Idaho Power Co.

Boise, ID: (Aug-30-07) Idaho Power Co. brought charges against wind developers, alleging that they should pay for transmission upgrades required to accommodate the proposed Cassia Gulch Wind Park and Cassia Wind Farm in the Magic Valley region of Idaho. The suit stemmed from the fact that to prevent transmission overload that could take place with the new projects, Idaho Power claimed it needed to upgrade its transmission system in the area at a cost of $60 million. Idaho Power stated that the costs should be borne primarily by wind developers. Jared Grover, a developer for the wind farms, filed a complaint with the commission stating all Idaho Power rate payers would benefit from the upgrades and should help pay for them. Further, Grover argued, requiring developers to pay for the upgrades would threaten the economic viability of his projects and stifle further development of renewable energy in Idaho.

In a settlement approved by the Idaho Public Utilities Commission (PUC), Idaho Power will pay all the costs for the first phase of a planned five-phase transmission upgrade. For the remaining four phases, 25% of costs will be paid by Grover, while 25% will be paid by Idaho Power, and the remaining 50% will be advanced by the developer, but refunded over a term not to exceed 10 years after the projects are commercially viable. [NORTH AMERICAN WINDPOWER: TRANSMISSION UPGRADES]

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Published on Sep-1-07