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HomeMy WebLinkAbout20110826Idaho Power Protest and Intervention.pdfMOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -1 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION ) Cedar Creek Wind, LLC )Docket No. EL11-59-000 ) MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY Pursuant to Rules 211, 212, and 214 of the Federal Energy Regulatory Commission’s (“FERC” or “Commission”) Rules of Practice and Procedure, 18 C.F.R. §§ 385.211, 212, and 214, and the Commission’s August 8, 2011, Notice of Petition for Enforcement in the above- captioned docket, Idaho Power Company (“Idaho Power”) moves to intervene in this proceeding, as well as to protest, Cedar Creek Wind, LLC’s (“Petitioners” or “Cedar Creek”) request to institute an enforcement action against the Idaho Public Utilities Commission (“Idaho PUC”). Idaho Power asserts that the Idaho PUC properly rejected the Firm Energy Sales Agreements at issue in this docket pursuant to the authority delegated to it by the Public Utility Regulatory Policies Act of 1978 (“PURPA”) as well as the Idaho PUC’s statutory obligation under Idaho law to uphold the public interest. Accordingly, the Commission should decline the enforcement sought by Cedar Creek and affirm that the Idaho PUC properly exercised its authority under federal and state law. MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -2 I. COMMUNICATIONS Communications regarding this pleading should be addressed to the following: Jason B. Williams Donovan E. Walker Corporate Counsel Lead Counsel Idaho Power Company Idaho Power Company P.O. Box 70 P.O. Box 70 1221 West Idaho Street 1221 West Idaho Street Boise, Idaho 83702 Boise, Idaho 83702 (208) 388-5104 (208) 388-5317 jwilliams@idahopower.com dwalker@idahopower.com Lisa A. Grow Randy Allphin Senior Vice President,Power Supply Senior Energy Contract Coordinator Idaho Power Company Idaho Power Company P.O. Box 70 P.O. Box 70 1221 West Idaho Street 1221 West Idaho Street Boise, Idaho 83702 Boise, Idaho 83702 (208) 388-2243 (208) 388-2614 lgrow@idahopower.com rallphin@idahopower.com II. BASIS FOR INTERVENTION Idaho Power, an Idaho corporation,is a vertically integrated electric utility engaged in the business of generating, purchasing, transmitting, and distributing electrical energy. Idaho Power utilizes an interconnected grid to provide wholesale and retail electric service throughout approximately 24,000 square miles of service territory in southern Idaho and eastern Oregon. As a public utility providing retail electric distribution and supply service, Idaho Power is regulated by the Idaho PUC and the Public Utility Commission of Oregon. As a public utility under Part II of the Federal Power Act, Idaho Power has market-based rate authority for wholesale energy sales under its FERC tariff and provides transmission services under its Commission-approved Open Access Transmission Tariff (“OATT”). Idaho Power is subject to the provisions of PURPA as implemented by the rules and regulations of the Idaho PUC and this Commission. Pursuant to its PURPA obligations, Idaho MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -3 Power has entered into Idaho PUC approved power purchase agreements with numerous Qualifying Facilities (“QF”) for the output from these projects at published avoided costs rates. Over the last 30 years, Idaho Power has been deeply involved in the Idaho PUC’s evolving adoption and implementation of PURPA, including recent Idaho PUC decisions which lead to the rejection of the power purchase agreements that are at issue in this docket. Notably, the Idaho PUC rejected 13 power purchase agreements between QFs and Idaho Power on the same day it rejected the power purchase agreements that are the subject matter of this requested enforcement action. Accordingly, Idaho Power has a vested interest in the Commission’s determination in this proceeding. Cedar Creek alleges that the Idaho PUC wrongly rejected five Firm Energy Sales Agreements between Cedar Creek and PacifiCorp d/b/a Rocky Mountain Power (“Agreements”) “solely” because Rocky Mountain Power did not execute the Agreements prior to December 14, 2010.1 The Idaho PUC issued Order No. 32260 on June 8, 2011,rejecting the Agreements. On that very same day, the Idaho PUC issued five orders rejecting 13 power purchase agreements that Idaho Power had entered into with various QF wind developers (“Idaho Power Agreements”).2 The Idaho PUC’s basis for rejecting the Idaho Power Agreements was generally the same basis it used to reject the Agreements which Cedar Creek is seeking Commission enforcement of in this docket. Thus, to the extent the Commission grants Cedar Creek’s request for enforcement, Idaho Power’s interests in the Idaho Power Agreements will be directly affected by the outcome of this proceeding. Moreover, given that Idaho Power is the largest public utility and the largest purchaser of QF energy in the state of Idaho, no other party could adequately represent Idaho Power’s 1 Cedar Creek Petition at 1. 