20221019IPC to Staff 1.pdf

MEGAL GOICOECHEA-ALLEN
Corporate Counsel
[e-mail]

October 19, 2022

VIA ELECTRONIC MAIL

Jan Noriyuki, Secretary
Idaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 201-A
Boise, Idaho 83714

Re: Case No. IPC-E-22-23
Cassia Wind Farm, LLC
Idaho Power Company’s Application re the Second Amendment to the
Energy Sales Agreement

Dear Ms. Noriyuki:

Attached for electronic filing is Idaho Power Company’s Response to the First
Production Request of the Commission Staff in the above entitled matter. If you have any
questions about the attached documents, please do not hesitate to contact me.

Very truly yours,

Megan Goicoechea-Allen

MGA:cld
Enclosures
RECEIVED
2022 October 19, PM 2:34
IDAHO PUBLIC
UTILITIES COMMISSION

IDAHO POWER COMPANY’S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF – 1
DONOVAN E. WALKER (ISB No. 5921)
MEGAN GOICOECHIA-ALLEN (ISB No. 7623)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

Attorney for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF A SECOND AMENDMENT
TO THE ENERGY SALES AGREEMENT
WITH CASSIA WIND FARM, LLC.
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CASE NO. IPC-E-22-23

IDAHO POWER COMPANY’S
RESPONSE TO THE FIRST
PRODUCTION REQUEST OF
THE COMMISSION STAFF

COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and in
response to the First Production Request of the Commission Staff to Idaho Power
Company dated October 5, 2022, herewith submits the following information:
RECEIVED
2022 October 19, PM 2:34
IDAHO PUBLIC
UTILITIES COMMISSION

IDAHO POWER COMPANY’S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF – 2
REQUEST NO. 1: The Application states "[t]he Seller has remained compliant
with the Mechanical Availability Guarantee and has adjusted its estimated net energy
deliveries pursuant to the terms of the contract." Please respond to the following:
a. Please identify where the Mechanical Availability Guarantee ("MAG") was stated
in the original Agreement and explain why the loss of Tower 5 does not affect
compliance with the MAG.
b. Please explain in detail how the Seller has adjusted its estimated net energy
deliveries pursuant to the terms of the contract and provide the updated estimated
net energy deliveries.
RESPONSE TO STAFF’S REQUEST NO. 1:
a. When responding to this request the Company became aware that its statement
in the Application regarding the Energy Sales Agreement (“ESA”) containing a
Mechanical Availability Guarantee (“MAG”) relative to the Cassia Wind Farm (the
“Project”) was incorrect. The owner of the Project is party to multiple energy sales
agreements with the Company, some of which include a MAG, though the ESA
relative to the subject Project does not. Instead, it sets forth Seller’s delivery
obligations in Section 6.2 based on Net Energy Amounts as estimated and/or
adjusted by the Seller and contains a 90/110 provision. See ESA Section 1.25,
Definition of “Surplus Energy” and Section 6.2, “Net Energy Amounts”. The
Company regrets the error and apologizes for any confusion it may have caused.
The loss of Tower 5 does not affect compliance with the contract because the ESA
does not include any obligations tied to the total nameplate capacity. See Section
6.2 and Appendix B to the ESA. Cassia Wind has adjusted its monthly Net Energy

IDAHO POWER COMPANY’S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF – 3
Amounts to reflect the loss of Tower 5 pursuant to Section 6.2. The Project’s
generation, including any output outside of the 90 percent and 110 percent
thresholds as applied to the Net Energy Amounts, is compensated according to
the contract.
b. Under Sections 6.2.2 and 6.2.3 of the ESA, the Seller may prospectively adjust its
Net Energy Amounts by providing written notice to Idaho Power. The Seller has,
both before and after the loss of Tower 5, provided estimates of net energy
amounts based on expected generation. Following the loss of Tower 5 the Seller
adjusted its estimates accordingly. Specifically, the Seller provided Idaho Power
notice of revised Net Energy Amounts for prospective months on July 3, 2019.
Idaho Power accepted the Seller’s claim of force majeure regarding the turbine fire
on September 9, 2019, after which the parties agreed the revised Net Energy
Amounts provided on July 3, 2019, would apply going forward. The adjusted Net
Energy Amounts reflect a 20 percent reduction from the prior Net Energy Amounts
(i.e., to reflect four wind turbines being available, rather than five). A series of
letters and emails documenting these events, including the adjusted estimated Net
Energy Amounts, are attached. The Project has not updated its estimated Net
Energy Amounts since that time.
The response to this Request is sponsored by Camille Christen, Resource
Acquisition, Planning and Coordination Manager, Idaho Power Company.

IDAHO POWER COMPANY’S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF – 4
Respectfully submitted this 19th day of October 2022.

MEGAN GOICOECHIA-ALLEN
Attorney for Idaho Power Company

IDAHO POWER COMPANY’S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF – 5
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on the 19th day of October 2022, I served a true and
correct copy of the within and foregoing IDAHO POWER 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:

Michael Duval
Deputy Attorney General
Idaho Public Utilities Commission
Po Box 83720
Boise, Idaho 83720-0074

Emailed to:
[e-mail]
Cassia Wind Farm, LLC
c/o Constellation Power
ATTN: David Dueker

Emailed to:
[e-mail]

Cassia Wind Farm, LLC
c/o Constellation Power
ATTN: Ryon Swann

Emailed to:
[e-mail]

________________________________
Christy Davenport, Legal Assistant