170408_IPCCAFCO.pdf

Case No. IPC-E-17-04, Order No. 33738
Contact: Gene Fadness [phone]
www.puc.idaho.gov

Idaho Power seeks PUC approval of energy sales agreement
with Burley-area landfill gas-to-energy project

BOISE (April 10, 2017) – Idaho Power Company is asking state regulators to approve a sales agreement
with a Burley area project that converts landfill gas to energy.
The project developer, CAFCO Idaho Refuse Management LLC, entered into a 20-year contract to sell
output from its 5-megawatt project to Idaho Power beginning in October 2018. The Southern Idaho
Regional Solid Waste District project is eight miles west of Burley at Milner Butte.
Idaho Power is asking the Idaho Public Utilities Commission to approve the project under the provisions
of PURPA, the Public Utility Regulatory Policies Act of 1978. PURPA requires regulated utilities to enter
into agreements with qualifying small, independent power producers at rates approved by state
commissions. The rates are to be based on the cost the utility avoids by generating the power itself or
purchasing it from another source so that customers are not paying more for PURPA–based power than
they are for other resources.
Under the terms of the agreement, Idaho Power would pay about $33.91 per megawatt-hour beginning
in 2018, with the rate gradually increasing to $87.08 per MWh in 2038. The rate is adjusted of light-load
and heavy-load hours of the day and seasons of the year.
The commission is taking comments on the proposed energy sales agreement through April 25 with
Idaho Power filing reply comments, if necessary, by no later than May 2. Comments may be filed via e-
mail by going to the commission’s website at www.puc.idaho.gov. Under the “Electric” heading, select
“Case Comment Form,” and enter your comments, using Case No. IPC-E-17-04. Comments can also be
mailed to P.O. Box 83720, Boise, ID, 83720-0074.
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