20050930final order no 29874.pdf

Office of the Secretary
Service Date
September 30, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF A SCHEDULE 86, NON-
FIRM ENERGY SALES AGREEMENT FOR
THE SALE AND PURCHASE OF NON-FIRM
ELECTRIC ENERGY BETWEEN IDAHO
POWER COMPANY AND J. M. MILLER
ENTERPRISES, INC.
CASE NO. IPC-O5-
ORDER NO. 29874
On September 9, 2005, Idaho Power Company (Idaho Power; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting approval of a
tariff Schedule 86 Non-Firm Energy Purchase Agreement (Agreement). A copy of the
September 7 2005 Agreement accompanies the Application.
As reflected in the Application, J. M. Miller Enterprises, Inc. (Miller) is developing a
500-kW hydroelectric generation project near Twin Falls, Idaho in an area more particularly
described as the Northeast y,. of Section 13, Township 9 South, Range 15 East, Boise Meridian
Twin Falls County, Idaho. As represented, the Miller 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).
Paragraph 8 of the Agreement provides that "the Agreement shall not become
effective until the Commission approves all terms and provisions thereof without change or
condition and declares that all payments to be made hereunder shall be allowed as prudently
incurred expenses for ratemaking purposes.Pursuant to Agreement Paragraph 1 , the purchase
price will be in accordance with the Company s Electric Tariff Schedule 86. The proposed
scheduled Operation Date is October 15 2005.
Idaho Power states that it is currently working with the Miller Project to complete the
necessary documentation and construction of interconnection equipment in accordance with the
terms of the Agreement.
Commission Findings
The Commission has reviewed and considered the September 7 2005 Idaho Power/I.
M. Miller Enterprises, Inc. Schedule 86 Non-Firm Energy Agreement and filings of record in
ORDER NO. 29874
Case No. IPC-05-25. We find that the Agreement contains non-firm energy rates in
conformity with posted tariffs and applicable Commission Orders. We find it reasonable to
approve the Agreement without further notice or procedure. We further find that payments made
under the Agreement should be allowed as prudently allowed incurred expenses for ratemaking
purposes. We also find it appropriate to approve the Agreement without further notice.
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
In consideration of the foregoing, IT IS HEREBY ORDERED and the Commission
does hereby approve the September 7 , 2005 Idaho Power/I. M. Miller Enterprises, Inc. Schedule
86 Non-Firm Energy Purchase Agreement.
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 9 61-626.
ORDER NO. 29874
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
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day of September 2005.
OWL- MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. Jewell
mission Secretary
bls/O:IPC-05-25 sw
ORDER NO. 29874