20060510Magic Wind response IPC 1st requests.pdf

McDevitt & Miller LLP
Lawyers
[phone]
[phone] (Fax)
420 W. Bannock Street
O. Box 2564-83701
Boise, Idaho 83702
Chas. F. McDevitt
Dean 1. (Joe) Miller
May 10, 2006
Via Hand Delivery
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, Idaho 83720
Re: Case No. IPC-05-
Dear Ms. Jewell:
Enclosed for filing in the above matter please find three (3) copies of Magic Wind LLC'
Response to Idaho Power Company s First Interrogatories and Production Requests.
An additional copy of the document and this letter is included for return to me with your
file stamp thereon.
Very Truly Yours
DJM/hh
ORIGINAL
DeanJ. Miller ISB #1968
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ill 83702
Tel: [phone]
Fax: [phone]
i oe~mcdevitt -miller .com
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Attorneys for Magic Wind LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MA ITER OF THE PETITION OF
MAGIC WIND LLC TO DETERMINE
EXEMPTION STATUS
(Corrected Caption)
Case No. IPC-05-
MAGIC WIND LLC'S RESPONSE
TO IDAHO POWER COMPANY'
FIRST INTERRGOATORIES AND
PRODUCTION REQUESTS
Magic Wind LLC, by and through its undersigned attorneys, hereby submits its Response
to Idaho Power Company s First Interrogatories and Production Requests as follows:
REQUEST NO.: On April 5 , 2006, you sent Idaho Power a revised version of the Firm
Energy Sales Agreement (FESA) previously tendered to Magic Wind by Idaho Power and
requested that Idaho Power negotiate a contract based on the revised agreement. In Appendix B
Paragraph B-3 ofthe April 5, 2006, proposed FESA, the scheduled first energy and operation
dates are both blank. Magic Wind previously advised Idaho Power that December 2006 will be
the first energy date in the FESA and July 2007 will be the scheduled operation date. Have those
dates changed? If so, what are the current dates?
RESPONSE TO REQUEST NO.: The failure to include in the draft FESA December
2006 as the first energy date and July 2007 as the scheduled operation date was an inadvertence.
Those dates, however, could change depending on the length oftime consumed processing the
Motion for Declaratory Order.
MAGIC WIND LLC'S RESPONSE TO IDAHO POWER COMPANY'S FIRST INTERRGOATORIES AND
PRODUCTION REQUESTS - 1
REQUEST NO.: Please identify the specific provisions in Order No 30000 that Magic
Wind believes obligate Idaho Power to enter into a FESA with Magic Wind utilizing the
modified PacifiCorp method" to value surplus energy.
RESPONSE TO REQUEST NO.: Magic Wind objects to this Request as
argumentative. The applicability of the "modified PacifiCorp method" to other utilities was not
an issue is Case No. P AC-05-09.
MAGIC WIND LLC'S RESPONSE TO IDAHO POWER COMPANY'S FIRST INTERRGOATORIES AND
PRODUCTION REQUESTS - 2
REQUEST NO.: Previously Magic Wind provided to Idaho Power a letter dated
November 6, 2005, in which Clipper Wind Power, Inc., a turbine manufacturer, provided a
commitment to deliver wind turbines for Magic Wind's wind generation project. Recently Idaho
Power has been advised that a number of turbine manufacturers are notifying potential
purchasers that the demand for wind turbines is so great that they are unwilling to reserve
manufacturing capacity without a signed contract with the wind project developer. Please
provide copies of all correspondence between Magic Wind and Clipper Wind Power, Inc.
regarding Clipper Wind Power, Inc.s commitment to provide turbines for Magic Wind's wind
farm.
RESPONSE TO REQUEST NO.: Magic Wind objects to this Request to the extent it
seeks to re-open the question of Magic Wind's entitlement to an exemption from the rate
eligibility cap established in Order No. 29839 and 29872. The issue presented in Magic Wind'
Motion for Declaratory Order is whether the modified PacifiCorp method may be incorporated
into a power purchase agreement between Idaho Power Company and Magic Wind, not whether
Magic Wind is entitled to an exemption from the rate eligibility cap. Magic Wind further objects
to the Request in so far as it asks Magic Wind to respond to unsubstantiated hearsay assertions of
what other people have allegedly said to Idaho Power Company.
Without waiving these objections, see Exhibit A, attached hereto.
MAGIC WIND LLC'S RESPONSE TO IDAHO POWER COMPANY'S FIRST INTERRGOATORIES AND
PRODUCTION REQUESTS - 3
ClIpper
WINDPOWER, INC.
May 9, 2006
Mr. Armand Eckert, Member
Magic Wind LLC
716-B East 4900 North
Buhl, Idaho 83316
Re: Turbine Commitment to Magic Wind LLC
Dear Mr. Eckert:
As you requested, this letter is to confirm that Clipper Windpower s commitment to supply
Magic Wind LLC eight (8) 2.5MW Clipper wind turbines is still in force and is consistent with
the letter sent to you on November, 16 2005.
If you have any questions or need any further documentation, please let me know.
Very truly yours
Thomas Feiler
Clipper Windpower Development Company
1821 Blake Street , Suite 2A, Denver Colorado 80202
Tel [phone] Fax [phone]
EXHIBIT A
REQUEST NO.: Is Magic Wind now unwilling to sign the FE SA it previously signed
and tendered to Idaho Power in support of its Petition for entitlement to be paid the published
rates?
RESPONSE TO REQUEST NO.4: Magic Wind objects to this question to the extent it
implies Magic Wind is legally obligated to execute a FESA containing terms identical to the
previously tendered FESA.