2 Idaho PUC Order Nos. 32254, 32256, 32257, 32255, and 32258. MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -4 interests in this proceeding. Further, Idaho Power’s intervention is in the public interest as the information provided herein will assist the Commission in reaching an informed resolution in this matter. III. COMMENT AND PROTEST A.Background. On June 8, 2011, the Idaho PUC not only rejected the Cedar Creek Agreements but also issued a series of orders rejecting several similar Idaho Power Agreements as well as issuing an order modifying the eligibility cap for QFs to receive published, or standard,avoided cost rates.3 The series of orders was the result of a contentious, public process that involved substantial discovery, a comment period,oral argument, and hearing before the Idaho PUC. The fully developed record was the result of the state’s recent and unprecedented increase in PURPA development, primarily PURPA wind development. As of July 14, 2011, Idaho Power had approximately 294 megawatts (“MW”) of QF wind generation on-line and another 362 MW of signed QF wind generation contracts approved by the Idaho PUC scheduled to come on-line within the next year. The Idaho Power Agreements rejected by the Idaho PUC on June 8, 2011, represented approximately 294 MW of additional QF wind generation beyond the 362 MW that had already been approved. Notably, the 13 Idaho Power Agreements rejected by the Idaho PUC were with only five different developers. For example, five of the Idaho Power Agreements were five wind projects near Burley, Idaho, all within a few miles of one another. Each proposed project was being proposed by the same developer and each had a nameplate capacity of between 27 MW and 29 MW. The developer had previously studied and proposed to sell to Idaho Power this same group of five wind projects as a single 150 MW non-PURPA wind project. This 3 Idaho PUC Order No. 32262, rel. June 8, 2011 (“Published Rate Eligibility Order”) which can be found at http://www.puc.idaho.gov/internet/cases/elec/GNR/GNRE1101/ordnotc/20110608FINAL_ORDER_NO_32262.PDF. MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -5 configuration is similar to the Cedar Creek configuration; i.e.,multiple projects proposed by a sole developer within the same general vicinity.4 Developers in Idaho would disaggregate larger projects into multiple 10 average megawatts (“aMW”)increments in order to qualify each segment for the published avoided cost rates available to projects at or below 10 aMW. QF projects in excess of 10 aMW are directed by the Idaho PUC to receive an avoided cost rate based upon the Integrated Resource Plan (“IRP”) methodology as established and approved by the Idaho PUC. Overall, Idaho Power is dealing with the challenges associated with integrating a total of close to 1,000 MW of QF generation into is electrical system, 656 MW of this being wind QF projects. The current contractual financial commitment of Idaho Power to these QF projects is estimated at over $5 billion dollars. To put the volume of QF wind development into perspective, consider that Idaho Power’s minimum hourly average load for its entire system was slightly over 1,030 MW in 2009 and 2010. As a result of the proliferation of QF projects as well as the financial impact this was having on its customers, Idaho Power, as well as Idaho’s other investor-owned public utilities, Rocky Mountain Power and Avista Corporation, petitioned the Idaho PUC to revisit its approach to QF regulation on a number of key issues, including, but not limited to, its avoided cost methodology, eligibility criteria for projects seeking published avoided cost rate contracts, interconnection costs, and other key issues.5 In the Joint Petition, the utilities requested that the Idaho PUC immediately lower the published avoided cost rate cap from 10 aMW to 100 4 In addition to these five projects, the Idaho Power Agreements included two 21 MW projects,three 20 MW projects,and two 20 MW projects—each of which was being developed by the same developer and each located in the same general geographic vicinity. 5 A copy of the Joint Petition of Idaho Power, Rocky Mountain Power,and Avista Corporation is available at: http://www.puc.idaho.gov/internet/cases/elec/GNR/GNRE1004/20101108JOINT%20PETITION,%20MOTION.PDF. MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -6 kilowatts (“kW”)pending the Idaho PUC’s investigation of the various QF issues posed in the Joint Motion. The Idaho PUC declined the request to immediately lower the published rate eligibility cap and instead ordered the utilities and interested parties to file comments and scheduled oral argument. Importantly, the Idaho PUC’s December 3, 2010, notice clearly states that “it is our intent that our decision regarding the ‘Joint Motion’ to reduce the published avoided cost eligibility cap