20050701Final Order No 29813.pdf

Office of the Secretary
Service Date
July 1, 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 BURLEY BUTTE WIND PARK, LLC.
CASE NO. IPC-O5-
ORDER NO. 29813
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 Burley Butte Wind
Park, LLC (Burley Butte) dated May 5, 2005. Under the Agreement, Burley Butte will sell and
Idaho Power will purchase electric energy generated by the Burley Butte project located near
Burley, Idaho in an area more particularly described as Section 6, Township 11 South, Range 22
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.
The Burley Butte 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). Burley
Butte has selected October 30, 2005 as the scheduled first energy date and December 1 , 2005 as
the scheduled operation date.
As represented by Idaho Power, the Agreement with Burley Butte comports with the
terms and conditions of Commission Order No. 29632 (Us. Geothermal et. al v. Idaho Power)
and avoided cost Order No. 29646.
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 Burley Butte for purchases of energy will be allowed as
ORDER NO. 29813
prudently incurred expenses for ratemaking purposes.The proposed effective date of the
Agreement is May 5 , 2005.
On June 2, 2005 , the Commission issued Notices of Application and Modified
Procedure in Case No. IPC-05-18. The deadline for filing written comments was Friday, June
, 2005. Commission Staff was the only party to file comments. Staff notes that the Burley
Butte project is similar in design to five wind projects approved by the Commission for
development in the Hagerman area. Staff recommends approval of the Agreement with the
Company recommended effective date of May 5 , 2005.
Commission Findings
The Commission has reviewed the filings of record in Case No. IPC-05-
including the underlying Agreement and the comments and recommendations of Commission
Staff. Idaho Power has presented a Firm Energy Sales Agreement with Burley Butte for
Commission consideration and approval. The Agreement is for a 10.5 .MW wind project located
near Burley, Idaho. As represented and pursuant to contract, under normal and/or average
conditions the project will not exceed 10 aMW on a monthly basis. We thus find that the project
is qualified to receive the published avoided costs rates approved by the Commission.
The Commission finds that the Agreement submitted in this case contains acceptable
contract provisions and includes the non-Ievelized published rates approved by the Commission in
Order No. 29646. We find it reasonable that the submitted Agreement be approved without
further notice or procedure. IDAPA 31.01.01.204. We further find it reasonable to allow
payments made under the Agreement as prudently incurred expenses for ratemaking purposes.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
an electric utility, pursuant to the authority and power granted it under Title 61 of the Idaho Code
and the Public Utility Regulatory Policies Act of 1978 (PURP A).
The Commission has authority under PURP A and the implementing regulations of 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 rules.
ORDER NO. 29813
ORDER
In consideration of the foregoing, IT IS HEREBY ORDERED and the Commission
does hereby approve the May 5, 2005 Firm Energy Sales Agreement between Idaho Power
Company and Burley Butte Wind Park, LLC.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this .:3 6 ~
day of June 2005.
lJ
MARSHA H. SMITH, COMMISSIONER
Out of the Office on this Date
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
~LO-Je D. Jew
Co mission Secretary
bls/O:IPCEO518 sw
ORDER NO. 29813