[ exact phrase in "" • results by date ]

[ Google-powered • results by relevance ]


News Home

Subscribe to RSS feed

Add NWW headlines to your site (click here)

Sign up for daily updates

Keep Wind Watch online and independent!

Donate $10

Donate $5

Selected Documents

All Documents

Research Links


Press Releases


Publications & Products

Photos & Graphics


Allied Groups

States won’t give higher rates to wind  

Credit:  Times-News, magicvalley.com 29 July 2011 ~~

A handful of Idaho wind energy developers will have to negotiate how much they’ll be paid for the energy they produce after state regulators said again that they’ll offer special rates to only the smallest producers.

The Idaho Public Utilities Commission on Wednesday reaffirmed four June 8 orders stating that it won’t extend to 14 proposed projects its previously larger cap on the Public Utility Regulatory Policies Act rates that created a favorable climate for the development of wind energy in Idaho. Contracts for the proposals – including nine in the Mini-Cassia area – became effective on or after the deadline for the expanded rate cap expired, the PUC said in a Wednesday release.

The state is required to determine and publish the special rate for projects that develop up to 100 kilowatts. During the state’s wind industry infancy, the PUC opted to extend the rate to projects that produce up to 10 megawatts – 100 times the mandated cap – through Dec. 14, 2010. The rate is based on the price of natural gas, and pays qualifying wind and solar producers based on the cost a purchasing utility – Idaho Power, Areva and Rocky Mountain Power in the Gem State – avoids by not having to generate or buy power from elsewhere.

Idaho’s regulated electric utilities petitioned the PUC last November to reduce the energy cap it offered, claiming that large Idaho wind projects were breaking themselves into smaller 10 MW projects in order to take advantage of PURPA rates that were higher than what they could negotiate with the utilities.

The utilities claimed the increased cap forced them into buying power they don’t need at rates that aren’t reasonable for their customers.

In June, the Northwest and Intermountain Power Producers Coalition argued that the 10 MW cap has worked “remarkably well for Idaho” and called its loss “unfortunate.”

But the proposed Cotterel project near Burley represents the type of development the utilities railed against. Shell-owned Cotterel WindEnergy Center initially responded to a 2009 Idaho Power bid request as one large 150 MW project, according to the PUC. But after an agreement wasn’t reached, it was divided into five 10 MW projects, for which Cotterel submitted five PURPA contracts scheduled to start in 2014.

Under the 10 MW cap, the projects’ projected earnings stretched to $716.4 million over 20 years.

What It Means Locally

The Idaho Public Utilities Commission’s decision will change how a handful of south-central Idaho developments move forward. Instead of operating on earnings projections noted below, they’ll have to negotiate rates with Idaho Power Co.


Location: Near Burley

Proposed by: Shell-owned Cotterel WindEnergy Center

Projects: 5

Operation date: Oct. 31, 2014

Projected PURPA earnings: $716.4 million over 20 years

Rainbow Ranch and Rainbow West

Location: Near Declo

Proposed by: Jackson of American Wind

Projects: 2

Operation date: Dec. 31, 2012

Projected PURPA earnings: $208.8 million over 20 years

Grouse Creek

Location: South of City of Rocks National Reserve

Proposed by: Wasatch Wind Intermountain

Projects: 2

Operation date: 2014

Projected PURPA earnings: $236.4 million over 20 years

Source: Idaho Public Utilities Commission

Source:  Times-News, magicvalley.com 29 July 2011

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

Wind Watch relies entirely
on User Funding
Donate $5 PayPal Donate


News Watch Home

Get the Facts Follow Wind Watch on Twitter

Wind Watch on Facebook


© National Wind Watch, Inc.
Use of copyrighted material adheres to Fair Use.
"Wind Watch" is a registered trademark.