20210604Decision Memo.pdf

DECISION MEMORANDUM
TO:C OMlVtrS SIOII"E R KJELLAI\DER
COM1VIISSIONER RAPER
COMMISSIONER A}IDERSON
COM1VIISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GEI\ERAL
DATE: JIINE 4,2021
ST]BJECT:IN THE MATTER OF ROCKY MOUNTAIN POWER'S APPLICATION
FOR APPROVAL OR REJECTION OF THE POWER PT]RCHASE
AGREEMENT BETWEEN PACIFICORP AI\D DRY CREEK LLC; CASE
NO. PAC-E-21-13.
On May 11,2021, Rocky Mountain Power, a division of PacifiCorp, ("Company")
applied for consideration of a Power Purchase Agreement ("PPA" or "Agreement") with Dry
Creek LLC for energy generated by a 3.4-megawatt hydroelectric facility ("Facility"). Application
at l-2. The Facility is in Butte County, Idaho. Id. at Attachment l. The Facility is a qualifuing
facility under the Public Utility Regulatory Policies Act of 1978. Id. at 3. The PPA's effective date
is May 1,2022. Application, Attachment 3.
THE APPLICATION
The Facility has been delivering energy to the Company in accordance with a power
purchase agreement dated May 2, 1986, which expires April 30, 2022. Application at 3. The
Company states that the Agreement contains published non-seasonal, non-levelized avoided cost
rates for a20-year term. See Id. at Attachment l. The Company requests the Commission declare
all payments for purchase of energy under the PPA be allowed as prudently incurred expenses for
ratemaking purposes. Id. at 5.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, setting a July 20,2021, comment deadline and a July 27,202l,reply
comment deadline.
IDECISION MEMORANDUM
COMMISSION DECISION
Does the Commission wish to iszuo a Noticc of Applioation md Notice of Modifid
Procefurc, setting a luly 20, 20.[I, coumc,nt deadlinc and a ltily 27, 21021, rcply commcnt
doadlinc?
Hunter
Deputy Attorncy Goocral
tuairnE BcT$OpAp.E.el.lrUnffiilFAeBet t!-rb.[m..,td.dsrt
2DECISION MEMOR,ANDIJM