20120521_3712.pdf

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I ) I 1 1i (ii IJ :i P (D I III I I 41ES) I' I IIi
2012 MAY 11 PM 2: 44
INTERCONNECT SOLAR )
DEVELOPMENT, LLC. )
)
COMPAINT )
)
VS )
)
IDAHO POWER )
)
RESPONDENT )
IDAriv I'•• "L1
CASE NO. IP1 CO,M1S0
INTERCONNECTS MOTION FOR
RECONSIDERATION OF
ORDER NO. 32531
On February 24, 2012, The Idaho PUC issued its decision in the above, named Case in
which the commission siding with Idaho Power in the cancellation of a lengthy
negotiation of a firm energy sales agreement to buy energy from a 20MW utility scale
solar project in Murphy Idaho.
The commission decision to allow the cancellation is based on warnings established by
Idaho Power and the PUC staff in which Idaho Power claims delays could happen due to
BLM issues of building a grid interconnection that COULD effect the "scheduled
operation date" Interconnect chose. The first Energy delivery date chosen was September
1, 2012 with a 90 day grace period, according to the FESA approved by the PUC on
October 20, 2012. That agreement was signed by both parties on October 4, 2011 for the
sale and purchase of the electric energy, pursuant to PURPA laws. Order number 32384.
The complaint
Interconnect Solars complaint asked the Idaho PUC to intervene in Idaho
Powers cancellation of its FESA due to Interconnect solars failure to post a
$900,000. US dollar security delay for Liqiudated Damage assessed by Idaho
Power at 45.00 per Kwh if Interconnect failed to meet its scheduled operation
date. Due to the Idaho Power error, 1.) Interconnect also asked the PUC to
allow Idaho Power to provide a revised in service date in the FESA. 2.)
require Idaho Power to provide a correct GIA "which lines up with the
October 28th Meeting at the BLM 3.) Require Idaho Power to provide the
BLM with a timely EA report and spring botanical report so the BLM could
move the new ROW grant along. 4.) Direct Idaho Power to stop delaying the
project and damaging Interconnect Solars project. To consider a August 4th,
2011 decision by the Idaho Supreme Court(docket #37228) stating LD,s used
in this manner may not be legal or enforceable. Interconnect also informed
the PUC a Force Majuere has been filed, as allowed in the FESA, as the
damage is outside Interconnects control.
Interconnect asked the Idaho PUC to intervene prior to the cancellation due to
the ERROR made by Idaho Power by providing a false Feasibility Study in
suggesting the Murphy Solar Flats Project build a BRAND NEW POWER
LINE across the BIRDS OF PREY National Recreational Area "NO GO
ZONE", rather then upgrade the EXCIST1NG service line providing power to
the city of Murphy and Owyhee county.
Interconnect paid Idaho Power $30,000. Dollars to perform a Feasibility
Study which Interconnect Solar Assumed would be a CORRECT and
VIABLE STUDY to get the energy to Sinker Creek Substation in a timely
manner. Idaho power indeed provided the completed Feasibility study as far
back as December 2010. In the study, Idaho Power stated it could build the
line in 18 months, for $1,240,000Million (see complaint)
In early October 2011, Interconnect was told by the BLM land manager
Kelley Moore the path was not viable. On October 11, 2011 Interconnect
contacted Idaho Power and discussed this issue with Lisa Loomis,
Interconnects project manager from Idaho Power. After Interconnect
requested a meeting with all parties present on October 11, 2011 a reply came
October 12, 2011. Lisa stated she would set the meeting. On October 18,
2011 the meeting was confirmed for October 28 61, 2011. (See EXHIBIT A)
Interconnect was just finding out the damage this Grossly Negligent Error
Idaho Power made in choosing a NO GO ZONE across the Birds Of Prey
National recreation area as feasible path, and the offer to Build a new non
existent line and its VIABILTY cost of $1,245,000. million was having on
the project TIMELINE, not to mention the waist of $30,000. These figures
are part of the loan risk, and now not current or correct.
Interconnect clearly points out to the PUC that the delay damages tied to the
September "In Service Date" was not an Interconnect Solars issue of not
having the "Project" ready for production. Indeed Interconnect could have the
project ready. Interconnect Solar points out that without the legal obligations
of Idaho Powers error being corrected by Idaho Power, the GIA schedule 72
being incorrect, false, since its tied to the false feasibility study, and now the
uncertain costs to fix the error for the rebuild of the excisting line upgrade,
across Murphy flats, we were unable to complete financing due to missing
legal documents previously provided in error. The PUC was notified had Mr.
