20051103_1373.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:CECELIA A. GASSNER
DATE:OCTOBER 25, 2005
SUBJECT:IDAHO POWER COMPANY'S APPLICATION FOR APPROVAL OF A
FIRM ENERGY SALES AGREEMENT, CASE NO. IPC-05-
On October 19 , 2005 , Idaho Power Company (Idaho Power) filed its Application for
approval of a 20-year Firm Energy Sales Agreement (Agreement) for the sale and purchase of
electric energy with G2 Energy Hidden Hollow, LLC , a Georgia limited liability company (G2).
Under the Agreement, G2 will sell and Idaho Power will purchase electric energy generated by
the Hidden Hollow Landfill Gas Project located at Ada County s Hidden Hollow Landfill near
Boise (the Project). The nameplate rating of the Project is 3.2 MW.
The Project will be a qualified small power production facility (QF) under the
applicable provisions of the Public Utilities Regulatory Policy Act of 1978 (PURP A). G2 has
selected March 1 , 2006 as the scheduled operation date for the Project.
As represented by Idaho Power, the Agreement with G2 comports with the terms and
conditions of Commission Order No. 29632 (Us. Geothermal et at. v. Idaho Power) and
avoided cost Order No. 29646. G2 has elected to receive the non-Ievelized published avoided
cost rates set forth in Order No. 29646, as set forth in further detail in Section VI of the
Agreement.
According to the Application, Idaho Power and G2 entered into the Agreement on or
about October 11 , 2005 pursuant to the rates, terms and conditions specified in Commission
Order Nos. 29632 and 29646. Section 24 of the Agreement provides that "the Agreement shall
not become effective until the Commission approves all terms and provisions thereof without
change or condition and declares that all payments to be made hereunder shall be allowed as
DECISION MEMORANDUM
prudently incurred expenses for ratemaking purposes." The proposed effective date is October
2005.
STAFF RECOMMENDATION
Staff recommends that the Company Application be processed pursuant to
Modified Procedure, i., by written submission rather than by hearing. Reference Commission
Rules of Procedure, IDAPA 31.01.01.201-204.
COMMISSION DECISION
Does the Commission agree with Staff s recommendation to process this case via
Modified Procedure?
M:IPC-O5-29 _
DECISION MEMORANDUM