20140801press release.pdf

Idaho Public Utilities Commission
Case No. PAC-E-14-06, Order No. 33085
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

Rocky Mountain seeks approval of sales agreement
with PURPA hydroelectric project in Wyoming

BOISE (July 31, 2014) – The Idaho Public Utilities Commission is accepting comments through
August 19 regarding Rocky Mountain Power’s application to buy energy from the Lower Valley
Energy, Inc. hydroelectric project near Afton, Wyo.

The Lower Valley Energy project includes three separate generating facilities totaling 1.7
megawatts. The proposed contract is for two years. The chief executive officer of Lower Valley
Energy is Jim Webb of Afton.

The facilities qualify 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 Rocky Mountain to Lower Valley Energy
that gradually increase throughout the life of the contract. Beginning in 2014, the proposed
rate is $55.21 per megawatt-hour, $56.89 per MWh in 2015 and $62.17 per MWh in 2016. The
payment is adjusted slightly to account for on-peak and off-peak hours.

Comments are accepted via e-mail through August 19 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 (PAC-E-14-06) 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 order, along with other documents related to these cases, is
available on the commission’s Web site. Click on “Open Cases” under the “Electric” heading and
scroll down to the above case numbers.

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