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HomeMy WebLinkAbout150608_IPCIDWR.pdf Case No. IPC-E-15-07, Order No. 33309; IPC-E-15-08, Order No 33310 Contact: Gene Fadness (208) 334-0339, 890-2712 www.puc.idaho.gov Commission approves two energy sales agreements between Idaho Power and hydro projects in Jerome area BOISE (June 8, 2015) – The Idaho Public Utilities Commission has approved an Idaho Power Company request for a five-year extension of energy sales agreements with two hydroelectric projects owned by the Idaho Department of Water Resources. Under the agreement, IDWR will sell to Idaho Power electric power generated by the Pristine Springs 1 and Pristine Springs 3 hydro projects near Jerome. The Pristine 1 project has a nameplate capacity of 125 kilowatts and Pristine 3 can generate up to 200 kW. Both projects sold energy to Idaho Power under a 10-year agreement the commission approved in 2005, which expired April 30, 2015. IDWR chose to renew for a five- year term. The projects are qualifying facilities 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 established 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 commission approved Idaho Power’s proposed rates for each project of $59.78 per megawatt-hour in 2015, gradually increasing to $70.28 per MWh in 2020. The rate varies according to heavier and lighter load hours of the day and seasons of the year. The commission’s final order, along with the company’s application and other documents, are available on the commission’s Website at www.puc.idaho.gov. Click on “Open Cases” under the “Electric” heading and scroll down to Case No. IPC-E-15-07 and Case No. IPC-E-15-08. ###