HomeMy WebLinkAbout20050317_1123.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:KIRA DALE PFISTERER
DATE:MARCH 14, 2005
RE:CASE NO. IPC-05-
FIRM ENERGY SALES AGREEMENT - PRISTINE SPRINGS, INC.
On March 4, 2005 , Idaho Power Company filed an Application requesting approval
of a Firm Energy Sales Agreement (Agreement) between Idaho Power and Pristine Springs, Inc.
dated February 18, 2005. Under the Agreement, Pristine Springs will sell and Idaho Power will
purchase electric energy generated by the Pristine Springs hydroelectric generation facility
located on Warm Creek, north of Twin Falls, Idaho in an area more particularly described as the
NE Y4 of the NW Y4 of Section 29, Township 9 South, Range 1 7 East, Boise Meridian, Jerome
County, Idaho. The Pristine Springs facility consists of a single 125 kW hydroelectric generation
unit. The nameplate rating and maximum generation capability of the Pristine Springs facility is
125 kW.
THE AGREEMENT
The Pristine Springs facility will be a qualified small power production facility (QF)
under the applicable provisions of the Public Utility Regulatory Policies Act of 1978 (PURP A).
The Agreement was developed pursuant to Commission Order Nos. 29632 (Us. Geothermal
al. v. Idaho Power) and 29646 (avoided cost) to replace the existing Firm Energy Sales
Agreement between Idaho Power and Pristine Springs due to expire on March 30, 2005. See
Order No. 25793. In the proposed Agreement, the parties agree to a ten-year contract term and
to use the non-Ievelized published avoided cost rates as currently established by the Commission
for energy deliveries of no more than 10 aMW.
Because the Pristine Springs facility is currently interconnected and selling energy to
Idaho Power under an existing Firm Energy Sales Agreement, interconnection to the Company
DECISION MEMORANDUM
distribution system is completed. The previously established interconnection costs set out in the
existing Firm Energy Sales Agreement will be used to value the interconnection costs under the
proposed Agreement. The applicable monthly Schedule 72 charges will apply.
As reflected in Article 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 Pristine Springs 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.
STAFF RECOMMENDATION
The Commission Staff recommends that the Application be processed under Modified
Procedure, i., by written submission rather than a hearing. IDAP A 31.01.01.201-204.
COMMISSION DECISION
Does the Commission wish to process the Idaho Power Pristine Springs Firm Energy
Sales Agreement under Modified Procedure?
Kira D Pfisterer
M:IPCEO511- kdp
DECISION MEMORANDUM