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Home My WebLink AboutID Dairymen's Assoc..pdf,33....,\/.-. L ,Ct ' ; .... -:"'1 , _L. " i1.-, Scott L. Campbell, ISB No, 2251 MOFFATT, THOMAS, BARRETT, ROCK & FIELDS , CHARTERED 101 S, Capitol Boulevard, 10th Floor Post Office Box 829 Boise, Idaho 83701 Telephone: (208) 345-2000 Facsimile: (208) 385-5384 18936.4 L~J2r..'~, IS r;~111:l\ : " CCX,;;;\33\O1:U,\I- !ll-oJ Attorney for Idaho Dairymen s Association BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE INVESTIGATION OF THE CONTINUED REASONABLENESS OF CURRENT SIZE LIMITATIONS FOR PURP A PUBLISHED RATE ELIGffiILITY (i.e. 1 MW) AND RESTRICTIONS ON CONTRACT LENGTH (i., 5 YEARS) Case No. GNR-O2- WRITTEN COMMENTS OF THE IDAHO DAIRYMEN'S ASSOCIATION Introduction The Idaho Dairymen s Association (hereinafter "the Association ), through its counsel, Scott L. Campbell, of Moffatt, Thomas, Barrett, Rock, and Fields, Chtd., hereby submits these comments in Docket No. GNR-02-0 1. Introduction The Association is very interested in the Commission s review of Order No. 26578, in Case No. IPC-95-9 (September 4, 1996), particularly if the review results in an WRITTEN COMMENTS OF THE IDAHO DAIRYMEN'S ASSOCIATION - 1 801- MTl :387628. expansion of the contract length and the size limitation for PURP A published rate eligibility for qualifying facilities (hereinafter "QFs ). The Association s interest in this matter stems from its desire to improve the regulatory environment to encourage development of anaerobic digester technology to utilize dairy waste by-products for methane gas production to power combustion turbines for electric generation. This type of QF will provide two substantial benefits. First, it will provide an additional source of electrical energy as a by-product of a substantial agricultural sector of the State s economy. Idaho dairy farmers generated approximately $1 billion in farm gate income from milk production in 2001 , making dairy production the number one agriculture sector in Idaho, ahead of beef cattle production and potatoes. Second, and just as important to the Association, encouragement of anaerobic digestion QFs will help the industry solve a persistent negative side effect of normal dairy operations: odor. PURPOSE OF PURPA The Public Utilities Regulatory Policies Act of 1979 (hereinafter "PURP A") was enacted to help the United States achieve energy independence. Now, more than ever, that goal should be fostered by the Commission. Additionally, PURPA was enacted to allow for increased efficiency in the use of resources and increased emphasis on using renewable resources for electrical generation. These positive public purposes have stagnated 'in Idaho because of the overly restrictive limitations on contract length and size limitations for QFs contained in Commission Order No. 26578. WRITTEN COMMENTS OF THE IDAHO DAIRYMEN'S ASSOCIATION - 2 BOI MTl :387628, ONE MEGA WATT LIMIT FOR QF CONTRACTS The Commission s decision to limit the size ofQF contracts to no more than one megawatt was not reasonable, given the impact of that decision on QF development in Idaho over the last five years. Not only has the size limitation made project development uneconomic due to economy of scale considerations, but it has also artificially restricted innovation. FIVE YEAR CONTRACT TERM LIMITATION The limitation on size ofQFs negatively impacts design and economic feasibility. However, coupling the size limitation with the five year contract term limitation virtually destroys any realistic possibilities for QFs to satisfy any reasonable return on investment economic analysis. It is ironic that the Commission would consider retaining these disincentives to future QF development, while at the same time allowing Idaho Power Company to purchase massive quantities of power from Ida-West, the wholly owned subsidiary of Ida-Corp, the parent company ofIdaho Power Company. The inconsistent treatment of QFs under the Commission Order No. 26578 contrasted with the Ida-West arrangements cries out for correction. The Mountain Home and Garnet projects are merely the latest examples of this inconsistent treatment. CONCLUSION The investor owned utilities have never liked PURP A. Their reasons are too numerous and too tiresome to repeat here. Notwithstanding their distaste for the Act, it is still the law. The Commission should modify its Order No. 26578 to allow the provisions ofPURP A to become effective again in Idaho. Without substantial modification of the size limitation and the contract term limitation, PURPA will be a continuing irrelevancy in Idaho. The purpose of the Act will be ignored and the innovations and positive developments which would result from a WRITTEN COMMENTS OF THE IDAHO DAIRYMEN'S ASSOCIATION - 3 BOI MTl :387628. vigorous QF segment of the energy industry in this State will be lost to the rate paying public. The regulated monopolies of the investor owned utilities should not be allowed to ignore the intent of Congress in enacting PURP A by virtue of the Commission s unrealistic restrictions on size and contract term. Respectfully submitted, this day of March 2002. MOFFATT, THOMAS, BARRETT, ROCK & FIELDS , CHARTERED By S ~- ~ Attorney for Idaho Dairymen s Association CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this day of March 2002, I caused to be served a true copy of the foregoing WRITTEN COMMENTS OF THE IDAHO DAIRYMEN' ASSOCIATION by the method indicated below. Commission Secretary Idaho Public Utilities Commission PO Box 83720 Boise, ill 83720-0074 Street Address for Hand Delivery 472 W. Washington St. Boise, ill 83702-5983 Robert 1. Laferty Blair Strong A vista Corporation PO Box 3727 Spokane, W A 99220 ( ) u. S. Mail, Postage Prepaid ( ,.(Hand Delivered ( ) Overnight Mail ( ) Facsimile (~. S. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile WRITTEN COMMENTS OF THE IDAHO DAIRYMEN'S ASSOCIATION - 4 BOI MT1 :387628. Gregory N. Duvall Jim Fell PacificCorp 424 Public Service Building 920 SW 6th Avenue Portland, OR 97204-1239 John Ericksson Utah Power & Light 1407 West North Temple Salt Lake City, UT 84140 1u.s. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile ~S. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile 4.s. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile Barton L. Kline, Senior Attorney Idaho Power Company PO Box 70 Boise, ill 83707-0070 Street Address for Hand Delivery 1221 W. Idaho Street Boise, ill 83702 Governor Kempthorne 700 West Jefferson, Second Floor PO Box 83720 Boise, ill 83720-0034 S. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile ( .;...G.s. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) ~simile (1US. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile Senator Robert Lee Statehouse Boise, ill 83720 Representative Bert Stevenson Statehouse Boise, ill 83720 ~Jl WRITTEN COMMENTS OF THE IDAHO DAIRYMEN'S ASSOCIATION - 5 BOI MTl :387628,