20080611final_order_no_30574.pdf

Office of the Secretary
Service Date
June 11, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY TO AMEND
SCHEDULE 72 - INTERCONNECTIONS TO
NON-UTILITY GENERATION ORDER NO. 30574
CASE NO. IPC-08-
On March 18 , 2008, Idaho Power Company (Idaho Power; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) proposing additional
language for inclusion in its Schedule 72 - Interconnections to Non-Utility Generation tariff.
The Company s filing is in response to the Commission s directive in Order No. 30493 issued on
January 31 , 2008 in Case No. IPC-07-13 (Exergy v. Idaho Power) wherein the Commission
stated:
The additional language (to the Company s Schedule 72 tariff) should
describe in general the three-step study process that the Company follows
including (1) opportunities to pay for additional required studies on
incremental amounts, (2) opportunities to exit the interconnection process, and
(3) opportunities to qualify for and provide alternative financial guarantees in
lieu of full prepayment of the initial cost estimate.
Order No. 30493 pp. 6-7. The subject matter of Exergy s complaint in Case No. IPC-07-
was Idaho Power s requirements for generation interconnection for qualifying facilities (QFs)
under the Public Utility Regulatory Policies Act of 1978 (PURP A).
As defined by the Company, the non-utility "generator interconnection process" is the
Company s generation facility interconnection application, engineering review and construction
process. The intent of the generator interconnection process is to ensure a safe and reliable
generation interconnection and compliance with all applicable regulatory requirements, good
utility practices, and national safety standards. The language submitted by the Company
includes further description of the generator interconnection process including the application
stage and the three-step study process (i., the feasibility study; the system impact study and the
facility study). The Company s tariff proposal also sets forth the payment and security
requirements for the costs of interconnection.
Commission Notices of Application and Modified Procedure in Case No. IPC-08-
05 were issued by the Commission on April 2, 2008. The deadline for filing written comments
ORDER NO. 30574
was April 25, 2008. The Commission Staff was the only party to file comments. Staff
recommends approval of the Schedule 72 amendments with the following clarifications and
modifications regarding interconnect procedures and cost responsibility jointly agreed to by Staff
and Idaho Power:
Generator Interconnection Process
(a) Seller shall pay the actual costs of all required interconnection studies.
Any difference between the deposit (if required) and the actual cost of the
study shall be paid by or refunded to Seller. as appropriate. If. during the
course of preparing a study. the Company incurs costs in excess of the
deposit amount. the Company may require that the deposit amount bereplenished in an amount equal to the estimated costs for completion ofthe study. If a deposit amount sufficient to pay for completion of the
study is not maintained. the Company may suspend work on the study.
(b) Unless modified by the provisions of this schedule. the FERC-approvedLarge Generator Interconnection Procedures and Small Generator
Interconnection Procedures posted on the Company s website will apply
to the Generator Interconnection Process.
c) The deposit amounts for Generation Facilities up to 30 MW are specified
in this schedule. Deposit amounts for Generation Facilities larger than 30
MW are covered by the FERC-approved Large Generator Interconnection
Procedures posted on the Company s website.
Staff believes that the revised Schedule 72 tariff pages developed jointly by Idaho Power and
Staff, combined with the unrevised tariff pages included in the Company s initial Application
comport with the Commission s directives in Order No. 30493.
Commission Findings
The Commission has reviewed and considered the filings of record in Case No. IPC-
08-05 including the Company s Application and proposed Schedule 72 changes, Commission
Staffs comments and recommendations, and the Company and Staff agreed-to Schedule 72
revisions. We have also reviewed our prior Order No. 30493 in Case No. IPC-07-13 (Exergy
v. Idaho Power) wherein we directed the Company to amend its Schedule 72 tariff.
Based on our review of the record, the Commission continues to find it reasonable to
process this case pursuant to Modified Procedure, i., by written submission rather than by
hearing. IDAP A 31.01.01.204.
ORDER NO. 30574
We find that the proposed Schedule 72 amended language, the Company s original
proposal and the Staff/Company agreed-to changes and additions, provide the transparency in
Company interconnect policy that we sought and found necessary in Order No. 30493 , Case No.
IPC-07-13. We find the proposed Schedule 72 changes to constitute what is essentially a
compliance filing. We find it reasonable to approve the proposed amendments to Schedule 72
and to direct the Company to file an amended tariff incorporating the changes that we approve.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
an electric utility, pursuant to the authority and power granted it under Title 61 of the Idaho
Code, the Public Utility Regulatory Policies Act of 1978 (PURP A), and the Commission s Rules
of Procedure, IDAPA 31.01.01.000 et seq.
The Commission has authority under PURP A 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.
ORDER
In consideration of the foregoing and as more particularly described and qualified
above, IT IS HEREBY ORDERED and the Commission hereby approves the proposed
amendments to the Company s tariff Schedule 72, changes that we find provide greater
transparency in the Company s interconnection process. The Company is further ordered and
directed to file an amended Schedule 72 tariff incorporating the changes that we approve.
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 ~ 61-626.
ORDER NO. 30574
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
/-fA.
day of June 2008.
ATTEST:
tftje D. Jewell
Commission Secretary
bls/O:IPC-08-05 _
ORDER NO. 30574
~~~IDENT
-;J~
MARSHA H. SMITH, COMMISSIONER
JI.