The URL can be used to link to this page

Home My WebLink About20070719IPC to Staff 1-2.pdf..- DAHO~POWER~ An IDACORP Company .. ..... ' ,,"v 1 U ,'I , ; " Monica B. Moen Attorney II ' i ". , ,- .. 'i . .... '" " July 18 , 2007 Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street P. O. Box 83720 Boise, Idaho 83720-0074 Re:Case No. IPC-07- In the Matter of Idaho Power Company s Petition to Increase the Published Rate Eligibility Cap for Wind Powered Small power Production Facilities; and To Eliminate the 90%/110% Performance Band for Wind Powered Small Power Production Facilities Dear Ms. Jewell: Please find enclosed for filing an original and two (2) copies of Idaho Power Company s Response to the First Production Request of the Commission Staff. I would appreciate it if you would return a stamped copy of this transmittal letter in the enclosed self-addressed , stamped envelope. Very truly yours ()~ Monica B. Moen MBM:sh Enclosures O. Box 70 (83707) 1221 W. Idaho St. Boise, 10 83702 BARTON L. KLINE, ISB # 1526 MONICA B. MOEN , ISB # 5734 Idaho Power Company 1221 West Idaho Street O. Box 70 Boise , Idaho 83707 Telephone: (208) 388-2682 FAX Telephone: (208) 388-6936 bkline (g) idahopower.com mmoen (g) idahopower.com Attorneys for Idaho Power Company Express Mail Address 1221 West Idaho Street Boise, Idaho 83702 .. L.. , '- ,: " U i ii , , , ..... ~" .. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY'S PETITION TO INCREASE THE PUBLISHED RATE ELIGIBILITY CAP FOR WIND POWERED SMALL POWER PRODUCTION FACILITIES; and TO ELIMINATE THE 90%/110% PERFORMANCE BAND FOR WIND POWERED SMALL POWER PRODUCTION FACILITIES CASE NO. IPC-07- IDAHO POWER'S RESPONSE TO ) THE FIRST PRODUCTION ) REQUEST OF THE COMMISSION ) STAFF COMES NOW, Idaho Power Company ("Idaho Power" or "the Company ) and, in response to the First Production Request of the Commission Staff to Idaho Power Company dated June 27 2007, herewith submits the following information: IDAHO POWER'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 1 REQUEST FOR PRODUCTION NO.: Please provide an estimate of the cost to purchase state-of-the-art wind forecasting services as referenced in the Company Petition. Please provide a detailed description of how each QF's share of the on-going cost of the wind forecasting services will be determined. For what length of time would QFs be required to make a contribution for the cost of forecasting services? How would costs be allocated amongst QFs that are built at different points in time? RESPONSE TO REQUEST FOR PRODUCTION NO.: Please provide an estimate of the cost to purchase state-of-the-art wind forecasting services as referenced in the Company s Petition. The Company has posed this question concerning the estimated cost of providing a wind forecast covering multiple project sites to a number of qualified wind forecasting companies. As might be expected , the response has been "that depends. There is no "off-the-shelf" price for a forecast service that covers multiple locations over a broad geographic area. The wind forecasting vendor for the 100 MW Elkhorn Wind Project is a well- known wind forecasting company located in the Pacific Northwest that provides forecasting for numerous wind projects both in the Pacific Northwest as well as across the country. The actual terms and conditions of the forecasting service contract and its cost are confidential business information. However, the Elkhorn Project wind forecast vendor was willing to disclose that an approximate cost for the wind forecast for the 100 MW Elkhorn Project would be approximately $60,000 per year. Another well-known vendor of wind forecasting services also provided a similar rough estimate of $5 000 per month per site. These estimated prices indicate most IDAHO POWER'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 2 wind forecasting is undertaken for a specific site for a single project. However, Idaho Power does not believe it will be necessary to have an individual forecast for each QF project. In all likelihood, a more broadly based wind forecast may be acceptable. Idaho Power would anticipate working with vendors and interested parties in the wind industry to designate a number of wind forecast locations in several different areas where Idaho Power is likely to be the purchaser of QF wind energy to derive a cost-effective plan to obtain state-of-the-art wind forecasts that would allow Idaho Power to manage its generation to accommodate fluctuating wind deliveries.This plan would then be presented to several vendors for pricing commitments. It is also possible that some economies of scale would be achieved by including multiple sites in one contract or having all three utilities contract with the same vendor. Please provide a detailed description of how each QF's share of the on- going cost of the wind forecasting services will be determined. The actual monthly forecasting cost for each QF would be allocated on a pro rata basis calculated from the installed nameplate capacity of each wind project. For what length of time would QFs be required to make a contribution for the cost of forecasting services? Each QF project would be required to contribute to the cost of the forecasting service for the full term of each QF's Power Purchase Agreement. IDAHO POWER'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 3 How would costs be allocated amongst QFs that are built at different