Piske not disclosed the Error and taken the loan proceeds to begin
construction, Mr. piske would have committed fraud under Idaho law. The
PUC was notified damages to Interconnect is happening and continues to do
so daily. Interconnect also informs the PUC that Idaho Power delaying the
new costs in a revised Feasibilty study that arrived January 4 th after the
expiration of the 1603 Treasury grant caused irrepairable damage to the in
place financing and project. Since discovering Murphy flats is the only viable
path, as a result of the October 28 th 2011 meeting at the BLM, Interconnect
filed a MOTION FOR HEARING on April 16, 2012 due to the issues being
"too complex to be fully understood in a brief'. Interconnect informed the
PUC a feasibility study for the Murphy Flats path had been performed earlier
in 2011, at a cost of $30,000 and a result of $6,440,000 Million. FSR #358 of
complaint. The Idaho PUC issued its decision instead on April 26, 2012
denying the reinstatement and cooperation needed by Interconnect from
Idaho Power Co., to get the project built, due to the "Concerns" previously
acknowledged in the PUC approval of the FESA. Those concerns being the
grid tie in timing, not lining up with the FESA, "in service date" as Idaho
Powers Position and concerns, are solely based on the BLM and
POTENTIAL DELAYS from the BLM.
Argument
If Interconnect was NOT having to deal with Idaho Power and its well
established position to KILL energy developers projects under PURPA law as
discovered in Idaho Powers filings to quickly reduce WIND and SOLAR to
100,000Kw in December 2010, when a Utility Scale SOLAR Project was not
on their System, then Interconnect could have completed a PURPA project
with the expertise of Interconnects team of proffessional Utility scale
designers, SIEMENS Industry., and H&H Utility co. H&H has built 100,s of
miles of power lines for Idaho Power. Siemens knowledge and expertise is
unquestionable, and indeed provided Idaho Power with the software to see
what a utility scale solar project would look like on their "SYSTEM" in
January of 2011. A month after Idaho power claimed Solar was a problem on
their system. In its complaint
Interconnect points out to the PUC that a resolve was established in the
October 28 th 2011 meeting at the BLM in which a new Botanical, cultural,
wildlife study, once completed in the spring of 2012, and the application, "IF
TIMELY FILED" by Idaho Power could result in a ROW grant being issued
in 30-45 days after review by BLM. (exhibit E) of complaint. This would
3
put the ROW grant approval around July, August 2012. Plenty of time to
rebuild a section of 12.5 line to 34.5 up to Murphy flats and Sinker Creek
substation from development site.
Interconnect would like to point out the BLM has established 3 offices inside
the BLM to help "FAST TRACK" Re-newable energy projects. Interconnect
was in contact with the Northern California BLM offices and the local BLM
office was aware of this policy.
It is this knowledge obtained from the BLM California office and Dave Wolf,
head of the BLM office in Boise in February of 2011 by Interconnect that
bolstered Interconnects commitment to have the "Project" ready for service
by no later then December 1, 2012, (including the 90 day grace period) but
for the Idaho Power Error. The error in choosing and suggesting a path that
was never viable according to Idaho Powers environmental head Stacey
Bachowski was confirmed at the October 28th 2011 meeting. Stacey
Bachowski from Idaho Power stated in front of all present "so this was never
a viable path" as clearly noted in complaint.
Interconnect unknowingly funded part of the GIA "tied" to the Errored
Feasibility study and signed the E&P agreement for Botanical studies of both
paths, the excisting line and the proposed line in April of 2011, some 18
months away from "in service Date". This action started the wildlife,
botanical, cultural studies.
Interconnects FESA was still being negotiated with Idaho Power under the
Aurora Model, with the "next" avoided costs being Langley Gulch
Combined Cycle Combustion Turbine, which was approved at $129.00 per
MW hr by the Idaho Public Utilities Commission, and yet to be built and
placed in service. Interconnects Solar FESA was approved at $97.47 per Mw
hr. and V2 the solar RECS going to Idaho Power in turn for an extra 5 years
on the FESA.
Interconnect was prepared to loose the $900,000 dollar damage clause
established in the PPA, if Interconnect was wrong.
Interconnects reason for reconsideration is simple:
Interconnect Solar Developments posting a $900,000 dollar NON-
REFUNDABLE Delay for Liquidated damages to Idaho Power to maintain
our FESA, based on having the plant in service by September 1, or
December 1, 2012 (with the 90 day grace period) when the Feasibility of
delivering the energy to the grid after the October 28th 2011 meeting
il
conclusively identified Idaho powers error, and a schedule set forth in the
October meeting with all parties present, not being honored by Idaho power,
and agreements not being adhered to, to fix the error, and to build a
$50,000,000 Million dollar QF investment, in the FESA timeline without the
revised legal GIA would be foolish. The error is Idaho Powers own mistake.
Idaho Power solely provided the feasibility study, in error, and Solely
provided the GIA schedule 72 Tariff, and out of Interconnects hands. For
Interconnect to go forward posting this large sum, knowing this error excists
would be outside a "STANDARD BUSINESS PRACTICE". Interconnects
business decision to not let Idaho Power take $900,000 from us when the
deck was stacked against Interconnect Solars delivery date due this Idaho
Power error would surely cause the loss of the nearly 1 MILLION
DOLLARS.
