Refusal to Split Energy Credits Halts $180M Solar Project in Idaho

On Friday, January 31, 2013, the Idaho Public Utilities Commission (“IPUC”) issued an opinion in Grand View PV Solar II, LLC v. Idaho Power Co. (No. IPC-E-11-15) that completely stalls a $180 million solar energy project first proposed in 2011.  The IPUC has long held that the renewable energy credits on this type of project—which include property rights to the environmental, social and other non-power qualities—must be split equally between the developer and the utility unless the parties reach another agreement.  But the developer in Grand View PV Solar II continues to refuse to allow the utility any part of the credits.  In August 2011, the developer filed a complaint asking to retain 100 percent of the renewable energy credits from the project which he claimed was necessary for project development to be feasible.  After that complaint was denied in June 2012, he filed a petition for reconsideration in November 2013 arguing that the IPUC’s decision was an “unconstitutional impairment of contract.”  The IPUC’s January 31, 2014, opinion rejects that argument on the basis that there was no enforceable contract because the parties never reached any agreement on renewable energy credits ownership.

For the full-text of the IPUC's opinion, click here or visit www.puc.idaho.gov.