points in time? Each QF project would be required to contribute to the cost of the forecasting service on a pro rata basis as specified above. Sharing of forecasting costs would begin at the time a QF project came online. Thus , as more projects come online assuming the forecasting costs remain constant , the pro rata allocation would result in lower individual project forecasting costs since the costs would be spread over a larger cumulative nameplate rating base amount. The response to this request was prepared by Randy C. Allphin , CSPP Contract Administrator, Idaho Power Company, in consultation with Barton L. Kline , Senior Attorney, Idaho Power Company. IDAHO POWER'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 4 REQUEST FOR PRODUCTION NO.Please explain how the proposed mechanical availability guarantee" will be computed during periods of time when there is not enough wind blowing for wind turbines to generate. RESPONSE TO REQUEST FOR PRODUCTION NO.Idaho Power proposes to determine mechanical availability by utilizing a self-certification system in which the QF developer certifies the percentage of time the facility was mechanically available and provides records for wind speed , forced outages and generation at the individual QF site to verify the mechanical availability of the project on a monthly basis. QFs currently report the nature and duration of forced outages and routine maintenance. The Power Purchase Agreement would also include provisions that would give Idaho Power the right to audit the books and records of the QF if a question arises as to the accuracy of the QF's self-certification and the data provided by the QF to support its self-certification. The response to this request was prepared by Randy C. Allphin , CSPP Contract Administrator, Idaho Power Company, in consultation with Barton L. Kline , Senior Attorney, Idaho Power Company. DATED at Boise , Idaho, this 18th day of July 2007. ~~ (P, MONICA B. MOEN Attorney for Idaho Power Company IDAHO POWER'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 5 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 18th day of July 2007, I served a true and correct copy of the within and foregoing document upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Scott Woodbury Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington (83702) O. Box 83720 Boise, Idaho 83720-0074 --X-Hand Delivered - U.S. Mail Overnight Mail FAX ---.X Email scottwoodburv(g) puc.idaho.Qov Exergy Development Group of Idaho Peter J. Richardson, Esq. Richardson & O'Leary 515 N. 2ih Street O. Box 7218 Boise, Idaho 83702 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email peter(g) richardsonandolearv.com Don Reading Ben Johnson Associates 6070 Hill Road Boise, Idaho 83702 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email dreadinQ (g) mindsprinQ.com Advocates for the West William M. Eddie Advocates for the West 610 SW Alder Street, Suite 910 Portland , OR 97205 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email beddie (g) advocateswestorQ Natalie Mcintire Renewable Northwest Project 917 SW Oak Street, Suite 303 Portland, OR 97205 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX Email Rocky Mountain Power Dean Brockbank Brian Dickman Rocky Mountain Power 201 S. Main Street, Suite 2300 Salt Lake City, Utah 84111 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email dean.brockbank(g)pacificorD.com brian.dickman (g) pacificorp.com IDAHO POWER'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 6 Data Request Response Center PacifiCorp 825 NE Multnomah , Suite 2000 Portland , OR 97232 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email datareqyest(g)pacificorp.com Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email rrayhill (g) rl-en.com Ridgeline Energy, LLC Rich Rayhill 720 W. Idaho, Suite 39 Boise, Idaho 83702 Robert M. Ellis, Esq. 4 Nickerson, Suite 301 Seattle , WA 98109 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email rellis (g) rl-en.com Dennis Meany 8 Old Kings Highway Norwalk, CT 06850 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email dmeany(g) rl-en.com Blue Ribbon Energy LLC J. Humpries Blue Ribbon Energy LLC 2630 Central Ave. Idaho Falls, Idaho 83406 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email blueribbonenerqy(g)qmail.com Avista R. Blair Strong Jerry K. Boyd Paine Hamblen, LLP 717 W. Sprague, Suite 1200 Spokane, VV A 99220 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email r.blair.stronq(g)painehamblen.com Michael G. Andrea A vista Corporation 1411 East Mission Ave., MSC- Spokane , QA 99202 Hand Delivered ..lL. U.S. Mail Overnight Mail FAX..x Email Michael.andrea (g) avistacorp.com IDAHO POWER'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 7 Cassia Gulch Wind Park LLC Cassia Wind Farms LLC Dean J. Miller McDevitt & Miller, LLP O. Box 2564 Boise, Idaho 83701 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email ioe(g)mcdevitt-miller.com Ronald K. Arrington Associate Chief Counsel John Deere Renewables, LLC 6400 NW 86th Street O. Box 6600 Johnston , IA 50131 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX Email Idaho Windfarms LLC Glenn Ikemoto Authorized Manager Idaho Windfarms, LLC 672 Blair Ave. Piedmont, CA 94611 Hand Delivered ..lL.U.S. Mail Overnight Mail FAX..x Email glenni (g) pacbell.net Monica B. Moen IDAHO POWER'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF - 8