HomeMy WebLinkAbout991223_sw.docDECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
DON HOWELL
STEPHANIE MILLER
TONYA CLARK
RON LAW
BILL EASTLAKE
RANDY LOBB
RICK STERLING
WORKING FILE
FROM:
DATE: December 23, 1999
RE: CASE NO. IPC-E-99-12 (Idaho Power)
SECOND AMENDMENT TO FIRM ENERGY SALES AGREEMENTS
ROCK CREEK II, DIETRICH DROP, LOW LINE II AND BARBER DAM QF PROJECTS
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.
Idaho Power contends that a hearing is unnecessary and requests that the matter be processed pursuant to Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. Staff concurs with the Company’s requested procedure.
Commission Decision
Does the Commission agree with the recommendation of the Company and Staff that it is appropriate to process the Application in Case No. IPC-E-99-12 pursuant to Modified Procedure—reference Rules 201-204 of the Commission’s Rules of Procedure?
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DECISION MEMORANDUM 1