HomeMy WebLinkAbout20110419Intermountain Wind to AVU 1-4.pdfMcDevitt & Miller LLP
Lawyers
(208) 343-7500
(208) 336-6912 (Fax)
420 W. Bannock Street
P.O. Box 2564.83701 2Øl 1 APR 19 PM 4= 28 Chas. F. McDevittBoise, Idaho 83702 Dean J. (Joe) Miler
RECEIVED
Apri 19, 2011
Via Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Cotnssion
472 W. Washigton St.
Boise, Idao 83720
.
Re: GNR-E-ll-01
Intermountai Wind LLC
Dear Ms. Jewell:
Enclosed for fig, please fid thee (3) copies of Intermounta Wind ILC's Responses to the First
Production Requests of A vista Corporation
Kidly retu a fie staped copy to me.
Very Truy Yours,
McDevitt & Mier IL~~Dean J. Mier .
DJM/hh
Enclosures
L'
,
RECt=IVr:O,\ .." c...COpy
Dean J. Miler (ISB No. 1968)
Chas. F. McDevitt (ISB No. 835)
McDEVITT & MILLER LLP
420 W. Banock Street
P.O. Box 2564-83701
Boise, Idaho 83702
Tel: 208-343-7500
Fax: 208-336-6912
ioe~mcdevitt-miler.com
20ltAPR 19 PM ~:28
Attorneys for Intermountain Wind LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
COMMISSION'S INESTIGATION
INTO DISAGGREGATION AND AN
APPROPRITE PUBLISHED
AVOIDED COST RATE ELIGIBILITY
CAP STRUCTURE
Case No. GNR-E-ll-Ol
INTERMOUNTAI WIN LLC'S
RESPONSES TO THE FIRST
PRODUCTION REQUESTS OF
AVISTA CORPORATION
COMES NOW, Intermountan Wind LLC, and in response to the First Production
Requests of A vista Corporation, herewith submits the following information, without waiving
and fuly preserving the Objections to Discovery, previously filed herein on AprilS, 2011,
responds as follows:
RESPONSES
Request No.1: The Direct Testimony of Paul Marin submitted by Intermountan Wind,
LLC discusses, at pages 1-2, the Black Canyon Project and describes the Black Canyon Project,
in par as "a 'tre PURP A' project, not par of a larger project and should not be subject to a
reduction in the eligibilty cap for published avoided cost rates."
a) Does Intermountan expect that the Black Canyon Project will use the same operation
and maitenance or scheduling service contractors as any other wid energy project
in Idao?
INTERMOUNTAIN WIN LLC'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF AVISTA
CORPORATION -1
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b) If the answer to subpar (a) of this request is yes, does Intermounta expect that the
Black Canyon Project will use the same operation and maintenance or scheduling
service contractors as any wid energy project withn a lO-mile radius of the Black
Canyon Project?
c) If the answer to subpar (a) of ths request is yes, does Intermounta expect that the
Black Canyon Project will use the same operation and maitenance or scheduling
servce contractors as wind fars withn a 5-mile radius of the Black Canyon Project?
d) Are there any active or anticipated wid energy projects on adjacent parcels within 5
miles of the proposed or anticipated project boundaes, related or not, to the Black
Canyon Project? Please identify any such project, and include size and ownership of
each project, and its projected in-service date, ifknown.
e) Are there any active or anticipated wind energy projects on adjacent parcels within 10
miles ofthe proposed or anticipated project boundaries, related or not to, the Black
Canyon Project? Please identify any such project, and include size and ownership of
each project, and its projected in-service date, ifknown.
t) Have any of the owners, developers, financers, or other persons or entities with any
direct or indirect interest in the Black Canyon Project ("Interested Person(s)")
coordinated, or does any Interested Person(s) expect to coordinate, the development
òf the Black Canyon Project in any way with other wid energy project developments
or developers with regard to: permitting, general consulting, legal advice, equipment
procurement, wind studies, engineering studies, financing, or any other areas? If the
answer is yes, please explain in detal all of the expected coordination.
RESPONSE TO REOUEST NO.1:
a) Intermountain lacks information to answer ths question at ths time, as it is the
preference of any potential project purchaser is unown. This is a very small
industr and there are very few providers that have enough experience to make the
financiers comfortable. Not to mention that the project will go though different
phases of O&M, as an example the tubine manufactuer will manage the project in
the first two to ten years afer which a thd par provider would likely be retained.
b) and c) It is possible, but unown at ths time. As an example, BP has GE tubines
on an adjacent parceL. Although I do not know for sure, it is likely that this project is
INTERMOUNTAIN WIND LLC'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF A VISTA
CORPORATION -2
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curently beginng serviced by a GE O&M contract. If the Black Canyon buys GE
tubines, we will be using the same O&M provider even though there is no
relationship between BP and the Black Canyon.
d) ande) The Goshen North Wind Project is adjacent to the Black Canyon. BP's
approximately 125MW Goshen Nort project is adjacent to the Black Canyon.
