FOR IMMEDIATE RELEASE

Idaho Public Utilities Commission

January 13, 2011

Case No. IPC-E-10-44, Order No. 32156

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

Utility seeks approval of agreement with landfill gas generator

Idaho Power Company is seeking regulatory approval of an agreement to buy power from a landfill gas generating facility at Ada County’s Hidden Hollow Landfill.

The 3.2-megawatt Hidden Hollow Energy 2 facility is developed by Fortistar Methane Group based in Lockport, New York, and would operate next to an existing landfill gas-powered unit owned by G2 Energy. Hidden Hollow Energy 2 would use the same landfill gas reserves as its fuel source. The Idaho Public Utilities Commission is taking comments on the proposal through Jan. 31.

Hidden Hollow Energy 2 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 20 years with a scheduled operation date of Feb. 28, 2012. In 2012, the agreement’s proposed rate for normal load hours during normal seasons of the year is $63.78 per megawatt-hour, escalating to $124.27 per MWh in 2031. 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-10-44) 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.