19890210final_order_no_22326.pdf

e e Off di the Secretary
Service Date
FEB 10 1989
BEFORE THE IDAHO PUBLIC UTILITIE COMMION
IN THE MATTER OF TH APPLICATION
OF BYPAS LIMTED PARTNERSInP
FOR AN ORDER APPROVIG A FIRM
ENERGY SALES AGREEMENT WITH
IDAHO POWER COMPANY.
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CASE NO. IPC-E-9-2
ORDER NO. 22326
On January 30, 1989, Bypass Limited, a California limited partnership (Bypass),
submitted an Application to the Idaho Public Utilties Commission (Commission) for an
order approving a Firm Energy Sales Agreement (Agreement) with Idaho Power Company
(Idaho Power). Bypass is the developer of a 9.9 megawatt hydroelectric project (Hazelton
"A") located in the Northeast Quarter of Section 2, Township 10 South, Range 10 East,
Boise Meridian, Jerome County, Idaho. The project is a qualified small power production
facilty (QF) under the applicable provisions of the Public Utilty Regulatory Policies Act
of 1978 (PURPA), 16 U.S.C. §824-A-3.
The Commission finds that the Agreement, as signed and submitted by the
parties, contains avoided cost rates in conformity with applicable Commission Orders.
The terms of the contract are reasonable and we approve them. We also approve
payments made under this agreement as prudently incurred expenses for ratemaking
purposes.
The Commission reminds the parties that jurisdiction may not be conferred on
the Commission by contractual stipulation. The authority and jurisdiction of the
Commission is restricted to that expressly and by necessary implication conferred upon it
by enabling statutes. The nature and extent of Commission jurisdiction to resolve actual
disputes wil be determined by the Commission on an individual case by case basis.
(Reference: Agreement, ,r2l.1, Disputes; ,r6.S.2 Capacity Exceeding 10 mw.)
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The Commission acknowledges that the proposed utilty treatment of
Qualifying Facility (QF) contributions as nontaxable is seemingly in accord with the "safe
harbor" exemption for QF property transfers to public utilties. (Reference: Agreement,
,r26, Taxes; IRS Notice 88-129.) The Company is nevertheless directed to segregate or
isolate in a separate account all monies expended in defending its position before the
IRS. All associated costs should be charged to the QF.
CONCLUSIONS OF LAW
I
The Idaho Public Utilties Commission has jurisdiction over Idaho Power
Company, an electric utilty, pursuant to the authority and power granted it under Title
61 of the Idaho Code and the Public Utilty Regulatory Policies Act of 1978.
II
The Idaho Public Utilties Commission has authority under the Public Utilty
Regulatory Policies Act of 1978 (PURPA) and the implementing regulations of the
Federal Energy Regulatory
Commission (FERC) to set avoided costs, to order electric utilties to enter into
fixed-term obligations to purchase energy from small power producers and to implement
FERC rules. PURPA, §§21O, 210A, 210F; 16 U.S.C.A. §§824-A-3, 824-A-3(a)(f); Afton
Energy, Inc. v. Idaho Power Company, 107 Idaho 781, 693 P.2d 427.
o R D E R
In consideration of the foregoing and as so qualified, IT IS HEREBY ORDERED
that the Firm Energy Sales Agreement between Idaho Power Company and Bypass
Limited submitted in this proceeding be and the same is hereby approved.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues
finally decided by this Order) may petition for reconsideration within twenty-one
ORDER NO. 22326 -2-
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(21) days of the service date of this Order with regard to any matter decided in this
Order. Within seven (7) days after any person has petitioned for reconsideration, any
other person may cross-petition for reconsideration. See Idaho Code §61-626.
DONE by Order of the Idaho Public Utilties Commission at Boise, Idaho,
this tJ £/ day of February, 1989.
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RALPH NELSON, COMMSSIONER
ATTEST:~¿h;¡;,y
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