Idaho Public Utilities Commission

January 13, 2011

Case No. IPC-E-10-45, Order No. 32157

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

 

Idaho Power wants to renew agreement with hydro project

 

Idaho Power Company is seeking regulatory approval of an energy sales agreement to buy power from the 8.1-megawatt Hazelton A Hydroelectric Project near Jerome. The Idaho Public Utilities Commission is taking comments on the proposal through Jan. 31.

 

The project is already constructed and generating power. Its developer, SE Hazelton of Andover, Mass., has had an agreement with Idaho Power since 1989. That agreement expired on Dec. 31, 2010.

 

Even though the facility will continue to use its existing interconnection and transmission facilities and capacity, Idaho Power will require completion of a Generator Interconnection Agreement and Transmission Service Requests in order to bring the facility up to date with Idaho Power’s current tariffs and processes.  

 

The 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 energy produced by small-power producers who obtain Qualifying Facility (QF) status. 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 commission must ensure the avoided-cost rate is reasonable for utility customers because 100 percent of the price utilities pay to qualifying producers is included in customer rates.

 

The proposed agreement is for 15 years with a scheduled operation date of Jan. 1, 2011. In 2011, the agreement’s proposed rate for normal load hours during normal seasons of the year is $60.06 per megawatt-hour, escalating to $103.76 per MWh in 2025. The rate varies to account for heavy and light load hours of the day and heavy and light load seasons of the year.  

 

Comments are accepted via e-mail through Jan. 31 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-10-45) 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.