Idaho Public Utilities Commission

Case No. IPC-E-11-27, Order No. 32422

January 6, 2012

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

Website: www.puc.idaho.gov

 

Idaho Power proposes agreement with hydro project

 

Idaho Power Company is asking the Idaho Public Utilities Commission to approve a 20-year sales agreement with Oregon-based Riverside Investments LLC to purchase energy from the Fargo Drop hydroelectric project near Homedale.  The 1.27-megawatt project is expected to be online by August 1. 

 

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 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 agreement states the developer would be paid a non-levelized energy price that escalates through the life of the 20-year contract, beginning with an average $53.20 per megawatt-hour in 2012 up to an average $107.27 per MWh in 2032.  That price is adjusted to account for heavy and light load hours of the day and of the year. 

 

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 commission is taking comment on the proposed sales agreement through Jan. 17.  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-11-27) 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.