28796.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF THE PURCHASE OF NON-FIRM ENERGY BETWEEN IDAHO POWER COMPANY AND TAMARACK ENERGY PARTNERSHIP. )
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CASE NO. IPC-E-01-23

ORDER NO. 28796

On July 9, 2001, Idaho Power Company (Idaho Power; Company) filed an Application in Case No. IPC-E-01-23 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 Tamarack Energy Partnership accompanies the Application.
Tamarack presently operates 5 megawatts of electric generation capacity at its wood waste fire generating facility located near New Meadows, Idaho (the Project). The Project location is more particularly described as NW ¼ of Section 30, Township 19 North, Range 1 East, Boise Meridian, Adams County, Idaho. Tamarack currently sells all of the output of the Project to Idaho Power under a long-term power purchase contract. The Project is a qualified small power production facility (QF) under the applicable provisions of the Public Utility Regulatory Policies Act of 1978 (PURPA). Tamarack intends to develop an additional 2.5 megawatts of capacity at the Project. The first 1 megawatt is planned to be on line this fall with the balance to be added later.
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 tariff Schedule 86. The proposed on line date for the initial 1 megawatt of new generating capacity is November 1, 2001.
Idaho Power has reviewed the existing interconnection facilities and has determined that for the initial 1 megawatt generation increase, the existing interconnection facilities are adequate. Prior to any additional capacity being interconnected at this location, Idaho Power will conduct a review of the facilities and submit the findings to the seller regarding additional interconnection facilities required and related charges.
As reflected in the Agreement, the Company’s Schedule 86 purchase prices will apply to monthly net energy deliveries exceeding the base kilowatt hours but less than the maximum kilowatt hours specified in Agreement Exhibit B.
COMMISSION FINDINGS
The Commission has reviewed the May 2, 2001 Idaho Power/Tamarack 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 further find that payments made under the Agreement should be allowed as prudently incurred expenses for ratemaking purposes. We also find it 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 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/Tamarack Energy Partnership 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-01-23_sw

ORDER NO. 28796 1

Office of the Secretary
Service Date
July 31, 2001