shall become effective on December 14, 2010.”6 Notably, the Idaho PUC had previously lowered the published avoided cost eligibility cap for QF projects upon a similar request from Idaho Power in 2005 so as to examine wind integration issues associated with QFs. Further, the Idaho PUC sought to examine and potentially implement disaggregation criteria which would prohibit large QF projects from artificially disaggregating for the sole purpose of obtaining the published avoided cost rate, as opposed to the IRP-based rate reserved for projects in excess of 10 aMW.7 Over the next several months, the Idaho PUC engaged in a rigorous examination of these PURPA issues, regulating extensive discovery, taking comments,and hearing oral argument. On June 8, 2011, the Idaho PUC issued a series of orders addressing various PURPA-related issues. The primary policy order issued that day was the Published Rate Eligibility Order. In that order, the Idaho PUC modified its avoided cost pricing methodology by concluding that the recent proliferation of wind QFs in the state, as well as the disaggregation of larger projects into smaller increments with the express purpose of obtaining the published avoided cost rate,necessitated a change to the eligibility requirements for published avoided cost rates, reducing the eligibility 6 Idaho PUC Order No. 32131 at 6. 7 Idaho PUC Order No. 32131 at 5. MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -7 cap from 10 aMW for wind and solar projects to 100 kW, consistent with the federal standard.8 Equally important, the Idaho PUC ordered that public utilities must still continue to contract with large wind and solar QFs but utilize the appropriate avoided cost rate methodology for those larger projects based upon the utilities’IRP methodology previously approved by the Idaho PUC. Thus, the Idaho PUC did nothing to impact the obligation of public utilities to contract with QFs; it simply changed the eligibility requirements for the published, or standard, avoided cost rate methodology–which it has the discretion to do under PURPA. B.Discussion. 1.The Idaho PUC Has the Authority to Adjust Avoided Cost Rates for QFs Pursuant to PURPA and the Commission’s Rules. Petitioners frame the issue as the Idaho PUC improperly rejecting the Agreements because a “legally enforceable obligation” existed. The focus of their pleading is on Section 292.304(d), suggesting that this provision compels the Idaho PUC to approve the Agreements. Importantly, section 292.304(d) must be read with section 292.304(a)(1) of the Commission’s rules, which require that the rates at which utilities purchase QF energy must “(i) [b]e just and reasonable to the electric customer of the electric utility and in the public interest; (ii) [n]ot discriminate against qualifying cogeneration and small power production facilities.” Further, this Commission’s regulations expressly provide that “[n]othing in [the Commission’s regulations] requires any electric utility to pay more than the avoided costs for purchases.”9 Thus, from Idaho Power’s perspective, the issue in the proceeding is whether the Idaho PUC properly exercised its statutory authority under PURPA and the Commission’s rules. A reading of the Idaho PUC’s June 8, 2011, Published Rate Eligibility Order and the order rejecting the 8 Idaho PUC Order No. 32262 at 9. 9 18 C.F.R. §292.304(a)(2). MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -8 Agreements make clear that the Idaho PUC properly implemented PURPA and the Commission’s rules. Most significantly, the Published Rate Eligibility Order shows the Idaho PUC’s concern that approval of the Agreements (as wells as the thirteen Idaho Power Agreements) would be contrary to these statutory requirements as wells as the Commission’s rules.Specifically, the Idaho PUC found that: PURPA and our published avoided cost rate structure were never intended to promote large scale wind and solar development to the detriment of utility customers.Avoided cost rates are to be just and reasonable to the utility’s ratepayers. 18 C.F.R. § 292.304(a)(1). PURPA entitles QFs to a rate equivalent to the utility’s avoided cost, a rate that holds utility customers harmless— not a rate which a project may be viable. 18 C.F.R. § 292.304(a)(2). If we allow the current trend to continue, customers may be forced to pay for resources at an inflated rate and, potentially, before the energy is needed by the utility to serve customers.This is clearly not in the public interest.10 Importantly, the Published Rate Eligibility Order goes on to find that “[w]hile we recognize the impact that this decision will have on small wind and solar projects, it would be erroneous, and illegal pursuant to PURPA, for this Commission to allow large projects to obtain a rate that is not an accurate reflection of the utility’s avoided cost for the purchase of QF generation.”11 Reading the Idaho PUC order rejecting the Agreements together with language quoted above paints a more complete picture of the Idaho PUC’s basis for rejecting the Agreements. An underlying primary concern the Idaho PUC had with the Agreements was that the rates therein were in excess of Rocky Mountain Power’s avoided costs, may be harmful to customers,and were not in the public interest.Put simply, the Idaho PUC was concerned approval of the Agreements would violate PURPA. Commission enforcement of the Agreements, as requested 10 Idaho PUC Order No. 32262 at 8. 