20201203Application.pdf

1407 W. North Temple, Suite 330
Salt Lake City, Utah 84116

December 3, 2020

VIA ELECTRONIC DELIVERY

Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8 Suite 201A
Boise, ID 83714

Re: CASE NO. PAC-E-20-18
IN THE MATTER OF THE APPLICATION FOR APPROVAL OR REJECTION
OF THE AMENDED POWER PURCHASE AGREEMENT BETWEEN
PACIFICORP AND AMY FAMILY HOLDINGS, LLC

Dear Ms. Noriyuki:

Please find for filing Rocky Mountain Power’s Application in the above-referenced matter.

Informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at (801) 220-
2963.

Very truly yours,

Joelle R. Steward
Vice President of Regulation

Enclosures

RECEIVED
2020December 3, PM 3:00
IDAHO PUBLIC
UTILITIES COMMISSION

Page 1
Emily L. Wegener, (pro hac vice)
Rocky Mountain Power
1407 West North Temple, Rm 320
Salt Lake City, Utah 84116
Telephone: [phone]
Email: [e-mail]

Attorney for Rocky Mountain Power

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
FOR APPROVAL OR REJECTION OF THE
AMENDED POWER PURCHASE
AGREEMENT BETWEEN PACIFICORP
AND AMY FAMILY HOLDINGS, LLC
) CASE NO. PAC-E-20-18
)
) APP LICATION OF
) ROCKY MOUNTAIN POWER
)

Pursuant to the Rules of Procedure of the Idaho Public Utilities Commission, Rule 52, and
the applicable provisions of the Public Utility Regulatory Policies Act of 1978 (“PURPA”), 16
U.S.C. § Rocky Mountain Power, a division of PacifiCorp, (“Company”) respectfully requests that
the Idaho Public Utilities Commission (“Commission”) issue an order approving or rejecting the
amendment to extend for one year the Power Purchase Agreement (“PPA”) between PacifiCorp
and Amy Family Holdings, LLC qualified facility, (“Seller”) dated November 18, 2020. In support
of this Application, Rocky Mountain Power states as follows:
I. INTRODUCTION
1. Rocky Mountain Power provides electric service to retail customers in the states of
Idaho, Wyoming, and Utah. Rocky Mountain Power is a public utility in the state of Idaho and is
subject to the Commission’s jurisdiction with respect to its prices and terms of electric service to
retail customers pursuant to Idaho Code 61-129. Rocky Mountain Power provides retail electric
service to approximately 84,000 customers in the state of Idaho.
2. Seller owns, operates, and maintains a small hydro-electric power plant (the
“Facility”) located in Butte County, Idaho with a nameplate capacity rating of 450 kilowatts

Page 2
(“kW”). Seller operates the Facility as a Qualifying Facility (“QF”) under the applicable provisions
of PURPA.
3. Sections 201 and 210 of PURPA, and pertinent regulations of the Federal Energy
Regulatory Commission (“FERC”) require that regulated electric utilities purchase electricity
produced by co-generators or small power producers that obtain QF status. The rate a QF receives
for the sale of its electricity is generally referred to as the avoided cost and must reflect the
incremental cost to an electric utility of electric energy or capacity or both, which, but for the
purchase from the QF, such utility would generate itself or purchase from another source.
4. The Commission has authority under PURPA, Sections 201 and 210 and FERC
regulations, 18 C.F.R. 292, to set avoided costs, order electric utilities to enter into fixed-term
obligations for the purchase of electricity from QFs and implement FERC rules.
5. On December 18, 2012, the Commission issued Order No. 32697,1 which
established parameters for published and negotiated avoided cost rate calculations. The
Commission further established and defined numerous contract terms and conditions for standard
PPAs entered into between regulated utilities and QFs.
6. On January 2, 2013, the Commission issued an Errata to Order No. 32697, which
corrected published avoided cost rates to include energy payments not discounted by transmission
and line loss. Subsequently the Commission issued reconsideration Orders Nos. 32737 and 32802
on February 5, 2013 and May 5, 2013, respectively, which further clarified certain terms and
conditions of PPAs.

