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Solar Projects Given Green-Light in Idaho

Idaho utility regulators have approved a stack of new solar power projects this month, even though they're nervous about terms of the deals. Idaho public utility commissioners signed five new power purchase agreements between Idaho Power Company, the largest utility in the state, and Boston-based First Wind for electricity from new solar plants.

The contracts bring to 13 the number of solar facilities which should be online by 2016, the year in which generous federal investment tax credits expire. The sun-powered panels should produce about 400 megawatts of power. Idaho Power has also agreed to purchase about 60 megawatts from similar generators in neighboring Oregon.

Idaho regulators, however, are worried that the federal law backing the new contracts may backfire to some extent, forcing utility companies to buy power they don't need. The Public Utility Regulatory Policies Act - PURPA for short - requires regulated utilities to buy the power at rates established by state commissions.

Applications for solar projects have been piling up in Idaho since late last year when utility commissioners approved two generating farms totaling 120 megawatts. They have not yet ruled on another six projects with more than 180 megawatts of potential.

Right now there are no large-scale solar plants operating in Idaho which gets about 60 percent of its power from hydroelectric dams.

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