Oct 2 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - Matt Christensen The Times-News, Twin Falls, Idaho,

-The fate of Magic Valley wind energy will be decided soon.

The Idaho Public Utilities Commission is hearing arguments in a case that could kill small-time wind farms or open the door for a proliferation of alternative-energy entrepreneurs.

On one side is Jared Grover, a developer who owns the land for one proposed wind farm near Hagerman and is the developer for another.

On the other side is the Idaho Power Company, Magic Valley's primary provider of electricity.

Grover wants to build two wind farms near Hagerman. The power company says the addition of his farms to their grid will require $60 million in upgrades, and that wind farmers should pay for the changes.

Grover says he doesn't have that kind of money, nor do any number of new wind farmers, and that the power company should have to pay for its own upgrades.

Dennis Lopez, spokesman for the power company, said if the wind developers don't pay for the upgrades, the power company's customers will bear the brunt of the costs.

The IPUC hearing is the culmination of nearly two years of back-and-forth between Grover, the unofficial representative of new Magic Valley wind farmers, and the power company.

Here's the background:

The Idaho Power Company filed in June 2005 a petition with IPUC seeking a temporary reprieve on the company's legal obligation to accept electricity generated by small wind producers like Grover. The company was receiving so many requests to join the grid from new wind farmers, it couldn't handle all the requests.

Because Grover's project was planned before the request for a temporary moratorium on new wind farms, the commission in January ordered Idaho Power to buy electricity from Grover's two wind projects. The ruling was contingent on Grover's ability to finance the farms, which meant buying the wind turbines.

Grover secured financing, and construction on the wind farms was scheduled to begin last month.

Then this summer, Idaho Power told wind farmers including Grover that they'd have to finance system upgrades required to handle the additional electricity wind farms would pump into the grid. Idaho Power says the transmission system upgrades would cost approximately $60 million.

According Lopez, the utilities company approached wind farmers with a proposal that asked the farmers to front the money for the upgrades in exchange for repayment over time.

The farmers turned down the offer, saying they couldn't come up with $60 million.

And that's where the story ends --for now. IPUC is expected to make a decision soon that will affect the future of wind energy in Idaho.

Grover said if IPUC sides with Idaho Power, wind farmers like him won't be able to do business.

"If we're required to pay even a portion of it, say 10 percent, it just doesn't pencil out," Grover said. "We can't make those kind of payments. It'll totally kill our project."

(Times-News staff writer Matt Christensen can be reached at 735-3243 or at matt.christensen@lee.net.)