141201_IPCBlindCanyon.pdf

Case No. IPC-E-14-39, Order No. 33186
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Wendell area hydroelectric project seeks
renewal of sales agreement with Idaho Power

BOISE (Dec. 1, 2014) – The Idaho Public Utilities Commission will take comments through Dec. 9
on an application by Idaho Power Company for a 20-year renewal of its power sales agreement
with a Wendell area hydroelectric project.

The proposed sales agreement is with Blind Canyon Aquaranch, Inc., a 1.625-megawatt hydro
facility. The application lists Pat Windes of Hagerman as president.

The scheduled operation date under the new proposed contract is Dec. 15, 2014, in order to
maintain uninterrupted operation.

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 Blind Canyon Aquaranch
that gradually increase throughout the life of the contract. Beginning this year, the proposed
rate is $61.81 per megawatt-hour, escalating to $106.66 per MWh at contract’s end in 2034. The
payments are adjusted slightly to account for on-peak and off-peak hours and seasons.

Comments are accepted via e-mail through Dec. 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 (IPC-E-14-39) and enter your comments. Comments can also be mailed to
P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].

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