11 Idaho PUC Order No. 32262 at 8 (emphasis added). MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -9 as by Petitioners, would be counter to the Idaho PUC’s findings, and, arguably, require Rocky Mountain Power to pay more than its avoided costs for PURPA energy, a clear violation of the Commission’s own rules.Accordingly, the Idaho PUC was compelled to reject the Agreements. As noted by the Idaho PUC, the Agreements represented an obligation for ratepayers of “payments in excess of $685 million over the 20-year term of these Agreements.”Idaho PUC Order No. 32260 at 8. These are exactly the “large projects” the Idaho PUC was considering when it issued the Published Rate Eligibility Order. It is exactly these projects that the Idaho PUC was concerned were not reflective of the utility’s avoided costs.Thus, in exercising the authority delegated to it by PURPA and this Commission, the Idaho PUC rejected the Agreements.Because this was a proper, and indeed necessary, exercise of authority under PURPA and Commission rules, the Commission should deny the Petitioners’request for enforcement. 2.The Commission Should Not Disturb the Fact-Intensive Investigation Conducted by the Idaho PUC. Petitioners argue the Idaho PUC rejected the Agreements “solely because Rocky Mountain Power failed to put pen to paper and execute the Agreements prior to December 14, 2010.”Cedar Creek Petition at 8. As evidenced above, this assertion is not entirely accurate. In making its decision to lower the published avoided cost eligibility cap and thus reject the Agreements, the Idaho PUC fulfilled its obligation under Commission rules to ensure that avoided costs for QFs do not exceed the utilities’ avoided costs.Further, the Idaho PUC was carrying out its statutory duty to ensure that QF rates are just and reasonable, hold ratepayers harmless,and ensure such rates are in the public interest. The Idaho PUC reached this conclusion after a full contested case process under its rules, which involved discovery, MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -10 comments and reply comments, testimony, cross-examination, and oral argument by all interested parties, including Cedar Creek.12 The Commission should not disturb a series of Idaho PUC orders (i.e.,the Published Rate Eligibility Order, the order rejecting the Agreements and the orders rejecting the Idaho Power Agreements, among others) resulting from a fact-intensive proceeding conducted by the Idaho PUC. This Commission has consistently relied on the states to make factual determinations of utilities’ avoided costs in the PURPA contest and has refused: . . . to second-guess state regulatory authorities’ actual determinations of avoided costs . . . . Rather, the Commission believes its role is limited to ensuring the process used to calculate the per unit charge (i.e. implementation) accords with [PURPA] and our regulations.13 In this instance, the Idaho PUC made a reasoned decision on June 8, 2010, involving a series of orders that set policy related to the appropriate avoided cost rates. Petitioners make no challenge to the process the Idaho PUC used to set avoided costs for wind and solar QF projects larger than 100 kW in the Published Rate Eligibility Order. Notably, neither Cedar Creek nor any other party sought reconsideration of the Idaho PUC’s Published Rate Eligibility Order. Instead, the Cedar Creek Petition effectively asks this Commission to “second guess” the Idaho PUC’s determination of when QFs should be able to obtain a published avoided cost rate, a rate which the Idaho PUC has found to be in excess of the utilities’ avoided costs for large scale QF projects like the Cedar Creek projects. As discussed in greater detail below, Cedar Creek’s reliance on a legally enforceable obligation argument is misplaced as the Idaho PUC’s decision in rejecting the Agreements was related to setting policy pertaining to the availability of the published avoided cost rate. 12 See Idaho PUC Order No. 32262 at 1-4 describing the background of the proceeding. 