20230515Comments.pdf

SORENSON ENGINEERING, INC., AND IDAHYDRO’S COMMENTS – Page 1
C. Tom Arkoosh, ISB No. 2253 ARKOOSH LAW OFFICES 913 W. River Street, Suite 450 P.O. Box 2900 Boise, ID 83701 Telephone: [phone] Facsimile: [phone] Email: [e-mail] Admin copy: [e-mail] Attorneys for Sorenson Engineering, Inc., and IdaHydro BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
OF IDAHO POWER COMPANY FOR APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT WITH AMERICAN FALLS RESERVOIR
DISTRICT NO. 2 FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY FROM THE DIETRICH DROP HYDRO PROJECT
))))
)
) ))
Case No. IPC-E-23-19 SORENSON ENGINEERING, INC., AND IDAHYDRO’S COMMENTS

COMES NOW Sorenson Engineering, Inc. (“Sorenson Engineering”), and Idaho
Hydroelectric Power Producers Trust, an Idaho Trust, d/b/a IdaHydro (“IdaHydro”), by and
through their counsel of record, C. Tom Arkoosh of Arkoosh Law Offices, and respectfully
submits the following comments concerning the Application for the Dietrich Drop Hydro Project
filed herein.
Sorenson Engineering is the manager of Wood Hydro LLC, which is the operator of the
Dietrich Drop Hydro Project (“Dietrich Drop”). Wood Hydro LLC operates Dietrich Drop under
a leasing arrangement with the project owner, American Falls Reservoir District No. 2
(“AFRD2”) pursuant to which Wood Hydro LLC is entitled to all revenues under the Energy
Sales Agreement, in exchange for remitting certain funds to AFRD2. IdaHydro is a confederacy
of Idaho small hydroelectric producers joined in a trust for mutual benefit, consisting of
RECEIVED
2023 May 15, 3:19PM
IDAHO PUBLIC
UTILITIES COMMISSION
SORENSON ENGINEERING, INC., AND IDAHYDRO’S COMMENTS – Page 2
approximately 90 MW of capacity produced by 34 small hydroelectric plants. All its members
currently sell electric power and energy to Idaho Power pursuant to multiple contracts and have
the potential to sell additional electric power and energy at other possible cogeneration and small
power production locations in Idaho.
Dietrich Drop is a “canal drop” project, meaning that it receives a higher rate for energy
if it delivers 55% or more of its energy in June, July, and August. This concept was established
in GNR-E-11-03 on reconsideration. The Commission granted reconsideration in Order No.
32737, p. 4, accepting the following rationale: “Canal drop hydro has a separate, higher, set of
rates because irrigation-related projects provide capacity when the utility most needs it — during
the peak hours of the peak days of the year (i.e., during the summer season).” Order No. 32737,
p. 4.
Following up on reconsideration, in Order No. 32802, p. 6, the Commission set
compliance standards for the higher canal drop rate as follows:
In order to ensure compliance with the requirement that 55% of a project’s
generation must be produced during the months of June, July and August, we find
it just and reasonable for the utility to audit and verify the generation of a seasonal hydro project each year at year-end. If a project fails to deliver at least 55% of its energy during the proper time period, its rate will be changed to reflect the non-seasonal hydro published avoided cost rate structure. Any overpayment received
by a project based on a mischaracterization as a seasonal hydro project should be
trued-up through energy payments made to the project during the subsequent year. Order No. 32802, p. 6.
Currently, canal drop hydros intend to provide peak hour, peak day production, meaning
55% of its energy has been produced in June, July, and August, on a calendar-year basis. As set
out in paragraph 20 of the pending Application, the seller desires that the accounting period be
changed from calendar year to the 12-month period commencing June 1 and ending May 31 of
the following year. Paragraph 20 aptly sets forth the request:
SORENSON ENGINEERING, INC., AND IDAHYDRO’S COMMENTS – Page 3
The Seller has informed Idaho Power that it would like the Commission to consider changing the annual period over which eligibility for the seasonal hydro classification is determined from the current calendar year period (January 1
through December 31), to a year that starts June 1 of one year through May 31 of the following year. Idaho Power does not object to this change, but wanted the matter to be considered fully by the Commission in this proceeding, as the Commission’s decisions have indicated that the evaluation should occur “at year end,” suggesting that the evaluation should consider a calendar year. Order No.
32802 at 6. Application, ¶20. The reasons for this request are practical and would be beneficial both to the Qualifying
Facility (“QF”) and Idaho Power Company’s customers. As matters currently stand, energy is
produced both before and after the June, July, and August accounting period. At the end of
August, the QF does not receive the accounting for the August period until well into September
and, thus, does not know precisely whether the QF can continue to produce electricity without
delivering so much energy on the shoulders of the June, July, and August period that it will have
produced less than 55% during the June, July, and August period. This can result in anomalies.
For instance, one canal drop QF produced one day’s too much energy in the month of September
prior to receiving the August report, which reduced the 55% to 54.15% production in June, July,
and August, which is approximately 20% of the project’s income, and thus reduced the sales
price from canal drop rates to standard “other” hydro rates. The cost to the project was
$71,036.26. On the other hand, Idaho Power and its consumers received 54.15% of the energy
during the targeted high-demand period that was desired but then continued to receive energy at
a less desirous time.
If canal drop QFs were allowed to account for the 55% commencing June 1, at the end of
August, the QF would know precisely the numerator of the fraction, which would in turn control
the denominator of the fraction. The QF could thereafter precisely adjust deliveries of energy to
SORENSON ENGINEERING, INC., AND IDAHYDRO’S COMMENTS – Page 4
accommodate the targeted time period. Thus, at the end of August, the canal drop QF would
know not to deliver energy that could be considered burdensome rather than highly demanded
during the shoulder periods.
The entire purpose of pricing canal drop QF power at a higher rate for peak day, peak
hour delivery would be well served by allowing canal drop QFs to precisely measure the
percentage of deliveries in June, July, and August, and assure they are delivering energy during
the intended time and not delivering more power at less desirable times.
DATED this 15th day of May 2023.
ARKOOSH LAW OFFICES

_______________________________ C. Tom Arkoosh Attorney for Sorenson Engineering, Inc. and IdaHydro
SORENSON ENGINEERING, INC., AND IDAHYDRO’S COMMENTS – Page 5
CERTIFICATE OF MAILING I HEREBY CERTIFY that on the 15th day of May 2023, I served a true and correct copy
of the foregoing document(s) upon the following person(s), in the manner indicated:

IDAHO PUBLIC UTILITIES COMMISSION: Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Building 8,
Suite 201-A (83714)
P.O. Box 83720 Boise, ID 83720-0074
____ _ X __
elivered imile -mail:
[e-mail]
IDAHO POWER:
Donovan Walker
Megan Goicoechea Allen Idaho Power Company 1221 W. Idaho Street (83702) P.O. Box 70
Boise, ID 83707
_____
X___
S. Mail, Postage Prepaid
ourier ered simile -mail:
[e-mail]
[e-mail]

____________________________________ C. Tom Arkoosh