20041004_954.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLAND ER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:RICK STERLING
ATE:SEPTEMBER 27, 2004
RE:IDAHO POWER'S SCHEDULE 86 NON-FIRM POWER PURCHASE
AGREEMENT, MCCOLLUM ENTERPRISES, LLC.
CASE NO. IPC-04-
On September 22, 2004, Idaho Power Company (Idaho Power; Company) submitted for
approval a Uniform Agreement (Agreement) under Schedule 86 between Idaho Power and
McCollum Enterprises, LLP (McCollum) for the purchase of non-firm energy from the Canyon
Springs small hydro project (Project).
McCollum has been selling energy to Idaho Power under a Firm Energy Sales Agreement
dated April 12, 1984. The Operation Date of the Project under the previous agreement was
September 30, 1984 with an agreement term of20 years. Thus this Firm Energy Sales
Agreement expires September 30, 2004. The project is a qualified small power production
facility (QF) under the applicable provisions of the Public Utility Regulatory Policies Act of
1978 (PURP A). McCollum wishes to continue to sell energy to Idaho Power under a Schedule
, non-firm energy sales agreement.
The Agreement, as signed and submitted by the parties contains non-firm energy rates in
conformity with posted tariffs and applicable Commission orders. Because the April 12, 1984
Firm Energy Sales Agreement will likely expire before the Commission can process this
Application and issue its order, Idaho Power requests that the Commission order that the
effective date for this Agreement be October 1 , 2004.
Idaho Power requests a Commission Order (1) approving the terms and provisions of the
Agreement between Idaho Power Company and McCollum without change or condition; and (2)
DECISION MEMORANDUM SEPTEMBER 27 2004
declaring that effective October 1 , 2004, all payments made under the Agreement shall be
allowed as prudently incurred expenses for ratemaking purposes.
COMMISSION DECISION
Staff has reviewed the Idaho Power/McCollum Enterprises, LLC. Schedule 86 Non-Firm
Energy Agreement. The Agreement contains non- firm energy rates conforming to posted tariffs
and applicable Commission orders. A copy of the Agreement is attached. Staff recommends
that the Commission approve the Agreement without further notice and affirm that payments
made under the Agreement will be regarded as prudently incurred expenses for ratemaking
purposes. Staff also recommends an October 1 , 2004 effective date. Does the Commission
agree?
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DECISION MEMORANDUM SEPTEMBER 27, 2004
IDAHO POWER COMPANY
SCHEDULE 86
UNIFORM AGREEMENT
For the Purchase of Non-Firm Energy From Qualifying Facilities
THIS AGREEMENT made. this
~ ~
'(L,~- day of Septemb~:!, 2004, between McCollum Enterprises. LL.P ~
William David McCoHum - General Manager ~whose mailing address is POBox 112. Twin Falls. Idaho 83303-
0112 hereinafter called Seller and IDAHO POWER COMPANY, a corporation with its principal office located at 1221
West Idaho Street, Boise, Idaho hereafter called "Company
NOW, THEREFORE, The patties agree as follows:
1. Company shall purchase Energy produced by the SeHer s Qualifying Facility located at or near Twin Falls.
Idaho , County of Twin Falls.State of Idaho, located in the NW of Section Township 9 south , Range
17 east , in the form of three phase 60 Hz and at a nominal phase to phase potential of 480 volts? subject to
emergency operating conditions of the Company. Purchases under this Agreement are subject to the Company s applicable
Tariff provisions, including but not limited to Schedules 86 and 72 approved by and as may be hereafter modified by the Idaho
Public Utilities Commission ("Commission ) and the provisions of this Agreement.
2. Seller shall pay Company for al) costs of Interconnection Facilities as provided for in Exhibit A of this Agreement
and Schedule 72.
3. In addition to the charges provided under Paragraph 2, Seller shall pay to the Company the monthly Operations
and Maintenance Charge specified ' in Schedule 72 on the Investment by the Company in Interconnection Facilities which
investment is set forth in Exhibit A, attached hereto and made a part hereof. As such investment changes, in order to provide
facilities to serve Seller s requirements? Company shall notify Seller in writing of additions or deletions of facilities by
forwarding a dated revised Exhibit A; which shaH b~:('.ome part of this Agreement. The monthly Operation & Maintenance
Charge will be adjusted to correspond to the Revised Exhibit A. '
4. The initial date of acceptance of Energy under this Agreement is subject to the. Company s ability to obtain
required labor, materials, equipment, satisfactory rights of way, and comply with governmental regulations.
5. The tenD of this Agreement shaH become effective on the date fITst above written, and shall continue to full force
and effect until canceled by Seller upon sixty (60) days prior written notice.
6. This Agreement and the rates, terms, and conditions of service set forth or incorporated herein, and the respective
rights and obligations of the parties hereunder, shall be subject to valid laws and to the regulatory authority and orders, rules
and regulations of the Commission and such other administrative bodies having jurisdiction.
7. Nothing herein shall be construed as limiting the Commission from changing any rates, charges, classification or
service, or any rules, regulation or conditions relating to service under this Agreement, or construed as affecting the right of the
Company or the SeHer to unilaterally make application to the commission for any such change.
8. 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.
IDAHO POWER COMPANY
VeTIl Porter , Mgr., Power Supply Operations