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HomeMy WebLinkAboutmodproc.app.docBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF SECOND AMENDMENTS TO FIRM ENERGY SALES AGREEMENTS FOR THE ROCK CREEK II, DIETRICH DROP, LOWLINE II, AND BARBER DAM HYDROELECTRIC GENERATING PROJECTS. ) ) ) ) ) ) ) ) ) CASE NO. IPC-E-99-12 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/ PROTEST DEADLINE YOU ARE HEREBY NOTIFIED that on December 1, 1999, Idaho Power Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) in Case No. IPC-E-99-12 requesting approval of proposed Second Amendments to Firm Energy Sales Agreements between Idaho Power and Bonneville Pacific Corporation for the Dietrich Drop, Rock Creek II and Low Line II projects, and Interwest Hydro, Inc. for the Barber Dam small hydro electric generating project. The current owner of the Dietrich Drop, Rock Creek II and Low Line II projects is BP Hydro Associates. CHI Hydro, Inc. is a general partner of BP Hydro Associates. Fulcrum, Inc. is the owner of the Barber Dam project. Fulcrum, Inc. and CHI Hydro, Inc. are both part of the CHI Energy, Inc. family of companies. Pursuant to the Public Utilities Regulatory Policies Act of 1978 (PURPA) Idaho Power is required to purchase energy from qualifying small power production facilities (QFs). The Dietrich Drop, Rock Creek II, Low Line II and Barber Dam projects are QFs. In Order No. 21690 in Case No. U-1006-292, the Commission established security provisions for the overpayment liability that results from levelized QF contracts. The Commission’s Order required QFs to establish maintenance reserve and low water reserve escrow accounts in an Idaho financial institution. Since the Commission initially established the requirement for escrow accounts, Idaho Power reports that it has become extremely difficult for QF developers to find local banks to provide the escrow account services of the nature required by the Commission’s Orders. (Reference amendment to Firm Energy Sales Agreement for Magic Reservoir project—Case No. IPC-E-98-14, Order No. 27839). CHI has contacted Idaho Power and proposed a simplified alternate escrow account arrangement for each of the four projects in a manner identical to the procedure the Commission approved in Order No. 27839 for Magic Reservoir. The procedure described in the Second Amendments would allow funds from the maintenance account and low water reserve account to be mingled in a single account with separate accounting for each of the two reserved amounts. Permitted withdrawals from the single account requires two signatures, either by two Idaho Power signatories or by one Idaho Power signatory and one QF signatory. Idaho Power states that such an arrangement will allow it to effectively monitor and control disbursements from the account. YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. IPC-E-99-12. The Commission has preliminarily determined that the public interest regarding the Second Amendments to the Firm Energy Sales Agreements for the identified projects may not require a hearing to consider the issues presented and that the issues raised by the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in this proceeding unless it receives written protests or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used. Reference IDAPA 31.01.01.203. YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the Commission’s use of Modified Procedure in Case No. IPC-E-99-12 is Thursday, January 20, 2000. Persons desiring a hearing must specifically request a hearing in their written protests or comments. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the issue on its merits and enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order on the written positions before it. Reference IDAPA 31.01.01.204. YOU ARE FURTHER NOTIFIED that written comments concerning Case No. IPCE-99-12 should be mailed to the Commission and the Company at the addresses reflected below: COMMISSION SECRETARY IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 Street Address for Express Mail: 472 W WASHINGTON ST BOISE, ID 83702-5983 BARTON L. KLINE IDAHO POWER COMPANY PO BOX 70 BOISE, ID 83707 Street Address for Express Mail: 1221 WEST IDAHO STREET BOISE, ID 83702 All comments should contain the case caption and case number shown on the first page of this document. YOU ARE FURTHER NOTIFIED that the Application in Case No. IPC-E-99-12 can be reviewed at the Commission’s office and at the principal office of Idaho Power Company during regular business hours. DATED at Boise, Idaho this _______ day of December 1999. DENNIS S. HANSEN, PRESIDENT MARSHA H. SMITH, COMMISSIONER PAUL KJELLANDER, COMMISSIONER ATTEST: Barbara Barrows Assistant Commission Secretary vld/N:IPC-E-99-12_sw NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE 1 Office of the Secretary Service Date December 30, 1999