1 In the Matter of the Commission’s Review of PURPA QF Contract Provisions Including the Surrogate Avoided
Resource (SAR) and Integrated Resource Planning (IRP) Methodologies for Calculating Avoided Cost Rates, Case
No. GNR-E-11-03.

Page 3
7. The energy service agreement (“ESA”) contains published rates for projects of 10
average megawatts (“aMW”) or less pursuant to Commission Order No. 34350. The Facility is an
existing QF that is seeking a one-year extension to their agreement (“Amendment”). The ESA
contains capacity payments for the entire term of the Amendment; therefore, no sufficiency period
determination is necessary, see Order No. 32697 at 21-22, Order No. 32737 at 5, and Order No.
32871. Pursuant to the Commission's direction in its Reconsideration Order No. 32737, the rates
were calculated by Commission Staff for a QF in the “non-seasonal hydro” category based on the
surrogate avoided resource (“SAR”) avoided cost methodology.
II. AMENDED POWER PURCHASE AGREEMENT
8. The Seller’s current PURPA contract is dated January 3, 1985. The PURPA contract
was entered into prior to PacifiCorp separating its energy supply and transmission functions as
required by federal law and regulations.
9. Therefore, the contract includes provisions that address both energy sales and
interconnection requirements. The current contract was scheduled to expire on December 31, 2021,
and the Seller expressed a desire to continue to make sales from the Facility to PacifiCorp
consistent with the requirements of PURPA as implemented in the State of Idaho.
10. The Seller has demonstrated to PacifiCorp that the Facility remains a QF as defined
by PURPA and as implemented in the State of Idaho. The Seller and PacifiCorp are in the process
of securing a new stand-alone interconnection agreement that, after all distribution system
upgrades are constructed and in-service, will replace the interconnection provisions in the current
PURPA contract.
11. During the period that the necessary distribution system upgrades are being
completed, PacifiCorp and the Seller have agreed to a limited one-year extension to the term of

Page 4
the existing PURPA contract, with updated pricing for energy sales during the extended term. The
extension of the term is from January 1, 2022, through December 31, 2022, and total nameplate
capacity of the facility remains unchanged at 450 kW.
12. The Seller has demonstrated to the Company’s reasonable satisfaction that: (1) the
Facility’s net energy will equal the energy delivery schedules for the extended term of this
Amendment; and (2) the likelihood that the Facility, under average design conditions, will generate
at no more than 2.5 aMW in any calendar month. The Facility’s estimated net output over the
extended term is 2,087 megawatt-hours.
13. The Amendment submitted herewith, as Attachment 1, complies with the
Commission's previous orders, and except as otherwise indicated, the Company will pay the Seller
the price set forth in Exhibit A to the Amendment.
14. Paragraph 5 of the Amendment provides that the contract will not become effective
until the Commission has approved it and determined that the prices paid for energy and capacity
are just and reasonable, in the public interest, and that costs incurred by the Company for
purchasing energy and capacity are legitimate expenses, all of which the Commission will allow
the Company to recover in Idaho rates in the event other jurisdictions deny recovery of their
proportionate share of said expenses.
III. COMMUNICATIONS
15. Communications regarding this filing should be addressed to:
Ted Weston
Idaho Regulatory Affairs Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
Salt Lake City, Utah 84116
Telephone: [phone]
Email: [e-mail]
[e-mail]

Page 5
Emily Wegener (pro hac vice)
Senior Counsel
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone: [phone]
Email: [e-mail]
In addition, Rocky Mountain Power requests that all data requests regarding this
Application be sent in Microsoft Word to the following:
By email (preferred): [e-mail]

