HomeMy WebLinkAbout20060524_1568.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CECELIA A. GASSNER
DATE:MAY 16,2006
SUBJECT:IN THE MATTER OF THE APPLICATION OF IDAHO POWER
COMP ANY FOR APPROV AL OF A FIRM ENERGY SALES
AGREEMENT WITH CKTV1 ENERGY, LLC, CASE NO. IPC-06-
On April 28 , 2006 , Idaho Power Company ("Idaho Power" or "Company ) filed an
Application requesting approval of a Firm Energy Sales Agreement dated April 28, 2006 with
CKTVI Energy, LLC ("CKTV1"). Under the Agreement, CKTVI would sell and Idaho Power
would purchase electric energy generated by CKTV1's Treasure Valley 1 anaerobic digester gas-
to-energy facility located near Caldwell, Idaho. The Company asks the Commission approve the
Agreement and declare that all payments for purchases of energy under the Agreement be
allowed as prudently incurred expenses for ratemaking purposes.
THE AGREEMENT
According to the Application, Riverside proposed to design, construct, install, own
operate and maintain a 3.2 MW anaerobic digester gas-to-energy generating facility to be located
near Caldwell, Idaho (the "Facility ). The Facility will be a qualified small power production
facility under the applicable provisions of the Public Utility Regulatory Policies Act of 1978
PURP A"
Under the terms of the Agreement, CKTVI has elected to enter into the Agreement
with Idaho Power for a twenty-year term. CKTVI further elected to contract with the Company
using the non-Ievelized published avoided cost rates as currently established by the Commission
for energy deliveries of less than 10 aMW. All applicable interconnection charges and monthly
operation and maintenance charges under Schedule 72 will be assessed CKTVI.
DECISION MEMORANDUM
CKTVI has elected November 1 , 2006 as the scheduled first energy date and March
, 2007 as the scheduled operation date for the Facility. Certain requirements have been placed
on Riverside for Idaho Power to accept energy deliveries from the Facility. Idaho Power will
monitor compliance with these initial requirements, as well as ongoing requirements throughout
the term of the Agreement.
STAFF RECOMMENDATION
Staff recommends that the Company s Application be processed by Modified
Procedure with a 2l-day comment period. This should allow sufficient time for interested
parties to review the Company s Application and file their comments with the Commission.
Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
CO MMISSI ON D ECISI 0 N
Does the Commission preliminarily find that the public interest may not require a
hearing to consider the issues presented in this case, and that this case is appropriate for
Modified Procedure pursuant to Commission Rules of Procedure 201 through 204?
Does the Commission approve of a comment period of 21 days?
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Cecelia A. assner
DECISION MEMORANDUM