Invenergy's Wolverine Creek Project is 64.5MW and is a few miles away. The
Schwindeman Family is developing a wid far that is approximately 20MW and is
approximately 3 miles away. UAMPS is developing ar approximately 80MW project
maybe 10 miles or so away. Ridgeline is developing an approximately 200MW or
300MW project approximately 5 miles away.
t) Although we have used the expertse of engineers and meteorologists in the
development of ths project and we expect to work with fianciers that have built
other wind projects, possibly in Idaho, ths project will not be coordinated with any
other wind project.
Respondent: Paul Marin in consultation with Dean J. Miler.
INTERMOUNTAIN WIND LLC'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF AVISTA
CORPORATION -3
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Request No.2: .
The Direct 'Testimony of Paul Marin submitted by Intermountain states, at page 1, that
Mr. Marin is "a member of Intermountan Wind LLC which is the developer of a wind energy
project located in Bonnevile County(,) Idaho, known as the Black Canyon Project."
a) Please provide the names, address, and telephone numbers of any other members of
Intermountain.
b) How long has Intermounta, or Mr. Paul Marin, or any other members identified in
response to subpar (a) of ths request been a developer of the Black Canyon Project?
c) In what state is Intermountan Wind LLC organzed?
RESPONSE TO REQUEST NO.2:
a) Intermountan Wind is owned by myself and my father, Stephen Marin ofIdaho
Falls, Idaho. Black Canyon, LLC, which is the owner of the Black Canyon Wind
Project and the Tenant on the Wind Lease, has a Service Arangement with
Intermountan Wind to develop the Black Canyon Wind Project. The owners of
Black Canyon, LLC are my father and his brother, David Marin, and sister, Kath
Hutchinson. Intermounta Wind was granted a minority interest in Black Canyon,
LLC as a result of its Services Arangement.
b) My father and I stared working on ths project in 2006 when we incorporated Black
Canyon, LLC in Idaho.
c) Intermountain Wind, LLC, was incorporated in Idaho in 2007.
Respondent: Paul Marin in consultation with Dean J. Miler.
INTERMOUNTAIN WIND LLC'S RESPONSE TO THE FIRT PRODUCTION REQUEST OF AVISTACORPORATION -4 .
Request No.3:
The Direct Testimony of Paul Marin submitted by Intermountan states, at page 2: "Just
as Intermountain was succeeding in securng financing to move forward with these deposits, the
Joint Petition in Case No. GNR-E-10-04 was fied, threatening the projects (sic) abilty to move
forward."
a) Has Intermountan obtained financing for the Black Canyon Project? If so, please
identify all entities and individuas who are providing financing for the Black Canyon
Project and their respective ownership shares of the Black Canyon Project.
b) What is the anticipated tota installed cost of the Black Canyon Project? If no specific
figue is known or available, please provide an estimate of the tota installed cost of
the Black Canyon Project.
RESPONSE TO REQUEST NO.3:
a) No
b) Black Canyon objects to ths request for the reasons stated in the previously filed
Objection, and objects for the fuer reasons that: (1) The Commission has
consistently held that inquiry into the financial aspects of a QF project is not
permitted and (2) the information requested is proprieta, a Trade Secret and
confdentiaL.
Respondent: Paul Marin in consultation with Dean J. Miler.
INTERMOUNTAIN WIND LLC'S RESPONSE TO THE FIRT PRODUCTION REQUEST OF AVISTA
CORPORATION -5
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Request No.4:
The Direct Testimony of Paul Marin submittd by Intermounta indicates, at page 2,
that neither Mr. Marin, nor any member of the Marin Famly, or related limited liabilty
companes have any ownership interest of any kid in any wid generation projects located
withn five miles of the Black Canyon Project.
a) Has Mr. Marin, or other members of the Mar famly or any related limited liabilty
companies, or their business interests, developed other electricity generation projects
withn the past 10 years, inside or outside the State of Idaho? If so, please describe
each of these projects, including their locations and sizes in megawatts, and estimates
of the tota costs of each of these developments.
b) Has Mr. Marin, or other members of the Marin family or related limited liabilty
companes, or their business interests, worked with other developers or paries in the
past 10 years on any wind or other electrcity generation projects? If yes, please
identify each developer/pary by nare, address, telephone number, the name and
location of the project, and their respective interest in any such project, as well as
their interest in the Black Canyon Projec't, if any.
c) Does Mr. Marin, or other members of the Marin family, or related limited liabilty
companes, or their business interests, have any other electrcity generation
development interests either in Idao or outside of Idaho? If yes, please describe each
development interest, including location, type of generation, and project size."
