20001130_sw.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
TONYA CLARK
DON HOWELL
DAVE SCHUNKE
RANDY LOBB
WORKING FILE
FROM:
DATE:
NOVEMBER 30, 2000 RE: CASE NO. IPC-E-00-18 (Idaho Power)
PROPOSED SCHEDULE 62—GREEN ENERGY PURCHASE PROGRAM

On November 16, 2000, Idaho Power Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of a proposed Schedule 62—Green Energy Purchase Program (Green Program). The Green Program is an optional program devised to provide customers an opportunity to participate in the purchase of new environmentally friendly green energy—e.g., wind, solar, geothermal. It is the Company’s program intention to stimulate demand for green resources and their development for future supply.
At the time of program enrollment, customers will select a six monthly payment amount (any dollar amount) based on their desired level of participation. The designated amount will be added to their monthly electric bill. Payments received for the Green Program will be accounted for in a separate account (FERC Account No. 142). The funds will wholly be used to purchase green energy or cover the green energy price premium with no customer amounts allocated to program overheads or marketing expenses. Green energy purchases will be accounted for separately and will not affect the Company’s Power Cost Adjustment.
Idaho Power indicates its intention to use the Bonneville Environmental Foundation (BEF) to facilitate the purchase of green energy for the program. BEF, a non-profit foundation organized in September 1998, is dedicated to the replacement of fossil fuel generation and new renewable resources sited and operated in a manner consistent with sustainable resource practices. BEF will serve as the brokering party to facilitate electricity sales from resources certified by three leading regional environmental organizations as “green.” The BEF is located in Portland, Oregon.
Idaho Power indicates its intention to purchase both wind and solar energy from the BEF. The wind and solar products will not be available until December 2001. The Company will purchase a green resource blend product until the wind and solar products become available.
The Company notes that in developing its Green Program it met with representatives from Idaho Rivers United and the Northwest Energy Coalition. The Company has incorporated several suggestions made by these groups, such as:
Idaho Power will give priority to wind and solar resources when purchasing green energy;

Idaho Power will provide information to customers regarding the benefits of green energy and how much green energy can be purchased with accumulated fund amounts;

Idaho Power will pursue marketing and partnership opportunities with environmental and local public interest groups to encourage participation in the program.

Idaho Power requests that its tariff be effective January 15, 2001 and proposes that its Application be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. Staff concurs with the Company’s recommended use of Modified Procedure.
Commission Decision
Does the Commission agree with the Company and Staff that it is appropriate to process the Application in Case No. IPC-E-00-18 under Modified Procedure?

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DECISION MEMORANDUM 2