20231213Final_Order_No_36021.pdf

ORDER NO. 1
Office of the Secretary
Service Date
December 13, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF AMENDMENTS TO
AGREEMENTS FOR DELIVERY OF
POWER AND ENERGY WITH KING HILL
IRRIGATION DISTRICT
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CASE NO. IPC-E-23-21

ORDER NO. 36021

On September 11, 2023, Idaho Power Company (“Company”) applied to the Commission
for an order approving amendments to separate, but related, agreements entered into in 1979
(collectively the “1979 Agreements”) by the Company and King Hill Irrigation District (“KHID”)
(collectively the “Parties”). Generally, the 1979 Agreements allow the Company to use KHID’s
water for power generation and sets the terms and conditions for the Company supplying energy
to KHID.
On October 5, 2023, the Commission issued a Notice of Application and established public
comment and party reply deadlines. Order No. 35948. Commission Staff (“Staff”) filed the only
comments in this case.
With this Order, we approve each of the Company’s proposed amendments to the 1979
Agreements.
BACKGROUND
The 1979 Agreements were entered into on February 5, 1979, (“February Agreement”) and
April 11, 1979, (“April Agreement”) respectively.
The February Agreement allows the Company to use KHID’s water to generate 22,108
megawatt hours of power under median water conditions. See Application at 3 citing Order No.
14439. In return, the Company made an initial non-refundable lump sum payment to KHID of $1
million. Further, the Company agreed to provide an annual credit to KHID to offset KHID’s energy
consumption at its river pumping stations once constructed. The annual credit amount is based on
14,000,000 kilowatt hours (“Credit Amount”). In 1988, the Parties entered into an amendment to
the February Agreement to provide that the Credit Amount would be adjustable to reflect changes
in the Company’s rates or charges in the rate schedule applicable to KHID’s pumping stations.
Application at 5-6.
ORDER NO. 2
The April Agreement incorporated the February Agreement by reference and provided the
terms and conditions for the Company to supply electric service to the pumping stations identified
in the February Agreement and for the allocation of the Credit Amount to the pumping station
accounts. The April Agreement provided further clarifications that were absent from the February
Agreement regarding the pumping stations’ points of delivery, voltage, account information, and
other relevant terms; the April Agreement also limited the horsepower (“HP”) of the river pumping
stations to 10,000 HP.
THE APPLICATION
The proposed second amendment to the February Agreement (“February Amendment”)
updates the number of listed pumping stations by adding another station (the “Hammett Station”).
Thus, under the proposed February Amendment, the Parties would utilize five pumping stations
with the option to add a sixth.
The Company’s proposed first amendment to the April Agreement (“April Amendment”)
would update information regarding the Hammett Station and other aspects of the existing
pumping stations. The April Amendment would also raise the limit of the HP of the pumping
stations from 10,000 HP to 10,100 HP.
STAFF COMMENTS
Staff reviewed the Application and determined that approval of the Parties’ proposed
Amendments would not increase costs for the Company’s customers. Staff noted that KHID would
bear the financial costs arising from the additional pump station. Likewise, Staff stated that the
proposed Amendments will not change the Credit Amount the Company pays KHID each year.
Staff also noted that adding 100 HP to the system will only require the Company to supply
approximately 75 kilowatts of additional power; Staff believed this was a negligible amount.
Finally, Staff stated that the Amendments are consistent with the overall intent of the 1979
Agreements and ultimately strengthen cooperation between the Parties.
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,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and 61-503.
ORDER NO. 3
The Commission has reviewed the record including the Application, the April Agreement
and February Agreement with their respective Amendments, and Staff’s comments. The purpose
of the proposed Amendments ensure that the descriptions of the relevant pumping stations and
associated facilities in the 1979 Agreements are both accurate and comply with previous
Commission rulings. The Commission finds it is in the public interest to approve the proposed
Amendments to ensure that the February and April Agreements accurately describe the pumping
stations and the HP limit of those pumping stations. The Commission finds that it is reasonable to
approve the Company’s proposed Amendments to the 1979 Agreements accordingly.
ORDER
IT IS HEREBY ORDERED that the Company’s Application to approved the February
Amendment and the April Amendment to the 1979 Agreements is approved.
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.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 13th day of
December 2023.

__________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER

__________________________________________
EDWARD LODGE, COMMISSIONER
ATTEST:

__________________________________
Monica Barrios-Sanchez
Interim Commission Secretary

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