Opinion ID: 1172988
Heading Depth: 2
Heading Rank: 1

Heading: Authority to Order Utilities to Enter into Fixed Term Contracts.

Text: PURPA § 210(a) requires FERC to prescribe ... such rules as it determines necessary to encourage cogeneration and small power production which rules require electric utilities to offer to ... purchase electric energy from [CSPPs]. [6] In compliance with this provision, FERC issued regulation 18 C.F.R. § 292.303(a) which provides that [e]ach electric utility shall purchase, in accordance with § 292.304, any energy and capacity which is made available from a qualifying facility. Section 292.304(d) provides that: Each qualifying facility shall have the option either: (1) To provide energy as the qualifying facility determines such energy to be available for such purchases ...; or (2) To provide energy or capacity pursuant to a legally enforceable obligation for the delivery of energy or capacity over a specified term ... . (Emphasis added.) This provision gives the CSPP the option to enter into a contract for a specified term with a utility or to provide energy to the utility as it becomes available to the CSPP. [7] Similarly, it can be seen that 18 C.F.R. § 292.304(e)(iii) which provides that one of the factors in determining the avoided cost rates to be paid the CSPP is [t]he terms of any contract or other legally enforceable obligation, including the duration of the obligation ... (emphasis added), [8] envisions that utilities and CSPPs will enter into fixed-term contracts. Thus, it is clear that the Commission had the authority to order Idaho Power to enter into a fixed-term obligation to purchase energy from Afton. We hold that the Commission did not abuse its discretion in implementing the mandates of PURPA by requiring Idaho Power to contract with Afton for the purchase of its power over a thirty-five year period. [9] In the absence of an abuse of discretion, this Court will not set aside orders of the Commission. Boise Water Corporation v. Idaho Public Utilities Commission, 97 Idaho 832, 555 P.2d 163 (1976); Intermountain Gas Company v. Idaho Public Utilities Commission, 97 Idaho 113, 540 P.2d 775 (1975).