The Idaho Public Utilities Commission is taking comments through Sept. 22 on proposed sales agreements between Idaho Power Co. and the developer of three wind projects in the Hagerman area.
The sales agreements are with Boise, Idaho-based Exergy Development Group of Idaho, which plans to build all three projects to qualify under the rates published by the commission under the provisions of the Public Utility Regulatory Policies Act of 1978 (PURPA). PURPA requires electric utilities to offer to buy power produced by qualifying small-power producers or co-generators.
The avoided cost rate to be paid to the project developers is to be equal to the cost the electric utility avoids if it had to generate the power itself or purchase it from another source.
The three projects – Camp Reed (22.5 MW), Payne's Ferry (21 MW) and Yahoo Creek (21 MW) – are scheduled to begin operating Sept. 30, 2010. Under the proposed agreements, each of the plants will deliver up to 10 MW on a monthly basis.
Under the proposed 20-year contracts, Idaho Power would pay the posted rate of $84.40/MWh during months of normal demand, which include January, February, June, September and October.
During the months of heavy demand (July, August, November and December), Idaho Power would pay $102.58/MWh. During months of less-than-normal demand (March through May), Idaho Power would pay $61.47/MWh. Those rates include the wind integration charge and are adjusted slightly during heavy-load hours and light-load hours of the day.