Idaho Public Utilities Commission

Case No. IPC-E-10-05

April 27, 2010

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

IPUC approves Idaho Power agreement with small-hydro developer

The Idaho Public Utilities Commission has approved a 20-year power purchase agreement between Idaho Power Co. and the developer of a small hydro-generation facility near Parma.

Riverside Investments LLC, based in Adrian, Ore., is the owner of the 450-kilowatt Arena Drop hydro project. The project is scheduled to be in operation by July 15.

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.

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 cogenerators. 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.

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 No. IPC-E-10-05.