20210802Final_Order_No_35123.pdf

ORDER NO. 35123 1

Office of the Secretary
Service Date
August 2, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On April 8, 2021, Rocky Mountain Power, a division of PacifiCorp (“Company”),
requested the Idaho Public Utilities Commission (“Commission”) approve or reject an amendment
to a power purchase agreement (the “Amended PPA”) with Georgetown Irrigation (“Georgetown”)
for energy generated by a 330-kilowatt hydroelectric facility (“Facility”).
On April 29, 2021, the Commission issued Notice of Modified Procedure and set
deadlines for interested persons to comment on the Application, and for the Company to reply.
The Commission Staff (“Staff”) filed comments on May 26, 2021, and the Company filed reply
comments and an amendment to the Amended PPA on June 2, 2021.
Having reviewed the record, the Commission issues this Order approving the Amended
PPA.
APPLICATION
The Facility has been delivering energy to the Company under a power purchase
agreement dated July 2, 1984, which expired on March 31, 2021. The Company represents that
the Amended PPA extends the term of the original power purchase agreement for one year, from
April 1, 2021, until March 31, 2022, and contains energy-only payment for that period. The
Company also states that the Amended PPA does not contain the 90/110 contract provision. The
Company requests the Commission declare all payments for purchases of energy under the
Amended PPA be allowed as prudently incurred expenses for ratemaking purposes.
STAFF COMMENTS
Staff recommended approval of the Amended PPA contingent on the parties filing an
update that includes the correct execution date. Staff’s review has focused on the 90/110 rule,
capacity payments, the lapsed contract period, the avoided cost rates, and the contracting date.
IN THE MATTER OF ROCKY MOUNTAIN
POWER’S APPLICATION FOR APPROVAL
OR REJECTION OF THE AMENDED
POWER PURCHASE AGREEMENT
BETWEEN PACIFICORP AND
GEORGETOWN IRRIGATION
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CASE NO. PAC-E-21-11

ORDER NO. 35123

ORDER NO. 35123 2

Staff believed it is acceptable to not include the 90/110 provision in the Amended PPA
for the limited period during which it is effective. However, when the long-term renewal contract
is submitted for Commission approval, Staff asserted the parties need to include the 90/110
provision in it.
Staff noted that although this Facility is paid for capacity at the end of the original 1984
contract and has contributed to meeting the Company’s need for capacity during its contract term,
the parties agreed to only use avoided cost rates of energy with no capacity payments. Staff
believed this arrangement is reasonable and incentivizes the Seller to finalize the transmission
interconnection agreement between these parties. Staff also recommended that the same rate
structure be used during the period between the expiration of the original contract and Commission
approval of the Amended PPA (the “Lapse Period”). Staff also reviewed the non-seasonal hydro
avoided cost rates in the Amended PPA and believed the rates are correct. The Amended PPA
was signed on March 30, 2021, and the parties used the rates authorized at that time.
Page 5 of the Application states that the Seller provided a signed copy of the Amended
PPA on March 25, 2021, and the Company executed the agreement on March 30, 2021. Staff
verified that the Amended PPA was executed on March 30, 2021, based on the Company's
signature. However, the opening paragraph of the Amended PPA is dated March 25, 2021. Staff
believes the date should be corrected to March 30, 2021, the execution date of the Amended PPA.
Staff recommended approval of the Amended PPA contingent on the parties filing an
updated Amended PPA that includes the correct execution date. Staff also recommended that the
Commission declare that the avoided cost prices in the Amended PPA be allowed as prudently
incurred expenses for ratemaking purposes.
COMPANY REPLY COMMENTS
On June 2, 2021, the Company filed reply comments that included an amendment to
the Amended PPA with a March 30, 2021, execution date and requested that it be approved or
rejected as requested in the Application.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-502 and 61-
503. The Commission is empowered to investigate rates, charges, rules, regulations, practices,
and contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code §

ORDER NO. 35123 3

61-502 and 61-503. In addition, the Commission has authority under PURPA and Federal Energy
Regulatory Commission (“FERC”) regulations to set avoided costs, to order electric utilities to
enter fixed-term obligations for the purchase of energy from QFs, and to implement FERC rules.
The Commission may enter any final order consistent with its authority under Title 61 and PURPA.
Having reviewed the record, including the Company’s Application, the Amended PPA,
Staff’s comments, and the Company’s reply comments, the Commission finds that the Amended
PPA, as modified by the amendment filed by the Company to correct the execution date, contains
Commission-approved terms for which the Facility is eligible based on characteristics like fuel
source, project size, generation output profile, and renewal contract status. Further, although this
Facility has been receiving capacity payments, the Commission finds that the use of avoided cost
rates for energy with no capacity payments is appropriate for the short term of the Amended PPA.
The Commission finds this will incentivize the Seller to finalize the transmission interconnection
agreement between these parties. The Commission also finds it appropriate that this same rate
structure be used during the Lapse Period. Further, although the 90/110 rule has become standard
in PURPA contracts presented to this Commission, we find the absence of this term acceptable in
the short term Amended PPA. Last, the Commission declares that the avoided cost rates in the
Amended PPA be allowed as prudently incurred expenses for ratemaking purposes.
O R D E R
IT IS HEREBY ORDERED that the Company’s Amended PPA with Georgetown
Irrigation is approved.
IT IS FURTHER ORDERED that all payments made by the Company for purchases
of energy under the Amended PPA are allowed as prudently incurred expenses for ratemaking
purposes.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.

ORDER NO. 35123 4

DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 2nd day
of August 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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