20050527Decision Memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:MAY 25, 2005
SUBJECT:CASE NO. IPC-05-17 (Idaho Power)
FIRM ENERGY SALES AGREEMENT GOLDEN VALLEY
On May 13 , 2005, Idaho Power Company (Idaho Power; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting approval of a
20-year Firm Energy Sales Agreement (Agreement) between Idaho Power and Golden Valley
Wind Park, LLC (Golden Valley) dated May 5, 2005. Under the Agreement, Golden Valley will
sell and Idaho Power will purchase electric energy generated by the Golden Valley project
located near Burley, Idaho in an area more particularly described as Section East Yz, East Yz of
, Township 11 South, Range 21 East, Boise-Meridian, Cassia County, Idaho. The project
consists of seven (7) 1.5 MW GE wind turbines. The nameplate rating of the project is 10.
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 Golden Valley 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).
Golden Valley has selected April 31 , 2006 as the scheduled first energy date and June 1 , 2006 as
the scheduled operation date.
As represented by Idaho Power, the Agreement with Golden Valley comports with
the terms and conditions of Commission Order No. 29632 (Us. Geothermal et. al v. Idaho
Power) and avoided cost Order No. 29646.
DECISION MEMORANDUM
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 Golden Valley for purchases of energy will be allowed
as prudently incurred expenses for ratemaking purposes. The proposed effective date of the
Agreement is May 5, 2005.
COMMISSION DECISION
Idaho Power requests Commission approval of a Firm Energy Sales Agreement with
Golden Valley Wind Park, LLC. The contract is for a 20-year term and contains the non-
levelized published avoided cost rates for energy deliveries not exceeding 10 aMW on a monthly
basis. The Commission Staff recommends that the Company s Application be processed
pursuant to Modified Procedure, i., by written submission rather than by hearing. Reference
Commission Rules of Procedure, IDAPA 31.01.01.201-204. Does the Commission agree with
the recommended procedure?
Scott D. Woodbury
bls/M:IPCEO517 sw
DECISION MEMORANDUM