20140917press release.pdf

Case No. IPC-E-14-23, Order No. 33124
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Idaho Power proposes agreement
with small hydro project near Bliss

BOISE (Sept. 17, 2014) – The Idaho Public Utilities Commission is taking comment
through Oct. 2 on an Idaho Power Company application to purchase power from a small
hydroelectric project near Bliss.

The proposed 20-year sales agreement is with Black Canyon Bliss, LLC, a 24.8-kilowatt
hydroelectric facility projected to be online by Nov. 15. The project owner is David Coats
of Rupert.

The project qualifies under the provisions of the Public Utility Regulatory Policies Act of
1978, or PURPA. The act requires that electric utilities offer to buy power produced
from qualifying small-power producers. The rate to be paid small-power producers is
determined by the commission and is called an “avoided-cost rate” because it 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 commission must ensure the avoided-cost
rate is reasonable for utility customers because 100 percent of the price utilities pay to
qualifying small-power producers is included in customer rates.

The agreement proposes non-levelized payments from Idaho Power to Black Canyon
that gradually increase throughout the life of the contract. Beginning in 2014, the
proposed rate is $35.10 per megawatt-hour, escalating to $102.92 per MWh at
contract’s end in 2033. The payments are adjusted slightly to account for on-peak and
off-peak hours.

Comments are accepted via e-mail through Oct. 2, 2014, by accessing the commission’s
Website at www.puc.idaho.gov and clicking on "Case Comment Form,” under the
“Electric” heading. Fill in the case number (IPC-E-14-23) and enter your comments.
Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208)
334-3762.

The commission’s orders, along with other documents related to this case, are available
on the commission’s Web site. Click on “Open Cases” under the “Electric” heading and
scroll down to the above case number.

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