Magic Wind, at the time it tendered the signed FESA, was offering to accept a contract
containing the terms of the submitted FESA. Idaho Power Company, however, never accepted
or signed the FESA tendered by Magic Wind. An offer, standing alone, in the absence of
acceptance, is insufficient to form a contract. See Heritage v. Franklin 2005 Slip Opinion
29612 (Id. Ct. App. 2005). In the intervening time, IPUC regulatory policy has been evolving
and the Commission, in one case, approved the PacifiCorp method as an alternative to the terms
of the tendered FESA. Magic Wind has filed this proceeding to determine if the modified
PacifiCorp method may be incorporated into a FESA between Magic Wind and Idaho Power
Company. Magic Wind believes the modified PacifiCorp method is preferable to the method
contained in the tendered FESA. If, however, the Commission determines that the modified
PacifiCorp method is not to be available, Magic Wind would have to consider its options.
I As late as March 10 2006 IPCo took the position that a binding contract did not yet exist between the parties and
that its tenns were still subject to negotiation. In e-mail correspondence to Magic Wind, the contract administrator
for IPCo advised
, "
This draft agreement is for discussion purposes only, Idaho Power reserves the right to modify
this draft agreement at any time until a fmal agreement has been executed by both parties." Apparently, in IPCo
view, it can modify the draft agreement and any time, but Magic Wind cannot.
MAGIC WIND LLC'S RESPONSE TO IDAHO POWER COMPANY'S FIRST INTERRGOATORIES AND
PRODUCTION REQUESTS - 4
REQUEST NO.: What is the current status of Magic Wind's small generator
interconnection request previously filed with Idaho Power s Delivery Business Unit?
RESPONSE TO REQUEST NO.: Magic Wind objects to this Request because the
information sought is equally available to Idaho Power Company. Magic Wind further objects
because the status of its interconnection request is not relevant to the issues in this proceeding.
Without waiving these objections Magic Wind attaches hereto Exhibit B which is e-mail
correspondence between Magic Wind and Idaho Power Company, from which the answer to this
Request can be derived.
DATED this J.L day of May, 2006.
Respectfully submitted
McDEVITT & MILLER LLP
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McDevitt & Miller LLP
420 W. Bannock
Boise, ID 83702
Phone: [phone]
Fax: [phone]
Counsel for Magic Wind LLC
MAGIC WIND LLC'S RESPONSE TO IDAHO POWER COMPANY'S FIRST INTERRGOATORIES AND
PRODUCTION REQUESTS - 5
Page 1 of 2
Lori
--'---------
From: Joe Miller Ooe~mcdevitt-miller.com)
Sent: Wednesday, May 10, 2006 1 :37 PMTo: Lori Chastain
Subject: Fw: Magic Wind LLC
print this email
----- Original Message -----
From: Armand
To: Joe Miller Brian Jackson Mike Eckert MJ Humphries Norman Eckert Ron Elkin Granville Eckert Larry
Zirker Gary D Seifert
Sent: Monday, April 17, 20062:17 PM
Subject: Fw: Magic Wind LLC
----- Original Message -----
From: Angell. Dave
To: Armand
Cc: Bishop, Rowena Hendry. Ben Schell berg. Ron
Sent: Monday, April 17, 2006 1 :55 PM
Subject: RE: Magic Wind LLC
The study has been completed and we are estimating the costs of the system improvements. I hope to have
these costs documented and the report complete this week.
Please contact me if you have further questions.
Dave Angell
T&D Engineering Leader
208-388-2701
-----------,-------------_.
From: Armand (mailto:armand(Q)safelink.net)
Sent: Monday, ApriI1?, 2006 1:32
To: Schellberg, Ron
Cc: Angell, Dave; Bishop, Rowena; Hendry, Ben
Subject: Magic Wind LLC
Hi Ron. I was just wondering the status of the Interconnection System Impact Study that Idaho Power was doing
in connection with the Magic Wind LLC. I know it has been over 90 days since the date of excution of the
Interconnection System Impact Study agreement that we signed with Idaho Power Co. and I know you have been
very busy, but I would like, if possible, an update, so I can inform my partners and to bring myself up-to-date.
Thank you for the work you are doing. It is sincerely appreciated.
Armand Eckert, Secretary
Magic Wind LLC
This transmission may contain information that is privileged, confidential and/or exempt from disclosure
under applicable law. If you are not the intended recipient, you are hereby notified that any disclosure
copying, distribution, or use of the information contained herein (including any reliance thereon) is
STRICTLY PROHIBITED. If you received this transmission in error, please immediately contact the
5/1 0/2006
EXHIBIT B
Pa2e 1 of 2
Page 2 of 2
sender and destroy the material in its entirety, whether in electronic or hard copy format. Thank you. AI.
5/10/2006
EXHIBIT B
Pa2e 2 of 2
CERTIFICATE OF SERVICE
I hereby certify that on the ~ay of May, 2006, I caused to be served, via the methodes)
indicated below, true and correct copies of the foregoing document, upon:
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
O. Box 83720
Boise, ID 83720-0074
11 ewellca2puc.state.id. us
Hand Delivered
u.S. Mail
Fax
Fed. Express
Email
Barton L. Kline
Idaho Power Company
1221 West Idaho Street
O. Box 70
Boise, ID 83707
BKlineca2idahopower. com
Hand Delivered
S. Mail
Fax
Fed. Express
Email
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MAGIC WIND LLC'S RESPONSE TO IDAHO POWER COMPANY'S FIRST INTERRGOATORIES AND
PRODUCTION REQUESTS - 6