June 9, 2004
BOISE – Two operators of wind power projects and
another operator a geothermal project in Cassia County have filed complaints
with the Idaho Public Utilities Commission alleging the company is not
following federal PURPA contract terms.
The energy crisis of the late 1970s prompted
Congress to pass the Public Utilities Regulatory Policies Act, or PURPA. Its
purpose is to encourage the promotion and development of renewable energy
technologies as alternatives to burning fossil fuels or the construction of new
power plants.
PURPA requires electric utilities like Idaho Power
to buy electricity generated by small-power producers who obtain Qualifying
Facility (QF) status. The rate utilities must pay qualifying facilities is a
posted rate, set by the state commission. The rate, sometimes called
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.
Bob Lewandowski, who operates a wind project east of
Boise, and Mark Schroeder, who is developing a wind project in the
Hagerman-Bliss area, claim the company wants to pay other than posted rates
when the output from the complainants’ wind projects is less than 90 percent or
more than 110 percent of projected output. Lewandowski and Schroeder also
object to Idaho Power’s proposal that they pay for the electricity Idaho Power
must acquire when output from their wind projects is less than expected. The
complainants also object to an Idaho Power provision that allows the utility to
terminate the contract if retail electric deregulation is enacted in Idaho.
U.S. Geothermal, owner of the 15-megawatt Raft River
Geothermal Power Plant now being built in Cassia County, filed a complaint with
the commission listing many of the same objections cited by Lewandowski and
Schroeder. In addition, U.S. Geothermal claims Idaho Power is refusing to
purchase an annual average of 10 MW per year, but, instead, will purchase only
a maximum of 10 MW in any given hour at PURPA rates. U.S. Geothermal maintains
there is no basis in law for such a limitation.
Because of the similarity of the complaints among
the three projects, the commission issued an order Tuesday consolidating the
complaints into one case.
The commission has scheduled a Sept. 2 public
hearing at 9:30 a.m. in the commission hearing room, 472 W. Washington St. in
Boise. The hearing may continue to Sept. 3 if necessary.
U.S. Geothermal, as well as Lewandowski and
Schroeder, must file direct testimony by July 9. Idaho Power has until July 15
to file its direct testimony. Commission staff and intervenors will file their
direct testimony by Aug. 5 and rebuttal testimony must be filed by Aug. 19.
Documents related to this case can be accessed on
the commission’s Web site at www.puc.state.id.us. Click on “File Room,” then
“Electric Cases,” and scroll down to Case Nos. IPC-E-04-8 and IPC-E-04-10.
Copies of the testimony by the parties will also be available as they come in.
Documents are also available for public inspection at the commission’s offices
at 472 W. Washington St. in Boise.
END