By regular mail: Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97232

Informal questions may be directed to Ted Weston, Idaho Regulatory Affairs Manager at
[phone].
IV. MODIFIED PROCEDURE
16. The Company believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under Modified
Procedure, i.e., by written submissions rather than by hearing, pursuant to RP 201.
V. REQUEST FOR RELIEF
WHEREFORE, Rocky Mountain Power respectfully requests that the Commission:
(1) Issue an order authorizing that this matter be processed by Modified Procedure;
(2) Approve or reject the Amendment to the power purchase agreement between Amy
Family Holdings, LLC and the Company without change or condition; and
(3) Declare that the avoided cost prices set forth in the Amendment are just and
reasonable, in the public interest, and that the Company’s incurrence of such costs are

Page 6
legitimate expenses, all of which the Commission will allow Rocky Mountain Power to
recover in rates in Idaho in the event other jurisdictions deny recovery of their
proportionate share of said expenses.

DATED this 3rd day of December, 2020.

Respectfully submitted,
ROCKY MOUNTAIN POWER

_____________________________
Emily L. Wegener

Attorney for Rocky Mountain Power

Attachment 1

#


 
 !#
"#"##

#
#

#
/BCR[ ()()/[ SB7[
 #63S76[ )MV7K47Q[ [ [ 3K7L6R[ SB3S[
57QS3CL[ +*1-[ +0-#.[ !-()/[ 47SW77L[+35C;MQO[ 3L[ *Q7AML[
5MQOMQ3SCML[
#3L6[ KY[ 3KCFY[#MG6CLAR[ ''[ 3R[ RT557RRMQ[ SM[ &3E7[ KY[
#63S76[&3LT3QY[[ [ 3R[ 3K7L676[RTNNG7K7LS76[ 3L6[ KM6C<76[ >MK[ SCK7[ SM[
SCK7[SB7[
3NCS3FCZ76[S7QKR[TR76[4TS[LMS[67;L76[CL[SBCR[K7L6K7LS[RB3FF[B3V7[SB7[
K73LCLA[R7S[=QSB[CL[SB7[++
[
-%/'.[
 +35C<MQN[3L6[.7FH7Q[7LS7Q76[CLSM[SB7[++[NQCMQ[SM[+35C;MQOR[R7N3Q3SCML[M8[CSR[7L7QAY
RTNNFY[3L6[SQ3LRKCRRCML[?L5SCMLR[3R[Q7PTCQ76[4Y[8767Q3H[H3W[3L6[Q7ATG3SCMLR[MQ[SBCR
Q73RML[SB7[++[[CL5FT67R[NQMVCRCMLR[SB3S[366Q7RR[4MSB[7L7QAY[R3G7R[3L6[CLS7Q5MLL75SCML
Q7PTCQ7K7LSR

/B7[++[CR[R5B76TF76[SM[7XNCQ7[4Y[CSR[S7QKR[ML[757K47Q[[[3L6[.7FF7Q[B3R
7XNQ7RR76[3[67RCQ7[SM[5MLSCLT7[SM[K3E7[R3G7R[>MK[SB7[35CFCSY[SM[+35C;MQN[5MLRCRS7LS
WCSB[SB7[Q7PTCQ7K7LSR[M8[SB7[:67Q3F[+T4GC5[0SCGCSY[-7ATF3SMQY[+MHC5C7R[5S[
+0-+[
3R[CKNF7K7LS76[CL[SB7[.S3S7[M8[$63BM
 .7HF7Q[B3R[67KMLRSQ3S76[SM[+35C<MQN[SB3S[SB7[35CGCSY[Q7K3CLR[3[,T3HC@CLA[ 35CHCSY[3R
67<L76[4Y[+0-+[[3L6[3R[CKNF7K7LS76[CL[SB7[.S3S7[M8J63BM

