141024_IPCBlackCanyon.pdf

Case No. IPC-E-14-23, Order No. 33156
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Commission OKs sales agreement
between Idaho Power, small hydro project

BOISE (Oct. 24, 2014) – The Idaho Public Utilities Commission has approved an Idaho
Power Company application to purchase power from a small hydroelectric project near
Bliss.

The 20-year sales agreement is with Black Canyon Bliss, LLC, a 24.8-kilowatt
hydroelectric facility projected to be online by Nov. 15. The project owner is David Coats
of Rupert.

The project qualifies 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 includes non-levelized payments from Idaho Power to Black Canyon that
gradually increase throughout the life of the contract. Beginning in 2014, the proposed
rate is $35.10 per megawatt-hour, escalating to $102.92 per MWh at contract’s end in
2033. The payments are adjusted slightly to account for on-peak and off-peak hours.

The commission order, 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 Case Number IPC-E-14-23.

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