28872.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
STEVE TERTELING )
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CASE NO. IPC-E-01-33

ORDER NO. 28872

On September 24, 2001, Idaho Power Company (Idaho Power; Company) filed an Application in Case No. IPC-E-01-33 requesting Commission approval of a tariff Schedule 86—Non-Firm Energy Purchase Agreement (Agreement). A copy of the May 3, 2001 Agreement between Idaho Power and Steve Terteling accompanies the Application.
Steve Terteling is developing a generation facility made up of a 300 watt photovoltaic array, 400 watt wind turbine and a 1800 watt small hydro unit at 7000 Bogus Basin Road, in Ada County, Idaho (the Project). The 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 be made hereunder shall be allowed as prudently incurred expenses for ratemaking purposes.”
Pursuant to Agreement the purchase price will be in accordance with Option B under Section 2 of Schedule 86. The project is planned to be completed in various phases. The small hydro facility has been completed and the photovoltaic facility and the wind turbine is scheduled to be completed in Spring 2002. Because the Project is very small and is selling under Option B (net metering), there are no interconnection charges or monthly O&M charges under Schedule 72. Idaho Power intends to consider the Agreement effective as of the date the first generating facility begins operation.
COMMISSION FINDINGS
The Commission has reviewed the May 3, 2001 Idaho Power/Steve Terteling 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 purposes. 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 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 3, 2001 Idaho Power/Steve Terteling 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

bls/O:IPCE0133_sw
ORDER NO. 28872 1

Office of the Secretary
Service Date
October 15, 2001