20120808Comments.pdf

SHOROCK HYDRO, INC.
P. 0. Box 1787
Twin Falls, Idaho 83303-1787
August 5, 2012
2012AUG-8 PM 1:15
iDAHO PUB, UTILITIES COMMISSION
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83702
Re: Electric Case GNR-E-11-03
Dear Members of the Commission;
I am the President of a firm named Shorock Hydro, Inc. and we operate and own two hydroelectric
plants in the Magic Valley of Idaho. We have owned and operated these plants since 1981— 82. I
believe we were the first hydroelectric PURPA project in Idaho to sign an agreement with Idaho Power
Company. Our plants have operated continuously for over thirty (30) years and have been very reliable
as we use both canal and natural stream flows.
Our two power sales agreements end in 2017 and 2018 (35 Years). We are concerned regarding Idaho
Power Companies position regarding the upcoming rate hearing for OF contracts and the avoided cost
rates. (Electric Case GNE-E11-03). We have a significant investment in our power plants of time and
money. The projects have been reasonably good investments due to a fair avoided cost rate. We
believe the avoided cost concept was a good idea in 1980 and is still a good method of compensating
private power projects. Also, our peak production matches the irrigation demand curve for Idaho Power
Company.
We would like to have our new power sales agreements in 2017 and 2018 have a term of at least 15
years. This is what it typically takes to obtain bank financing for a new project. The rates based on a
surrogate gas model were fair and not excessive to us or Idaho Power Company. In addition, we would
request that hydroelectric power sales agreements be separated from wind, solar, and geothermal as
they are not as reliable or consistent in power production. We have over 30 years of proven power
production.
We would hope that the IPUC will be fair in their avoided cost pricing. It is our desire to keep producing
reasonably priced power from our reliable plant. It is noteworthy that our plant factors meet or exceed
those of Idaho Power Company and other regulated utilities.
Respectfully submitted,
(94J
fn J. Strauhar, President
Shorock Hydro, Inc.