20211012IPC to Staff 1-2.pdf

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Donovan E. Walker
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DONOVAN E. WALKER
Lead Counse!
dwalker@ida hooower.com
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October 12,2021
VIA ELECTRONIC MAIL
Jan Noriyuki, Secretary
ldaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 201-A
Boise, ldaho 83714
Re: Case No. !PC-E-21-30
MC6 Hydro LLC - MC6 Hydro Project
ldaho Power Company's Application re the Second Amendment to the
Energy Sales Agreement
Dear Ms. Noriyuki:
Attached for electronic filing is ldaho Power Company's Response to the First Set
of Production Requests of the Commission Staff in the above entitled matter. lf you have
any questions about the attached documents, please do not hesitate to contact me.
Very truly yours,
2ilatL
DEW:cld
Enclosures
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: (208) 388€936
[e-mail]
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OR REJECTION OF THE
SECOND AMENDMENT TO THE ENERGY
SALES AGREEMENT WITH MC6 HYDRO
LLC FOR THE SALE AND PURCHASE OF
ELECTRIC ENERGY FROM THE MC6
HYDRO PROJECT
CASE NO. !PC-E-21-30
IDAHO POWER COMPANY'S
RESPONSE TO THE FIRST
PRODUCTION REQUEST OF
THE COMMISSION STAFF
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COMES NOW, ldaho Power Company ('ldaho Powef or'Company'), and in
response to the First Production Request of the Commission Staff to ldaho Power
Company dated September 21,2021, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF - 1
REQUEST NO. 1: Order No. 34,425 allowed delayed damages to be calculated
from the original Scheduled Operation Date of July 30, 2019. Please provide the period
of time that the Seller was assessed delayed damages and the time period that the QF
was allowed to claim force majeure? Please explain the rationale used for establishing
the dates.
RESPONSE TO REQUEST NO. 1: ldaho Power reviewed the circumstances
surrounding MC6 Hydro's scheduled operation date, for the period beginning August
2019 and ending March 2021. For each month, ldaho Power evaluated whether delay
damages were triggered and found that none were. Therefore, ldaho Power did not
assess any delay damages.
Specifically, for each month that the contract's monthly net energy amount was
greater than zero, the delay damages calculation described in paragraph 1.9 of the
contract resulted in no delay damages (the contract's monthly net energy amount was
zero from November through February of each year, so no calculation was required for
those months).
Regarding the time period of the force majeure claim, the project claimed two
events of force majeure. MCG Hydro's original scheduled operation date was July 30,
2019. On May 29,2019, MC6 Hydro requested an event of force majeure and a change
to the scheduled operation date due to the death of one of the project's principals. ldaho
Power agreed to revise the scheduled operation date to July 30, 2020. The resulting
amendment to the Energy Sales Agreement was approved by the Commission in Order
No.34425.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF.2
On February 10, 2020, MC6 Hydro notified ldaho Power of a subsequent event of
force majeure-a delay in the shipment of its turbine and generator from Wuhan, China,
where the equipment had been manufactured, due to the novelcoronavirus epidemic. On
March 13, 2020, MC6 provided additional information regarding the claim of force
majeure. On March 20, 2020, ldaho Power notified MCG Hydro that it accepted the
request for an event of force majeure due to the delayed shipment of the generator and
turbine. ldaho Power considered the force majeure event to end when the generator and
turbine arrived at the project construction site, which occurred by September 30, 2020.
Ultimately, the project achieved an operation date of April 5,2021.
An event of force majeure suspends performance of the obligations under the
contract for the duration of the event. As a result, MCO Hydro's obligation to meet the
scheduled operation date-and ldaho Power's obligation to calculate delay damages for
delays in the date-were suspended while the force majeure events were ongoing. As
described above, ldaho Power evaluated whether delay damages were triggered in each
month in which a force majeure event was not ongoing and found that no damages
applied.
The response to this Request is sponsored by Camille Christen, Resource
Acquisition, Planning, and Coordination Manager, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF - 3
REQUEST NO. 2: Please provide all actual hourly generation data (number of
kilowatt-hours for each hour generated by the project) starting from the Operation Date
to the most recent date that data is available.
RESPONSE TO REQUEST NO. 2: Please see the attached confidential Excelfile
for the requested information.
The response to this Request is sponsored by Camille Christen, Resource
Acquisition of ldaho Power Company.
Respectfully submitted this 12h day of October 2021
fuzdat4-
DONOVAN E. WALKER
Attorney for ldaho Power Company
IDAHO PO\A'ER COMPANY'S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF-4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 12ft day of October 2021,lserved a true and
correct copy of the within and foregoing IDAHO PO\ /ER COMPANY'S RESPONSE TO
THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF upon the
following named parties by the method indicated below, and addressed to the following:
Ted Sorenson
MC6 Hydro LLC
711 East Turtle Point Drive
lvins, UT 84738
Riley Newton
ldaho Public Utilities Commission
11331 W. Chinden BLVD
Building 8, Suite 201-A
Boise, lD 83714
IDAHO POIA'ER COMPANY'S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF - 5
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Christy Davenport, Legal Assistant