20040402Comment.pdf

State of Idaho
DEPARTMENT OF WATER RESOURCES
1301 North Orchard Street, Boise, ill 83706 - P.O. Box 83720, Boise, ill 83720-0098
Phone: [phone] Fax: [phone] Web Site: www.idwr.state.id.
DIRK KEMPTHORNE
Governor
Re:Support of Power Purchase Agreement in Case No. IPC-O4- 7 KARL J. DREHER
Director
The Idaho Energy Division wishes to enter its support of the energy sales agreement
between Idaho Power Company and the R. Simplot Company for the 15.9-megawatt
cogeneration project near Pocatello.
The mission of the Idaho Energy Division is to promote wise and efficient use of energy,
and cost-effective conservation. In furthering that mission, the Energy Division has
recently undertaken the Combined Heat and Power (CHP) program under a grant from
the Department of Energy and in collaboration with the Northwest Regional Combined
Heat and Power Application Center at Washington State University. The specific
objective of the CHP program is to encourage, promote, and assist in the development of
projects similar in nature to the Simplot cogeneration facility.
The Idaho Energy Division believes that Combined Heat and Power projects, such as the
Simplot cogeneration facility, serve to:
Diversify our energy resources and thereby reduce risks to state, regional and
national energy security,
Reduce electric transmission costs
Boost community economies (jobs, revenues, well-being, etc.
Lower overall energy costs on a total energy system costlbenefit basis
Ensure fairness and equity for industries and consumers in our increasingly
competitive global market economy,
Stabilize the State s industrial base.
Moreover, the Idaho Energy Division s position is: if the two parties to the agreement
have, through negotiation, reached mutually satisfactory terms that satisfy their individual
objectives and which both parties deem to be fair, and the project provides benefits to all
Idaho Power ratepayers and our state, while simultaneously providing more efficient use
of energy resources, it is implicitly worthy of support. We believe this agreement meets
that criteria.
For the many reasons cited above, the Idaho Energy Division supports approval of the
Power Purchase agreement between the R. Simplot Company and Idaho Power
Company by the Idaho Public Utilities Commission.
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Ken klund
Principal Energy Specialist
IDAHO ENERGY DIVISION
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