20050310_1115.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:MARCH 7, 2005
SUBJECT:CASE NO. IPC-05-8 (Idaho Power)
FIRM ENERGY SALES AGREEMENT OREGON TRAIL
On February 24, 2005, Idaho Power Company (Idaho Power; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting approval of a
Firm Energy Sales Agreement (Agreement) between Idaho Power and Oregon Trail Wind Park
LLC (Oregon Trail) dated February 18, 2005. Under the Agreement, Oregon Trail will sell and
Idaho Power will purchase electric energy generated by the Oregon Trail Proj ect located near
Hagerman, Idaho in an area more particularly described as Sections 1 , 6, 7, and 12, Township 7
South, Range 12 East, Boise Meridian, Twin Falls County, Idaho. The Project consists of seven
(7) 1.5 MW GE wind turbines. The nameplate rating of the project is 10.5 MW. Under normal
and/or average conditions the project will not exceed 10 aMW on a monthly basis. If energy in
excess of this amount (Inadvertent Energy) is accidentally generated, Idaho Power will accept
Inadvertent Energy that does not exceed the 10.5 MW maximum capacity amount but will not
purchase or pay for it. Agreement 'if 7.
The Oregon Trail Project will be a qualified small power production facility (QF)
under the applicable provisions of the Public Utility Regulatory Policies Act of 1978 (PURP A).
Oregon Trail has selected December 31 , 2005 as the scheduled operation date and January 15
2006 as the first energy date.
As represented by Idaho Power, the Agreement with Oregon Trail comports with the
terms and conditions of Commission Order No. 29632 (Us. Geothermal et. al v. Idaho Power)
DECISION MEMORANDUM
and avoided cost Order No. 29646. The contract is for a 20-year term and contains the published
non-Ievelized avoided cost rates set forth in Order No. 29646.
As reflected in Section 24 of the Agreement, the Agreement will not become effective
until the Commission has approved all the Agreement's terms and conditions and declares that
all payments that Idaho Power makes to Oregon Trail for purchases of energy will be allowed as
prudently incurred expenses for ratemaking purposes. The proposed effective date of the
Agreement is February 18 2005.
COMMISSION DECISION
Idaho Power requests Commission approval of Firm Energy Sales Agreement with
Oregon Trail Wind Park, LLC. The contract is for a 20-year term and contains the non-Ievelized
published avoided cost rates for energy deliveries not exceeding 10 aMW on a monthly basis.
The Commission Staff recommends that the Company s Application be processed pursuant to
Modified Procedure, i., by written submission rather than by hearing. Reference Commission
Rules of Procedure IDAPA 31.01.01.201-204.Does the Commission agree with the
recommended procedure?
Scott D. Woodbury
bls/M:IPCEO508 sw
DECISION MEMORANDUM