20101229Comments.pdf

KRISTINE A. SASSER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BARNO. 6618
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9 PM 12: 59Zß\ßDEC 2 n i
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
IDAHO POWER COMPANY FOR APPROV AL ) CASE NO. IPC-E-l0-37
OF A FIRM ENERGY SALES AGREEMENT )
WITH J.M. MILLER ENTERPRISES, INC., FOR) COMMENTS OF THE
THE SALE AND PURCHASE OF ELECTRIC ) COMMISSION STAFFENERGY. )
)
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Kristine A. Sasser, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure issued in Order No. 32134 on December 8, 2010, in
Case No. IPC-E-I0-37, submits the following comments.
BACKGROUND
On November 15,2010, Idaho Power Company fied an Application with the Commission
requesting approval of a 10-year Firm Energy Sales Agreement ("Agreement") between Idaho Power
and J.M. Miler Enterprises, Inc. (lM. Miler)datêd November 1,2010. The Application states that
J.M. Miler would sell and Idaho Power would pu'rchase electric.energy generated by the Saho Hydro
Project ("Facility") located near Filer, Idaho.
The Application states lM. Miler is curently sellng energy from this Facilty to Idaho Power
under a Schedule 86 non-firm agreement dated September 7,2005. Order No. 29874, Application at 2.
STAFF COMMENTS '1 DECEMBER 29,2010
The existing Schedule 86 agreement shall be terminated at the time the Facility achieves its Operation
Date as specified within the presently submitted Agreeinent. Idaho Power warants that the Agreement
comports with the terms and conditions oftheyaiious ,Commission Orders applicable to PURPA
agreements (Order Nos. 30415, 30488,30738, and30744).
The Agreement is for a term of 10 yearS andcpntains the curent non-levelized published
avoided cost rates established by the Commission in Order No.3 1 025 for energy deliveries of less than
10 average megawatts ("aMW"). The nameplate rating 'of the Facilty is 0.5 MW.
Interconnection for this Facilty was completed in association with the existing Schedule 86.
¡d. at 4. Therefore, all applicable interconnection charges and monthly operation and maintenance
charges have already been assessed and collected from J.M. Miler regarding this Facilty.
STAFF ANALYSIS
This Facilty has been providing energy to Idaho Power under an existing Schedule 86
agreement since June 2006. Schedule 86 isa taiff that allows PURP A Qualifying Facilities to sell
generation to Idaho Power on a non-firm basis atmarkèt..basedrates. The proposed Agreement will
replace the Schedule 86 agreement and require'IdahoPower to purchase the Facilty's output at the
curent non-levelized published. avoided cost rate:s;of Order No.3 1025.
Staff has reviewed the Agreement and.confirmsthat it comports with all of the terms and
conditions of the various Commission Orders applicable to PURP A agreements. The Agreement is
substantially identical to other recently-approved contracts, and presents no new issues that merit
discussion by Staff.
Although Idaho Power fied aJoint Petition with the Commission on November 5, 2010,
seeking a reduction in the published avoided cost rate eligibility cap from 10 aMW to 100 k W i, Idaho
Power does not believe that this Agreement should.beimpacted by that filing. ¡d. at 2. Staff agrees.
The Agreement was signed by the paries prior to the filing of the Joint Petition and the subsequent
Notice of Filng issued by the Commission. Moreover, the filing of the Application seeking approval
of the Agreement was prior to December 14, 2010, the effective date established by the Commission
for its decision in Case No. GNR-E-I0-04 on whethettogrant the Joint Petition to reduce the
published avoided cost eligibilty cap.
i Case No. GNR-E- i 0-04.
STAFF COMMENTS 2 DECEMBER 29,2010
RECOMMENDATIONS
Staff recommends that the Commission approve all of the Agreement's terms and conditions
and declare that all payments made by Idaho Power to lM. Miler for purchases of energy wil be
allowed as prudently incured expenses for ratemaking puroses.
Respectfully submitted this f'íl' '.~(,I- day of December 2010.
~.a. ~AIA.
. ine A. Sasser
Deputy Attorney General
Technical Staff: Rick Sterling
i :umisc: commentsipce i 0.3 7ksrps comments
STAFF COMMENTS 3 DECEMBER 29,2010
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 29TH DAY OF DECEMBER 2010,
SERVED THE FOREGOING COMMENTS OF. THE COMMISSION STAFF, IN
CASE NO. IPC-E-I0-37, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO
THE FOLLOWING:
DONOV AN E WALKER
LISA D NORDSTROM
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: dwalker(iidahopower.com
lnordstrom(iidahopower .com
RANDY C ALLPHIN
ENERGY CONTRACT ADMIN
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: rallphin(iidahopower.com
JM MILLER ENTERPRISES
JAMES MILLER
2392 FULLER COURT
ANN ARBOR MI 48105
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SECRETARY
CERTIFICATE OF SERVICE