Friday, October 30, 2009

Wind, CHP and Smart Grid Energy

Three stories on small-power producer contracts and a $47 million DOE Smart Grid award:

(1) Smart Grid Grant Application Selected by DOE http://www.idahopower.com/NewsCommunity/News/upClose/showupClose.cfm?prID=2254

BOISE, Idaho Oct 27th 2009 — IDACORP, Inc. (NYSE:IDA) subsidiary Idaho Power Company’s Advanced Metering and Customer Systems projects were selected out of 400 received proposals for a potential award of $47 million in funding by the U.S. Department of Energy (DOE).

In a letter to Idaho Power, the DOE stated it is “pleased to inform you that your application in response to the Smart Grid Investment Grant [Funding Opportunity Announcement] has been selected for award negotiations.”

Idaho Power submitted a request for funding in early August to further develop Smart Grid systems by leveraging the Idaho Public Utilities Commission’s approved Advanced Metering Infrastructure deployment. The projects outlined in Idaho Power’s proposal involved a customer-centric approach to achieving measurable results in three integrated areas:
• Grid reliability
• Involved and informed participation by consumers
• Sustainability through integration of renewable resources

“Selection of Idaho Power’s Advanced Metering and Customer Systems projects for potential stimulus funding is an opportunity to provide direct benefits to our owners and our customers,” said Dan Minor, executive vice president of operations for Idaho Power. . .

(2) Feasibility Study for a Combined Heat and Power Plant - Nampa Amalgamated Sugar Factory

The following enclosure appeared with this month's sugar factory payments:

Idaho Power Company will likely announce today (Thursday, October 22, 2009) during their Integrated Resource Plan Advisory Council meeting that they are working with the Amalgamated Sugar Company LLC and the Office of Energy Resources on a feasibility study, which would be funded by Idaho Power and the Office of Energy Resources, for a Combined Heat and Power (CHP) plant. If approved, the CHP plant would be located at the Nampa factory site. The CHP plant would be fired with natural gas and produce electrical power for Idaho Power's customers and supply steam to the Nampa factory for processing needs. The size of the CHP plant has not been determined, but could be substantial. The CHP plant would likely be owned and operated by Idaho Power.

It should be noted that we are in the very early stages of the feasibility study, so not too much should be made from this development at this time. however, if feasible, the project would provide a sustainable energy source for steam and power that could benefit Amalgamated and Idaho Power and provide environmental benefits to the Treasure Valley.

We will keep you informed of any significant development.


US utility company Idaho Power has awarded three 20-year power purchase agreements to local renewable company Exergy Devepment Group, which plans to build three wind farms in the south of the state.

State regulator the Idaho Public Utilities Commission approved the sales agreements for the three projects - Camp Reed, 22.5MW; Payne’s Ferry, 21MW; and Yahoo Creek, 21MW - which are scheduled to commence operation 20 September 2010.

The projects were commissioned under the Public Utility Regulatory Policies Act (PURPA), which requires electric utilities to offer to buy power produced by qualifying small-power producers. The rate to be paid project developers, called an 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.

Under the agreements, each of the plants will deliver up to 10MW on an average monthly basis, which is the upper limit of the size of projects that can qualify for PURPA posted rates.

Under the 20-year contracts, Idaho Power will pay the posted rate of $84.40 per MWh during months of normal demand, $102.58 during months of heavy demand during the summer and Christmas holidays, and $61.47 during the low demand months of March to May.