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Idaho utility abandons talks over 150MW wind power deal

Idaho Power is still intending to buy 150MW of wind power in the next 10 years

The utility Idaho Power has abandoned negotiations for a 150 megawatt wind energy power purchase agreement.

The company based in Boise said it had jointly determined with an unnamed wind generator on Friday (August 13) not to continue chasing a 20-year deal.

The failure brings to an end a Request for Proposal process that was launched back in May 2009.

Idaho Power said yesterday that analysis of the project had shown there were more cost effective options available. The utility will now pursue alternative renewable energy resources.

Idaho Power Senior Vice President of Power Supply Lisa Grow explained: “Since issuing our RFP more than a year ago, the wind energy market has changed dramatically and prices for Power Purchase Agreements (PPAs) acquired under the Public Utility Regulatory Policies Act of 1978 (PURPA) process have decreased. In light of these changes, we expect to be able to acquire energy resources without concluding the RFP at this time.”

Strategy

Ms Grow said Idaho Power will work to maximize the value of its existing hydropower projects while it develops a portfolio including new wind, geothermal and solar generation capacity.

Part of IDACORP, Inc., Idaho Power has so far contracted for more than 600MW of renewable energy projects from hydroelectric, wind and biomass sources, and last month sought permission for its first ever solar power deal (see this BrighterEnergy.org story).

The firm serves around 486,000 residential and business customers in southern Idaho and eastern Oregon.

Earlier this month, the utility’s 20-year strategy was accepted by the Idaho Public Utilities Commission. the Integrated Resource Plan said Idaho Power would add 150MW of wind generation to its portfolio over the next decade, along with 40 MW of geothermal generation.

An upgrade of the Shoshone Falls hydroelectric facility is also planned, offering another 20 MW of capacity by 2015.

After 2020, a further 500MW of wind power could be added to the firm’s portfolio subject to transmission arrangements being in place.

Idaho Power’s Senior Vice President of Power Supply said: “At Idaho Power, we’re continually planning for the future and must take steps to position our company to meet upcoming obligations and anticipated regulation while considering impacts to our customers and owners.”