HomeMy WebLinkAbout20061002_1692.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:SEPTEMBER 29, 2006
SUBJECT:IDAHO POWER'S APPLICATION TO INSTITUTE A UNIFORM
SCHEDULE 72 INTERCONNECTION AGREEMENT, CASE NO. IPC-
06-
On September 1 , 2006, Idaho Power Company filed an Application seeking authority
to revise its Schedule 72 to include a Uniform Interconnection Agreement and to make the
associated tariff language changes. The Company requests that its Application be processed by
Modified Procedure.
THE APPLICATION
According to the Company s Application, it is proposing to implement a separate
Uniform Interconnection Agreement to improve its internal processes and ensure the functional
separation between power supply and delivery mandated by the Federal Energy Regulatory
Commission (FERC). The Company states that when non-utility projects, such as PURP
qualified facilities (QFs), request interconnection to Idaho Power s distribution/transmission
system the current practice is to address those issues in the power purchase agreement document
and in conjunction with Schedule 72 (Interconnections to Non-Utility Generation). However
because interconnection is managed by Idaho Power s Power Delivery (Transmission) business
unit, while power purchase agreements are within the purview of Idaho Power s Power Supply
(Marketing) business unit and the FERC now requires a functional separation between the
activities of these two business units, it is no longer possible for the marketing business unit to
negotiate interconnection terms and conditions as part of the power purchase agreement.
Idaho Power s proposed Uniform Interconnection Agreement addresses the terms
and conditions of interconnection and integration to the Company s transmission/distribution
system, incorporates portions of the Company s template power purchase agreement, and is
DECISION MEMORANDUM
patterned after the FERC's standard Small Generator Interconnection Agreement. The Company
states that the Uniform Agreement is in keeping with utility industry efforts to standardize
interconnection procedures and facilitate investment in needed utility infrastructures.The
proposed Uniform Interconnection Agreement is included as Attachment 1 to the Company
proposed tariff.
Idaho Power states that it is not proposing any major changes to the terms and
conditions of Schedule 72 other than referencing the Uniform Interconnection Agreement and
adding language explicitly adopting the Institute of Electric and Electronic Engineers: IEEE
Standard 1547 (IEEE 1547) for interconnection. The Company states that it has adopted IEEE
1547 internally and believes non-utility generation interconnection should adhere to these
industry best practices as well.
STAFF RECOMMENDATION
Staff recommends processing the Company s Application by Modified Procedure
with a comment deadline of October 31 , 2006. Staffs initial review of the Company
Application seems to indicate that the changes proposed are neutral with regard to their effect on
the pending cases before the Commission regarding the integration of other QF projects
specifically wind projects, into Idaho Power s system.
COMMISSION DECISION
Does the Commission wish to process this case by Modified Procedure with
comments due on October 31 , 20067
Donovan E. Walker
DECISION MEMORANDUM