20040303Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
For Immediate Release
Case No. IPC-04-
March 2, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
PUC asked to determine who owns 'green tags
Boise - The Idaho Public Utilities Commission is being asked to determine who owns the highly marketable "green
tags" awarded to small power producers that contract to sell to Idaho Power: the small power project owners or the
utility.
The green tags are a currency that can be traded to individuals and entities wishing to support renewable or "green
energy. They are becoming more valuable since a growing number of states are starting to require their regulated
utilities to buy or generate a certain amount of power from renewable sources.
Idaho Power has energy agreements with 64 small-power producers in Idaho who generate renewable energy. The
Public Utilities Regulatory Policies Act or PURP A, passed during the energy crisis in the late 1970s, requires utilities
to buy energy from qualifying small power producers that generate power from sources other than fossil fuels. The
Public Utilities Commission sets the rate the utilities must pay small power producers, a rate based on the cost the
utility avoids by not generating the power itself.
Since PURP A was enacted, regional organizations, such as th~ Bonneville Environmental Foundation, have been
created to certify projects as "green energy compliant." Power projects found to be compliant are issued green tags
that can be traded.
Idaho Power is recommending that the commission allow the PURP A projects to retain ownership of the green tags
because it may encourage the development of additional green resources in Idaho without the need to increase energy
prices. However, Idaho Power would like to retain the "right of first refusal" to purchase the tags before PURP
project owners offer the tags to another purchaser.
The tags represent a value to Idaho Power because they have monetary value separate from the actual energy
produced. If the utility were granted ownership rights to the green tags, the revenue from them could be used to lower
energy costs to Idaho Power customers or be reinvested in the development of additional renewable resources in the
state.
PURP A project owners contend they should own the tags. That can benefit the state, project owners say, because the
ability to sell green tags provides incentive from more renewable development. It also compensates them for their
projects' environmental attributes and rewards them for the risk they take to invest in and operate a renewable energy
plant.
Given the heightened public interest in the development of new renewable resources, Idaho Power respectfully
recommends that the commission determine that the developers of such generation facilities receive full ownership
rights in any green tags " the company said, conditioned on the requirement that small power producers who qualify
for green tags grant the company the first opportunity to purchase the tags.
The commission is taking comments on the case through March 19.
Persons wishing to submit comments can do so via e-mail by accessing the commission s homepage at
www.puc.state.id.and clicking on "Comments & Questions." Fill in the case number (IPC-04-2) and enter your
comments. Comments can also be mailed to P.O. Box 83720, Boise, ill 83720-0074 or faxed to [phone].
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