20050126Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. IPC-05-1, Order No. 29692
January 26, 2005
Contact: Gene Fadness [phone]
Website: www.puc.idaho.2ov
Commission approves Idaho Power-S. Geothermal sales agreement
Boise - The Idaho Public Utilities Commission has approved a sales agreement between Idaho
Power and U.S. Geothermal.
Boise-based U.S. Geothermal is planning to build a geothermal generating facility, the Raft
River Geothermal Power Plant, near Malta. When completed, expected in mid-2006, it is
expected to be the first geothermal power plant in the Pacific Northwest.
Under the 20-year contract, U. S. Geothermal agrees to sell Idaho Power up to 10 average
megawatts per month. The Raft River facility will interconnect with the Raft River Rural Electric
Cooperative system and wheel its energy to Idaho Power over transmission lines owned by the
Raft River Co-Op and the Bonneville Power Administration.
S. Geothermal will qualify for rates set by the Idaho Public Utilities Commission under federal
PURP A guidelines. Congress passed PURP A, the Public Utility Regulatory Policies Act, in the
wake of the energy crisis in the late 1970s. 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 large electric utilities like Idaho Power to
buy electricity generated by small-power producers who obtain Qualifying Facility (QF) status.
The rate utilities must pay QFs is set by the state commission. The rate, called the 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.
The sales agreement does contain provisions that have not been typical of PURP A contracts. The
new provisions are included as the result of two complaint cases filed by U.S. Geothermal and
wind developers, which were resolved last November.
Under the agreement, U.S. Geothermal will be paid a non-Ievelized avoided cost rate, which
begins at about 5.15 cents per kWh and increases 2.3 percent annually to a maximum of 8.1 cents
over the 20-year term of the contract. U.S. Geothermal will receive that rate for energy delivered
that is between 90 and 110 percent of its estimated generation amounts. For energy delivered in
excess of 110 percent or less than 90 percent, U.S. Geothermal will be paid 85 percent of the
wholesale market price or the contract rate, whichever is less.
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 Case No. IPC-05-
Interested parties may petition the commission for reconsideration by no later than Feb. 14.
Petitions for reconsideration must set forth specifically why the petitioner contends that the order
is unreasonable, unlawful or erroneous. Petitions should include a statement of the nature and
quantity of evidence the petitioner will offer if reconsideration is granted.
Petitions can be delivered to the commission at 472 W. Washington St. in Boise, mailed to P.
Box 83720, Boise, ill, 83720-0074, or faxed to 208-334-3762.