140519_IPCsolarPURPA.pdf

Idaho Public Utilities Commission
Case No. IPC-E-14-09, Order No. 33039
Contact: Gene Fadness [phone], 890-2712

Commission sets Wednesday hearing
regarding Idaho Power solar application

BOISE (May 19, 2014) – The Idaho Public Utilities Commission will conduct a public hearing
Wednesday night, May 21, on an Idaho Power Company request to temporarily suspend its
obligation under federal law to sign new contracts to buy power from qualifying small solar-
power producers.

Idaho Power is completing a study to determine its cost to integrate solar power into its
transmission grid. If those costs are not included in solar power contracts, they are passed on
to customers. The study is expected to be completed by mid-June.

Idaho Power claims that “dozens of solar projects” are either already under contract or
attempting to obligate Idaho Power to buy up to 500 megawatts of electric capacity. To
prevent “great and irreparable harm to customers,” Idaho Power is asking that its federal
PURPA obligation be suspended or, in the alternative, the commission issue an order stating
that future solar contracts include a provision for an appropriate integration charge to be
determined at a later date.

PURPA, the federal Public Utilities Regulatory Policies Act, requires utilities to purchase power
from qualifying small-power producers at rates published by state commissions or negotiated
between the parties using a formula approved by the state commission.

The hearing begins at 6 p.m. in the commission hearing room at 472 W. Washington St.

The hearing will be limited to two questions: 1) whether the commission should issue an order
temporarily suspending Idaho Power from its PURPA obligation to enter into contracts with
solar producers and 2) whether the commission should issue an order directing Idaho Power to
include a placeholder in contracts that will allow for an appropriate solar integration charge to
be included at a later date.

The commission is interested in testimony regarding whether the need to suspend solar
contract negotiations is immediate; whether expedited relief is truly necessary; and whether
other interim measures are available that would allow solar negotiations to continue as the
study is completed and presented to the commission for review. Debate regarding whether
and what type of solar integration charge may be appropriate will occur at a later date in a
subsequent proceeding.

Interested parties can also file written comment through May 21, which carries as much weight
as oral testimony. Comments are accepted via e-mail through by accessing the commission’s
homepage at www.puc.idaho.gov and clicking on "Case Comment Form,” under the “Electric”
heading. Fill in the case number (IPC-E-14-09) 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 Idaho Power’s application and other
documents, is available on the commission’s Web site. Click on “Open Cases” under the
“Electric” heading and scroll down to the above case number.

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