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Idaho Public Utilities Commission

Case No PAC-E-10-38, -39, -40, -41, -42, -43

December 2, 2010

Contact: Gene Fadness [phone], 890-2712

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

Idaho Power seeks approval for six wind projects

The Idaho Public Utilities Commission is taking comments through Dec. 17 on an Idaho Power Company application to enter into 20-year sales agreements with six wind projects near Mountain Home. The San Francisco-based developer is the same for six projects with Maurice Miller and Glenn Ikemoto listed as project managers.

All six projects, if approved, would qualify for the commission’s posted Avoided Cost Rate under the provisions of PURPA, the Public Utilities Regulatory Policies Act. PURPA requires that electric utilities offer to buy power produced from qualifying small power producers or cogenerators. The rate to be paid developers of cogeneration or small power producers is established by the commission and 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 rate proposed for these projects is a non-levelized rate that increases through the 20-year life of the contract. In 2011, the rate for normal load hours during normal seasons of the year is $55.26 per megawatt-hour, escalating to $117.77 per MWh in 2021. The rate varies to account for heavy and light load hours of the day and heavy and light load seasons of the year.

The six projects are proposed to be online by Dec. 31, 2011 and in full operation by Dec. 31, 2012. Should the projects exceed 10 average megawatts per month, Idaho Power may accept the energy, but is not required to pay for it. The projects all include mechanical availability guarantees stating they will generate at full output during at least 85 percent of hours in the month. Failure to do so could result in the payment of liquidated damages by the developer. The developer agrees to work with Idaho Power’s delivery business unit to ensure enough time and resources for the utility to build any necessary interconnection and transmission upgrades if necessary or be assessed delay damages. The agreements state that all projects will interconnect with the same 230-kV line in Elmore County.  

Comments are accepted through Dec. 17 via e-mail by accessing the commission’s homepage at
http://www.puc.idaho.gov/www.puc.idaho.gov and clicking on "Comments & Questions About a Case." Fill in the case number for any of the six projects (IPC-E-10-38, 39, 40, 41, 42 or 43) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].

A full text of the commission’s order, along with other documents related to this case, is available on the commission’s Web site. Click on “File Room” and then on “Electric Cases” and scroll down to the above case numbers.