20100830min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

AUGUST 30, 2010 – 1:30 P.M.

In attendance were Commissioners Jim Kempton and Mack Redford. Commissioner Marsha Smith was absent and excused.

The first order of business was approval of the CONSENT AGENDA:
1. Bryan Lanspery's August 30, 2010 Decision Memorandum re: PacifiCorp Tariff Advice 10-2, Revisions to Electric Service Schedule 72.2. Grace Seaman's August 26, 2010 Decision Memorandum re: Columbine Telephone Company's 2009 Broadband Equipment Tax Credit Application, Case No. COL-T-10-01.3. Grace Seaman's August 27, 2010 Decision Memorandum re: Custer Telephone Cooperative, Inc.'s 2009 Broadband Equipment Tax Credit Application, Case No. CUS-T-10-01.4. Grace Seaman's August 26, 2010 Decision Memorandum re: Silver Star Communications' 2009 Broadband Equipment Tax Credit Application, Case No. SIL-T-10-02.5. Kristine Sasser's August 27, 2010 Decision Memorandum re: Idaho Power's Application for Approval of a Firm Energy Sales Agreement with Yellowstone Power, Case No. IPC-E-10-22.6. Neil Price's August 26, 2010 Decision Memorandum re: Application of Airespring, Inc. for a Certificate of Public Convenience and Necessity, Case No. ASI-T-10-01.7. Scott Woodbury's August 26, 2010 Decision Memorandum re: Complaint (and Contingent Motion to Dismiss) Windland, Inc.; Two Power Purchase Agreements -- Power County Wind Park North LLC and Power County Wind Park South LLC, Case No. PAC-E-10-05 (PacifiCorp).
There was no discussion and the Commission voted unanimously to approve Staff’s recommendations for items 1 – 7.
The next order of business was FULLY SUBMITTED MATTERS:
8. Deliberation re: Firm Energy Sales Agreement -- Idaho Power/Grand View Solar PV One, LLC, Case No. IPC-E-10-19 (Idaho Power). [No Memo. Scott Woodbury, Attorney.]
Commissioner Kempton asked Mr. Woodbury if he had any comments on the matter. Mr. Woodbury stated that Staff believes the Company does not have enough data to support a solar integration charge, which is similar to the situation with the early wind projects. He said Staff expects this to be the first of many solar projects.
Commissioner Kempton commented on the issue of meritorious complaint, stating that the Commission has done enough of these that it should either waive that provision, qualify it or get rid of it. He noted that it isn’t very tidy to have a requirement and then routinely move away from that requirement and make a decision based on something other than the fact that a filing was required in the first place. He asked the Legal Section to take a look at it.
Commissioner Redford said that it seemed to him that early on when these contracts were first envisioned, the parties took the attitude, like AgPower did, that they should qualify if they have made an application and at least started the ball rolling, but it seems that Idaho Power’s position was and still is that the negotiations or discussions hadn’t reached the status yet to allow grandfathering. He stated that he agreed with Commission Kempton that we ought to tidy it up a bit as to how to make a determination, and maybe we will be opening Pandora’s box, but we could make some sort of rule or determination that a contract has gone far enough or negotiations have gone forth to the point that the PURPA rates could be locked in. He also noted that the nameplate for the facility is 20 MW, and he asked how that squares with the PURPA rates when we have a threshold of 10 MW. Mr. Woodbury replied that under average conditions on a monthly basis, the facility will not exceed 10 MW, but if it does, Idaho Power will accept but not purchase the energy that does not exceed the Maximum Capacity Amount.
The Commission then voted unanimously to find it reasonable to approve the submitted Agreement and grandfathered rates and to direct the Company to initiate a study to quantify solar integration costs.
The final order of business was EXECUTIVE SESSION MATTERS:
9. Deliberation re: Discussion with Counsel Regarding the Status of the BPA Mediation Process for the Ninth Circuit Appeals. [No Memo. Don Howell, Attorney.]
The Commission voted unanimously to go into Executive Session pursuant to Idaho Code 67-2345(1)(f) to discuss with Counsel the status of the BPA mediation process for the Ninth Circuit Appeals.
There was no further business before the Commission and Commissioner Kempton adjourned the meeting.

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COMMISSION SECRETARY DATE OF APPROVAL

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