20040621Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
ATE:JUNE 9, 2004
RE:CASE NO. IPC-04-13 (Idaho Power)
SCHEDULE 86 NON-FIRM POWER PURCHASE AGREEMENT
LEWANDOWSKI FARMS-SECOND REVISED EXHIBIT A
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 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 project is a qualified small power production facility (QF)
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 1
of 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
DECISION MEMORANDUM
generation units at the facility to three (3) 108 kW 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
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.
COMMISSION DECISION
Staff has reviewed the Idaho Power/Lewandowski Farms Schedule 86 Non-Firm
Energy Agreement and Second Revised Exhibit A. The revised Agreement contains non-firm
energy rates conforming with posted tariffs and applicable Commission Orders. Staff
recommends that the Commission approve payments made under the revised Agreement as
prudently incurred expenses for ratemaking purposes.Staff also recommends that the
Commission approve the revised Agreement and Second Revised Exhibit A without further
notice and affirm that payments made under the revised Agreement will be regarded as prudently
incurred expenses for ratemaking purposes. Does the Commission agree?
Scott Woodbury
Vld/M:IPCEO413 sw
DECISION MEMORANDUM