20050310_1114.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:MARCH 7, 2005
SUBJECT:CASE NO. IPC-05-6 (Idaho Power)
FIRM ENERGY SALES AGREEMENT - THOUSAND SPRINGS
On February 24, 2005 , Idaho Power Company (Idaho Power; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting approval of a
Finn Energy Sales Agreement (Agreement) between Idaho Power and Thousand Springs Wind
Park, LLC (Thousand Springs) dated February 18 , 2005. Under the Agreement Thousand
Springs will sell and Idaho Power will purchase electric energy generated by the Thousand
Springs Project located near Hagennan, Idaho in an area more particularly described as Sections
, 5, 8, and 9, Township 7 South, Range 13 East, Boise Meridian, Twin Falls County, Idaho and
Sections 19 and 30, Township 6 South, Range 13 East, Boise Meridian, Twin Falls County,
Idaho. The Project consists of seven (7) 1.5 MW GE wind turbines. The nameplate rating of the
project is 10.5 MW. Under nonnal and/or average conditions the project will not exceed 10
aMW on a monthly basis. If energy in excess of this amount (Inadvertent Energy) is accidentally
generated, Idaho Power will accept Inadvertent Energy that does not exceed the 10.5 MW
maximum capacity amount but will not purchase or pay for it. Agreement ~ 7.
The Thousands Springs Project will be a qualified small power production facility
(QF) under the applicable provisions of the Public Utility Regulatory Policies Act of 1978
(PURP A). Thousand Springs has selected December 31 , 2005 as the scheduled operation date
and January 15, 2006 as the first energy date.
As represented by Idaho Power, the Agreement with Thousand Springs comports
with the tenus and conditions of Commission Order No. 29632 (Us. Geothermal et. al v. Idaho
DECISION MEMORANDUM
Power) and avoided cost Order No. 29646. The contract is for a 20-year term and contains the
published non-Ievelized avoided cost rates set forth in Order No. 29646.
As reflected in Section 24 of the Agreement, the Agreement will not become effective
until the Commission has approved all the Agreement's terms and conditions and declares that
all paYments that Idaho Power makes to Thousand Springs for purchases of energy will be
allowed as prudently incurred expenses for ratemaking purposes. The proposed effective date of
the Agreement is February 18 2005.
COMMISSION DECISION
Idaho Power requests Commission approval of Firm Energy Sales Agreement with
Thousand Springs Wind Park, LLC. The contract is for a 20-year term and contains the non-
levelized published avoided cost rates for energy deliveries not exceeding 10 aMW on a monthly
basis. The Commission Staff recommends that the Company s Application be processed
pursuant to Modified Procedure, i., by writt.en submission rather than by hearing. Reference
Commission Rules of Procedure, IDAPA 31.01.01.201-204. Does the Commission agree with
the recommended procedure?
Scott D. Woodbury
bls/M:IPCEO506 sw
DECISION MEMORANDUM