20240312Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: ADAM TRIPLETT
DEPUTY ATTORNEY GENERAL

DATE: MARCH 12, 2024

SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION
FOR APPROVAL OR REJECTION OF AN ENERGY SALES
AGREEMENT WITH BP HYDRO ASSOCIATES FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY FROM THE ROCK CREEK II
HYDRO PROJECT; CASE NO. IPC-E-24-09

On February 29, 2024, Idaho Power Company (“Company”), applied for approval of
an Energy Sales Agreement (“ESA”) with BP Hydro Associates (“Seller”) for energy generated
by the Rock Creek II Hydro Project (“Facility”). The Facility is located in Twin Falls County,
Idaho, and is a Qualifying Facility under the Public Utility Regulatory Policies Act of 1978 with
a 1.9 megawatt nameplate capacity. The proposed ESA is for a 20-year term using the non-
levelized, published avoided cost rates for non-seasonal hydro resources as currently established
by the Commission in GNR-E-23-02 and would replace the existing ESA formed in 1987 that
expires on April 2, 2024. The Company requests that, if the proposed ESA is approved, that all
payments it makes to the Seller to purchase energy will be allowed as prudently incurred
expenses for ratemaking purposes and that this matter be processed via modified procedure.
RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure establishing an April 18, 2024, public comment deadline, and an April 25,
2024, Company reply comment deadline.

DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure establishing a public comment deadline of April 18, 2024, and a company reply
deadline of April 25, 2024?

_____________________________
Adam Triplett
Deputy Attorney General

I:\Legal\ELECTRIC\IPC-E-24-09_BP Hydro\memos\IPCE2409_dec_at.doc