20130702final_order_no_32842.pdf

Office of the Secretary
Service Date
July 2,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE FIRM ENERGY )
SALES AGREEMENT BETWEEN IDAHO )CASE NO.IPC-E-06-34
POWER COMPANY AND HOT SPRINGS )
WINDFARM,LLC,FOR THE SALE AND )ORDER NO.32842
PURCHASE OF ELECTRIC ENERGY.)
On May 14.2013,Idaho Power Company submitted for Commission approval an
Application to include additional pricing information to the December 20,2006,Firm Energy
Sales Agreement (Agreement)between Idaho Power and Hot Springs Windfarm LLC (Hot
Springs).The original Agreement is for a 20-year term and was approved on February 20,2007,
in Order No.30246.The First Amendment was approved on August 8,2007,in Order No.
30398.By this Order,we approve the inclusion of additional pricing information to the
Agreement.
THE AGREEMENT
In its original Agreement,Hot Springs selected December 31.2007,as the estimated
scheduled operation date for the Hot Springs project.The pricing schedule contained in that
Agreement extended 20 years from the project’s estimated on-line date (through 2027).In the
First Amendment.Hot Springs and Idaho Power agreed to amend the original Agreement to
extend the scheduled operation date for a period of approximately one year.However,the
pricing schedule in the Agreement was not updated to reflect the new scheduled operation date.
In April 2013,Hot Springs notified Idaho Power that the 20-year pricing schedule
did not extend for the full term of the Agreement.The pricing contained in the Agreement is
based upon the standard published avoided cost rates in effect at the time the Agreement was
executed and in accordance with Order No.29646.On May 3,2013,Idaho Power provided Hot
Springs with a letter setting forth the pricing to be applied to the last 12 months of the term of the
Agreement based upon the standard published avoided cost rates in effect at the time.
THE APPLICATION
Idaho Power stated in its Application that the Company attempted to notify the
Commission of its additional pricing by letter.Commission Staff requested that Idaho Power file
ORDER NO.32842
an Application seeking Commission approval of the pricing and verifying that Hot Springs
acquiesced in the pricing additions.
Staff verified that the prices provided by Idaho Power are based upon the standard
published avoided cost rates in effect at the time and in accordance with Order No.29646.In
addition,the Commission was notified by letter dated May 31,2013,that Hot Springs agrees,
understands and accepts the updated pricing.Consequently,Staff recommended approval of the
inclusion of additional prices into the terms of the Agreement between Idaho Power and Hot
Springs without further process.
FINDINGS AND CONCLUSIONS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power,an electric
utility,and the issues raised in this matter pursuant to the authority and power granted it under
Title 61 of the Idaho Code and the Public Utility Regulatory Policies Act of 1978 (PURPA).The
Commission has authority under PURPA 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 (QFs)and to
implement FERC rules.
The Commission has reviewed the record in this case,including the original
Agreement,the amendments,the additional pricing and the recommendations of Staff.Based on
our review of the evidence presented and the acceptance by Hot Springs of the additional pricing,
we find that the pricing additions are fair,just and reasonable.We further find that the additional
pricing is consistent with the original pricing terms within the Agreement.Therefore,we
approve the inclusion of additional pricing terms without further process.
ORDER
IT IS HEREBY ORDERED that the inclusion of additional pricing to the Firm
Energy Sales Agreement between Idaho Power and Hot Springs Windfarm is approved.
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 §6 1-626.
ORDER NO.32842
•.•....DONE by Order of the Idaho Public Utilities Commission at Boise.Idaho this •
day of June 2013.
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Y —
PAUL KJELLANER,PRESIDENT
MACK A.REDFORD,COMMISSIONER
Li ..j/
MARSHA H.5Mm-I.COMMISSIONER
ATTEST:
‘1/i 1.1’1 J.
Jan D .Jewel/
Commission Secretary
0:IPC-E-()634ks
ORDER NO.32842 3