Website: www.puc.idaho.gov
Idaho Power-Simplot propose sales agreement
Idaho Power Company is seeking regulatory approval of a sales agreement with J.R. Simplot Co. to buy up to 10 average megawatts of electricity from a cogeneration facility at Simplot’s industrial site near Pocatello.
The Idaho Public Utilities Commission is taking comments on the proposed agreement through March 24. The agreement would be the renewal of a one-year agreement that recently expired. The proposed new agreement is for seven years.
The
project qualifies for published rates set by the commission under the
provisions of the Public Utility Regulatory Policies Act passed by Congress
during the energy crisis of the late 1970s. The federal act requires electric
utilities to offer to buy power produced by qualifying small-power producers or
co-generators. The rate to be paid project developers is set by the commission
and 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 published
rate for a contract beginning this year is 5.15 cents per kilowatt-hour.
The
Idaho commission has limited the size of firm projects that can qualify for
PURPA rates to 10 megawatts. The Simplot co-generation project has a capacity
of 18.75 MW, but under normal conditions will not exceed 10 average megawatts
on a monthly basis. The proposed agreement states Idaho Power will accept
inadvertent energy that exceeds that amount but will not purchase it. The
project is already interconnected with Idaho Power’s transmission grid.
The
company is asking that its prudently incurred expenses related to the proposed
sales agreement be recovered from ratepayers.
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-06-03) 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.