Idaho Public Utilities Commission

Case No. IPC-E-10-37, Order No. 32159

January 13, 2011

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

Commission adopts agreement with hydro project near Filer

The Idaho Public Utilities Commission has approved a 10-year sales agreement between Idaho Power Company and J.M. Miller Enterprises, the Michigan-based developers of the 0.5-megawatt Sahko Hydro Project near Filer.

The project was already selling energy, but under a different tariff schedule. This proposed sales agreement is a PURPA agreement. The Public Utility Regulatory Policies Act of 1978 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 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.

During this year, the agreement’s rate for normal load hours during normal seasons of the year is $60.06 per megawatt-hour, escalating to $87.40 per MWh in 2020. The rate varies to account for heavy and light load hours of the day and heavy and light load seasons of the year.

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 Case Number IPC-E-10-37.