s suggestions regarding Article XXIII. The Company
proposed Article 23.8 would read as follows: “[n]o modification to this Agreement shall be valid
unless it is in writing and signed by both Parties and subsequently approved by the Commission.”
Reply Comments at 3. The Company did not object to Staff’s proposal to omit the VAR Capacity
language from Appendix-B: Section B-1. The Company noted that it could work with CAFCo to
implement these changes and then file a compliance filing with the Commission.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-502 and 61-
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,
ORDER NO. 35861 3
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and 61-503. The Commission also has authority under Public Utility Regulatory
Policies Act of 1978 (“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, the Amendment,
Staff’s comments, and the Company’s reply. The purpose of the Amendment is to ensure that the
descriptions of Facility in the ESA are both accurate and comply with previous Commission
rulings. The Commission finds it is in the public interest to approve the Amendment to ensure the
ESA accurately describes the Facility and its nameplate capacity. The Commission also instructs
the Company to update the language of Article XXIII as proposed by Staff and agreed to by the
Company and submit a compliance filing showing this update within 14 days of the issuance date
of this Order.
ORDER
IT IS HEREBY ORDERED that the Company’s Amendment to the ESA is approved
subject to its compliance with the items discussed above. The Company shall submit a compliance
filing including the matters set forth within 14 days of the issuance of this Order.
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. Idaho Code § 61-626.
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ORDER NO. 35861 4
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 25th day of
July 2023.

__________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER

__________________________________________
EDWARD LODGE, COMMISSIONER

ATTEST:

__________________________________
Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-23-15 SISW\orders\IPCE2315_Final_md.docx