Idaho Public Utilities Commission

Case No. IPC-E-08-09, Order No. 30570

June 17, 2008

Contact: Gene Fadness (208) 334-0339, 890-2712



Anaerobic digester near Gooding dairy wants to sell to Idaho Power


The Idaho Public Utilities Commission will take comments through June 27 on an Idaho Power Co. application to buy power from an anaerobic digester to be built alongside the Big Sky Dairy near Gooding.


The proposed 20-year contract with DF-AP#1 LLC is for 1.5 megawatts of generation. DF-AP says the digester will be fully operational by no later than Feb. 14, 2009.


The generator qualifies as a small-power production facility under the provision of the Public Utility Regulatory Policies Act of 1978, or PURPA. Passed by Congress during the energy crisis of the late 1970s, PURPA requires electric utilities to offer to buy power produced by qualifying small-power producers or co-generators. The rate to be paid project developers, called an “avoided cost rate,” is determined and published by state commissions.


The avoided cost rate is to be equal to the cost the electric utility avoids if it would have had to generate the power itself or purchase it from another source. The avoided cost rate that regulated utilities pay a non-fuel generator that signs a non-levelized contract during 2008 is $66.82 per megawatt-hour or 6.68 cents per kilowatt-hour.


Comments are accepted via e-mail by accessing the commission’s homepage at and clicking on "Comments & Questions." Fill in the case number (IPC-E-08-09) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.


A full text of the commission’s order, along with other documents related to this case, is available on the commission’s Web site at Click on “File Room” and then on “Electric Cases” and scroll down to the above case number.