20050317Comments.pdf

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 1895
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
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 THOUSAND
SPRIN GS WIND PARK LLC.
CASE NO. IPC-O5-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the Notice
of Application, Notice of Modified Procedure and Notice on Comment Deadline issued on
March 15, 2005, submits the following comments.
BACKGROUND
On February 24, 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 Thousand Springs Wind
Park, LLC (Thousand Springs) dated February 18, 2005. Under the Agreement, Thousand
Springs will sell and Idaho Power will purchase electric energy generated by the Thousand
Springs Project located near Hagerman, Idaho in an area more particularly described as
STAFF COMMENTS MARCH 17 , 2005
Sections , 8, and 9, Township 7 South, Range 13 East, Boise Meridian, Twin Falls County,
Idaho and Sections 19 and 30, Township 6 South, Range 13 East, Boise Meridian, Twin Falls
County, Idaho. The Project consists of seven (7) 1.5 MW GE wind turbines. The nameplate
rating of the project is 10.5 MW. Under normal and/or average conditions the project will not
exceed 10 aMW on a monthly basis. If energy in excess of this amount (Inadvertent Energy) is
accidentally generated, Idaho Power will accept Inadvertent Energy that does not exceed the
10.5 MW maximum capacity amount but will not purchase or pay for it. Agreement ~ 7.
The Thousands Springs Project will be a qualified small power production facility (QF)
under the applicable provisions of the Public Utility Regulatory Policies Act of 1978 (PURPA).
Thousand Springs has selected December 31 , 2005 as the scheduled operation date and January
, 2006 as the first energy date. 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 Thousand Springs for
purchases of energy will be allowed as prudently incurred expenses for ratemaking purposes.
STAFF ANALYSIS
The Thousands Springs Project is one of four nearly identical projects with contracts now
pending before the Commission. All four projects are located in the Bell Rapids area west of the
city of Hagerman. Attachment A shows the location of these four projects. In addition to these
four projects, the Fossil Gulch Project is also located in the same vicinity. The Commission on
November 12 2004 in Order No. 29630 approved a power sales agreement for Fossil Gulch.
Construction of the Fossil Gulch Project is nearly complete. These four projects, in addition to
the Fossil Gulch Project, bring the total installed capacity in the vicinity to 50 MW.
Staffhas reviewed the Agreement between Idaho Power and Thousand Springs and finds
that it comports with the terms and conditions of Commission Order No. 29632 (V.
Geothermal et. al v. Idaho Power) and avoided cost Order No. 29646. The contract is for a 20-
year term and contains the published non-Ievelized avoided cost rates set forth in Order
No. 29646.
STAFF COMMENTS MARCH 17, 2005
RECOMMENDATION
Staff recommends approval of the Agreement with an effective date of February 18, 2005.
RES PECTFULL Y submitted this /7 ~ day 0 f March 2005.
Scott D. Woodbury
Deputy Attorney General
i :umisc :comments/ipceO5 6swrps
STAFF COMMENTS MARCH 17, 2005
Attachment A
IPC-05-ase
Staff Comments
3/1 7/05
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 17TH DAY OF MARCH 2005
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. IPC-05-, BY MAILING A COpy THEREOF POSTAGE PREPAID, TO THE
FOLLOWING:
BARTON L KLINE
MONICA MOEN
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
RAND Y ALLPHIN
CONTRACT ADMINISTRATOR
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
JAMES CARCULIS
THOUSAND SPRINGS WIND PARK, LLC
1424 DODGE
HELENAMT 59601
CERTIFICATE OF SERVICE