20160802press release.pdf

Utility seeks extension of contract with hydro project

Case No. PAC-E-16-11, Order No. 33556
Contact: Gene Fadness [phone]
www.puc.idaho.gov

BOISE (July 29, 2016) – The Idaho Public Utilities Commission is taking comments through
August 9 on an application by Rocky Mountain Power to amend its power purchase agreement
with the developer of three hydroelectric facilities near Afton, Wyoming.

The power purchase agreement, which expires on Sept. 30, is with Lower Valley Energy, Inc.,
which operates three run-of-river hydroelectric projects in western Wyoming with a total
capacity of 1.7 megawatts. The output from the project is sold to Rocky Mountain Power’s
customers in eastern Idaho. If approved, the amendment to the contract would extend it to
Sept. 30, 2017.

The combined facility qualifies under the provisions of the federal Public Utility Regulatory
Policies Act of 1978. PURPA requires regulated utilities to buy energy from qualifying
renewable generation projects at rates published by state commissions. The rate to be paid
qualifying facilities is called an “avoided-cost rate,” because it is based on the cost the utility
avoids by not having to generate the energy itself or buy it from another source. The
commission must ensure the avoided-cost rate is reasonable for utility customers because the
price utilities pay to qualifying small-power producers is included in customer rates.
The proposed rate for energy deliveries in 2016 is $34.06 per megawatt-hour and for 2017,
$34.42 per MWh.
Comments are accepted via e-mail through Aug. 9 by accessing the commission’s website at
www.puc.idaho.gov and clicking on "Case Comment Form,” under the “Consumers” heading.
Fill in the case number (PAC-E-16-11) and enter your comments. Comments can also be mailed
to P.O. Box 83720, Boise, ID 83720-0074.
The commission’s order and other documents related to this case are available on the
commission’s website. Click on “Open Cases” under the “Electric” heading and scroll down to
the case number above.

###