20110927order_no_32364.pdf

Office of the Secretary
Service Date
September 27,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR A )CASE NO.IPC-E-I1-IO
DETERMINATION REGARDING THE )
FIRM ENERGY SALES AGREEMENT )
WITH INTERCONNECT SOLAR )ORDER NO.32364
DEVELOPMENT,LLC FOR THE SALE )
AND PURCHASE OF ELECTRIC ENERGY )
On June 17,2011,Idaho Power Company filed an Application with the Commission
requesting acceptance or rejection of a 25-year Firm Energy Sales Agreement (Agreement)
between Idaho Power and Interconnect Solar Development LLC (Interconnect Solar;Project).
The case was processed by Modified Procedure.Following the submission of comments by the
parties and the public the case was fully submitted for the Commission’s consideration.
On September 20,2011,the Commission issued Order No.32361.The Commission
noted that all parties had acknowledged a computational error that was made in the escalation
rate that was applied to the CCCT capital cost component from the 2009 IRP that was carried
through and used in the IRP pricing model for the Interconnect Solar project.We stated that we
would not be fulfilling our role of ensuring just and reasonable rates if we approved an
Agreement that contained a known computational error.Idaho Code §61-301,61-502.In an
effort to permit the parties an opportunity to correct the mathematical error without creating
undue delay,the Commission allowed Idaho Power and Interconnect Solar until September 27,
2011,to resubmit their Firm Energy Sales Agreement with accurate calculations prior to the
Commission making a final determination regarding the Agreement.
On September 23,2011,Interconnect Solar filed a Motion for Extension of Time.
Interconnect Solar requested that the Commission allow the parties until September 29,2011,to
resubmit their Agreement.The Project’s Motion was considered at the Commission’s decision
meeting held on September 26,2011.During the meeting,Interconnect Solar and Idaho Power
notified the Commission that,due to the nature of the changes,it would be impossible to
complete and submit a corrected and signed Agreement by the originally requested extension
date.Interconnect Solar asked that the Commission allow the Project and Idaho Power until
October 13,2011,to resubmit a Firm Energy Sales Agreement with correct computations.
ORDER NO.32364 1
DISCUSSION
The Commission allowed Interconnect Solar and Idaho Power an opportunity to
correct a mathematical error in their Agreement prior to the Commission deliberating because,as
we stated,this Commission cannot approve an agreement with a known computational error.
Recognizing Interconnect Solar’s constrained timelines and prior requests for expediency,we
directed that any corrected Agreement be resubmitted to the Commission no later than
September 27,2011.Interconnect Solar is the party presently requesting an extension of the
September 27 deadline.No other party to the case opposes the Project’s request.Consequently,
we grant Interconnect Solar’s request to allow the Project and Idaho Power until October 13,
2011,to resubmit an Agreement with correct computations.Based on the record established by
the parties as of October 13,2011,the Commission will proceed with deliberations and issue its
final Order regarding approval or disapproval of the Agreement.
ORDER
IT IS HEREBY ORDERED that Interconnect Solar’s Motion for Extension of Time
is granted.Idaho Power and Interconnect Solar have until October 13,2011,to resubmit their
Firm Energy Sales Agreement with accurate calculations prior to the Commission making a final
determination regarding the Agreement.
ORDER NO.32364 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 7’
day of September 2011.
4/4—P KJELLANDEá(PJE IDENT
MACK A.REDFORD,COMMISSIONER
6LL d3JL
MARSHA H.SMITH,COMMISSIONER
ATTEST:
J4aki D.Jewel’
Commission Secretary
O:IPC-E-I 1-lOks5
ORDER NO.32364 3