Idaho Public Utilities Commission

Case No. IPC-E-11-26, Order No. 32414

January 11, 2012

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

Website: www.puc.idaho.gov

 

Idaho Power, wind developer reach agreement

 

Idaho Power Company is asking the Idaho Public Utilities Commission to approve a 20-year sales agreement with High Mesa Energy LLC, a 40-megawatt wind project near Bliss. 

 

High Energy, based in West Des Moines, Iowa, states the project will be operating by Dec. 28 of this year. 

 

The agreement states the developer would be paid a 20-year levelized price of $56.43 per megawatt-hour, though the pricing stream varies based on the time of year and the time of day that energy is delivered to Idaho Power. 

 

The agreement also states that the value of the Renewable Energy Certificates that would be generated over the 20-year contract would be shared equally by the developer and Idaho Power.  

 

The project is a qualifying facility under the provisions of the Public Utility Regulatory Policies Act. PURPA requires that electric utilities offer to buy power produced from qualifying small power producers or cogenerators.  The rate was negotiated between Idaho Power and the developer using the company’s long-range growth plan as a basis.  The rate to be paid small-power producers is to be equal to the cost the 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 cost is included in customer rates. 

 

The commission is taking comment on the proposed sales agreement through Jan. 26.  Comments are accepted 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-11-26) 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. 

 

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