20130702final_order_no_32843.pdf

Office of the Secretary
Service Date
July 2.2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE FIRM EERGY )
SALES AGREEMENT BETWEEN IDAHO )CASE NO.IPC-E-06-35
POWER COMPANY AND BENNETT )
CREEK WIN DFARM,LLC FOR THE SALE )
AND PURCHASE OF ELECTRIC ENERGY.)ORDER NO.32843
______________________________________________________________________________
)
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 Bennett Creek Windfarm LLC (Bennett
Creek).The original Agreement is for a 20-year term and was approved on February 20,2007,
in Order No.30245.The First Amendment was approved on August 8,2007,in Order No.
30399.By this Order,we approve the inclusion of additional pricing information to the
Agreement.
THE AGREEMENT
In its original Agreement,Bennett Creek selected December 31,2007,as the
estimated scheduled operation date for the Bennett Creek 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.Bennett Creek 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.Bennett Creek 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
Bennett Creek with a letter setting forth the pricing to be applied to the last 1 2 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.32843 1
an Application seeking Commission approval of the pricing and verifying that Bennett Creek
acquiesced in the pricing additions.
Staff veritied 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 3 1.201 3.that Bennett Creek 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 Bennett
Creek 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 Bennett Creek 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 Bennett Creek 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 c 61-626.
ORDER NO.32843
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of June 2013.
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/t 1/71
1
PAUL KJELLANTJER.PRESIDENT
MACK A.REDFORD,COMMISSIONER
MARSHA F!.SMITH.COMMISSIONER
ATTEST:
I 1 /
Jn D.JewelE
Cómmission Secretary
0:IPC-E-06-35ks
ORDER NO.32843 3