20040628Final Order No 29534.pdf

Office of the Secretary
Service Date
June 28, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR APPROVAL
OF A REVISION TO A SCHEDULE 86
UNIFORM AGREEMENT FOR THE
PURCHASE OF POWER BETWEEN IDAHOPOWER COMPANY AND THE
LEWANDOWSKI FARMS.
CASE NO. IPC-O4-
ORDER NO. 29534
On July 30, 2001 , the Idaho Public Utilities Commission (Commission) in Case
No. IPC-01-, Order No. 28795, approved a tariff Schedule 86 Non-Firm Energy Purchase
Agreement (Agreement) between Idaho Power Company (Idaho Power; Company) and
Lewandowski Farms (Lewandowski).
Lewandowski is a developer of wind generating facilities located near Simco Road
east of Boise in Elmore County, Idaho, in an area more particularly described as the Northwest
Quarter of Section 23 , Township 1 South, Range 4 East, Boise-Meridian, Elmore County, Idaho.
The Lewandowski wind generation proj ect is a qualified small power production facility (Q
under the applicable provisions of the Public Utility Regulatory Policies Act of 1978 (PURP A).
Pursuant to Agreement, the purchase price will be in accordance with Option A under Section
of Idaho Power electric tariff Schedule 86.
On September 16, 2002, Lewandowski Farms and Idaho Power agreed to a certain
minor technical modification to Exhibit A to the approved Agreement (Revised Exhibit A).
copy of Revised Exhibit A to the Agreement was filed with the Commission for its information.
Idaho Power in a June 04, 2004 filing with the Commission in Case No. IPC-04-
reports that Lewandowski Farms has requested a material revision to Revised Exhibit A of the
approved Agreement. Lewandowski Farms requests that two (2) additional 108 kW wind
generation units be included in the facility s description to bring the total number of wind
generation units at the facility to three (3) 108 k W wind generation units. The addition of two
more generation units at this facility requires Idaho Power to modify the interconnection, special
facilities and metering equipment as described within Revised Exhibit A. Idaho Power has filed
a Second Revised Exhibit A to the Agreement containing the agreed upon generation unit
additions and the associated interconnection special facilities and meter equipment
ORDER NO. 29534
modifications. All applicable interconnection charges and monthly operation and maintenance
charges under Schedule 72 resulting from the proposed modifications will be assessed
Lewandowski Farms.
Idaho Power requests a Commission Order (1) rescinding Revised Exhibit A to the
previously approved Agreement between Idaho Power and Lewandowski Farms in its entirety;
(2) approving the Second Revised Exhibit A without change or condition to replace Revised
Exhibit A; and (3) declaring that all additional payments for purchases of energy under the
Agreement as a result of the Second Revised Exhibit A be allowed as prudently incurred
expenses for ratemaking purposes.
ORDER
The Commission has reviewed the Idaho Power/Lewandowski Farms Schedule 86
Non-Firm Energy Agreement and Second Revised Exhibit A.We find that the revised
Agreement contains non- firm energy rates conforming to posted rates and applicable
Commission Orders. We find it reasonable to allow payments made under the revised
Agreement as prudently incurred expenses for ratemaking purposes. We also find that it is
appropriate to approve the revised Agreement without further notice.
CONCLUSIONS
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 the 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 May 28, 2004, Second Revised Exhibit A to Idaho Power/Lewandowski
Farms Schedule 86 Non-Firm Energy Purchase Agreement and the rescission of Revised Exhibit
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
ORDER NO. 29534
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 ~ 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
~gf"'.
day of June 2004.
DENT
II
MARSHA H. SMITH, COMMISSIONER
, COMMISSIONER
ATTEST:
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Commission Secretary
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ORDER NO. 29534