20050624Decision Memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:SCOTT WOODBURY
DATE:JUNE 24, 2005
SUBJECT:CASE NOS. IPC-05-17; IPC-05-18 (IDAHO POWER)
FIRM ENERGY SALES AGREEMENTS GOLDEN
VALLEY (05-17); BURLEY BUTTE (05-18)
On May 13 , 2005, Idaho Power Company (Idaho Power; Company) filed two
applications with the Idaho Public Utilities Commission (Commission) requesting approval of
Firm Energy Sales Agreements (Agreements) between Idaho Power and Golden Valley Wind
Park LLC (Golden Valley) and Burley Butte Wind Park LLC (Burley Butte), collectively the
Wind Projects. The Agreements are dated May 5, 2005. The Wind Projects are qualified small
power production facilities (QFs) under the applicable provisions of the Public Utility
Regulatory Policies Act of 1978 (PURP A). The Wind Projects are located near Burley, Idaho.
Each project consists of seven 1.5 MW GE wind turbines. The nameplate rating of each project
is 10.5 MGW. Under normal and/or average conditions the projects will not exceed 10 aMW on
a monthly basis. If energy in excess of this amount (Inadvertent Energy) is accidentally
generated, Idaho Power will except Inadvertent Energy that does not exceed the 10.5 MW
maximum capacity amount, but will not purchase or pay for it. Agreement'7.3 .
As represented by Idaho Power, the Agreements comport with the terms and
conditions of Commission Order No. 29632 (Us. Geothermal et al v. Idaho Power) and avoided
cost Order No. 29646. The Agreements are for a 20-year term and contain the published non-
levelized avoided cost rates set forth in Order No. 29646.
On June 2, 2005, the Commission issued Notices of Application and Modified
Procedure in Case Nos. IPC-05-17 and -05-18. The deadline for filing written comments was
DECISION MEMORANDUM
Friday, June 24, 2005. Commission Staff was the only party to file comments. Staff notes that
the proposed Wind Projects are similar in design to five wind projects approved by the
Commission for development in the Hagerman area. Staff recommends approval of the
Agreements with the Company recommended effective date of May 5 , 2005.
COMMISSION DECISION
Two Firm Energy Sales Agreements have been presented for Commission
consideration and approval. Both Agreements are for 10.5 MW wind projects located in the
Burley area. Under normal and/or average conditions the projects will not exceed 10 aMW on a
monthly basis. Commission Staff recommends approval of the Agreements. The terms of the
submitted Agreements comport with the Commission s Order No. 29632 (Us. Geothermal et al
v. Idaho Power) and avoided cost Order No. 29646. Does the Commission find it reasonable to
approve the submitted Agreements?
Scott D. Woodbury
jo/M:IPCEO517 - IPCEO518 _
DECISION MEMORANDUM