Feb 25 2008
Council Bill 116138 was passed by Full Council on February 25th, 2008. This ordinance authorizes City Light to enter into a ten year Generator Interconnection Agreement with Idaho Power and a five year Transmission Agreement with Idaho Power.
Dating back to 1984 City Light has purchased power from the Lucky Peak Hydro-electric facility near Boise, Idaho. The arrangement provided for the interconnection of the facility to Idaho Power’s transmission grid and transmission across that grid to the Bonneville Power Administration’s grid. The Federal Energy Regulatory Commission (FERC) issued an order that had the net effect of requiring City Light to enter into the Interconnection Agreement for a term of at least 10 years and a transmission agreement for a term of at least 5 years, in order to continue to have certainty of access to the power from Lucky Peak.
In short, the agreements are necessary for City Light to continue to have unrestricted access to power from Lucky Peak and without them, our ability to use or market the power from the plant could be severely limited, possibly resulting in a significant loss of revenue to the utility. This Ordinance includes a ratify and confirm clause, which is not our favored practice but in this case, it is necessary because the contracts here should be executed by March 10, 2008 or City Light runs the risk of losing its grandfathered status in the arrangement with Idaho Power.
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