Pocatello — Idaho Power Co. is seeking permission from the Idaho Public Utilities Commission (IPUC) to extend a power sales agreement for a cogeneration unit at J.R. Simplot Co.’s phosphate fertilizer plant near Pocatello, Idaho. The unit generates 10 megawatts of energy on average for the utility as a byproduct of Simplot’s manufacturing process. The previous sales agreement expired March 1. Idaho Power’s application would grant interim approval of a sales agreement for two years while a permanent application is reviewed. The interim contract would be at the IPUC’s published avoided cost rates for projects averaging 10 megawatts or less. The proposed contract is “non-levelized,” which means the price Idaho Power pays Simplot escalates annually to more accurately reflect the actual value of the energy generated. The avoided cost rate is $52.28 per megawatt hour in 2013, $52.49 per mwh in 2014, and $55.91 per mwh in 2015. The rate to be paid small cogenerators is to equal the cost the utility avoids if it were to generate the power itself or buy it from another source. Simplot must provide data to Idaho Power that confirms its cogeneration unit will not exceed 10 megawatts on a monthly basis under normal and/or average conditions. Idaho Power will accept excess energy, but will not buy or pay for the “inadvertent energy.”
Transparency Across the Fertilizer Value-Chain