20111214notice_of_petition_order_no_32410.pdf

Office of the Secretary
Service Date
December 14,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF )CASE NO.IPC-E-11-23
IDAHO POWER COMPANY FOR A )
DECLARATORY ORDER REGARDING )NOTICE OF PETITION FOR
PURPA JURISDICTION.)DECLARATORY ORDER
)
)NOTICE OF
)COMMENT DEADLINE
)
_____________________________
)ORDER NO.32410
On November 3,2011,idaho Power Company filed a Petition for Declaratory Order
pursuant to Rule 101,IPUC Rules of Procedure.Idaho Power requests that the Commission
issue an Order determining that the Commission will exercise jurisdiction over the proposed
Public Utility Regulatory Policies Act of 1978 (PURPA)qualifying facility (QF)transaction
proposed by Kootenai Electric Cooperative,Inc.(Kootenai Electric).
THE PETITION
Kootenai Electric has developed the Fighting Creek Landfill Gas to Energy Station
(Fighting Creek,Project)located in Kootenai County near the City of Beligrove,Idaho.Fighting
Creek is a 3.2 megawatt (MW)landfill gas generating facility and a ‘qualifying facility’(QF)
under the applicable provisions of the federal PURPA.On October 19,2011,Kootenai Electric
drafted a letter to Idaho Power requesting a”Standard Oregon Power Purchase Agreernenf’for the
output from the Project.
Kootenai Electric proposes that the Project will interconnect with Kootenai EIectrics
distribution system and then deliver the output to Avista Corporation (Avista)under an amended
interconnection agreement with Avista that has not yet been executed.Petition at 2.Kootenai
Electric then proposes to wheel the generation across Avistas system for delivery to Idaho
Power.Idaho Power responded to Kootenai Electric’s request for a Standard Oregon Power
Purchase Agreement by letter,dated November 3.2011,stating that the request was received but
that Idaho Power was not required to offer an Oregon PURPA contract.On November 3,2011,
Idaho Power also filed this Petition for Declaratory Order requesting that the Idaho Public
Utilities Commission exercise its jurisdiction over the transaction proposed by Kootenai Electric.
NOTICE OF PETITION
NOTICE OF COMMENT DEADLINE
ORDER NO.32410 1
Idaho Power states that both the Fighting Creek Project and its interconnection to
Idaho Powe?s transmission grid are located in Idaho.Petition at 6.However,‘Oregons avoided
cost rates for idaho Power are much higher than the published avoided cost rates in Idaho:’Id
Idaho Power maintains that Idaho customers bear approximately 95%of the power supply costs
associated with Idaho Powefs QF purchases in Oregon.Id.As such,Idaho Power argues that
‘Kootenai Electric’s proposed transaction is a blatant manipulation of PURPA’s rules and
regulations by a QF developer in order to financially profit to the direct and substantial detriment
of Idaho Powe?s customers:’Petition at 5.With its Petition,Idaho Power asks that the
Commission assert primary jurisdiction over the transaction proposed by Kootenai Electric and
declare that the avoided cost and contracting process be conducted pursuant to Idaho rules and
procedures.
THE ANSWER
On November 25,2011,Kootenai Electric (the Project)filed an Answer and Motion
to Dismiss.The Project argues that Idaho Powe?s Petition is fatally flawed because it fails to cite
any Order,law or rule upon which it is based.The Project further maintains that the
Commission is prohibited by federal law from regulating QFs and,therefore,does not have
authority to restrict its access to markets.The Project states that granting the Petition would
violate the Commerce Clause of the United States Constitution by restricting QFs from access to
markets outside of Idaho’s borders.The Project asks that the Commission dismiss Idaho Powe?s
Petition with prejudice.
NOTICE OF COMMENT DEADLINE
YOU ARE HEREBY NOTIFIED that this Notice is issued pursuant to Rule 102 of
the Commissions Rules of Procedure requiring that notice of petitions for declaratory rulings he
issued to all affected utilities.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Petition may file a written comment in support or in 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
request a hearing in their written comments.Written comments concerning this Petition may be
mailed to the Commission and the parties at the addresses reflected below:
NOTICE OF PETITION
NOTICE OF COMMENT DEADLINE
ORDER NO.32410 2
Commission Secretary Donovan E.Walker
Idaho Public Utilities Commission Jason B.Williams
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-mail:dwalkeridahopower.com
[e-mail]
472 W.Washington Street
Boise,ID 83702-5918 Peter J.Richardson
Gregory M.Adams
Richardson &O’Leary,PLLC
515 N.27th Street
Boise,ID 83702
E-mail:peter(richardsonandoleary.com
greg(richardsonandoleary.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 the parties at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that after the comment deadline has passed,the
Commission will issue an Order regarding Idaho Power’s Petition.
YOU ARE FURTHER NOTIFIED that the Petition has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices or on the Commission’s website 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 (PURPA).The Commission has authority under PURPA 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 3 1.01.01.000,et seq.
NOTICE OF PETITION
NOTICE OF COMMENT DEADLINE
ORDER NO.32410 3
ORDER
IT IS HEREBY ORDERED that any persons interested in submitting written
comments regarding Idaho Power’s Petition for Declaratory Order must do so no later than
twenty-one (21)days from the service date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of December 2011.
ATTEST:
Jn D.JeweiC)
ömmission Secretary
O:IPC-E-I 1-23ks
NOTICE OF PETITION
NOTICE OF COMMENT DEADLINE
ORDER NO.32410
MACK A.REDFORD,CCOMMISSIONER
MARSHA H.SMITH,COMMISSIONER
PRESIDENT
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