HomeMy WebLinkAbout20090817_2674.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 12, 2009
SUBJECT: CASE NO. IPC-E-09-24 (Idaho Power)
FIRM ENERGY SALES AGREEMENT –
CASSIA GULCH/TUANA SPRINGS
On August 11, 2009, Idaho Power Company (Idaho Power; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting approval of a
20-year Firm Energy Sales Agreement between Idaho Power and Cassia Gulch Wind Park LLC
(Cassia Gulch) and Tuana Springs Energy LLC (Tuana Springs) dated August 5, 2009
(Agreement).
Cassia Gulch currently owns, maintains and operates an existing 18.9 MW wind
generating facility located near Hagerman, Idaho approximately 4.3 miles west of Idaho Power’s
lower Malad substation. Reference Case No. IPC-E-06-11, Order No. 30087.
Tuana Springs proposes to design, construct, own, operate and maintain a new 16.8
MW wind generating facility adjacent to and as an expansion of the Cassia Gulch facility. It is
the contract parties’ intent that the Cassia Gulch agreement remain in full force and effect until
such time as the expansion facilities (Tuana Springs Expansion) have achieved their operation
date of June 30, 2010. At such time the Cassia Gulch agreement shall automatically terminate
and shall be replaced by this new Agreement. The net energy from the Cassia Gulch and Tuana
Springs Expansion will be combined into a single qualifying facility (QF) with a nameplate
rating of 35.7 MW.
DECISION MEMORANDUM 2
The purchase price contained in the Agreement was established by running the
Aurora economic dispatch model consistent with the Commission’s requirements for projects
larger than 10 MW. The purchase price established by running the Aurora economic dispatch
model was then blended with the prices contained within the existing Cassia Gulch Wind Farm
Agreement in order to preserve the value of existing Cassia Gulch Wind Farm agreement for the
Idaho Power ratepayers.
Idaho Power requests that the Commission issue an Order approving the Firm Energy
Sales Agreement with Cassia Gulch and Tuana Springs without change or condition and
declaring that all payments for purchases of energy under the Firm Energy Sales Agreement be
allowed as prudently incurred expenses for ratemaking purposes. Agreement ¶ 21.
COMMISSION DECISION
Commission Staff and the Company recommend that the Application in Case No.
IPC-E-09-24 be processed pursuant to Modified Procedure, i.e., by written submission rather
than by hearing. Reference IDAPA 31.01.01.201-204. Does the Commission agree with the
recommended procedure?
Scott Woodbury
Deputy Attorney General
bls/M:IPC-E-09-24_sw