20100225minute_order.pdf

Office of the Secretary
Service Date
February 25, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE REVISED AND
REST A TED POWER PURCHASE
AGREEMENT BETWEEN LOWER VALLEYENERGY, INC. (SELLER) AND
PACIFICORP DATED FEBRUARY 1,2010
CASE NO. PAC-09-
MINUTE ORDER
On February 5 , 2010, PacifiCorp submitted for Idaho Public Utilities Commission
(Commission) approval a copy of the Revised and Restated Power Purchase Agreement between
Lower Valley Energy, Inc. and PacifiCorp dated February 1 , 2010. Lower Valley Energy, Inc.
owns, operates and maintains two run of river hydroelectric generating facilities located on Swift
Creek, in or near the town of Afton, Lincoln County, Wyoming. The upriver plant was
completed in May 2009 and has a facility capacity rating of 940 kilowatts (kW) (the Upper
Facility). A Power Purchase Agreement dated May 22, 2009 (amended by letter on July 7
2009), for the Upper Facility was approved by the Commission on July 16, 2009, in Order No.
30864. The submitted Revised and Restated Agreement amends the parties ' Upper Facility
Power Purchase Agreement to add Seller s 597 kW Lower Facility, which was completed in
October 2009. The Revised and Restated Agreement is a full integration of the parties' May 22
2009 Upper Facility Agreement (as amended), and their current revision and restatement adding
the Lower Facility.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case No. P AC-09-
including the underlying Power Purchase Agreement between Lower Valley Energy, Inc. and
PacifiCorp, Commission Order No. 30864 and the Revised and Restated Agreement. Except for
the addition of the new Lower Facility (597 kW), we find that there are no other material
changes in the Agreement and no change to the rates, terms and conditions of the original
Agreement. As represented and pursuant to the Revised and Restated Power Purchase
Agreement, both the Upper and Lower Facilities will be qualified small power production
facilities (QFs) under the applicable provisions of the Public Utility Regulatory Policies Act of
1978 (PURP A). PacifiCorp will accept delivery of generation from the PURP A qualifying
facilities at the Goshen Substation in Idaho. Exhibit B. The term of the contract is three years.
~ 2.1. Under normal and/or average conditions the expanded project will not exceed 10 aMW on
MINUTE ORDER
a monthly basis. ~ 1.28. We thus find the project is qualified to receive the published avoided
cost rates approved by the Commission.
The Commission finds that the Revised and Restated Agreement submitted in this
case contains acceptable contract provisions and includes the non-levelized published rates
approved by the Commission in Order No. 30480. ~ 5.1. We find it reasonable that the
submitted Revised and Restated Agreement be approved without further notice or procedure.
We further find it reasonable to allow payments made under the Revised and Restated
Agreement as prudently incurred expenses for ratemaking purposes.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over PacifiCorp dba Rocky
Mountain Power, an electric utility, pursuant to the authority and power granted it under Title
of the Idaho Code and the Public Utility Regulatory Policies 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.
In consideration of the foregoing and as more particularly described above, the
Commission by Minute Order approves the February 1 , 2010, Revised and Restated Power
Purchase Agreement between Lower Valley Energy, Inc. and PacifiCorp.
MINUTE ORDER
DATED at Boise, Idaho this d.-:; day of February 2010.
KEMPTON, P SIDENT
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, COMMISSIO
ATTEST:
bIs/O:PAC-09-Minute Order
MINUTE ORDER