20110110notice_of_application_order_no_32157.pdf

Office of the Secretary
Service Date
January 10, 2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR CASE NO. IPC-I0-
APPROVAL OF A FIRM ENERGY SALES
AGREEMENT WITH SE HAZEL TON A NOTICE OF APPLICATION
LP. FOR THE SALE AND PURCHASE
ELECTRIC ENERGY.NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 32157
On December 10, 2010, Idaho Power Company filed an Application with the
Commission requesting approval of a 15-year Firm Energy Sales Agreement (Agreement)
between Idaho Power and SE Hazelton A, LP. (Hazelton) dated December 8 , 2010. The
Application states that Hazelton would sell and Idaho Power would purchase electric energy
generated by the Hazelton A Hydroelectric Project (Facility) located near Jerome , Idaho. Idaho
Power requests that its Application be processed by Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Application states that Hazelton has, in
compliance with an existing agreement approved by the Commission in February 1989 (Order
No. 22326), designed, constructed, installed, owns, operates and maintains an 8.1 MW
hydroelectric generating facility.l The present Agreement has been negotiated to replace the
existing agreement which expires on December 31 , 2010. Idaho Power warrants that the
Agreement comports with the terms and conditions of the various Commission Orders applicable
to PURPA agreements (Order Nos. 30415 and 31025).
A. The Agreement
YOU ARE FURTHER NOTIFIED that the Agreement contains the current non-
levelized published avoided cost rates established by the Commission in Order No. 31025 for
energy deliveries of less than 10 average megawatts ("aMW"). The nameplate rating of the
Facility is 8.1 MW. Hazelton has elected January 1 , 2011 , as its First Energy Date and
Scheduled Operation Date.
1 Hazelton is an irrigation canal hydroelectric facility that generates power only during the irrigation season.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32157
YOU ARE FURTHER NOTIFIED that, since this Facility is already interconnected
and operating under its existing agreement, the processing to attain the First Energy and
Scheduled Operation Date under this Agreement will include review and either acceptance or
updating of previously provided documentation as well as any new requirements as specified by
this Agreement. Application at 4. The Application states that, should the Commission approve
the Agreement, Idaho Power intends the effective date of the Agreement to be January 1 , 2011.
YOU ARE FURTHER NOTIFIED that Idaho Power maintains that the Facility is in
compliance with the Company s current Tariff Schedule 72 and interconnection and transmission
processes. Even though the Facility will continue to utilize its existing interconnection and
transmission facilities and capacity, Idaho Power will require completion of a Generator
Interconnection Agreement (GIA) and Transmission Service Requests (TSR) in order to bring
the Facility up-to-date with Idaho Power s current tariffs and processes. Hazelton and Idaho
Power have agreed to liquidated damages and security provisions of $45 per kW of nameplate
capacity. Agreement, ~~ 5., 5.
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 Hazelton for purchases of
energy will be allowed as prudently incurred expenses for ratemaking purposes. Agreement ~
21.1.
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 IDAP A 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 twenty-one (21) days from the service date of this Order. The comment must contain a
statement of reasons supporting the comment. Persons desiring a hearing must specifically
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32157
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:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Donovan E. Walker
Lisa D. Nordstrom
Idaho Power Company
1221 West Idaho Street
PO Box 70
Boise, ID 83707-0070
E- Mail: dwalker~idahopower .com
lnordstrom~i 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: rallphin~idahopower.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 and Agreement have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices. The Application and Agreement are also available on the
Commission s web site at www.puc.idaho.gov by clicking on "File Room" and then "Electric
Cases.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32157
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
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 21 days from the
service date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of January 2011.~d. ~-
D. EMP SIDENT
J~~
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFO
ATTEST:
D. Jewell
Commission Secretary
O:IPC-IO-
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32157