20101116notice_of_application_order_no_32116.pdf

Office of the Secretary
Service Date
November 16, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION CASE NO. IPC-IO-
OF IDAHO POWER COMPANY FOR
APPROV AL OF A FIRM ENERGY SALES NOTICE OF APPLICATION
AGREEMENT WITH AGPOWER
JEROME, LLC FOR THE SALE AND NOTICE OF
PURCHASE OF ELECTRIC ENERGY MODIFIED PROCEDURE
ORDER NO. 32116
On October 20, 2010, Idaho Power Company filed an Application with the
Commission requesting approval of a 20-year Firm Energy Sales Agreement (the "Agreement"
between Idaho Power and AgPower Jerome, LLC (AgPower) dated October 13, 2010. The
Application states that AgPower would sell and Idaho Power would purchase electric energy
generated by the Double A Digester Project (the "Facility ) located in Lincoln County, Idaho.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Agreement between Idaho Power and
AgPower is for a term of 20 years. The maximum capacity of the Facility is expected to be 4.
MW. Idaho Power warrants that the Agreement comports with the terms and conditions of the
various Commission Orders applicable to PURP A agreements (Order Nos. 30415 , 30488, 30738
and 30744). Application at 2.
YOU ARE FURTHER NOTIFIED that on April 9, 2010, AgPower filed a complaint
against Idaho Power with the Commission alleging that AgPower was entitled to a contract
containing the higher avoided cost rates of Order No. 30744 (rates superseded on March 16
2010, by Order No. 31025). Idaho Power filed an answer on May 5, 2010, alleging that
AgPower was not entitled to Order No. 30744 avoided cost rates because AgPower was
disputing damage and security provisions that are part of Idaho Power s "standard" terms and
conditions for PURP A agreements. Application at 6.
YOU ARE FURTHER NOTIFIED that the Agreement, as submitted, contains the
most recent terms and conditions, including liquidated damages and security provisions. Idaho
Power asserts that, but for the disagreement as to the damage and security provisions, the
Agreement would have been signed by both parties prior to March 16, 2010. As such, Idaho
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32116
Power submits that, although the Agreement is dated October 13 , 2010, AgPower should be
entitled to the avoided cost rates set out in Order No. 30744 ("grandfathered" rates).
YOU ARE FURTHER NOTIFIED that Idaho Power maintains that this Agreement
is similarly situated to other power purchase agreements approved by this Commission that
contain grandfathered avoided cost rates.
YOU ARE FURTHER NOTIFIED that Idaho Power asserts that AgPower is current
in all of its interconnection study payments. AgPower selected a Scheduled Operation Date of
January 1 2012, for its Facility.
YOU ARE FURTHER NOTIFIED that, by its own terms, the Agreement will not
become effective until the Commission has approved all of the Agreement's terms and
conditions and declares that all payments made by Idaho Power to AgPower for purchases of
energy will be allowed as prudently incurred expenses for ratemaking purposes. Agreement ~
21.1.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that its Application be
processed by Modified Procedure pursuant to Commission Rules of Procedure 201-204. IDAPA
31.01.01.201-204.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure, IDAPA 31.01.01.201 through .204. The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than December 8, 2010. The comment must contain a statement of reasons supporting the
comment. Persons desiring a hearing must specifically request a hearing in their written
comments. Written comments concerning this Application shall be mailed to the Commission
and Idaho Power at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32116
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Donovan E. Walker
Lisa Nordstrom
Idaho Power Company
1221 West Idaho Street
PO Box 70
Boise, ID 83707-0070
Mail: dwalkerrfYidahopower.com
lnordstrom rfYi dahopower. com472 W. Washington Street
Boise, ID 83702-5918
Randy C. Allphin
Energy Contract Administrator
Idaho Power Company
1221 West Idaho Street
PO Box 70
Boise, ID 83707-0070
Mail: raliphinrfYidahopower.com
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon and complete the comment form using the case number as it appears on the front of this
document. These comments must also be sent to Idaho Power at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices. The Application is also available on the Commission s web site at
www.puc.idaho.gov by clicking on "File Room" and then "Electric Cases.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and the Public Utility
Regulatory Policies Act of 1978 (PURP A). The Commission has authority under PURP A and
the implementing regulations of the Federal Energy Regulatory Commission (FERC) to set
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32116
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.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than December 8, 2010.
DONE by Order of the Idaho Public Utilities Commission at Boise , Idaho this / '" rA
day of November 2010.
I/.
. KEMPT , P SIDENT
MARSHA H. SMITH , COMMISSIONER
MACK A. REDFORD, COMMISSIONER
ATTEST:
~ew
Commission Secretary
O:IPC-IO-26 ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32116