20050923_1329.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MM-ISS-ION-ER SMI 'f H
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:RICK STERLING
DATE:SEPTEMBER 20, 2005
RE:IDAHO POWER'S SCHEDULE 86 NON-FIRM POWER PURCHASE
AGREEMENT, J.M. MILLER ENTERPRISES, INC.
CASE NO. IPC-05-
On September 9 2005, Idaho Power Company (Idaho Power; Company) submitted for
approval a Uniform Agreement (Agreement) under Schedule 86 between Idaho Power and J.
Miller Enterprises, Inc. (Miller) for the purchase of non-firm energy from the Sahko small hydro
proj ect (Proj ect).
The Project has a generation capacity of 500 kW and is located approximately 10 miles
northwest of Twin Falls, Idaho, near the Snake River. The project is a qualified small power
production facility (QF) under the applicable provisions of the Public Utility Regulatory Policies
Act of 1978 (PURPA).
Idaho Power and Miller have entered into the Agreement pursuant to Idaho Power
approved Schedule 86 , Cogeneration and Small Power Production Non-Firm Energy. The
purchase price will be in accordance with Schedule 86. A copy of the Agreement is attached.
Idaho Power is currently working with the Project to complete the necessary
documentation and construction of interconnection equipment in accordance with the terms of
the Agreement. As of the date of the Application, Idaho Power states that the Project appears to
be on schedule to energize the Project on October 15 2005, the Project's scheduled Operation
Date, provided water is available.
Idaho Power requests a Commission Order (1) approving the terms and provisions of the
Agreement between Idaho Power Company and J.M. Miller Enterprises, Inc. without change or
DECISION MEMORANDUM SEPTEMBER 20, 2005
condition; and (2) declaring that all payments made under the Agreement shall be allowed as
prudently incurred expenses for ratemaking purposes.
COMMISSION DECISION
Staff has reviewed the Idaho Power/J.M. Miller Enterprises, Inc. Schedule 86 Non-Firm
Energy Agreement. The Agreement contains non-firm energy rates conforming to posted tariffs
and applicable Commission orders. Staff recommends that the Commission approve the
Agreement without further notice and affirm that payments made under the Agreement will be
regarded as prudently incurred expenses for ratemaking purposes. Staff also recommends that
the Agreement become effective upon commencement of energy deliveries by Miller to Idaho
Power. Does the Commission agree?
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DECISION MEMORANDUM SEPTEMBER 20, 2005