20060616Comments.pdf

CECELIA A. GASSNER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 6977
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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 APPROV AL )
OF A FIRM ENERGY SALES AGREEMENT
FOR THE SALE AND PURCHASE OF
ELECTRIC ENERGY BETWEEN IDAHO
POWER COMPANY AND CASSIA GULCH WIND PARK, L.L.c.
CASE NO. IPC-O6-
COMMENTS OF THE
COMMISSION STAFF
The Staff of the Idaho Public Utilities Commission, by and through its Attorney of
record, Cecelia A. Gassner, Deputy Attorney General, in response to the Notice of Application
and Notice of Modified Procedure in Order No. 30061 issued on June 2, 2006, submits the
following comments.
BACKGROUND
On October 27 2005 , Cassia Gulch Wind Park, L.L.C. (Cassia Gulch) filed a petition
with the Idaho Public Utilities Commission (Commission) requesting an order determining that
Cassia Gulch was exempt from the published rate eligibility cap established in Order No. 29839.
On January 17, 2006, the Commission, in Order No. 29954, determined that Cassia Gulch was
entitled to receive exemption from the published rate eligibility cap established in Order No.
29839, provided that Cassia Gulch was able to secure contractual financing and turbine
STAFF COMMENTS JUNE 16 2006
commitment from John Deere Credit within a specified time period. In a Minute Entry dated
February 8 2006, the Commission acknowledged satisfaction of the conditions precedent set
forth in Order No. 29954 and recognized that Cassia Gulch was exempt from the published rate
eligibility cap established in Order No. 29839.
On April 20, 2006, Idaho Power Company (Idaho Power; Company) filed an Application
with the Commission requesting approval of a 20-year Firm Energy Sales Agreement
(Agreement) between Idaho Power and Cassia Gulch dated April 7, 2006. Under the Agreement
Cassia Gulch will sell and Idaho Power will purchase electric energy generated by Cassia s wind
generating facility, located near Hagerman, Idaho in an area known as Bell Rapids. The
nameplate rating of the wind facility is 18.9 MW. Under normal and/or average conditions, the
project will not exceed 10 aMW on a monthly basis.
STAFF ANALYSIS
As represented, the Cassia Gulch Proj ect will be a qualified small power production
facility (QF) under the applicable provisions of the Public Utility Regulatory Policies Act of
1978 (PURP A). Cassia has selected August 31 , 2006 as the first energy date and December 31
2006 as the scheduled operation date for this facility.
Based on its review, Staff believes that the Agreement between Cassia Gulch and Idaho
Power 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.
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. The proposed effective date of the
Agreement is April 7, 2006.
STAFF COMMENTS JUNE 16, 2006
STAFF RECOMMENDATION
Staff recommends approval of the Agreement with an effective date of April 7, 2006.
Respectfully submitted this .,."... day of June 2006.
coce
Deputy Attorney General
Technical Staff: Rick Sterling
i:umisc:comments/ipceO6,ll cgrps
ST AFF COMMENTS JUNE 16 2006
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 16TH DAY OF JUNE 2006
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. IPC-06-, BY MAILING A COpy THEREOF, POSTAGE PREPAID, TO
THE FOLLOWING:
MONICA MOEN
BARTON L KLINE
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
RANDY ALLPHIN
CONTRACT ADMINISTRATOR
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
JOHN DEER WIND ENERGY
C/O JOHN DEER CREDIT
ATTN: ASSNT CHIEF COUNSEL
6400 NW 86TH ST
JOHNSTON IA 50131
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SECRETARY
CERTIFICATE OF SERVICE