20130610press release.pdf

Idaho Public Utilities Commission
Case No. PAC-E-13-06, Order No. 32822
Case No. PAC-E-13-07, Order No. 32820
June 7, 2013
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

PUC taking comments on hydro sale and power purchase agreement

Rocky Mountain Power is seeking state approval to sell a small hydroelectric project in
downtown St. Anthony. If the sale is approved, the winning bidder to buy the project, St.
Anthony Hydro LLC, is seeking state approval to sell its output back to Rocky Mountain Power.

Ted Sorenson of Sorenson Engineering in Idaho Falls was the winning bidder on the project,
which has not been operating since 2002 when the shaft that connects the two turbines failed.
Sorenson, who owns and operates 11 small hydroelectric plants, proposes to repair the 700-
kilowatt facility and have it operating within six months if the sales agreement is approved.

The project is a one-unit powerhouse that contains two submerged turbines originally
commissioned in 1915. The facility is powered by diverting water from the Henry’s Fork of the
Snake River. When operating, it delivered water to Egin Bench Canals, Inc.

Regulated utilities cannot dispose of generating property unless authorized by the Idaho Public
Utilities Commission. Before authorizing the sale of utility property, the commission must find
1) that the transaction is in the public interest; 2) that rates for customers will not increase as a
result of the transaction; and 3) that the buyer has the intent and financial ability to operate
and maintain the property in the public service.

Rocky Mountain Power said it considered several options, including making the needed repairs
and increasing the generation of the project, making minimal repairs, and even
decommissioning the facility. It decided selling the project “as is” was the most cost-effective
alternative for the utility and its customers. The company issued a Request for Proposals and
heard from 31 parties with three submitting formal offers. The St. Anthony Project bid was
determined to present “the best balance between cost and risk,” according to Rocky Mountain
Power.

The commission is taking comments on the proposed sale as well as conducting a telephonic
public hearing. The hearing will be at 10:30 a.m. on Thursday, June 27, in the commission
hearing room at 472 W. Washington St. in Boise. Those wishing to participate can do so at the
hearing room or by calling toll-free 1-888-706-6468 and entering the participant code, which is
2253752. Written comment will be received through June 24.

The commission is also taking comments through June 20 on the proposed sales agreement
between St. Anthony Hydroelectric and Rocky Mountain Power.

The agreement is for 20 years under the commission’s avoided cost rate of $54.46 per
megawatt if the contract is signed later this year and escalating gradually to a rate of $110.79
per MW in 2033. The rate can be adjusted for on-peak and off-peak hours and seasons.

The Renewable Energy Credits, or green tags, would be split between the parties with Rocky
Mountain Power getting the first 10 years of proceeds from RECs and St. Anthony Hydroelectric
the second 10 years.

Comments are accepted via e-mail by accessing the commission’s homepage at
www.puc.idaho.gov and clicking on "Case Comment or Question Form” under the “Consumers”
heading. Fill in the case number – PAC-E-13-06 for the sale and PAC-E-13-07 for the proposed
sales agreement – and enter your comments. Comments can also be mailed to P.O. Box 83720,
Boise, ID 83720-0074 or faxed to [phone].

A full text of the commission’s orders, along with other documents related to this case, is
available on the commission’s Web site at www.puc.idaho.gov. Click on “Open Cases”” under
the “Electric” heading and scroll down to the above case numbers.

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