20050425Final Order No 29766.pdf

Office of the Secretary
Service Date
April 25, 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 PRISTINE SPRINGS, )INC.
CASE NO. IPC-O5-
ORDER NO. 29766
On March 4 2005, Idaho Power Company filed an Application requesting approval
of a Firm Energy Sales Agreement (Agreement) between Idaho Power and Pristine Springs, Inc.
dated February 18 , 2005. Under the Agreement, Pristine Springs will sell and Idaho Power will
purchase electric energy generated by the Pristine Springs hydroelectric generation facility. The
Pristine Springs facility consists of a single hydroelectric generation unit located on Warm
Creek, north of Twin Falls, Idaho in an area more particularly described as the NE Y4 of the
Y4 of Section 29, Township 9 South, Range 17 East, Boise Meridian, Jerome County, Idaho. The
nameplate rating and maximum generation capability of the Pristine Springs facility is 125 kW.
THE AGREEMENT
Pristine Springs is a qualified small power production facility (QF) under the
applicable provisions of the Public Utility Regulatory Policies Act of 1978 (PURP A). The
Agreement was developed pursuant to Commission Order Nos. 29632 (Us. Geothermal v. Idaho
Power) and 29646 (setting 2004 avoided cost rates) and will replace the previously approved
Firm Energy Sales Agreement between Idaho Power and Pristine Springs. See Order No. 25793.
In the proposed Agreement, the parties agree to a ten-year contract term and to use the non-
levelized, published avoided cost rates as currently established by the Commission for energy
deliveries of no more than 10 aMW.
Because the Pristine Springs facility is currently interconnected and selling energy to
Idaho Power under an existing Agreement, interconnection to the Company s distribution system
is completed. The previously established interconnection costs set out in the existing Agreement
will be used to value the interconnection costs under the proposed Agreement. The applicable
monthly Schedule 72 charges will apply.
ORDER NO. 29766
As reflected in Article 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 Pristine Springs for purchases of energy will be allowed
as prudently incurred expenses for ratemaking purposes.
COMMISSION FINDINGS
The Commission has reviewed Idaho Power s Application and the comments filed in
this case. The Commission finds that the Agreement comports with the Commission s Order No.
29632 and inclJdes the current, non-Ievelized published rates approved by the Commission in
Order No. 29646.
The Commission finds that the rates and other provisions in the Agreement are
reasonable and just. The Commission further finds that it is reasonable to allow payments made
under the Agreement as prudently incurred expenses for ratemaking purposes.
CONCLUSIONS OF LAW
The Commission has jurisdiction over Idaho Power Company, an electric utility,
pursuant to Title 61 of the Idaho Code and the Public Utility Regulatory Policies Act of 1978
(PURP A).
The Commission has authority under PURP and the implementing regulations
promulgated by 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 regulations.
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power for approval of the
Firm Energy Sales Agreement between Idaho Power and Pristine Springs, Inc. is approved.
THIS IS A FINAL ORDER. Any person interested in the Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order with regard to any
matter decided in this Order. Within seven (7) days after any person has petitioned.. for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~ ~ 61-
626 and 62-619.
ORDER NO. 29766
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;J..5r#-
day of April 2005.
f./~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
. Jewell
ission Secre ary
O:IPCE0511 kdp2
ORDER NO. 29766