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Idaho Public Utilities Commission

Case No. IPC-E-09-25

November 4, 2009

Contact: Gene Fadness [phone], 890-2712

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

Idaho Power proposes sales agreement with Glenns Ferry area wind project

The Idaho Public Utilities Commission is taking comments through Nov. 25 on a proposed sales agreement with Idaho Winds LLC for a wind project six miles northwest of Glenns Ferry in Elmore County.

Meridian-based Idaho Winds LLC proposes to construct and operate a 21-megawatt wind facility that will be known as the Sawtooth Wind Project. Though its optimum capacity is 21 MW, under normal conditions it will not exceed 10 average megawatts on a monthly basis. The wind project is scheduled to be in operation by Dec. 31, 2012.

The project will operate as a Qualifying Facility 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.

Under the proposed 20-year contract, Idaho Power would pay the posted rate of $75.45 per megawatt-hour during months of normal demand in the first full-year of the contract, anticipated to be 2013. Under the agreement, the price gradually increases through the 20-year life of the contract. For example, the 2030 price during normal demand months is $118.97 per MWh. The rates vary during light-load and heavy-load months and hours.

The commission plans to handle the case 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 through Nov. 25 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 number (IPC-E-09-25) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].