20060630final_order_no_30087.pdf

Office of the Secretary
Service Date
June 30, 2006
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 CASSIA GULCH WIND PARK, LLC
ORDER NO. 30087
CASE NO. IPC-06-
On April 20, 2006, Idaho Power Company ("Idaho Power" or "Company ) filed an
Application with the Idaho Public Utilities Commission ("Commission ) requesting approval of
a Firm Energy Sales Agreement (the "Agreement") between Idaho Power and Cassia Gulch
Wind Park, LLC ("Cassia Gulch") dated April 7, 2006. Cassia Gulch proposes to design
construct, install, own, operate and maintain an 18.9 MW wind generating facility. Under the
Agreement, Cassia Gulch would sell and Idaho Power would purchase electric energy generated
by Cassia Gulch's wind turbines located near Hagerman, Idaho. Under normal and/or average
conditions, the project will not exceed 10 aMW on a monthly basis.
As represented, the Cassia Gulch facility will be a qualified small power production
facility ("QF") under the applicable provisions of the Public Utility Regulatory Policies Act of
1978 ("PURP A"). Idaho Power contends that the Agreement comports with the terms and
conditions of Commission Order No. 29632 (Us. Geothermal, et al. v. Idaho Power) and
avoided cost Order No. 29646. The Agreement is for a 20-year term and contains the published
non-Ievelized avoided cost rates set forth in Order No. 29646. Cassia Gulch has selected
December 31 , 2006 as the scheduled operation date for this facility.Section 24 of the
Agreement provides that the Agreement will not become effective until the Commission has
approved all the Agreement's terms and conditions and declared that all payments that Idaho
Power makes to Cassia Gulch for purchases of energy will be allowed as prudently incurred
expenses for ratemaking purposes.
On June 2, 2006, the Commission issued Notices of Application and Modified
Procedure in this matter. See Order No. 30061. The deadline for filing written comments was
June 16 2006. The only comments received were filed by Commission Staff.
ORDER NO. 30087
ST AFF COMMENTS
Staff reviewed the Agreement and believes that it comports with the rates, terms and
conditions of Commission Order No. 29632 (Us. Geothermal, et at. v. Idaho Power) and
avoided cost Order No. 29646. Staff recommended that the Agreement be approved.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case No. IPC-06-
including the underlying Agreement and filed comments. Idaho Power has presented a Firm
Energy Sales Agreement with Cassia Gulch for Commission consideration and approval. The
Agreement is for an 18.9 MW wind generating facility located near Hagerman, 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 cost rates approved by the Commission.
The Commission finds that the Agreement submitted in this case contains acceptable
contract provisions and includes the non-levelized 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
IT IS HEREBY ORDERED that the Commission approves the April 7, 2006 Firm
Energy Sales Agreement between Idaho Power Company and Cassia Gulch 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.
ORDER NO. 30087
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30
day of June 2006.
PAUL KJELL , RESIDENT
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSEN, OMMISSIONER
ATTEST:
Commission Secretary
O:IPC-06-cg2
ORDER NO. 30087