20030428_450.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:APRIL 23, 2003
RE:CASE NO. IPC-03-6 (Idaho Power)
SCHEDULE 86 AGREEMENT
IDAHO POWER/PRISTINE SPRINGS, INC.
On April 17, 2003, Idaho Power Company (Idaho Power; Company) filed an
Application in Case No. IPC-03-6 requesting Commission approval of a tariff Schedule 86-
Non-Firm Energy Purchase Agreement (Agreement). A copy of the March 28 2003, Agreement
between Idaho Power and Pristine Springs, Inc. (Pristine Springs) accompanies the Application.
Pristine Springs intends to develop a 200 kW hydroelectric generation facility located
on Warm Creek, located north of Twin Falls, Idaho , in an area more particularly described as the
North West Quarter of Section 19, Township 9 South, Range 17 East, Boise-Meridian, Jerome
County, Idaho. The Pristine Springs hydro generation facility will be a qualified small power
production facility (QF) under the applicable provisions of the Public Utility Policies Act of
1978 (PURPA).
Section 8 of the Agreement provides that "this agreement shall not become effective
until the Commission approves all terms and provisions hereof without change or condition and
declares that all payments to be made hereunder shall be allowed as prudently incurred expenses
for ratemaking purposes.
Pursuant to Schedule 86 the Company will pay the seller monthly, for each kilowatt
hour of energy delivered and accepted at the point of delivery during the preceding calendar
month, an amount equal to 85% of the monthly avoided energy cost. The avoided energy cost is
the weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Electric Price
DECISION MEMORANDUM
Index (Dow Jones Mid-C Index prices) for non-firm energy. The project intends to begin
operation May 2003. Idaho Power reports that it is currently working with Pristine Springs to
complete the necessary documentation and construction of interconnection equipment. The
estimated cost of the Idaho Power provided interconnection equipment, special facilities and
metering equipment is $45 000.
Commission Decision
Idaho Power has submitted a standard Schedule 86 Non-Firm Energy Purchase
Agreement with Pristine Springs. Staff recommends that the Agreement be approved by the
Commission without further procedure or notice. Does the Commission agree?
Scott Woodbury
Vld/M:IPCEO306
DECISION MEMORANDUM