20050425Notice of Application Order No 29764.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 DRY CREEK, L.C.
CASE NO. IPC-O5-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 29764
On March 31 , 2005, Idaho Power Company filed an Application requesting approval
of a Firm Energy Sales Agreement (Agreement) between Idaho Power and Dry Creek, L.
dated March 29 2005. Under the Agreement, Dry Creek will sell and Idaho Power will purchase
electric energy generated by the Broadwater Hydroelectric Project located near Toston, Montana
for nine months of the year (from June through February). The Broadwater Hydroelectric
Project is an existing hydroelectric facility with a nameplate rating of 10 MW. Dry Creek has a
long-term lease to operate and maintain this facility.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Broadwater Hydroelectric Project will be 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). In the proposed Agreement, the parties agree to a 20-year contract term and
to use the non-Ievelized published avoided cost rates as currently established by the Commission
for energy deliveries of no more than 10 aMW. Under Paragraph 4.1.3 of the Agreement, Dry
Creek is required to provide data to Idaho Power regarding whether, under normal and/or
average conditions, the facility will not exceed 10 aMW on a monthly basis.
YOU ARE FURTHER NOTIFIED that the Broadwater Hydroelectric Project is
located in NorthWestern Energy s service territory. Therefore, pursuant to Paragraph 4.1.6 of
the Agreement, Dry Creek is required to provide to Idaho Power a copy of the Transmission
Agreement with NorthWestern Energy, the transmitting entity, for Idaho Power s review and
acceptance.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29764
YOU ARE FURTHER NOTIFIED that, because the Broadwater Hydroelectric
facility is physically interconnected to NorthWestern Energy s system, no physical
interconnection costs will be assessed by Idaho Power as specified in Schedule 72. However
pursuant to the Agreement, Dry Creek is required to pay all costs associated with integrating the
facility s energy deliveries into the Idaho Power electrical system.
YOU ARE FURTHER NOTIFIED that various requirements have been placed upon
Dry Creek in order for Idaho Power to accept energy deliveries from the Broadwater
Hydroelectric facility. Idaho Power will monitor compliance with these requirements. If initial
requirements are made and the Commission approves the proposed Agreement, the operation
date of this facility will be June 1 , 2005.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure, IDAP A 31.01.01.201 through .204.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of modified
procedure and stating why modified procedure should not be used. IDAP A 31.01.01.203.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21) days from the date of this Notice. The comment must contain a statement of
reasons supporting the comment. Persons desiring a hearing must specifically request a hearing
in their written comments. Written comments concerning this Application shall be mailed to the
Commission and the Applicant at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ill 83720-0074
Street Address for Express Mail:
Monica Moen
Barton L. Kline
Randy C. Allphin
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
Mail: mmoen~idahopower.com
bkline~idahopower.com
rallphin~idahopower. com
472 W. Washington Street
Boise, ID 83702-5983
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29764
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov . Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to the Applicant at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application together with supporting
workpapers and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices or on the Commission
website www.puc.idaho.gov
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and the Public Utility
Regulatory Policies Act of 1978 (PURP A).
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, ID AP A 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Application of Idaho Power be processed by
Modified Procedure IDAP A 31.01.01.201-204. Persons interested in submitting written
comments in this matter must do so no later than twenty-one (21) days from the service date of
this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29764
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;25't-4--
day of April 2005.
PAULKJE L
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~~'
Jea ' . Jewell
Mmission Secretary
O:IPCE0513 - kdp
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29764