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 APPROVAL
OF A FIRM ENERGY SALES AGREEMENT
FOR THE SALE AND PURCHASE OF
ELECTRIC ENERGY BETWEEN IDAHO
POWER COMPANY AND CKTVl ENERGYC.
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. 30054 issued on May 26, 2006, submits the following comments.
BACKGROUND
On April 28, 2006, 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 CKTVI Energy, LLC. (CKTVl) dated April 28
2006. Under the Agreement, CKTVI will sell and Idaho Power will purchase electric energy
generated by the Treasure Valley 1 anaerobic digester gas-to-energy facility, located near Caldwell
Idaho. The sum of the nameplate ratings of the single or multiple reciprocating engine generation sets
shall not exceed 3.2 MW.
STAFF COMMENTS JUNE 16, 2006
The Application states that the CKTVI Treasure Valley 1 Project will be a qualified small
power production facility (QF) under the applicable provisions of the Public Utility Regulatory
Policies Act of 1978 (PURPA). CKTVI has selected November 1 , 2006 as the first energy date and
March 31 , 2007 as the scheduled operation date.
STAFF ANALYSIS
Based on its review, Staff believes that the Agreement between CKTVI and Idaho Power
comports with the terms and conditions of Commission Order No. 29632 (US. Geothermal et al
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 CKTVI for purchases of energy will be allowed as prudently incurred
expenses for ratemaking purposes. The proposed effective date of the Agreement is April 28, 2006.
STAFF RECOMMENDATION
Staff recommends approval of the Agreement with an effective date of April 28 , 2006.
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Respectfully submitted this day of June 2006.
Cecelia A. Ga sner
Deputy Attorney General
Technical Staff: Rick Sterling
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STAFF 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:
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
CKTVI ENERGY LLC
ATTN: SOTCHIMONAS
276 S MOON BEAM WAY
EAGLE ID 83616
SECRETARY
CERTIFICATE OF SERVICE