20070122Decision memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:JANUARY 22, 2007
SUBJECT:IDAHO POWER'S APPLICATION FOR APPROV AL OF A POWER
PURCHASE AGREEMENT WITH TELOCASET WIND POWER
PARTNERS, LLC, CASE NO. IPC-06-
On December 15 , 2006, Idaho Power filed an Application seeking approval of a
Power Purchase Agreement (PP A) with Telocaset Wind Power Partners, LLC. This PP A is the
result of Idaho Power s Request for Proposals (RFP) for wind-powered generation that
originated with the Company s 2004 Integrated Resource Plan. Idaho Power asked that the
expenses associated with the purchase of capacity and energy from the PP A be included in the
Company s annual Power Cost Adjustment (PCA). The Company requested that its Application
be processed by Modified Procedure.
On December 27, 2006, the Commission issued a Notice of Application and set a
deadline of January 10 2007, for interes~ed parties to petition for intervention. No petitions for
intervention were filed.
ST AFF RECOMMENDATION
Staff recommends that the Company s Application be processed by Modified
Procedure. After its initial review of this matter Staff does not believe that resolution of the case
will require a hearing, and that written submissions under Modified Procedure would be
appropriate. Although no petitions for intervention were filed, joint comments were filed by the
Northwest Energy Coalition and the Renewable Northwest Project. The comments supported
approval of the PP A and requested that the docket be processed in an expedited fashion through
Modified Procedure.
Staff has executed a Protective Agreement with Idaho Power regarding any potential
trade secret/confidential information. Staff has informally reviewed documents at Idaho Power
DECISION MEMORANDUM
and has propounded an initial set of formal production requests to the Company. Staff currently
has a meeting scheduled with Horizon Wind and Idaho Power on January 23 , 2007, to discuss
matters relevant to processing this case. Staff, after meeting with both parties on January 23
will advise the Commission at the January 24 decision meeting regarding a recommended length
of time to leave open for comments under Modified Procedure.
COMMISSION DECISION
Does the Commission wish to authorize the use of Modified Procedure to process the
Company s Application? Ifso, what does the Commission wish to set as a comment deadline?
Donovan E. Walker
DECISION MEMORANDUM