.7GF7Q[3L6[+35C;MQO[3Q7[CL[SB7[NQM57RR[M8[R75TQCLA[3[L7W[RS3L63GML7[CLS7Q5MLL75SCML
3AQ77K7LS[SB3S[ML57[7X75TS76[3L6[3GG[6CRSQC4TSCML[RYRS7K[TNAQ367R[3Q7[5MLRSQU5S76[3L6
CL R7QVC57[WCGG[Q7NF357[SB7[CLS7Q5MLL75SCML[NQMVCRCMLR[CL[SB7[++
 TQCLA[SB7[N7QCM6[SB3S[SB7[L757RR3QY[6CRSQC4TSCML[RYRS7K[TNAQ367R[3Q7[47CLA[5MKNF7S76
+35C9DMQN[3L6[.7FF7Q[B3V7[3AQ776[SM[3[GCKCS76[7XS7LRCML[SM[SB7[S7QK[M8[SB7[++[WCSB
TN63S76[NQC5CLA[=Q[7L7QAY[R3G7R[6TQCLA[SB7[7XS7L676[S7QK[M8[SB7[++[3R[67R5QC476[47GMW

"-()/[
+35C;MQO[3L6[.7GF7Q[3AQ77[3R[=FFMWR
[
QSC5H7[I[M8[SB7[++[CR[3K7L676[3L6[Q7RS3S76[SM[Q736[3R[=GGMWR
"Unless terminated earlier pursuant to the terms of this Agreement, this Agreement
shall expire upon the earlier of (i) the effective date of a new power purchase
agreement between PacifiCorp and Seller pertaining to the Facility,· or (ii)
December 31, 2022."
2. Notwithstanding any provision in the PPA to the contrary, for the period beginning
January 1, 2022 through the end of the term of the PPA, PacifiCorp shall pay Seller as
provided in Exhibit A to this Amendment for the energy output of the Facility delivered
to the Point of Delivery as adjusted for Losses.
3. Notwithstanding any provision in the PPA to the contrary, PacifiCorp shall not be
responsible to purchase the output of the Facility during periods that the Facility is
curtailed due to construction and completion of the distribution system upgrades called
for in the final, new stand-alone interconnection agreement between Seller and
PacifiCorp's transmission function.
4. Seller's contact information in Article 5 of the PPA is amended and replaced with the
following information:
"Amy Family Holdings, LLC
c/o Loretta S. Amy
3244 S Laurelhurst Place
Boise, ID 83 705
Cell Phone: [phone]"
5. This Amendment shall be effective once signed and delivered by both PacifiCorp and
Seller and approved by the Idaho Public Utilities Commission.
6. All other terms and provisions of the PPA shall remain unchanged. Each party hereby
ratifies and confirms that except as expressly amended hereby, all of the terms,
conditions, covenants, representations, warranties and all other provisions of the PPA
remain in full force and effect.
7. This Amendment shall be governed by and construed in accordance with the laws of
the State of Idaho (without reference to its choice of law doctrine).
8. This Amendment may be executed in multiple counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together
shall constitute but one and the same instrument. Delivery of an executed counterpart
of this Amendment by electronic transmission (in .pdf form) shall be equally as
effective as delivery of a manually executed counterpart.
[signature page follows J
#SVDF
(SJTXPME
%JSFDUPS

4IPSUUFSN
0SJHJOBUJPO
Bruce Griswold Digitally signed by Bruce Griswold
Date: 2020.11.18 13:42:36 -08'00'
IN WITNESS WHEREOF, the parties below have caused this Amendment to be executed in their
respective names.
PacifiCorp
By:-----------­ame:
Title:
Amy Family Holdings, LLC
EXHIBIT A
Energy Rate
Energy Purchase Price = Energy Annual Rate * Monthly Peak Multiplier
Table 1: Energy Annual Rates
Energy Annual Rate
Year $/MWh
2022 $51.58
Table 2: Monthly On-Peak/Off-Peak Multipliers
Month On-Peak Off-Peak
Hours Hours
January 103% 94%
February 105% 97%
March 95% 80%
April 95% 76%
Mav 92% 63%
June 94% 65%
July 121 % 92%
August 121% 106%
September 109% 99%
October 115% 105%
November 110% 96%
December 129% 120%
Where:
"Off-Peak Hours" means all hours that are not On-Peak Hours.
"On-Peak Hours" means all hours ending 07:00:00 through 22:00:00 MPT,
Monday through Saturday, excluding NERC designated holidays.