Idaho Public Utilities Commission

Case No. IPC-E-10-26, Order No. 32116

November 24, 2010

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

Website: www.puc.idaho.gov

 

Idaho Power proposes to buy from anaerobic digester facility

 

Idaho Power Company and AgPower Jerome LLC are asking state regulators to approve a sales agreement under which AgPower would sell energy to Idaho Power from an anaerobic digester project proposed to be built near Jerome.

 

The Idaho Public Utilities Commission is taking comment on the proposed 20-year agreement through Dec. 8.

 

The 1.6 megawatt project is a Qualified Facility under the provisions of the federal Public Utility Regulatory Policies Act (PURPA) passed by Congress during the energy crisis of the late 1970s. PURPA requires electric utilities to offer to buy power produced by small power producers or cogenerators who obtain Qualifying Facility (QF) status. The rate utilities pay 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 AgPower project is grandfathered under an older, higher, posted rate because the sales agreement was substantially complete before the avoided-cost rate was lowered by the commission on March 16. Under the proposed agreement, AgPower would be paid about $80.05 per kilowatt-hour in the first year of operation, with a project online date of Jan, 1. 2012. By the 20th year of the agreement, project developers would be paid about $128.31 per kWh. That amount varies during heavy- and light-load seasons of the year and heavy- and light-load hours of the day.

 

Comments are accepted through Dec. 8 via e-mail by accessing the commission’s homepage at www.puc.idaho.gov and clicking on "Comments & Questions About a Case." Fill in the case number (IPC-E-10-26) 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 www.puc.idaho.gov. Click on “File Room” and then on “Electric Cases” and scroll down to the above case number.