Idaho Power and Magic Wind Agreement Approved

In a recently approved application by the Idaho Public Utilities Commission, Idaho Power Co. will enter into a sales agreement with Magic Wind Park LLC, which plans to install eight 2.5-megawatt (MW) wind turbines eight miles northwest of Buhl, Idaho. Magic Wind will keep within 10 average MW on a monthly basis, as it is exempt from the August 2005 size limit imposed by the commission.

Developers of renewable, small-power projects are entitled to a rate — now about $61 per megawatt-hour — published by the commission under the requirements of the Public Utility Regulatory Policies Act of 1978, or PURPA. The federal act requires electric utilities to offer to buy power from qualifying small producers of renewable energy. The agreement includes a provision for a “shortfall energy penalty.” The penalty will be assessed during output shortfalls when the market price for the replacement power is higher than the contract price. The anticipated completion date for the Magic Wind project is Dec. 31, 2007. Interested parties must petition the commission for reconsideration by January 11, 2007.

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