20050822Letter asking expedition of case.pdf

RENAISSANCE ENCiINEERINCi DESICiN PLLC
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Kira Pfisterer
Idaho Public Utilities Commission
472 W. Washington
Boise, Idaho 83702
Lisa Nordstrom
Pacificorp
825 N.E. Multnomah, Suite 180~f'-
Portland, OR 97232
Ph: 503-813-6227
Fax: [phone]
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z::::,:; August 19, 2005
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RE: CASE NO. P AC-05-
This letter is written on behalf of Schwendiman Wind, LLC in reference to case number P AC-
05-09.
Three days ago, on August 16, 2005 I visited with Gene Fadness and Don Howell, who suggested
that it may be possible for the staff to recommend to the commissioners a shorter review period
than the traditional 21 days as part of the normal modified procedure. In fact, it was pointed out
that the commissioners could actually simply vote on the process without public comment.
confirmed that information with Scott Woodbury who told me a letter even as late as Monday
morning could help.
I am requesting anything which can be done to expedite the approval of the Power Purchase
Agreement for the Schwendiman Wind Project. The finalization of that contract has been delayed
substantially by externalities and current events which were not related to this project. In fact, the
continuous goal this spring was to finalize that document the first week in July to coincide with
completion of the interconnection documents and the ability to make deposits to Pacificorp and
the Wind Turbine Supplier in July of2005 as well as finalize interconnection equipment orders all
to accommodate an In-Service Date generation target of December 31 , 2005 and a final
commercial on-line date of March 31 2005.
Schwendimans signed a PP A on June 26, 2005 which was further negotiated and finally signed by
Pacificorp on July 19 2005 even before the IPUC hearing about a PURPA moratorium. Final
exhibits were prepared and the package submitted in August after it was understood that
grandfathering was allowed in the language of the IPUC Order 29839.
So far the delays have moved our project out a couple months which our schedule will simply
accommodate, particularly due to passage of the Energy Bill and renewal of the Federal
Production Tax Credits. However, the most significant concern is delays with the Pacificorp
Interconnection Process. The IPUC approval of the Power Purchase Agreement signed by
Pacificorp and Schwendimans is crucial to the project in every way at this moment. Currently we
have a draft Interconnection Report dated July 18 which was send to Schwendiman s on July 20
2005 with an intended 10 day turnaround time to become final for Pacificorp to proceed.
7800 Alfalfa Lane, Melba Idaho 83641 ph 208-495-1111 fax [phone] brian~clever-ideas.com
RENAISSANCE ENCiINEERINCi DESICiN PLLC
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Also on July 20, 2005 Schwendimans received an itemized draft summary of Pacificorp upgrade
expenses from the Facilities Study Report totaling $768 095 which will need to be paid this fall as
work proceeds. On Friday, July 22 2005, Schwendimans were reminded in an email of payment
milestones of $50 000 on July 25 2005; $150 000 on August 1 2005; and $175 000 on August 22
2005 to keep this project on track with the original schedule. On August 5 2005 Schwendimans
were reminded in an email from the Transmission Department of deadlines that had passed and the
need for steady progress to keep the queue position for their interconnection. Pacificorp is being
as flexible as they can be, nonetheless, it is possible if Schwendimans lose their queue position
that the project may be unable to connect to the transmission line at a future date and the project
could be lost. All of the deadlines have passed, but if the PP A can get approved in a reasonable
time frame, these deadlines can be revised and the interconnection process resumed with minimal
delays. Schwendimans are prepared to follow through with the substantial financial commitments
but cannot proceed any further without a Power Purchase Agreement. Schwendimans have in fact
invested several hundred thousand dollars in this project over the past three years with the
expectation of a Power Purchase Agreement that was a long time coming.
It is inappropriate for the current events initiated by Idaho Power Company in regards to changing
the PURP A regulations to ruin the chances for such a significant project to get built, particularly
since the contract was finalized and even signed by Pacificorp before the changes to Idaho
PURP A implementation were debated in the hearing on July 22, 2005.
Last year in November of 2004 when the hearings were finished on the IPUC Order No. 29632
Paul Kjellander met with me and emphasized that Pacificorp s Power Purchase Agreement did not
have to copy Idaho Power s Power Purchase Agreement. It took over half a year to finally get that
agreement negotiated, since Pacificorp did not have any current Idaho PURP A projects.
I am simply requesting whatever may help this project progress and come to reality. We have
every encouragement from Pacificorp that they believe this project will be a valuable and
meaningful generation component to their grid in Eastern Idaho.
Sincerely,
Brian D. Jackson, PE MBA CEM
Project Engineer
Schwendiman Wind Farm
cc.Governor Kempthorne
Senator Larry Craig
Senator Mike Crapo
Idaho Representative Dell Raybould, Chair of Energy Committee
Bonneville County Commissioners
7800 Alfalfa Lane, Melba Idaho 83641 ph 208-495-1111 fax [phone] brian~clever-ideas.com