20040609Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. IPC-04-8, Case No. IPC-04-
June 9, 2004
Contact: Gene Fadness [phone]
Web site: www.puc.state.id.
Small-power producers file complaints against Idaho Power
BOISE - Two operators of wind power projects and another operator a geothermal project
in Cassia County have filed complaints with the Idaho Public Utilities Commission alleging the
company is not following federal PURP A contract terms.
The energy crisis of the late 1970s prompted Congress to pass the Public Utilities
Regulatory Policies Act, or PURP A. Its purpose is to encourage the promotion and development
of renewable energy technologies as alternatives to burning fossil fuels or the construction of
new power plants.
PURP A requires electric utilities like Idaho Power to buy electricity generated by small-
power producers who obtain Qualifying Facility (QF) status. The rate utilities must pay
qualifying facilities is a posted rate, set by the state commission. The rate, sometimes called
avoided-cost rate, is to be equal to the cost the electric utility avoids if it would have had to
generate the power itself or purchase it from another source.
Bob Lewandowski, who operates a wind project east of Boise, and Mark Schroeder, who
is developing a wind project in the Hagerman-Bliss area, claim the company wants to pay other
than posted rates when the output from the complainants' wind projects is less than 90 percent or
more than 110 percent of projected output. Lewandowski and Schroeder also object to Idaho
Power s proposal that they pay for the electricity Idaho Power must acquire when output from
their wind projects is less than expected. The complainants also object to an Idaho Power
provision that allows the utility to terminate the contract if retail electric deregulation is enacted
in Idaho.
S. Geothermal, owner of the 15-megawatt Raft River Geothermal Power Plant now
being built in Cassia County, filed a complaint with the commission listing many of the same
objections cited by Lewandowski and Schroeder. In addition, U.S. Geothermal claims Idaho
Power is refusing to purchase an annual average of 10 MW per year, but, instead, will purchase
only a maximum of 10 MW in any given hour at PURP A rates. U.S. Geothermal maintains there
is no basis in law for such a limitation.
Because of the similarity of the complaints among the three projects, the commission
issued an order Tuesday consolidating the complaints into one case.
The commission has scheduled a Sept. 2 public hearing at 9:30 a.m. in the commission
hearing room, 472 W. Washington St. in Boise. The hearing may continue to Sept. 3 if
necessary.
S. Geothermal, as well as Lewandowski and Schroeder, must file direct testimony by
July 9. Idaho Power has until July 15 to file its direct testimony. Commission staff and
intervenors will file their direct testimony by Aug. 5 and rebuttal testimony must be filed by
Aug. 19.
Documents related to this case can be accessed on the commission s Web site at
www.puc.state.id.. Click on "File Room " then "Electric Cases " and scroll down to Case Nos.
IPC-04-8 and IPC-04-10. Copies of the testimony by the parties will also be available as
they come in. Documents are also available for public inspection at the commission s offices at
472 W. Washington St. in Boise.
END