RESPONSE TO REQUEST NO.4:
a) No. There are no members of the Marin family with any prior experience in the
wind industr prior to the Black Canyon project, iricluding myself.
b) Black Canyon, LLC has not entered into any agreements with any other paries other
than service arangements with various consulting firms for engineering,
meteorology, etc. The only pary that Intermountain Wind, LLC has entered into an
agreement with other th in a consulting capacity is Peter Hansen, and some
members of his family of Tie Siding, Wyoming. He owns several ranches in
southeastern Wyoming. Mr. Hansen is a family friend and when he heard of our
efforts at wind development on our famly propert, he became interested in doing the
INTERMOUNTAIN WIND LLC'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF A VISTA
CORPORATION -6
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same thing hiself. So nearly a year afer I staed working on Black Canyon,
Intermountan Wind agreed to a similar services arangement with Mr. Hansen where
I would develop wind projects on his ground in exchange for a small development fee
so I can pay my expenses and a minority interest in the project company. Although
he is ~ding the effort and retans the majority interest in the project companes, Mr.
Hansen has no experience building wind projects and he relies completely upon the
expertise I am developing as I move towards completion of the Black Canyon. Mr.
Hansen has no interest in Black Canyon, LLC.
c) No member other than Stephen and Paul Marin, the owners of Intermountain Wind,
LLC, have any other interest in any other wind projects. Of course, now that I have
spent almost half of my career since còllege developing expertise in ths field, I am
going to attempt building other wind projects after the Black Canyon is done. As a
result, Intermountan Wind has tentative interests in other projects all at much earlier
stages of development than the Black Canyon. In 2009, Intermountan Wind
obtained exploratory leases for two parcels of land in Kansas. In 2010, Intermountan
obtained exploratory leases for two parcels of land in Idaho and one in Colorado.
Intermountan's abilty to move these projects forward is limited by the progress I
make on Black Canyon, so they all remain at the earliest stages and it is too early to
know likely project size.
Therefore they are all clearly irrelevant to the proceeding at hand and have no
bearing on whether the Black Canyon is a "tre PURP A project." Please note that I
resent the blatat waste of my and our attorney's time responding to far reachig
questions that no other company has been forced to answer. This is a perfect example
INTERMOUNTAIN WIN LLC'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF A VISTA
CORPORATION -7
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of why the published avoided cost is necessar to give access to the marketplace to
small family operations such as ours that do not have vast moneta resources to
spend. A vista a huge public company with a monopoly to operate within their
service territory, has demonstrated that they will do anything withn their power to
make things difficult for small developers, even those that will not touch Avista's
system.
Respondent: Paul Marin in consultation with Dean J. Miler.
DATED this Llt day of April, 20n.
McDEVITT & MILLER, LLP
~\w
Attorney for Intermountain Wind LLC
INTERMOUNTAIN WIND LLC'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF A VISTA
CORPORATION -8
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CERTIFICATE OF SERVICE
I hereby certify that on the J~day of April, 2011, I caused to be served, via the
, methodes) indicated below, tre and correct copies ofthe foregoing document, upon:
Jean Jewell, Secreta
Idaho Public Utilties Commission
4 72 West Washington Street
P.O. Box 83720
Boise, il 83720-0074
jjewell~puc.state.id.us
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Donovan Walker
Lisa Nordstrom
Idaho Public Utilties Commission
472 West Washington Street
P.O. Box 83720
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Donald L. Howell, II
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Deputy Attorneys General
Idaho Public Utilties Commission .
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Boise, il 83720.0074
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A visita Utilities
P.O. Box 3727
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Rocky Mountain Power
One Utah Center
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daniel.solander~pacificorp.com
INTERMOUNTAIN WIND LLC'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF A VISTA
CORPORATION -9
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INTERMOUNTAIN WIND LLC'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF A VISTA
CORPORATION -10
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INTERMOUNTAIN WIND LLC'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF A VISTA
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CORPORATION -13