20040319Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
For Immediate Release
Case No. IPC-04-
March 19, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Idaho Power proposes to buy energy from Emmett biomass project
Boise - Idaho Power Co. is seeking approval to buy energy from a 17.5-megawatt generating
facility that will produce power from wood waste and other renewable materials at the old Boise
Cascade Plant near Emmett.
The utility is seeking Idaho Public Utilities Commission approval of a 20-year contract with
Renewable Energy of Idaho , which plans to design, construct and operate the biomass facility.
F or the first 10 megawatts, Idaho Power will pay Renewable Energy the rate established by the
Idaho Public Utilities Commission for all renewable projects that qualify under the federal Public
Utilities Regulatory Policies Act or PURP A. Passed during the energy crisis in the late 1970s
PURP A requires utilities to buy energy from qualifying small power producers that generate
power from sources other than fossil fuels. The Public Utilities Commission publishes the rate
the utilities must pay small power producers, a rate based on the cost the utility avoids by not
generating the power itself. Idaho Power proposes to pay Renewable Energy a rate that is 20
percent higher than the published PURP A rate for energy delivered during peak-use months of
the year, which include July, August, November and December.
Because 10 MW is the largest size project that can qualify for the published avoided cost rate
Idaho Power and Renewable Energy have negotiated a rate for energy beyond 10 MW that is
based on a market price.
The company is also asking for a commission finding that all payments for purchases of energy
under this agreement be treated as expenses for ratemaking purposes.
The commission has determined that a public hearing may not be necessary and that this case can
be processed through written comments. The deadline for comments is April 7.
Persons wishing to submit comments can do so via e-mail by accessing the commission
homepage at www.puc.state.id.and clicking on "Comments & Questions." Fill in the case
number (IPC-04-5) and enter your comments. Comments can also be mailed to P.O. Box
83720, Boise, ill 83720-0074 or faxed to [phone].
END