CLHP sponsors intend to sell power subject to the 1978 PURPA. The Idaho Public Utilities Commission (IPUC) issued Order No. 33419 on 5-November-2015 (link to order 33419: 20151105RECONSIDERATION_ORDER_NO_33419) addressing a petition for reconsideration of a prior IPUC order regarding terms of electrical purchase agreements subject to PURPA. IPUC stated the following on page 27 of Order No. 33419 (emphasis added):
“Given the totality of the evidence in the record, we affirm our findings in final Order No. 33357 that it is reasonable and consistent with PURPA that the standard IRP contract be reduced from 20 years to two years. It is uncontested that utilities do not need additional generating capacity and that PURPA and non-PURPA generation exceeds Idaho Power’s and Rocky Mountain’s minimum average loads. More importantly, given the undisputed evidence that avoided costs are decreasing, retaining fixed rates for 20 years would violate PURPA’s Section 210(b) mandate that avoided costs rates shall not exceed a utility’s avoided costs. We find that the Petitioners’ alternative proposal to adjust energy rates one time in the middle of a 20-year contract is not consistent with PURPA’s intent or FERC’s regulations. Consequently, the Commission denies Simplot’s and Clearwater’s request to retain 20-year terms for IRP-based contracts.”
Electrical demand has been flat for many years nationwide. IPUC states that Idaho Power and Rocky Mountain Power do not need additional generating capacity, which means implementation of the County Line Hydroelectric Project is not in the public interest because it is not needed. It is unclear whether the project will sell power at prevailing utility purchase rates or at higher rate. If the latter, then project would not be in the public interest from the perspective of consumer power utility costs.