20050624Comments.pdf

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SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 1895
20n5 JUr12 4 At,
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IDl\HD PUBLIC
TILiTIES COMtilSSION
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 GOLDEN VALLEY
WIND PARK L.C.
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
June 2, 2005, submits the following comments.
BACKGROUND
On May 13, 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 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 East Yz, East Yz, Section 24, Township 11 South
STAFF COMMENTS JUNE 24, 2005
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 10.5 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 ~ 7.3.2.
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 first energy date and June 1 , 2006 as the
scheduled operation 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 Golden Valley for purchases of energy
will be allowed as prudently incurred expenses for ratemaking purposes.
STAFF ANALYSIS
The Golden Valley Project is one of two nearly identical projects with contracts now
pending before the Commission. Both projects are located southwest of the city of Burley.
Attachment A shows the location of these two projects. The Agreement is similar to several
other recent agreements for wind proj ects entered into by Idaho Power and approved by the
Commission (Thousand Springs Wind Park - Order No. 29770; Pilgrim Stage Wind Park-
Order No. 29771; Oregon Trail Wind Park - Order No. 29772; and the Tuana Gulch Wind Park
- Order No. 29773).
Staff has reviewed the Agreement between Idaho Power and Golden Valley and finds that
it comports with the terms and conditions of Commission Order No. 29632 (Us. 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.
RECOMMENDATION
Staff recommends approval of the Agreement with an effective date of May 5 , 2005.
ST AFF COMMENTS JUNE 24, 2005
RESPECTFULLY submitted this
.;J
day of June 2005.
Scott D. 00 Clbury
Deputy Attorney General
i:umisc:commentslipceO5.17swrps
STAFF COMMENTS JUNE 24, 2005
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