20230728Motion and Supplemental Comments.pdf

DONOVAN WALKER
Lead Counsel
[e-mail]

July 28, 2023

VIA ELECTRONIC FILING

Jan Noriyuki, Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg 8,
Suite 201-A (83714)
PO Box 83720
Boise, Idaho 83720-0074

Re: Case No. IPC-E-23-19
Dietrich Drop Hydro Project
Idaho Power Company’s Application for Approval or Rejection of an
Energy Sales Agreement with American Falls Reservoir District No. 2

Dear Ms. Noriyuki:

Attached for electronic filing, please find Idaho Power Company’s Motion and
Supplemental Comments in the above-entitled matter. Please feel free to contact me
directly with any questions you might have about this filing.

Very truly yours,

Donovan E. Walker
DEW:cd
Enclosures
RECEIVED
Friday, July 28, 2023 2:11:39 PM
IDAHO PUBLIC
UTILITIES COMMISSION
IDAHO POWER COMPANY’S MOTION AND SUPPLEMENTAL COMMENTS - 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
AMERICAN FALLS RESERVOIR DISTRCIT
NO. 2

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CASE NO. IPC-E-23-19

IDAHO POWER COMPANY’S
MOTION AND SUPPLEMENTAL
COMMENTS

COMES NOW, Idaho Power Company (“Idaho Power” or “Company”) and,
pursuant to Idaho Public Utilities Commissions (“Commission”) Rules of Procedure1 56
and 203 and the Notice of Modified Procedure, Order No. 35815, hereby respectfully
submits the following Motion and Supplemental Comments in this case.

1 Hereinafter cited as RP.
IDAHO POWER COMPANY’S MOTION AND SUPPLEMENTAL COMMENTS - 2
I. INTRODUCTION AND MOTION
The Company submitted Reply Comments on July 19, 2023, according to the
Commission’s Notice of Modified Procedure schedule, which included the First
Amendment to the Energy Sales Agreement (“ESA”) between Idaho Power and American
Falls Reservoir District No.2 (“Seller”) related to the sale and purchase of electric
generation from the Dietrich Drop Hydro Project (“Facility”). Immediately following that
submission, Seller notified Idaho Power of an additional item related to the stated
Nameplate Capacity in the ESA that should be clarified in the replacement ESA moving
forward. Consequently, Seller and Idaho Power have executed a Second Amendment,
attached hereto and incorporated herein by this reference, and respectfully move that the
Commission accept the filing of the Second Amendment into the record and consider
approval of the First Amendment, the Second Amendment, and the ESA itself prior to the
expiration of the existing ESA on August 31, 2023.
II. SECOND AMENDMENT TO THE ESA
This Facility has continuously operated under its initial configuration, as amended
in a 1987 PURPA contract with Idaho Power, and now seeks to enter into a new PURPA
ESA upon the expiration of the 1987 agreement. The Facility has not been changed or
modified and contains the same equipment and configuration in the new ESA as what
has been and is operating today. In the Description of Facility set forth in Appendix B,
paragraph B-1, of the ESA, the Nameplate Capacity is listed as “4770 kW,” which matches
the manufacturer’s nameplate rating. A photo of the manufacturer’s “nameplate” from the
generation unit is included with the Second Amendment and is consistent with the
expiring agreement and the Generator Interconnection Agreement (“GIA”) for this project.
IDAHO POWER COMPANY’S MOTION AND SUPPLEMENTAL COMMENTS - 3
However, given the emphasis upon having a more detailed description of Nameplate
Capacity, as well as the provisions in today’s PURPA ESAs under which any
inconsistency between the description of the Facility in the ESA and actual operations
can have serious consequences,2 it is necessary to submit this Second Amendment to
clarify both the Nameplate Capacity and the Maximum Capacity Amount in this new ESA
moving forward.
Accordingly, the parties have agreed to the following changes to Appendix B to the
ESA to provide more detailed and accurate information as follows. With respect to the
description of the Facility in paragraph B-1, adding the following additional language to
reflect the nuances of actual operations (new language is underlined):
4770 kW, 5300 KVA as shown in the photo attached hereto.
The Facility is capable of generating up to 5050 kW which is
set as the Maximum Capacity Amount in B-4 below.

Additionally, the parties have modified paragraph B-4 to state,
The Maximum Capacity Amount is 5050 kW which is
consistent with the value that Seller has requested in its
modified GIA. This value is the maximum generation that
potentially could be delivered by the Seller’s Facility to the
Idaho Power electrical system at any moment in time. Seller’s
existing GIA is for 4770 kW, and Seller will limit operations to
a Maximum Capacity Amount of 4770 kW unless and until
Seller’s GIA is Amended to provide for a Maximum Capacity
Amount of 5050 kW.

These modifications are intended to provide additional detail regarding the
manufacturer’s nameplate designations while at the same time recognizing for contractual
purposes the nuances of actual operations including the potential for generating amounts
slightly over the nameplate rating. In some instances, the Nameplate Capacity and

2 For example, the ESA provides that deliveries exceeding the Maximum Capacity Amount constitute a
Material Breach.
IDAHO POWER COMPANY’S MOTION AND SUPPLEMENTAL COMMENTS - 4
Maximum Capacity Amount are the same amounts, but as evidenced here that is not
always the case. The existing provisions of the ESA can accommodate different amounts
for the Nameplate and the Maximum Capacity. Because this is a new contract at the
beginning of its term, and because the Company is current capacity deficient there are
no implications in changing these values before the new ESA goes into effect.
III. CONCLUSION AND PRAYER FOR RELIEF
WHEREFORE, Idaho Power respectfully requests that the Commission accept
the filing of the Second Amendment into the record and consider approval of the First
Amendment, the Second Amendment, and the ESA itself prior to the expiration of the
existing ESA on August 31, 2023.
Respectfully submitted this 28th day of July 2023.

