20090806final_order_no_30874.pdf

Office of the Secretary
Service Date
August 6, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OF A SCHEDULE 86 NON-
FIRM ENERGY PURCHASE AGREEMENT
BETWEEN IDAHO POWER AND CARGILL
ENVIRONMENTAL FINANCE
ORDER NO. 30874
CASE NO. IPC-09-
On July 9, 2009, Idaho Power Company (Idaho Power; Company) submitted for
approval a Uniform Agreement under Schedule 86 between Idaho Power and Cargill
Environmental Finance Division of Cargill, Incorporated (Cargill) for the purchase of non-firm
energy (Agreement) from the Bettencourt B6 dairy anaerobic digester (Project). Cargill
developing a 2.13 MW anaerobic digester at or near 3350 S. 2400 E., Jerome, Idaho in an area
more particularly described as Section 19, Township 8 S, Range 16 E, Boise Meridian, Gooding
County, Idaho. The Project will be a qualifying small power production facility (QF) under the
applicable provisions of the Public Utility Regulatory Policies Act of 1978 (PURP A).
Idaho Power and Cargill have entered into the June 30, 2009 , Agreement pursuant to
Idaho Power s Schedule 86, Cogeneration and Small Power Production - Non-Firm Energy
tariff. In accordance with Schedule 86, the purchase price will be equal to 85 percent of the
weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Electricity Price
Index for non-firm energy.
The Project's scheduled operation date is September 1 , 2009. After the Project has
operated under the Agreement for a reasonable period of time, Idaho Power expects that Cargill
and the Company will enter into a long-term firm energy sales agreement for the Project.
Idaho Power requests that all of the terms and conditions of the Agreement be
approved without change or condition and that all payments to be made under the Agreement be
allowed as prudently incurred expenses for ratemaking purposes.
COMMISSION FINDINGS
The Commission has reviewed the June 30, 2009, Idaho Power/Cargill Schedule 86
Non-Firm Energy Purchase Agreement. We find that the Agreement, as signed and submitted by
the parties, contains non-firm energy rates in conformity with posted tariffs and applicable
ORDER NO. 30874
Commission Orders. We find it reasonable to allow payments made under the Agreement as
prudently incurred expenses for ratemaking purposes. We also find that it is appropriate to
approve the Agreement without further procedure or notice.
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
and the Public Utility Regulatory Policies Act of 1978 (PURP A).
The Commission has the 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
and to implement FERC rules.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED and the Commission does hereby approve the June 30, 2009, Idaho
Power/Cargill Environmental Finance Schedule 86 Non-Firm Energy Purchase Agreement.
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. 30874
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this ijrk.
day of August 2009.
/. ~.
EMPTON, PRE DENT
l tiA
MARSHA H. SMITH, COMMISSIONER
.f:,
MACK A. REDFORD , CO
ATTEST:
f/E, ill Je D. Jewell
mISSIOn Secretary
bls/O:IPC-09-
ORDER NO. 30874