20230817Supplemental Reply Comments.pdf

DONOVAN WALKER
Lead Counsel
[e-mail]

August 17, 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 Supplemental
Reply 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
Thursday, August 17, 2023 3:27:09 PM
IDAHO PUBLIC
UTILITIES COMMISSION
IDAHO POWER COMPANY’S SUPPLEMENTAL REPLY 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
SUPPLEMENTAL REPLY
COMMENTS

COMES NOW, Idaho Power Company (“Idaho Power” or “Company”) and,
pursuant to Idaho Public Utilities Commissions (“Commission”) Rule of Procedure1 203
and the Notice of Modified Procedure, Order No. 35815, and the Notice of Supplemental
Comment Deadlines, Order No. 35887, hereby respectfully submits the following
Supplemental Reply Comments in this case.

1 Hereinafter cited as RP.
IDAHO POWER COMPANY’S SUPPLEMENTAL REPLY COMMENTS - 2
I. INTRODUCTION
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”) (jointly, “Parties”) related to the sale and purchase
of electric generation from the Dietrich Drop Hydro Project (“Facility”). Immediately
following that submission, the Seller raised an additional item with regard to the stated
Nameplate Capacity in the ESA that is necessary to also correct in this new ESA moving
forward. Consequently, on July 28, 2023, Idaho Power filed a Motion and Supplemental
Comments, which included a Second Amendment to the ESA. The Second Amendment,
agreed to by the Parties subject to the Commission’s approval, clarified that though the
manufacturer’s stamped nameplate capacity is 4,770 kW, the Facility is capable of
generating up to 5,050 kW, and therefore the Maximum Capacity Amount was changed
to 5,050 kW.
On August 15, 2023, Commission Staff (“Staff”) filed Supplemental Comments
recommending approval of the ESA, the First Amendment, and the Second Amendment
with a couple further changes pertaining to the Second Amendment. In order to efficiently
and economically address Staff’s concerns, the Company prepared a Replacement
Second Amendment to the ESA, which is provided as Attachment 1 hereto and
incorporated herein by this reference, that makes additional changes recommended by
Staff in its Supplemental Comments. Idaho Power and Seller respectfully move that the
Commission accept the filing of this Replacement Second Amendment into the record
and consider approval of the First Amendment, the Replacement Second Amendment,
and the ESA itself prior to the expiration of the existing ESA on August 31, 2023.
IDAHO POWER COMPANY’S SUPPLEMENTAL REPLY COMMENTS - 3
II. REPLACEMENT SECOND AMENDMENT TO THE ESA
As previously explained, the 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 Replacement
Second Amendment and is consistent with the expiring agreement and the Generator
Interconnection Agreement (“GIA”) for this project. 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 inconsistent between the description of the Facility
in the ESA and actual operations can have serious consequences,2 it is necessary
amend the new ESA clarify both the Nameplate Capacity and the Maximum Capacity
Amount moving forward.
Accordingly, as more fully described in the Company’s Motion and Supplemental
Comments, the Parties agreed to modify the ESA 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. The original Second Amendment
incorporated these changes in Appendix B, including changing the Maximum Capacity

2 For example, the ESA provides that deliveries exceeding the Maximum Capacity Amount constitute a
Material Breach.
IDAHO POWER COMPANY’S SUPPLEMENTAL REPLY COMMENTS - 4
Amount from 4770 kW to 5050 kW, but as Staff noted, however, there were two other
references to Maximum Capacity Amount, in Appendices E and F of the ESA, that the
Parties overlooked.
Accordingly, the Replacement Second Amendment agreed to by the Seller
contains the same clarification to the Nameplate Capacity and change to the Maximum
Capacity Amount in Appendix B as previously described, and in addition, deletes the old
“4,770 kW” reference in the parenthetical in the title to Appendix E and Appendix F. More
specifically, the headings of Appendices E and F of the ESA shall be modified as follows
(additional language is underlined, and deleted language uses strikethrough):
APPENDIX E
SEASONAL HYDRO FACILITY ENERGY PRICES
(Prices based on the Maximum Capacity Amount of 4770 kW, Non-Fueled Rates)
APPENDIX F
NON-SEASONAL HYDRO FACILITY ENERGY PRICES
(Prices based on the Maximum Capacity Amount of 4,770 kW, Non-Fueled Rates)

Idaho Power and Seller have added this further revision, deleting the old reference
in the titles to “4,770 kW”, in the Replacement Second Amendment and, as a result, seeks
to have the Second Amendment that was submitted as Attachment 1 to the Company’s
Motion and Supplemental Comments filed on July 28, 2023, replaced in its entirety with
the Replacement Second Amendment provided as Attachment 1 herewith for
Commission approval. Idaho Power believes the attached and executed Replacement
Second Amendment makes the necessary changes to the ESA required to implement
Staff’s recommendations .
IDAHO POWER COMPANY’S SUPPLEMENTAL REPLY COMMENTS - 5
III. CONCLUSION
WHEREFORE, Idaho Power respectfully requests that the Commission accept the
replacement ESA between Idaho Power and Seller, the First Amendment to the ESA, and
the Replacement Second Amendment to the ESA, prior to the expiration of the existing
ESA on August 31, 2023, and declare that all payments for purchases of energy
thereunder be allowed as prudently incurred expenses for ratemaking purposes.
Respectfully submitted this 17th day of August 2023.

DONOVAN WALKER
Attorney for Idaho Power Company

IDAHO POWER COMPANY’S SUPPLEMENTAL REPLY COMMENTS - 6
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 17th day of August 2023, I served a true and
correct copy of the within and foregoing Idaho Power Company’s Supplemental Reply
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 Replacement Second Amendment Page 1 of 3
REPLACEMENT 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 isunderlined, 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.
Project Number 31615107 – American Falls Reservoir District No. 2, Dietrich Drop
Hydroelectric Project Replacement 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 isunderlined, 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.Appendices E and F. The headings of Appendices E and F shall be modified as follows:(additional language is underlined, and deleted language uses strikethrough):
APPENDIX E
SEASONAL HYDRO FACILITY ENERGY PRICES
(Prices based on the Maximum Capacity Amount of 4770 kW, Non-Fueled Rates)
APPENDIX F
NON-SEASONAL HYDRO FACILITY ENERGY PRICES
(Prices based on the Maximum Capacity Amount of 4,770 kW, Non-Fueled Rates)
5.Effect of Amendment. Except as expressly amended by this Second Amendment, the
Agreement shall remain in full force and effect.
6.Capitalized Terms. All capitalized terms used in this Second Amendment and not definedherein shall have the same meaning as used in the Agreement.
7.Scope of Amendment. This Second Amendment shall be binding upon and inure to the benefitof 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.
Project Number 31615107 – American Falls Reservoir District No. 2, Dietrich Drop
Hydroelectric Project Replacement Second Amendment Page 3 of 3
8.Authority. Each Party represents and warrants that (i) it is validly existing and in goodstanding 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.
9.Counterparts. This Second Amendment may be executed in any number of counterparts, eachof which shall be deemed an original and all of which taken together shall constitute a singleinstrument.
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 AMERICAN FALLS RESERVOIR
DISTRICT NO. 2
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