13 California, 70 FERC at 61,6777. MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -11 Importantly, the Idaho PUC’s June 8 orders do nothing to obfuscate or eliminate the utilities’ obligation to purchase energy from QFs. Instead, the June 8 orders simply set avoided cost pricing policy which comports with PURPA and this Commission’s rules. As background, it is important to note that,currently, the Idaho PUC has implemented PURPA, consistent with Commission rules, and has established two different methodologies for determining avoided cost rates:(1) a published avoided cost rate and (2) an avoided cost rate based upon the utilities’ IRP methodology. Wind and solar QFs that are 100 kW and smaller,as well as other types of QFs up to 10 aMW in size,are eligible for the published avoided cost rate. Wind and solar QFs larger than 100 kW and other types of QFs larger than 10 aMW are eligible for the avoided cost rate based upon the utilities’ IRP methodology.14 Until December 13, 2010, wind and solar QFs that were up to 10 aMW in size were eligible for published avoided cost rates. Wind and solar QFs that were larger than 10 aMW were entitled to avoided costs based upon the utilities’ IRP methodology. Effective on December 14, and still effective to this day, Petitioners are entitled to avoided cost rates based upon the utilities’ IRP methodology, not the published avoided cost rates. As noted, the Petitioners make no challenge to the IRP methodology or the process the Idaho PUC used to establish the benchmarks for avoided cost pricing.In fact, Idaho Power has executed power purchase agreements with both wind and solar QFs that contain avoided cost rates based upon Idaho Power’s IRP methodology. The Idaho PUC rejected the Agreements because “on the date the five Agreements became effective, published avoided cost rates were available only to wind and solar projects with a design capacity of 100 kW or less.”15 In implementing rates that utilities pay QFs, “the 14 It is important to note that Idaho Power’s IRP methodology produces a higher per kilowatt-hour (“kWh”) price for solar QF projects and a lower per kWh price for wind QF projects. 15 Idaho PUC Order No. 32260 at 9. MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -12 Commission has authority under PUPRA to regulate how rates for QF sales at wholesale will be determined.”16 Although states may set the ultimate per unit (kW and/or kWh) charges for QF sales at wholesale, they may do so only in accordance with this Commission’s regulations.17 The Commission’s regulations prescribe that state utility Commission’s must make available published avoided cost rates available for QFs that are 100 kW in size or smaller.18 There is nothing in the Commission’s rules that require published avoided rates be made available for projects larger than 100 kW, but that is exactly the argument Petitioners make here—i.e.,that they are entitled to receive the published avoided cost rate because a legally enforceable obligation existed on December 13, 2010. However, as explained above, one of the primary reasons the Idaho PUC rejected the Agreements was because of the concern that the published avoided cost rate cap of 10 aMW may be forcing utility customers to pay an inflated rate for QF energy.19 In making a policy decision consistent with the requirements of PURPA and this Commission’s implementing rules, the Idaho PUC lowered the published avoided cost rate eligibility cap. In rejecting the Agreements, the Commission did so “[b]ecause each of the wind projects exceeds 100 kW, they are not eligible to receive published avoided cost rates.”20 The Petitioners do not seek enforcement of the Idaho PUC’s decision to lower the published rate eligibility cap; they merely complain that the timing of the Idaho PUC’s decision somehow violates the “legally enforceable obligation” standard. 16 Connecticut Light and Power Company, 70 FERC 61,012, 61,027 (1995). 17 Id. 18 18 CFR § 292.304(c). 19 See supra. 20 Idaho PUC Order No. 32260 at 10. MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -13 In sum, the Idaho PUC decision to reject the Agreements is more of a modification than a rejection of the Agreements. Specifically, the Idaho PUC’s rejection of the Agreements effectively only modifies the price term of the Agreements. This Commission has held that whether the particular facts applicable to an individual QF necessitate modifications of other terms and conditions of the QF’s contract with the purchasing utility is a matter for the states to determine. This Commission has stated that it does not intend to adjudicate the specific provisions of individual QF contracts.21 The Idaho PUC made an extensive, factual investigation into lowering the eligibility cap for QFs to receive published avoided cost rates. The Idaho PUC’s rejection of the Agreements was part of that investigative process. Accordingly, the Commission should not disturb the findings of the Idaho PUC and thus not grant Petitioners’ request. 3. The Petitioners’Legally Enforceable Obligation Arguments Are Without Merit. PURPA requires that rates at which an electric utility shall purchase energy from QFs “(1) shall be just and reasonable to the electric consumers of the electric utility and in the public interest, and (2) shall not discriminate against qualifying cogenerators or qualifying small power producers.”22 A state commission may comply with the requirements of PURPA “by issuing regulations, by resolving disputes on a case-by-case basis or by taking any other action reasonably designed to give effect to FERC’s rules.23 It is up to the states, not this Commission, 21 West Penn Power Company, 71 FERC at 61,496. 