20220722Decision Memo.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

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

FROM: DAYN HARDIE
YAO YIN

DATE: JULY 26, 2022

RE: IN THE MATTER OF ROCKY MOUNTAIN POWER’S COMPLIANCE
FILING OF AMENDMENT NO. 1 IN CASE NO. PAC-E-21-05

BACKGROUND
On January 25, 2022, the Commission issued Order No. 35303, conditionally approving
the Power Purchase Agreement (“PPA”) between Rocky Mountain Power (“Company”) and
Commercial Energy Management, Inc. (“Seller”) filed on March 3, 2021. The approval was
conditioned upon the Company and Seller executing and filing a conforming amended PPA
containing: (1) modification of the definition of Expected Net Output to reflect that the forecast is
not updated after contracting and should use the correct amount of 2,310 megawatt-hours per year
(“MWh/year”); and (2) correction of the “three months” in Section 4.9.2 of the PPA to state “six
months.”
On February 9, 2022, the Seller filed Petition for Reconsideration (“Petition”) and
requested that the Commission reconsider its imposition of the 90/110 Provision in the PPA.
On April 25, 2022, the Commission issued Order No. 35384, denying the Seller’s Petition
and ordering a filing of a fully executed, amended PPA addressing the matters set forth by Order
No. 35303 within 30 days.
On May 18, 2022, the Company filed Amendment No. 1, addressing the two conditions set
forth by Order No. 35303.

DECISION MEMORANDUM 2

STAFF ANALYSIS
Staff has reviewed the Company’s Amendment No. 1 and believes it sufficiently addresses
the two issues discussed in Order No. 35303. First, Amendment No. 1 did not modify the definition
of Expected Net Output to reflect that the forecast is not updated after contracting; instead, it
deleted the definition of Expected Net Output, because it was not used by the PPA. Staff agreed
with this change1. Second, the Company changed “three months” to “six months” in Section 4.9.2
of the PPA, which complied with Order No. 35303.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Company’s Amendment No. 1 to the
PPA as filed on May 18, 2022.
COMMISSION DECISION
Does the Commission wish to approve the Company’s Amendment No. 1 as filed on May
18, 2022?

_____________________________
Dayn Hardie
Deputy Attorney General

I:\Legal\ELECTRIC\PAC-E-21-05\memos\PACE2105_comp_memo_yydh.docx

1 Staff stated in its Comments filed on April 28, 2021 that for the purpose of the 90/110 Rule, only the monthly
estimates are used, instead of annual estimates and that the definition of Expected Net Output should be modified if
the definition is necessary in the PPA.