20210702Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: MATT HUNTER
DEPUTY ATTORNEY GENERAL

DATE: JULY 2, 2021

SUBJECT: IN THE MATTER OF ROCKY MOUNTAIN POWER’S APPLICATION
FOR APPROVAL OR REJECTION OF THE POWER PURCHASE
AGREEMENT BETWEEN PACIFICORP AND MINK CREEK HYDRO
LLC; CASE NO. PAC-E-21-14.

On June 11, 2021, Rocky Mountain Power, a division of PacifiCorp (“Company”),
applied for consideration of a Power Purchase Agreement (“PPA” or “Agreement”) with Mink
Creek Hydro LLC for energy generated by a 2.95-megawatt hydroelectric facility (“Facility”).
Application at 1. The Facility is in Franklin County, Idaho near Preston. Id. The Facility is a
qualifying facility under the Public Utility Regulatory Policies Act of 1978. Id. at 2. The PPA’s
effective date is April 1, 2022. Id.; see PPA at 10.
THE APPLICATION
The Facility has been delivering energy to the Company in accordance with a power
purchase agreement dated May 21, 1985, which expires March 31, 2022. Application at 3. The
Agreement contains published non-seasonal, non-levelized avoided cost rates for a 20-year term.
See PPA at 10, Exhibit K. The Company requests the Commission declare all payments for
purchase of energy under the PPA be allowed as prudently incurred expenses for ratemaking
purposes. Application at 5.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure, setting a July 29, 2021 comment deadline and an August 5, 2021 reply
comment deadline.

DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, setting a July 29, 2021 comment deadline and an August 5, 2021 reply comment
deadline?

__________________________
Matt Hunter
Deputy Attorney General

I:\Legal\ELECTRIC\PAC-E-21-14\memos\PACE2114_dec memo_mh.docx