20231229Final_Order_No_36040.pdf

ORDER NO. 36040 1

Office of the Secretary
Service Date
December 29, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On September 22, 2023, Idaho Power Company (“Company”), applied for approval of
a third amendment (“Third Amendment”) to its energy sales agreement (“ESA”) with North Side
Energy Company (“Seller”) for energy generated by the Hazelton A Hydro Project (“Facility”).
On October 23, 2023, the Commission issued a Notice of Application and Notice of
Modified Procedure. Order No. 35965. Commission Staff (“Staff”) submitted the only comments.
Having reviewed the record, the Commission issues this Order approving the
Company’s Application as follows.
BACKGROUND
The Company has had an ESA for the purchase and sale of energy generated by the
Facility since 2010. The ESA has been amended twice since its formation. See Order Nos. 33053
and 34639 (approving previous amendments updating the “Mid-Columbia Market Energy Cost
Definition” and changing the notification period for Net Energy Amount monthly adjustments).
According to the Company, the proposed revisions contained in the Third Amendment will not
affect conditions, rates, or other terms of the ESA.
THE APPLICATION
The Company indicated that it recently became aware of discrepancies between the
nameplate capacity of three generating units listed in Appendix B of the ESA and the
manufacturer’s “nameplate” capacities attached to the units. Specifically, the nameplate capacity
listed in Section B-1 “Description of the Facility” indicates each of the generating units has a
nameplate capacity of 2,700 Kilowatts (“kW”), but the manufacturer’s “nameplate” attached to
each unit specifies a capacity of 2,898 kW. According to the Company, this discrepancy likely
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF A THIRD AMENDMENT TO
THE ENERGY SALES AGREEMENT WITH
THE HAZELTON A HYDRO PROJECT
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CASE NO. IPC-E-23-22

ORDER NO. 36040
ORDER NO. 36040 2

resulted from a prior owner of the Facility replacing the original nameplates due to an error in
those plates.1
The Company also discovered additional discrepancies between the Project’s
Maximum Capacity Amount contained in Section B-4 “Maximum Capacity Amount,” the
cumulative manufacturer Revised Nameplate Capacity rating for the units, and the total project
output the parties agreed upon in their Generation Interconnection Agreement (“GIA”). While
Section B-4 lists a maximum capacity of 8.1 megawatts (“MW”), the cumulative manufacturer’s
Revised Nameplate Capacity rating is 8.694 MW (2,898 kW x 3), and the GIA indicates a total
facility output of 7.7 MW. Regardless of the origin of these discrepancies, the Seller has expressed
the intent to operate the Facility according to output listed in the GIA.
Additionally, the Company noted the Commission has indicated in prior cases that
Article XXIII “Modifications” of the ESA requires revision to address certain situations involving
future Facility modifications. Specifically, these proposed modifications would ensure that,
following a modification, the Facility operates under an appropriate contract with correct
descriptions of the modified Facility and the rate recovered from customers.
In light of the above, the Company seeks approval of the Third Amendment to: (1)
revise Section B-1 to describe the generating units using the manufacturer’s Revised Nameplate
Capacity rating (2,898 kW) and remove superfluous language; (2) revise Section B-2, Location of
the Facility, to remove superfluous language; (3) revise Section B-4, Maximum Capacity Amount,
to make it consistent with the output listed in the GIA (7.7 MW); and (4) revise Article XXIII
“Modifications” to conform with Commission approved language. The Company included a copy
of the Third Amendment as an attachment to the Application.
STAFF COMMENTS
Staff reviewed the Third Amendment with a focus on the proposed revisions to
nameplate capacity, maximum capacity amount, and Article XXIII “Modifications” and
recommends approval. Staff believed it was reasonable to revise the nameplate capacity for each
of three generating units listed in the ESA from 2,700 kW to 2,898 kW as shown on the
manufacturer’s nameplate. Likewise, Staff believed it was reasonable to replace the maximum
capacity amount listed in the ESA (8.1 MW) with the maximum output to which the Seller agreed

1 The Seller represents that the generating units have not been overhauled since installation, but the manufacturer’s
nameplates were replaced with revised ones ostensibly because of an error in the capacity amounts listed in the original
nameplates.
ORDER NO. 36040 3

to in the GIA (7.7 MW) as the actual maximum output does not change and will not necessitate
updating avoided cost rates. Staff also believed the proposed revisions to Article XXIII
“Modifications” are both reasonable and compliant with Order No. 35705.
COMMISSION DISCUSSION AND FINDINGS
The Commission has jurisdiction over the Company’s Petition and the issues in this
case under Title 61 of the Idaho Code including, Idaho Code §§ 61-501, 502, and -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, 61-
503. Based on our review of the record, including the Application, proposed Third Amendment,
and Staff’s comments, we find it reasonable to grant the Company’s Application.
Accurate description of the nameplate capacity of the individual generating units in
the Facility will aid in future interpretation and application of the ESA by reducing the risk of
future confusion or error. Accordingly, we find it reasonable to revise the nameplate capacity of
the units contained in the ESA as proposed in the Third Amendment.
Similarly, the proposed Third Amendment revises the ESA to indicate that, although
the cumulative Nameplate Capacity of the three generators at the Facility is 8.694 megawatts
(“MW”), the Seller has agreed to operate the Facility according to the 7.7 MW total project output
contained in the GIA. Because these proposed revisions accurately describe the Facility and its
operation without changing the maximum output of the Facility or necessitating an update to
avoided cost rates, we find it reasonable to revise the Maximum Capacity Amount in the ESA as
proposed in the Third Amendment.
Finally, Staff has previously indicated that the ESA’s Article XXIII “Modifications”
requires revision. See e.g., Case Nos. IPC-E-23-02, IPC-E-23-15, IPC-E-23-22. The proposed
Third Amendment complies with Order No. 35705, in which we identified certain concerns with
an article in another ESA that similarly addressed facility modifications. Accordingly, based on
our review, we find it fair, just, and reasonable to approve the Company’s Third Amendment to its
ESA with the Seller for energy generated by the Facility.
O R D E R
IT IS HEREBY ORDERED that the Third Amendment to the ESA revising (1) Section
B-1 to describe the generating units using the manufacturer’s Revised Nameplate Capacity rating
ORDER NO. 36040 4

(2,898 kW) and remove superfluous language; (2) Section B-2, Location of the Facility, to remove
superfluous language; (3) Section B-4, Maximum Capacity Amount, to make it consistent with the
output listed in the GIA (7.7 MW); and (4) Article XXIII “Modifications” to conform with
Commission approved language 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. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 29th day
of December 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

Monica Berrios-Sanchez
Interim Commission Secretary

I:\Legal\ELECTRIC\IPC-E-23-22_Hazelton\orders\IPCE2322_final_at.docx