20070223Idaho Farm Energy Assoc Comment.pdf

Feb 22 07 05: 11~,1 'h p R~naissance Fa~./10 &~-796-2222-2f;d"vr-:::;; )- /"7- '3 / () v' 1J iA- v
~IDAHO FARM ENERGY ASSOCIATION
~~ J
BOARD MEMBERS
Brian Jackson
Armand Eckert
John Steiner
420 W. Bannock
Boise. 10 83702
P 208-859-1882
p. 1
February 22, 2007
Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702-5983
Re: Comments on Idaho Power Horizon Contract IPC-O6-
Dear Ms. Jewell:
The Idaho Farm Energy Association provides the following comments on the Idaho Power
Wind Contract with Horizon Energy. The Idaho Farm Energy Association is a nonprofit cor-
poration formed in January 2006 to promote rural economic development through on-farm
renewable energy projects in the State of Idaho.
The Idaho Farm Energy Association would like to provide a few short comments regarding
the subject proceeding. The Horizon wind project is delivering energy at an initial price of 48
$/MWh, escalating at 3%. Comparable PURPA wind projects are priced at 54 $IMWh esca-
lating at approximately 2.3%. Over the 20 year life of the contracts, the levelized price for
Horizon is approximately 60 $/MWh and a PURPA contract is approximately 64 $/MWh. This
potential difference of 6.5% is almost entirely offset by the difference in the 90/110 mecha-
nisms between the two contracts. The Horizon project and the PURPA projects have essen-
tially the same cost to the ratepayer.
The Horizon project represents a $160 million investment in a rural Oregon county while the
energy will be paid for by Idaho customers. A project of this size typically generates over
million per year in local economic benefits. Those benefits are desperately needed in rural
Idaho.
This project represents a purchase from an energy source at fixed prices for the next 20
years and is not subject to fuel availability or price risks. This contract is a wise investment
for the ratepayers.
We support this project and further development of wind energy along with other renewables
for the benefit of the citizens of Idaho and the ratepayers. On behalf of the agricultural com-
munity we urge the Commission to reinstate the availability of PURPA wind contracts.
also hope the Idaho legislature seeks tangible methods to encourage development of wind
energy projects in Idaho.
Sincerely
Brian D. Jackson, President