20090811press release.htm

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Idaho Public Utilities Commission

Case Nos. IPC-E-09-18, IPC-E-09-19, IPC-E-09-20

August 11, 2009

Contact: Gene Fadness [phone], 890-2712

Website:
http://www.puc.idaho.govwww.puc.idaho.gov

Idaho Power seeks to buy from three wind projects in Hagerman area

The Idaho Public Utilities Commission is taking comments through Sept. 22 on proposed sales agreements between Idaho Power Co. and the developer of three wind projects in the Hagerman area.

The sales agreements are with Boise-based Exergy Development Group of Idaho, which plans to build all three projects to qualify under the rates published by the commission under the provisions of PURPA, the Public Utility Regulatory Policies Act of 1978. PURPA requires electric utilities to offer to buy power produced by qualifying small-power producers or co-generators. The rate to be paid project developers, called an “avoided cost rate,” is to be equal to the cost the electric utility avoids if it would have had to generate the power itself or purchase it from another source.

The three projects – Camp Reed (22.5 MW), Payne’s Ferry (21 MW) and Yahoo Creek (21 MW) – are scheduled to begin operating Sept. 30, 2010. Under the proposed agreements, each of the plants will deliver up to 10 average megawatts on a monthly basis.

Under the proposed 20-year contracts, Idaho Power would pay the posted rate of $84.40 per megawatt-hour during months of normal demand, which include January, February, June, September and October. During the months of heavy demand (July, August, November and December), Idaho Power would pay $102.58 per megawatt-hour. During months of less-than-normal demand (March through May), Idaho Power would pay $61.47 per megawatt-hour. Those rates include the wind integration charge and are adjusted slightly during heavy-load hours and light-load hours of the day.

The commission plans to handle these cases under a modified procedure that uses written comments rather than conducting a hearing, unless customer comments can demonstrate a need for a public hearing. Comments are accepted via e-mail by accessing the commission’s homepage at
http://www.puc.idaho.gov/www.puc.idaho.gov and clicking on "Comments & Questions." Fill in the case numbers (IPC-E-09-18, -19 and -20) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].