20130617_4079.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
FROM:CATHLEEN MCHUGH
DATE:JUNE 11,2013
SUBJECT:CASE NO.IPC-E-06-1O (IDAHO POWER)
INCLUSION OF OMITTED PRICING INFORMATION IN THE CASSIA
WIND FARM FIRM ENERGY SALES AGREEMENT
On May 14,2013,Idaho Power Company (Idaho Power;Company)submitted for
Commission approval an Application to include additional pricing information to the
April 7,2006,Firm Energy Sales Agreement (Agreement)between Idaho Power and Cassia Wind
Farms,LLC (Cassia Wind).The original Agreement is for a 20-year term and was approved on
June 30,2006,in Order No.30086.
BACKGROUND
In the original Agreement.Cassia Wind selected December31,2006 as the estimated
scheduled operation date for the Cassia Wind Windfarm Project (Project).The pricing schedule
contained in that Agreement extended 21 years from that date (through 2027).However,Cassia
Wind did not meet that scheduled operation date.The actual operation date for the Project was 27
months after the estimated scheduled operation date.Therefore,the pricing schedule contained in
the Agreement does not extend through the full term of the Agreement.
In April 2013,Cassia Wind notified Idaho Power that the 20-year pricing schedule did not
extend for the full term of the Agreement.The pricing contained in the Agreement is based upon
the standard published avoided cost rates in effect at the time the Agreement was executed and in
accordance with Order No.29646.On May 3,2013,Idaho Power provided Cassia \\!rind with a
letter setting forth the pricing to be applied to the last 24 months of the term of the Agreement
DECISION MEMORANDUM 1 JUNE 11,2013
based upon the standard published avoided cost rates in effect at the time.Commission Staff
advised Idaho Power to provide confirmation that Cassia Wind concurred with the additional
pricing information.On May 31,2013,Idaho Power submitted a letter executed by Cassia Wind
that expressed agreement with the pricing schedule.
STAFF REVIEW
Staff has verified that the prices provided by Idaho Power to Cassia Wind are based
upon the standard published avoided cost rates in effect at the time and in accordance with Order
No.29646.Both Idaho Power and Cassia Wind agree to these prices.
STAFF RECOMMENDATION
Stall recommends that the Commission approve the inclusion of these additional prices
into the terms of the Agreement.
COMMISSION DECISION
Does the Commission wish to approve the inclusion of pricing information so that the
pricing schedule extends through the full term of the Agreement?
Cathleen McIiugh
i:udmcmos’cassia wind.doc
DECISION MEMORANDUM 2 JUNE 11,2013