20030429Order No 29234.pdf

Office ofthe Secretary
Service Date
April 29, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR APPROV AL )
OF THE PURCHASE OF NON-FIRM ENERGY
BETWEEN IDAHO POWER COMPANY AND
PRISTINE SPRINGS, INc.
CASE NO. IPC-O3-
ORDER NO. 29234
On April 17, 2003, Idaho Power Company (Idaho Power; Company) filed an
Application in Case No. IPC-03-6 requesting Commission approval of a tariff Schedule 86-
Non-Firm Energy Purchase Agreement (Agreement). A copy ofthe March 28, 2003, Agreement
between Idaho Power and Pristine Springs, Inc. (Pristine Springs) accompanies the Application.
Pristine Springs intends to develop a 200 kW hydroelectric generation facility located
on Warm Creek, north of Twin Falls, Idaho, in an area more particularly described as the
NorthWest Quarter of Section 19, Township 9 South, Range 17 East, Boise-Meridian, Jerome
County, Idaho. The Pristine Springs generation facility will be a qualified small power
production facility (QF) under the applicable provisions of the Public Utility Policies Act
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 Schedule 86 the Company will pay the seller monthly, for each kilowatt
hour of energy delivered and accepted at the point of delivery during the preceding calendar
month, an amount equal to 85% ofthe monthly avoided energy cost. The avoided energy cost is
the weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Electric Price
Index (Dow Jones Mid-C Index prices) for non-firm energy. The project intends to begin
operation May 1 2003. Idaho Power reports that it is currently working with Pristine Springs to
complete the necessary documentation and construction of interconnection equipment. The
estimated cost of the Idaho Power provided interconnection equipment, special facilities and
metering equipment is $45 000.
ORDER NO. 29234
COMMISSION FINDINGS
The Commission has reviewed the March 28, 2003 , Idaho PowerlPristine Springs
Inc. 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 (PURP A).
The Commission has the authority under PURP A 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.
ORDER
In consideration of the foregoing, IT IS HEREBY ORDERED and the Commission
does hereby approve the March 28, 2003 , Idaho PowerlPristine Springs, Inc. Schedule 86 Non-
firm Energy Purchase Agreement.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
service date of this Order with regard to any matter decided in this Order. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
ORDER NO. 29234
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this d- If'"
day of April 2003.
PAUL KJEL ANDER, PRESIDENT
u~~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
vld/O:IPCE0306
ORDER NO. 29234