20050310Final Order No 29725.pdf

Office of the Secretary
Service Date
March 10, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF A FIRM ENERGY SALES
AGREEMENT FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY
BETWEEN IDAHO POWER COMPANY
AND LEWANDOWSKI FARMS
ORDER NO. 29725
CASE NO. IPC-O5-
On February 11 , 2005, Idaho Power Company (Idaho Power; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting approval of a
Firm Energy Sales Agreement (Agreement) between Idaho Power and Lewandowski Farms
dated February 10, 2005. Under the Agreement, Lewandowski Farms would sell and Idaho
Power would purchase electric energy generated by the Lewandowski Farms Wind Generation
Project (Project) located on Simco Road east of Boise in Elmore County, Idaho in an area more
particularly described as the NW 1f4 of Section 23, Township 1 South, Range 4 East, Boise
Meridian Elmore County, Idaho. The Project consists of three (3) Micon, 108 kW wind
generation machines. The nameplate reading of the project is 324 kW with a maximum
generation capability of 400 kW.
Lewandowski Farms is currently interconnected and selling energy to Idaho Power
from this Project pursuant to a previously approved tariff Schedule 86 Non-Firm Energy
Purchase Agreement dated May 2, 2001 (as amended on May 28, 2004). Reference Order
No. 28795. The Project will continue to be a Qualifying Facility (QF) under the applicable
provisions of the Public Utility Regulatory Policies Act of 1978 (PURP A).
As represented by Idaho Power, the Agreement with Lewandowski Farms comports
with the terms and conditions of Commission Order No. 29632 (Case No. IPC-04-, Bob
Lewandowski and Mark Schroeder vs. Idaho Power) and avoided cost Order No. 29646. The
contract is for a five-year term and contains the published non-Ievelized avoided cost rates set
forth in Order No. 29646.
As reflected in Section 24 of the Agreement, the Agreement will not become effective
until the Commission has approved all the Agreement's terms and conditions and declares that
all payments that Idaho Power makes to Lewandowski Farms for purchases of energy will be
ORDER NO. 29725
allowed as prudently incurred expenses for ratemaking purposes. The proposed effective date of
the Agreement is February 10, 2005.
Commission Findings
The Commission has reviewed the filings of record in Case No. IPC-05-3.
have also reviewed our Order No. 29632 in Case No. IPC-04-Bob Lewandowski and Mark
Schroeder v. Idaho Power. Submitted in this docket is an Idaho Power Firm Energy Sales
Agreement with Lewandowski Farms, a wind power project located in Elmore County, Idaho.
The project and related contract terms and conditions were the subject of a recent Lewandowski
complaint action in Case No. IPC-04-10.That case was fully litigated and resulted in
Commission Order No. 29632 resolving disputed contract provisions.
The Commission finds that the Agreement submitted in this case comports with the
Commission s Order in the Lewandowski complaint case as to the then disputed terms and
conditions, contains otherwise additional standard contract provisions and includes the current
non-Ievelized published rates approved by the Commission in Order No. 29646. As the contract
provisions of the Agreement are acceptable and the non-Ievelized rates comport with
Commission published avoided cost rates, the Commission finds it reasonable that the submitted
Agreement be approved without further notice or procedure. We further find it reasonable to
allow payments made under the Agreement as prudently incurred expenses for ratemaking
purposes.
CONCLUSIONS OF LAW
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 February 10, 2005 Firm Energy Sales Agreement between Idaho Power
Company and Lewandowski Farms.
ORDER NO. 29725
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
()~
day of March 2005.
PAUL KJELL
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSEN, COMMISSIONER
ATTEST:
ewell
sion Secretary
bls/O:IPCE0503 sw
ORDER NO. 29725