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
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cJTILITIES COt~lMfSSION
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 BURLEY BUTTE
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 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 21 East, Boise
STAFF COMMENTS JUNE 24, 2005
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
proj ect 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 8jf 7.
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 first energy date and December 31 , 2005 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 Burley Butte for purchases of energy
will be allowed as prudently incurred expenses for ratemaking purposes.
STAFF ANALYSIS
The Burley Butte 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 proj ects. The Agreement is similar to several
other recent agreements for wind projects 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 Burley Butte and finds that it
comports with the terms and conditions of Commission Order No. 29632 (V.S 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.
STAFF COMMENTS JUNE 24, 2005
,-A
RESPECTFULLY submitted this day of June 2005.
~b\~
Scott D. Woodbury
Deputy Attorney General
i:umisc:commentslipceO5.18swrps
STAFF COMMENTS JUNE 24, 2005
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CERTIFICA TE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 24TH DAY OF JUNE 2005
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF IN CASE
NO. IPC-05-, BY MAILING A COpy THEREOF POSTAGE PREPAID TO THE
FOLLOWING:
BARTON L KLINE
MONICA MOEN
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
RANDY ALLPHIN
CONTRACT ADMINISTRATOR
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
JAMES CAR CULlS
BURLEY BUTTE WIND PARK
1424 DODGE
HELENAMT 59601
CERTIFICATE OF SERVICE