IPC-E-07-03, AVU-E-07-02, PAC-E-07-07
Contact: Gene Fadness 208.334.0339, 208.890.2712
Website: www.puc.idaho.gov
Commission taking public comment on wind issues
The Idaho Public Utilities Commission will take comments
through Sept. 21 on a proposed resolution to issues that have slowed
development of small-wind projects in the state for two years.
In 2005, Idaho Power Co., asked for a moratorium on wind
development within its territory to allow the utility time to study how much it
costs Idaho Power to provide back-up generation when wind output is less than
projected. The commission denied the suspension, but agreed to lower the size
of wind projects that can qualify for the rates utilities must pay generators
of small renewable power projects from 10 megawatts to 100 kilowatts.
Since then, Idaho Power Co., as well as the two other
major electric utilities that serve the state, Avista Corporation and PacifiCorp,
have completed studies to determine wind integration costs and are now
proposing that the published rate for wind be discounted and that the size
limit of projects that can qualify for the rate be brought back up to 10 MW.
The three utilities differ on exactly how much the
discount for wind integration should be, but the proposals are in the $5 to $10
per megawatt-hour range. The current posted rate for generation from renewable
small-power projects, absent a discount rate, is about $64 per MWh.
The utilities also propose that wind developers reimburse
them for the cost of state-of-the-art wind forecasting services and that
developers provide guarantees that their wind projects are mechanically able to
generate at full output during 85 percent of the hours during a month. If the
wind developers agree to these provisions, the utilities would agree to support
removal of the "90/110 performance
band" now required in wind contracts. That requirement stipulated that
when output was less than 90 percent of projections or more than 110 percent of
projections, that Idaho Power could pay developers a market-based rate rather
than the posted rate.
Commission staff conducted two workshops to explore
whether the utilities and wind developers could agree to a generic wind
integration adjustment, but the parties were unable to settle.
With the parties unable to agree, the matter is now before
the commission for a decision. The commission will proceed under a modified
procedure that allows the case to be handled through written public comments
rather than by public hearing. However, comments may request a public hearing.
Those wishing to submit comments must do so by no later
than Sept. 21. Reply comments from the parties to the case are then due on Oct.
5. Comments are accepted via e-mail by accessing the commission’s homepage at www.puc.idaho.gov and clicking on
"Comments & Questions." Fill in the case number (IPC-E-07-03 for
Idaho Power; AVU-07-02 for Avista and PAC-E-07-07 for PacifiCorp) 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, are available on the commission’s Web site.
Click on “File Room” and then on “Electric Cases” and scroll down to the above
case number.