20150728SBE to Staff 1-13.pdf

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Leif Elgethun
Response to First Staff Request
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Prepared by:
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Our responses to the First Staff Request are below in BOLD
1. Will each and every 100 kW project be independent of the others?
Yes
2. Will any equipment be shared between or be common to multiple projects
a. inverters,
Separate
b. interconnection eq uipment,
Common
c. !ine extension facilities,
common, if necessary
d. land use permits,
Separate except for lnterconnection
e. construction contracts and contractors,
Separate contracts, SBE is common installer
f. procurement of solar panels and other equipment,
Separate procurement contracts
g. other common facilities and equipment?,
Fencing
3. Will all 10 projects be developed as one project initially, and then subsequently
"subdivided" and sold to new owners?,
No. They started as 10 separate projects.
4. Wil! some owners potentially own more than one 100 kW project?,
No. Our understanding of the rules indicates projects need to be 1 mile apart to
have common ownership.
5. How would QF certificates be obtained -- one certificate initially then
somehow later converted to 10 certificates; 10 separate QF certificates from the
beginning; something else?
Projects are exempt and will each have their own separate QF from the
beginning.
6. What ownership information has been provided to lPCo?
We have provided the names of separate entities and indicated each project
will have completely separate ownership from all other projects. lPCo has not
request any additional information since our application was submitted.
7. Will all of the owners be located in the Wood River Valley, or will some be
located out of the area or out of state? Would this be described as a "community
solar project?" What if Bill Gates, Google, or some other bigwig wants to own
some of the projects -- can they? How does Site Based Energy intend to market
the projects?
Currently all clients are individuals and businesses with ties to the Wood River
Valley. SBE also has interest in other ldaho municipalities from local individuals
and businesses for projects under 100kW that may be net metered or may seek
ESA's depending on circumstances. SBE is not marketing the projects at this time
as they are fully subscribed. Each project is a standalone project with
common ownership of interconnection equipment, which is more common to a
group purchase project than a typica! 'community energy project'with
collective and shared ownership of a single asset.
8. Will each 100 kW have a separate power sales agreement with ldaho Power?
Will each individua! project owner be known at the time each contract is initially
signed, or will a single initial owner sign 10 contracts and later assign each one to
new owners?
Yes, each project will have a separate ESA. We filed 10 separate applications for
that purpose. Each contract will be signed by an individual project owner at
contract execution.
9. Why should the contract length and rates be different for 10 disaggregated
100 kW projects than for a single 1 MW project?
These are not disaggregated projects. They are each individual 100kW projects
seeking economies of scale by purchasing and building together. A
similar arrantement would be 10 houses in a row working with a single installer
to purchase equipment and install at the same time to reduce costs.
10. How many other similar projects might Site Based Energy propose if this one
is approved?
We will propose further projects similar in nature to this project if clients show
interest. The pushback on these 10 projects has caused our existing clients to
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P.O. Box 3432 Hailey, lD 83333 wrryursrrebaLe*delr-rgy.E-o,m 208.928.7583
already grow cold to the projects and has Iessened our interest in promoting
ESA contracts to clients due to the cost risk and perceived opposition from
ldaho Power to any solar projects seeking an ESA. For those reasons, we can't
speculate as to the market demand for projects under 100kW willing to attempt
to obtain an ESA under the published rates.
11. lf each project will have a separate contract, will all the contracts be executed
at the same time? Will there be additional "phases" added at a later time(s)?
How many additional 100 kW projects could be tacked on later? What if the
aggregate size grows to 2 MW, 5 MW, 10 MW, etc?
Each project's contracts will be executed when our client's are ready to execute.
We can't speculate as to the potential size of additional client interest due to
integration charges, capacity deficiency periods, interconnection capacity and
cost, and other market forces that impact our clients' interest in
owning projects. We also install onsite projects that utilize net metering for
monetization and the demand for those systems is similarly outside of our
control.
12. Will any of the 100 kW projects be leased?
Our clients have not indicated that they will lease their projects but we can't
speak to their future plans for their systems.
13. Has ldaho Power provided indicative pricing for a L MW project? What is the
price difference between a single 1 MW project and ten 100 kW projects?
These are separately owned projects so no request for indicative pricing
has been made to ldaho Power. Our clients do not want to be in business
together on a single 1MW or larger project. ldaho Power has not provided
pricing for the 100kW projects at this time either.
l've prepared these remarks on behalf of Site Based Energy and our Clients.
124lts
Leif Elgethun, VP
Site Based Energy
Date
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P.O. Box 3432 Hailey, lD 83333 wwyy.s i qgbaq-gde 1ergy. goq 208.928.7583