20050425Final Order No 29767.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. FOR PRISTINE SPRINGS #3
CASE NO. IPC-O5-
ORDER NO. 29767
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 #3
located on Warm Creek, north of Twin Falls, Idaho in an area more particularly described as the
NW Y4 of Section 19, Township 9 South, Range 17 East, Boise Meridian, Jerome County, Idaho.
The Pristine Springs facility #3 consists of a single hydroelectric generation unit. The nameplate
rating and maximum generation capability of the Pristine Springs facility #3 is 200 kW.
THE AGREEMENT
Pristine Springs facility #3 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
Schedule 86, Uniform Agreement for the sale of non-firm energy dated March 23, 2003. See
Order No. 29234. In the proposed Agreement, the parties agree to a ten-year contract term and
to use the non-Ievelized, published avoided cost rates as currently established by the Commission
for en~rgy deliveries of no more than 10 aMW.
Because the Pristine Springs facility #3 is currently interconnected and selling energy
to Idaho Power under an existing Schedule 86, non-firm agreement, interconnection to the
Company s distribution system is completed. The previously established interconnection costs
set out in Schedule 86 will be used to value the interconnection costs under the proposed
Agreement. The applicable monthly Schedule 72 charges will apply.
ORDER NO. 29767
Within the proposed Agreement, various requirements have been placed upon Pristine
Springs in order for Idaho Power to accept energy deliveries from the Pristine Springs facility #3.
Idaho Power will monitor compliance with these initial requirements and, once the requirements
have been met, the existing Schedule 86 agreement will be terminated.
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. The proposed effective date of the
Agreement is February 18 2005.
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 includes 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 Utilities Regulatory Policies Act of 1978
(PURPA).
The Commission has authority under PURP A 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. for Pristine
Springs facility #3 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
ORDER NO. 29767
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 99 61-
626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
~I'I-
day of April 2005.
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSE , COMMISSIONER
ATTEST:
Je n D. Jewell
Co mission Secretary
O:IPCE0512 kdp2
ORDER NO. 29767