20221004Decision Memo.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

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

FROM: CLAIRE SHARP
DEPUTY ATTORNEY GENERAL

DATE: OCTOBER 4, 2022

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

BACKGROUND
On August 19, 2022, the Commission issued Order No. 35506, which required PacifiCorp
d/b/a Rocky Mountain Power (“Company”) and Amy Family Holdings, LLC. (“Seller”)
(collectively, the “Parties”) to modify the Power Purchase Agreement (“PPA”) filed in the
Application to reflect the following requirements:
1. Adding language that “restricts the Seller from modifying the Facility from the as-built
description of the Facility included in Exhibit B, without promptly notifying the Company
of that intent.”
2. Adding language that “requires the Seller to provide notification of planned modifications
(such as fuel change or capacity size change) to the as-built description.”
3. Adding language that “the Parties will need to amend the contract again to reflect the actual
modification and seek approval from the Commission if the actual modification deviates
from the proposed modification.”
4. Updating Section 21 of the PPA to reflect the significance of Commission approval.
The Commission directed the Parties to provide the Commission with an updated PPA as
a compliance filing within fifteen days of the Order being issued.
On August 29, 2022, the Company submitted the Amended and Restated Power Purchase
Agreement (“Amended PPA”) to reflect the requirements of Order No. 35506.
DECISION MEMORANDUM 2

STAFF ANALYSIS
Staff has reviewed the Amended PPA and recommends the Commission approve the
Amended PPA as filed. Requirements 1, 2, and 3 are reflected in Section 6.1 of the Amended
PPA, and requirement 4 is reflected in Section 21.
Although the contract language added to address requirement 3 only focuses on deviation
of the actual modification from the proposed modification for the Nameplate Capacity Rating and
the expected annual Net Output, instead of deviation for any modification, Staff believes the
proposed contract language is adequate, because these two items are the major sources for potential
overpayments of avoided cost of capacity due to overgeneration, and the language added in the
Amended PPA requires Commission approval of the deviation between actual modification and
the proposed modification for these two items, which Staff believes will adequately prevent
overpayments.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Amended PPA as filed.
COMMISSION DECISION
Does the Commission wish to approve the Amended PPA as filed?

_____________________________
Claire Sharp
Deputy Attorney General

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