DONOVAN WALKER
Attorney for Idaho Power Company

IDAHO POWER COMPANY’S MOTION AND SUPPLEMENTAL COMMENTS - 5
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 28th day of July 2023, I served a true and correct
copy of the within and foregoing Idaho Power Company’s Motion and Supplemental
Comments 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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Dietrich Drop Hydro Project
Miriah R. Elliott
711 E Turtle Point Drive
Ivins, UT 84738

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IdaHydro
C. Tom Arkoosh
ARKOOSH LAW OFFICES
913 w. River Street, Suite 450
P.O. Box 2900
Boise, ID 83701
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________________________________
Christy Davenport, Legal Assistant

BEFORE THE

IDAHO PUBLIC UTILITIES COMMISSION

CASE NO. IPC-E-23-19

IDAHO POWER COMPANY

ATTACHMENT 1

Project Number 31615107 – American Falls Reservoir District No. 2, Dietrich Drop
Hydroelectric Project Second Amendment Page 1 of 3
SECOND AMENDMENT
TO THE
ENERGY SALES AGREEMENT
FOR THE
DIETRICH DROP HYDROELECTRIC PROJECT

This Second Amendment of the Energy Sales Agreement (“Second Amendment”) is entered into on the date last executed below, by and between Idaho Power Company, an Idaho corporation (“Idaho Power”) and American Falls Reservoir District No. 2, (“Seller”), (individually
a “Party” and collectively the “Parties”).
WHEREAS, Idaho Power and Seller entered into an Energy Sales Agreement on May 2, 2023, (the “ESA”) for the purchase and sale of energy from the Dietrich Drop Hydroelectric Project (the “Project”). The ESA was filed with the Idaho Public Utilities Commission (“the Commission”) on May 12, 2023; and
WHEREAS, the Parties submitted the First Amendment to the ESA on July 19, 2023,
revising the ESA consistent with Staff Comments to (1) modify the evaluation period for the Project’s eligibility for seasonal hydro rates, and (2) to include additional language in the ESA’s provision regarding modifications; and
WHEREAS, the Parties desire to further modify the ESA by correctly stating the
Nameplate Capacity and Maximum Capacity Amount in this Second Amendment; and
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
this Agreement, as amended, by this reference to the same extent as if these recitals were set forth
in full at this point.
2. Appendix B-1. Paragraph B-1 shall be modified as follows: (additional language is underlined, and deleted language uses strikethrough):
B-1 DESCRIPTION OF FACILITY
One hydro unit, synchronous, driven by a propeller type turbine.
Facility Nameplate Capacity: 4770 kW, 5300 kVA as shown in the photo attached hereto. The Facility is capable of generating up to 5050 kW which is set as the Maximum Capacity Amount in B-4 below.

DocuSign Envelope ID: B67CFA4A-FA19-4217-8C68-305726ECCECB

Project Number 31615107 – American Falls Reservoir District No. 2, Dietrich Drop
Hydroelectric Project Second Amendment Page 2 of 3
Qualifying Facility Category: Small Power Production
Primary Energy Source: Hydro
Fuelled or non-Fuelled Rate: Non-Fuelled
3. Appendix B-4. Paragraph B-4 shall be modified as follows: (additional language is underlined, and deleted language uses strikethrough):
B-4 MAXIMUM CAPACITY AMOUNT:
The Maximum Capacity Amount is 4770 kW5050 kW which is consistent with the
value provided by the that Seller to Idaho Power in accordance with the has
requested in its modified GIA. This value is the maximum generation that potentially could be delivered by the Seller’s Facility to the Idaho Power electrical system at any moment in time. Seller’s existing GIA is for 4770 kW, and Seller will limit operations to a Maximum Capacity Amount of 4770 kW unless and until
Seller’s GIA is Amended to provide for a Maximum Capacity Amount of 5050 kW.
4. Effect of Amendment. Except as expressly amended by this Second Amendment, the Agreement shall remain in full force and effect.
5. Capitalized Terms. All capitalized terms used in this Second Amendment and not defined
herein shall have the same meaning as used in the Agreement.
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 thereof.
7. Authority. Each Party represents and warrants that (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 Agreement, 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.

DocuSign Envelope ID: B67CFA4A-FA19-4217-8C68-305726ECCECB

Project Number 31615107 – American Falls Reservoir District No. 2, Dietrich Drop
Hydroelectric Project Second Amendment Page 3 of 3
IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be
duly executed as of this 28th day of July, 2023.

IDAHO POWER COMPANY
By: _________________________________ Name: _______________________________
Title: ________________________________
AMERICAN FALLS RESERVOIR DISTRICT NO. 2

By: _________________________________ Name: _______________________________
Title: ________________________________

DocuSign Envelope ID: B67CFA4A-FA19-4217-8C68-305726ECCECB
Ellis Gooch
Owner
Ryan N. Adelman
VP, Power Supply