20220711Decision Memo.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

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

FROM: DAYN HARDIE
CLAIRE SHARP
YAO YIN

DATE: JULY 12, 2022

RE: IN THE MATTER OF ROCKY MOUNTAIN POWER’S COMPLIANCE
FILING IN CASE NO. PAC-E-20-18; IN THE MATTER OF ROCKY
MOUNTAIN POWER’S APPLICATION FOR APPROVAL OR
REJECTION OF THE POWER PURCHASE AGREEMENT WITH AMY
FAMILY HOLDINGS, LLC IN CASE NO. PAC-E-22-08.

BACKGROUND
On December 20, 2021, the Commission issued Order No. 35262 in Case No. PAC-E-20-
18, which approved an Amendment extending the 1985 contract between Amy Family Holdings,
LLC (“Seller”) and Rocky Mountain Power (“Company”) for one year conditioned on the
following two modifications:1
1. The Amendment reflects the actual installed nameplate capacity of the generator as 650
kilowatts (“kW”); and
2. The contracting parties agree to include bifurcated rates during the one-year extension—
avoided cost of energy and capacity for any hourly generation up to 600 kWhs and avoided
cost of energy only for any hourly generation exceeding 600 kWhs until the Company’s
next capacity deficit year using the applicable avoided cost rates approved in Order No.
34683.

1 The Company did not file a compliance filing with the Commission that reflected these two modifications until June
14, 2022.

DECISION MEMORANDUM 2

On March 18, 2022, during the one-year extension, the Seller and the Company entered
into a 20-year Power Purchase Agreement (“PPA”) and applied for Commission approval on May
18, 2022. See Case No. PAC-E-22-08.
On June 16, 2022, the Commission issued Order No. 35433 in Case No. PAC-E-22-08,
establishing a July 15, 2022 public comment deadline, and a reply comment deadline of July 22,
2022.
STAFF ANALYSIS
Staff recommends the Commission: (1) approve the Amendment filed on June 14, 2022,
as a compliance filing in Case No. PAC-E-20-18; (2) vacate the existing comment deadlines
established in Order No. 35433 in Case No. PAC-E-22-08; and (3) establish new comment
deadlines—14 days for public comments and 21 days for reply comments after the Commission
issues an order on the Amendment.
One-year Extension Amendment in Case No. PAC-E-20-18
Staff reviewed the Amendment filed on June 14, 2022 in compliance with Order No.
35262. Staff believes it complies with the Commission’s direction in Order No. 35262. The only
issue was the December 15, 2021, execution date included in the Amendment. Because the
Company signed the Amendment on December 27, 2021, and was the last party to sign, it should
have reflected the Company’s signature date as the execution date. The date does not cause any
issues to the substance of the Amendment; therefore, Staff recommends approval of the
Amendment as filed.
Schedule for Case No PAC-E-22-08
In Case No. PAC-E-22-08, the Company and the Seller entered into a 20-year renewal
PPA. Order No. 35433 established a comment deadline of July 15, 2022, and a reply comment
deadline of July 22, 2022. However, while reviewing the filing, Staff discovered that the Company
never filed an Amendment ordered by the Commission necessary to authorize the one-year
extension in Case No. PAC-E-20-18. Because the Amendment determines the baseline for
determining the avoided cost rates for the 20-year PPA, Staff cannot review the Application until
the Amendment is approved in Case No. PAC-E-20-18.
As explained above, Order No. 35262 conditioned the approval of the one-year extension
Amendment in Case No. PAC-E-20-18 on the change of the Facility nameplate capacity and
inclusion of bifurcated rates in the Amendment. Until the Commission approves the compliance
DECISION MEMORANDUM 3

filing, the one-year extension is not yet authorized, and Staff cannot develop positions for the 20-
year PPA proposed in Case No. PAC-E-22-08. Therefore, Staff recommends revoking the existing
comment and reply comment deadlines and establishing a new 14-day public comment deadline,
and an additional 7 days for the reply comment deadline. Staff verified that the Company is not
opposed to the proposed modified procedural schedule for Case No. PAC-E-22-08.
COMMISSION DECISION
Does the Commission wish to approve the following:
1. The Amendment filed by the Company on June 14, 2022, in Case No. PAC-E-20-18;
2. Revoking the existing July 15, 2022, comment deadline and the July 22, 2022, reply
comment deadline established in Order No. 35433; and
3. Establishing new comment deadlines for Case No. PAC-E-22-08—14 days for public
comments and a 7-day reply ??

_____________________________
Dayn Hardie
Claire Sharp
Deputy Attorneys General

I:\Legal\ELECTRIC\PAC-E-22-08 PPA Amy\memos\PACE2018_PACE2208_memo_dhcs.docx