HomeMy WebLinkAbout20050418_1157.pdfDECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:KIRA DALE PFISTERER
DATE:APRIL 12 2005
RE:CASE NO. IPC-05-13.
FIRM ENERGY SALES AGREEMENT-DRY CREEK, L.
On March 31 , 2005 , Idaho Power Company filed an Application requesting approval
of a Firm Energy Sales Agreement (Agreement) between Idaho Power and Dry Creek, L.
dated March 29 2005. Under the Agreement, Dry Creek will sell and Idaho Power will purchase
electric energy generated by the Broadwater Hydroelectric Project located near Toston, Montana
for nine months of the year (from June through February). The Broadwater Hydroelectric
Project is an existing hydroelectric facility with a nameplate rating of 10 MW. Dry Creek has a
long-term lease to operate and maintain this facility.
THE AGREEMENT
The Broadwater Hydroelectric Project will be a qualified small power production
facility (QF) under the applicable provisions of the Public Utility Regulatory Policies Act of
1978 (PURPA). The Agreement was developed pursuant to Commission Order Nos. 29632
(Us. Geothermal et al. v. Idaho Power) and 29646 (setting 2004 avoided costs). 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. Under Paragraph 4.1.3 of the Agreement, Dry Creek is required to provide data
to Idaho Power regarding whether, under normal and/or average conditions, the facility will not
exceed 10 aMW on a monthly basis.
The Broadwater Hydroelectric Project is located in NorthWestern Energy s service
territory. Therefore, pursuant to Paragraph 4.1.6 of the Agreement, Dry Creek is required to
DECISION MEMORANDUM
provide to Idaho Power a copy of the Transmission Agreement with NorthWestern Energy, the
transmitting entity, for Idaho Power s review and acceptance.
Because the Broadwater Hydroelectric facility is physically interconnected to
North Western Energy s system, no physical interconnection costs will be assessed as specified in
Schedule 72. However, pursuant to the Agreement, Dry Creek is required to pay all costs
associated with integrating the facility s energy deliveries into the Idaho Power electrical system.
Various requirements have been placed upon Dry Creek in order for Idaho Power to
accept energy deliveries from the Broadwater Hydroelectric facility. Idaho Power will monitor
compliance with these requirements. If initial requirements are made and the Commission
approves the proposed Agreement, the operation date of this facility will be June 1 , 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 Dry Creek Firm Energy Sales
Agreement under Modified Procedure?
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DECISION MEMORANDUM