HomeMy WebLinkAbout20060524_1569.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 RIVERSIDE HYDRO I LLC, CASE NO. IPC-06-
On April 27 , 2006, Idaho Power Company ("Idaho Power" or "Company ) filed an
Application requesting approval of a Firm Energy Sales Agreement dated April 13 , 2006 with
Riverside Hydro I LLC ("Riverside ). Under the Agreement, Riverside would sell and Idaho
Power would purchase electric energy generated by Riverside s Mora Drop Small Hydroelectric
Facility located near Kuna, 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 1.9 MW small canal hydroelectric generating facility to be located near
Kuna, 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, Riverside has elected to enter into the Agreement
with Idaho Power for a twenty-year term. Riverside 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 Riverside.
DECISION MEMORANDUM
Riverside has elected May 15 , 2006 as the scheduled first energy date and July I
2006 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.
ST AFF RECOMMENDATION
Staff recommends that the Company s Application be processed by Modified
Procedure with a 21-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.
COMMISSION DECISION
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?
DECISION MEMORANDUM