10012001.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
BILL EASTLAKE
TONYA CLARK
DON HOWELL
LYNN ANDERSON
DAVE SCHUNKE
RICK STERLING
RANDY LOBB
GENE FADNESS
WORKING FILE
FROM:
DATE:
OCTOBER 1, 2001 RE: CASE NO. IPC-E-01-33 (Idaho Power)
SCHEDULE 86 NON-FIRM ENERGY PURCHASE AGREEMENT
IDAHO POWER AND STEVE TERTELING

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.
Staff Analysis
Staff has reviewed the May 3, 2001, Idaho Power/Steve Terteling Schedule 86 Non-Firm Energy Agreement. The Agreement, as signed and submitted by the parties, contains non-firm energy rates in conformity with posted tariffs and applicable Commission Orders. Staff recommends that the Agreement be approved without further notice.
Commission Decision
Idaho Power has submitted a Tariff Schedule 86 Non-Firm Energy Purchase Agreement with Steve Terteling for Commission approval. Does the Commission find it reasonable to approve the Agreement without change or condition? Does the Commission find it reasonable to declare that all payments made under the Agreement shall be allowed as prudently incurred expenses for ratemaking purposes? Does the Commission agree that the Agreement can be approved without notice or further procedure?

vld/M:IPC-E-01-33_sw

DECISION MEMORANDUM 1