20040803Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSIONJuly 30, 2004
Case No. IPC-04-16, IPC-04-
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Comment sought on Idaho Power-Simplot agreements
The Idaho Public Utilities Commission is taking public comment on two cases regarding electric
sales agreements between Idaho Power and the lR. Simplot Company fertilizer plant near
Pocatello.
Under one agreement, Simplot agrees to buy 25 000 kilowatts of electric power and energy from
Idaho Power on a monthly basis. The agreement permits Simplot to increase the monthly
demand to a maximum of 38 000 kilowatts upon one year s prior written notice to Idaho Power.
If approved by the commission, the agreement would result in about $4.6 million in annual
revenue to Idaho Power. The agreement would remain in effect for five years and would
automatically renew thereafter until either party terminates it. The effective date of any
termination cannot be less than 12 months after the date of delivery of the termination notice.
The second agreement is for the sale of power Simplot generates at its 15.9 megawatt
cogeneration facility on its plant site. For energy deliveries of 10 megawatts or less, Idaho Power
would pay Simplot the commission s published rate for qualifying PURP A projects.
PURP A, the Public Utilities Regulatory Policies Act, was passed by Congress in the 1970s 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 power produced from qualifying small
power producers or cogenerators. Cogenerators, like Simp lot, produce power as a byproduct of
their manufacturing process. The rate to be paid developers of cogeneration or small power
producers 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.
As an incentive for Simp lot to deliver energy to Idaho Power during times when it is of greater
value, the company has seasonalized the rates it will pay Simp lot to coincide to the months when
electrical demand is the heaviest.
The contract is for one year, but an evergreen clause automatically renews it unless it is
terminated.
Interested parties who want to comment on either agreement can do so via e-mail by accessing
the commission s homepage at www.puc.state.id.and clicking on "Comments & Questions.
Fill in the case number (IPC- E-04-16 on the PURP A agreement and IPC- E-04-1 7 on Idaho
Power sales to Simp lot) and enter your comments. Comments can also be mailed to P.O. Box
83720, Boise, ill 83720-0074 or faxed to [phone].
A full text of the commission s order, along with other documents related to this case, are
available on the commission s Web site. Click on "File Room" and then on "Electric Cases" and
scroll down to one of the above case numbers.