Idaho Public Utilities Commission

Case No. IPC-E-10-05

March 22, 2010

Contact: Gene Fadness (208) 334-0339, 473-8791

Idaho Power seeks approval of contract with hydro developer

The Idaho Public Utilities Commission is taking comments through April 1 on whether is should approve a power purchase agreement between Idaho Power Co. and the developer of a small hydro-generation facility near Parma.

Idaho Power is asking that the commission approve the 20-year sales agreement between it and Riverside Investments LLC, which owns the 450 kilowatt Arena Drop hydro project. The project is scheduled to be in operation by July 15. The application is made by Dennis Daugherty of Riverside Investments based in Adrian, Ore.

The project qualifies for the commission’s published rates for small-power projects developed under provisions of the federal Public Utility Regulatory Policies Act or PURPA. The rate for the first-year of the contract is $75.65 per megawatt-hour or 7.56 cents per kilowatt-hour.

Passed by Congress during the energy crisis of the late 1970s, PURPA 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 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 plans to handle this request in a modified procedure that uses written comments rather than conducting a hearing, unless customer comments can demonstrate a need for a public hearing. Comments are accepted through April 1 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-10-05) 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.