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Home My WebLink About20051107notice of application .pdfOffice of the Secretary Service Date November 7, 2005 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR CASE NO. IPC-O5- APPROVAL OF A FIRM ENERGY SALES AGREEMENT FOR THE SALE AND NOTICE OF APPLICATION PURCHASE OF ELECTRIC ENERGY BETWEEN IDAHO POWER COMPANY NOTICE OF AND LAVA BEDS ~ND PARK LLC MODIFIED PROCEDURE NOTICE OF CO MMENT /PROTEST DEADLINE YOU ARE HEREBY NOTIFIED that on October 20, 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 Lava Beds Wind Park LLC (Lava Beds) dated October 14, 2005. Under the Agreement, Lava Beds will sell and Idaho Power will purchase electric energy generated by Lava Beds, a project located near Taber, Idaho, which is between Blackfoot and Atomic City, Idaho, in an area more particularly described as Sections 2 and 3 , Township 2 S Range 32 E, Boise Meridian, Bingham County, Idaho. The project will consist of twelve (12) 1.5 MW GE wind turbines. The nameplate rating of the project is 18.0 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 19.2 MW Maximum Capacity Amount, but will not purchase or pay for it. Agreement ~ 7.2; Appendix B- The Lava Beds 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). represented by Idaho Power, the Agreement comports with the terms and conditions of Commission Order No. 29632 (Us. Geothermal et al v. Idaho Power), avoided cost Order No. 29646 and Commission Order Nos. 29839, 29851 and 29872 in Case No. IPC-05-22. The Agreement is for a 20-year term and contains the non-levelized published avoided cost rates set forth in Order No. 29646. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICES OF COMMENT/PROTEST DEADLINE In interlocutory Order No. 29839 issued in Case No. IPC-05-22 the Commission reduced the size cap for QF wind generation facilities entitled to receive the published avoided cost rates from 10 aMW to 100 kW. In its Order, the Commission further identified several criteria that it would consider to determine whether a particular QF wind generation facility in the negotiation queue was sufficiently mature so as to justify "grandfathering" the project to entitlement to the published rates. These criteria are as follows: (1) Submittal of a signed power purchase agreement to the utility, or(2) Submittal to the utility of a completed Application for Interconnection Study and payment of fee. In addition to a finding of existence of one or both of the preceding threshold criteria, the QF must also be able to demonstrate other indicia of substantial progress and project maturity, e. (1) A wind study demonstrating a viable site for the project (2) A signed contract for wind turbines(3) Arranged financing for the project, and/or(4) Related progress on the facility permitting and licensing path. Order No. 29839, p. 10, August 4, 2005; final Order No. 29851. In reconsideration Order No. 29872 issued on September 21 , 2005 in the same case, the Commission reaffirmed the grandfathering criteria and changed the "grandfathering" eligibility deadline from the previously- ordered July 1 2005, to August 4 2005 , the date of interlocutory Order No. 29839. Considering and weighing all of the Commission-identified criteria, Idaho Power believes that the Lava Beds project is sufficiently far enough along the development path that it should be "grandfathered" to the published rates. Lava Beds has selected November 2006 as the scheduled first energy date and May 2007 as the scheduled operation date. As reflected in Agreement Section 24, 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 Lava Beds for purchases of energy will be allowed as prudently incurred expenses for ratemaking purposes. YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. IPC-05-31. The Commission has preliminarily found that the public interest in this matter may not require a hearing to consider the issues presented and that issues raised by the Company s filing may be processed under Modified Procedure , by written NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICES OF COMMENT/PROTEST DEADLINE submission rather than by hearing. 31.01.01.201-204. Reference Commission s Rules of Procedure, IDAPA YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to Idaho Power s Application and the use of Modified Procedure in Case No. IPC-05-31 is Monday, November 28, 2005. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission may consider the matter on its merits and may enter its Order without a formal hearing. If comments or protests are filed within the deadline the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order based on the written positions before it. Reference IDAP 31.01.01.204. YOU ARE FURTHER NOTIFIED that written comments concerning Case No. IPC-05-31 should be mailed to the Commission and the Company at the addresses reflected below. Street Address for Express Mail: Monica B. Moen, Attorney II Barton L. Kline, Senior Attorney Idaho Power Company PO Box 70 Boise, ID 83707-0070 Mail: mmoen(~jdahopower.com bklineuvjdahopower. com Commission Secretary Idaho Public Utilities Commission PO Box 83720 Boise, ID 83720-0074 472 W. Washington Street Boise, ID 83702-5983 Randy C. Allphin, Contract Administrator Idaho Power Company PO Box 70 Boise, ID 83707-0070 E-mail: rallphin~idahopower.com Street Address for Express Mail: 1221 W. Idaho Street Boise, ID 83702 All comments should contain the case caption and case number shown on the first page of this document.Persons desiring to submit comments via e-mail may do so by accessing the Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions icon, and complete the comment form, using the case number as it appears on the front of this NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICES OF COMMENT/PROTEST DEADLINE document. These comments must also be sent to Idaho Power at the e-mail addresses listed above. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set, the Commission will consider this matter on its merits and enter its Order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing. YOU ARE FURTHER NOTIFIED that the Application in Case No. IPC-05- may be viewed at www.puc.idaho.gov by clicking on "File Room" and "Electric Cases " or can be viewed during regular business hours at the Idaho Public Utilities Commission, 472 W. Washington Street, Boise, Idaho and at the general business office of Idaho Power Company, 1221 West Idaho Street, Boise, Idaho. DATED at Boise, Idaho this 7-fA day of November 2005. Je D. JewellCo ISSlOn Secretary blsfN:IPC-05-31 sw NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICES OF COMMENT/PROTEST DEADLINE