22 16 U.S.C. § 824a-3(b). 23 FERC v. Mississippi, 456 U.S. 742, 751 (1982). MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -14 to determine the specific parameters of individual QF power purchase agreements, including the date on which a legally enforceable obligation is incurred under state law.”24 As noted, the Idaho PUC engaged in an extensive investigation into the impact of its 10 aMW published avoided cost eligibility criteria.The Published Rate Eligibility Order reduced the eligibility criteria from 10 aMW to 100 kW for wind and solar projects. The Idaho PUC put parties on notice in early December 2010 that it was going to make December 14, 2010,the effective date for any decision in this regard. This Commission has previously found that “for purposes of our regulations, the critical date is the date on which a legally enforceable obligation is incurred, and choosing that date for a specific QF is the responsibility of the states, not of this Commission.”25 The Idaho PUC selected December 14, 2010,as the date by which agreements must have been fully executed in order to receive the published avoided cost rate.The Agreements failed to meet that standard. In addition (and as described above), the Idaho PUC was considering other significant avoided cost rate issues when it issued the order rejecting the Agreements. The Commission should follow its previous precedent and defer to the state of Idaho in determining the date a legally enforceable obligation occurred. In addition, Petitioners cite to the Commission’s 1980 Order implementing PURPA, noting that “the phrase ‘legally enforceable obligation’ was adopted expressly to prevent a utility from being able to circumvent PURPA’s requirements simply by failing or refusing to sign a contract with a QF.”26 Rocky Mountain Power did not fail or refuse to sign a contract with a QF. Petitioners have provided no firm evidence that Rocky Mountain Power was intentionally circumventing PURPA’s requirement. While Petitioners suggest that Rocky Mountain Power 24 West Penn Power Company, 71 FERC 61,153, 61,495 (1995). 25 West Penn Power Company, 71 FERC at 61,496. 26 Cedar Creek Petition at 10-11. may have delayed signing the Agreements until after the Christmas holiday in late 2010, there is nothing to suggest Rocky Mountain Power was intentionally withholding its signature on the Agreements. In fact, it is undisputed that Rocky Mountain Power did indeed sign the Agreements. Similarly, Idaho Power signed the Idaho Power Agreements. Thus, the Petitioners' reliance on arguing a legally enforceable obligation existed is misplaced. Accordingly, the Commission should deny Petitioners' request for enforcement. IV. CONCLUSION The Commission should deny the Cedar Creek Petition for Enforcement on the grounds that it fails to demonstrate that the Idaho PUC violated PURPA or the Commission's rules. Further, the Commission should not disrupt the results of a fact-specific investigation related to the Agreements, the Idaho Power Agreements, and the Idaho PUC's modification to the state's published avoided cost eligibility cap. Petitioners' legally enforceable obligation arguments are misplaced as they fail to acknowledge the larger context in which the Idaho PUC was operating when it issued the Published Rate Eligibility Order and the order rejecting the Agreements. The Idaho PUC's action did nothing to effect any alleged "legally enforceable obligation." The Idaho PUC's action rejected the Agreements because they contained rates that the Idaho PUC had determined exceed the utilities' avoided costs-a determination uniquely delegated to the state commissions by this Commission. Respectfully submitted this 26th day of August 2011. Jason B. Williams Counsel for Idaho Power Company MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -15 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 26th day of August 2011 I served a true and correct copy of the MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY via electronic mail upon the following named parties at the e-mail addresses listed below: Larry Eisenstat eisenstatl@dicksteinshapiro.com Michael R. Engleman englemanm@dicksteinshapiro.com Donald Gelinas gelinasd@dicksteinshapiro.com Kelly Goodman kgoodman@summitpower.com Tom Cameron tomcameron@summitpower.com Dana Zentz Dzentz@summitpower.com Scott Montgomery scott@westemenergy.us Ronald L. Williams ron@williamsbradbury.com Karen Hill Karen.hill@exeloncorp.com John A. Harvey John.harvey@exelongcorp.com M. Andrew McLain Andrew.mc1ain@northwestem.com Al Brogan AI.brogan@northwestem.com £=!{I!~fo- MOTION TO INTERVENE AND PROTEST OF IDAHO POWER COMPANY -16