20231026Comments of the Commission Staff.pdf

MICHAEL DUVAL /ED
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION 6 AB $9
PO BOX 83720 ggeBOISE,IDAHO 83720-0074 MMISSION
[phone]
IDAHO BAR NO.11714
Street Address for Express Mail:
11331 W CHINDEN BLVD,BLDG 8,SUITE 201-A
BOISE,ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )COMPANY'S APPLICATION FOR )CASE NO.IPC-E-23-21
APPROVAL OF AMENDMENTS TO )AGREEMENTS FOR DELIVERY OF POWER )AND ENERGY WITH KING HILL )COMMENTS OF THE
IRRIGATION DISTRICT )COMMISSION STAFF
COMMISSION STAFF ("STAFF")OF the Idaho Public Utilities Commission,by and
through its Attorney of record,Michael Duval,Deputy AttorneyGeneral,submits the following
comments.
BACKGROUND
On September 11,2023,Idaho Power Company ("Company")applied to the Idaho Public
Utilities Commission ("Commission")for an order approving amendments to two separate,but
related,agreements entered into in 1979 (collectivelythe "1979 Agreements")by the Company
and King Hill Irrigation District ("KHID")(collectivelythe "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.
The 1979 Agreements were entered into on February 5,1979,("February Agreement")
and April l 1,1979,("April Agreement")respectively.
STAFF COMMENTS 1 OCTOBER 26,2023
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 that allows the Credit Amount to be adjusted to reflect
changes in Idaho Power's rates or charges in the rate schedule applicable to KHID's pumping
stations.Application at 5-6.
The April Agreement incorporated the February Agreement by reference and included
terms and conditions for the Company to supply electric service to the pumping stations
(identified in the February Agreement)and to allocate the Credit Amount to the pumping station
accounts.The April Agreement further detailed the Parties'terms limitingthe horsepower
("HP")of the river pumping stations to 10,000 HP.
The proposed second amendment to the February Agreement updates the number of
listed pumping stations by adding another station ("the Hammett Station").Thus,under the
proposed FebruaryAmendment,the Parties would utilize five pumping stations with the option
to add a sixth.
The Company proposed a first amendment to the April Agreement to 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 ANALYSIS
Staff recommends approving the February Amendment and the April Amendment
(collectively,the "Amendments").
Staff reviewed the Application,the 1979 Agreements,and the Amendments and found
nothing that would add cost to existing customers.Althoughthe Amendments authorize an
additional pump station,KHID is solely responsible for the cost of building the pump station and
paying the ongoing energy requirements.Response to Production Request No.2.Similarly,the
Amendments do not change the Credit Amount the Company must pay each year.
STAFF COMMENTS 2 OCTOBER 26,2023
Staff also examined the possibility of adverse impact to the Company's system.The net
effect of the Amendments is an increase of 100 horsepower (approximately 75 kilowatts)that the
Company must supply which Staff believes is a negligible amount.
Staff also discerned no risk that the Amendments will jeopardize the underlying1979
Agreements.To the contrary,the Amendments appear to strengthen the partnership and
cooperation between the Company and KHID.
Staff believes that the changes proposed by the Amendments are consistent with the
general intent of the 1979 Agreements.
STAFF RECOMMENDATION
Staff recommends approving the Amendments to the 1979 Agreements.
Respectfully submitted this 26th day of October 2023.
Michael Duval '
Deputy AttorneyGeneral
Technical Staff:Matt Suess
i:umisc/comments/IPC-E-23-21 Comments
STAFF COMMENTS 3 OCTOBER 26,2023
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 26th DAY OF OCTOBER 2023,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF TO
IDAHO POWER COMPANY,IN CASE NO.IPC-E-23-21,BY E-MAILING A COPY
THEREOF,TO THE FOLLOWING:
DONOVAN E WALKER TIM TATUM
MEGAN GOICOECHEA ALLEN CONNIE ASCHENBRENNER
IDAHO POWER COMPANY IDAHO POWER COMPANY
PO BOX 70 PO BOX 70
BOISE ID 83707-0070 BOISE ID 83707-0070
E-MAIL:[e-mail] E-MAIL:[e-mail]
[e-mail] [e-mail]
[e-mail]
JEFFREY BLANKSMA JR
CHAIRMAN
KING HILL IRRIGATION DISTRICT
PO BOX 993
GLENNS FERRY ID 83623
E-MAIL:[e-mail]
SECRETARY
CERTIFICATE OF SERVICE