Case No. IPC-E-06-29, Order No. 30220

January 19, 2006

Contact: Gene Fadness (208) 334-0339




Commission approves sales agreement with Twin Falls sugar plant


The Idaho Public Utilities Commission today approved a request by Idaho Power Co. to enter into a sales agreement with Amalgamated Sugar’s Twin Falls plant.


Under the agreement, Idaho Power will buy up to 3 megawatts of surplus energy generated at the Amalgamated Sugar Company LLC (TASCO) plant in Twin Falls at prices that are less than market-based prices for non-firm energy.


The energy generated from the plant is considered non-firm because it is available only if TASCO does not consume all the electric energy it generates. The surplus energy to be purchased from TASCO is priced at 85 percent of a monthly weighted average market price from the Dow Jones Mid-Columbia trading hub. Setting the purchase price at a discount from market prices, Idaho Power contends, will ensure that when Idaho Power needs energy, the price from the Twin Falls plant will always be more attractive than buying from the wholesale market. When it does not need the TASCO power, Idaho Power should be able to resell the energy at the higher wholesale market price.


The commission said the agreement is a “reasonable means of securing additional electric energy and minimizing the company’s power supply costs.”


The contract is for one year, replacing a five-year contract, but renews automatically unless terminated by either party pursuant to the notification requirements in the contract.


A full text of the commission’s order, along with other documents related to this case, are available on the commission’s Web site at Click on “File Room” and then on “Electric Cases” and scroll down to Case No. IPC-E-06-29.