28795.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of IDAHO POWER COMPANY FOR APPROVAL OF THE PURCHASE OF NON-FIRM ENERGY BETWEEN IDAHO POWER COMPANY AND Lewandowski FARMS. )
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CASE NO. IPC-E-01-22

ORDER NO. 28795

On July 9, 2001, Idaho Power Company (Idaho Power; Company) filed an Application in Case No. IPC-E-01-22 requesting Commission approval of a tariff Schedule 86 Non-Firm Energy Purchase Agreement (Agreement). A copy of the May 2, 2001 Agreement between Idaho Power and Lewandowski Farms accompanies the Application.
Lewandowski proposes to develop multiple wind generating facilities to be located near Simco Road east of Boise in Elmore County, Idaho, in an area more particularly described as the NW ¼ of Section 23, Township 1 South, Range 4 East, Boise Meridian, Elmore County, Idaho. The Lewandowski Wind Generation Project will be a qualified small power production facility (QF) under the applicable provisions of the Public Utility Regulatory Policies Act of 1978 (PURPA).
Section 8 of the Agreement provides that “this Agreement shall not become effective until the Commission approves all terms and provisions hereof without change or condition and declares that all payments to made hereunder shall be allowed as prudently incurred expenses for ratemaking purposes.”
Pursuant to Agreement the purchase price will be in accordance with Option A under Section 1 of Schedule 86. The proposed on-line date for the first wind turbine is October 1, 2001. The proposed facility consists of two wind turbine driven induction generators with name plate ratings of 112 kWh each. The cost of special facilities is $19,764.35. The cost of the metering equipment is $195.25. The cost of disconnecting equipment is $10,052.40. The total cost to be paid by Lewandowski if payment is made on or before July 2, 2001 is $30,012.
COMMISSION FINDINGS
The Commission has reviewed the May 2, 2001 Idaho Power/Lewandowski Farms Schedule 86 Non-Firm Energy Agreement. We find that the Agreement, as signed and submitted by the parties, contains non-firm energy rates in conformity with posted tariffs and applicable Commission Orders. We find it reasonable to allow payments made under the Agreement as prudently incurred expenses for ratemaking expenses. We also find that it is appropriate to approve the Agreement without further notice.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company, an electric utility, pursuant to the authority and power granted it under Title 61 of the Idaho Code and the Public Utility Regulatory Policies Act of 1978 (PURPA).
The Commission has the authority under PURPA and the implementing regulations of the Federal Energy Regulatory Commission (FERC) to set avoided costs, to order electric utilities to enter into fixed term obligations for the purchase of energy from qualified facilities, and to implement FERC rules.
O R D E R
In consideration of the foregoing, IT IS HEREBY ORDERED and the Commission does hereby approve the May 02, 2001, Idaho Power/Lewandowski Farms Schedule 86 Non-Firm Energy Purchase Agreement.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of September 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:IPC-E-01-22_sw

ORDER NO. 28795 1

Office of the Secretary
Service Date
July 30, 2001