Interconnect respectfully asserts that Idaho Power was aware of the
Interconnection Issues, and error, in the feasibility study prior to the PUC,s
pending concerns while approving the FESA, But chose not to inform the
PUC or Interconnect of the Gross ERROR, and at the very least, even raises
concerns under Idaho Law of Fraud as more then 1 Person at Idaho Power
was aware of the Non Viable path prior to the October 20 th PUC approval of
the FESA, but chose not to disclose. This is alarming and raises quite a
concern, as they are a partner in Interconnects success wether Interconnect
likes it or not. There are no other avenues for implimintation.
Interconnect believes Idaho Powers taking of Interconnects $900,000 dollars,
or using it as a reason to cancel the FESA with the knowledge of their solely
provided $30,000 dollar Feasibility study being in error with no
accountability, in Interconnects opinion, violates PURPA law as intended in
1978.
Idaho power was clearly aware of the Interconnections issues as the PUC
approval was under way, the question becomes how early did they know?
And why did they not disclose?.
Interconnect is forced to do business with Idaho power and has to believe a
partner would act in good faith, and the PUC in the publics interest.
Interconnects Utility scale project is a QF, and conforms to PURPA law, and
does so in good faith, under Idaho Law and Idaho Powers published
procedures.
.c
Interconnect respectfully asks the PUC to re-consider their April 24th
conclusion given the Intent of PURPA law set forth, and allowing for
competition in the utility markets by QF,s and the standards of free enterprise
in America.
Interconnect asks for the reinstatement of the FESA and to acknowledge the
error is Idaho powers and Idaho Powers alone. For the PUC To acknowledge
Interconnects non compliance of the FESA contract, and not posting the
liquidated damages, are due to Idaho Powers errors, and order Idaho Power,
as unwilling as they are, to fix their mistake, and perform their requirements
without error, purposeful or not.
Respectfully,
William H. Piske
Solar Manager
Interconnect Solar Development LLC.
5/11/12 CableONE Mail - Meeting
cABl_EcNE . uu. PsK:
Meeting
4 rnessages
BILL PISKE <billpiske©cableone.net > Tue, Oct 11, 2011 at 12:04 PM
To: "Loomis, Lisa" <[e-mail]>
Lisa, we need to set a meeting with the BLM to discuss the path IP has
sighted in the Murphy Project.Can you get Marc Patterson and the lady
we met together for a meeting?
Bill [e-mail] 1-208-941-7458
Interconnect Solar Development LLC.
Loomis, Lisa <LLoomisidahopower.com > Wed, Oct 12, 2011 at 1:43 PM
To: BILL PISKE <[e-mail] >
Sure, well set up a meeting and let you know when.
Lisa.
[Quoted text hidden]
This transmission may contain information that is priAleged, 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
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you received this transmission in error, please immediately contact the sender and destroy the material in its
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Loomis, Lisa <LLoomisidahopower.com > Tue, Oct 18, 2011 at 9:47 AM
To: BILL PISKE <biIlpiskecabIeone.net >
Bill,
We are scheduled to meet with the BLM at lOam on Friday, October 28th, at their office. It is located at 3948
Deelopment Ave. This is out by the eastern side of the airport. We will meet with Kelley Moore (the realty
specialist) and Patricia Roller-Burkhardt (the Birds of Prey manager). Please let me know if this doesn't work for
you.
Thanks,
Lisa.
—Original Message
From: BILL PISKE [mailto:billpiske@cableone. net]
Sent: Tuesday, October 11, 2011 12:04 PM
To: Loomis, Lisa
https://mail.google.comIaIcabIeone.net/?ui=2&ik=O3ffacf899&vew=pt&q=ftsa loomis&qs=true&search=... 112
Interconnect Solar Development LLC.
15032 Hollow rd
Caldwell Idaho
83607
William H. Piske
Solar Manager
Pro-Se
208-941-7458
[e-mail]
April 16, 2012
JEAN JEWELL
IDAHO PUBLIC UTILITIES COMMISSION
472 WEST WASHINGTON
BOISE IDAHO
83702
RE-CASE # IPC-E-12-10
INTERCONNECT SOLAR DEVELOPMENT VS IDAHO POWER CO
Dear Ms. Jewell
Enclosed for filing, please find an original and seven (7) copies of
Interconnect Solars request for MOTION TO RECONSIDER in the above
named matter.
AH. Piske
Solar Manager
CERTIFICATE OF SERVICE
I HEREBY CERTIFY, That on this 11th day of May, 2012, I caused to be
served a true and correct copy of INTERCONNECT SOLAR
DEVELOPMENTS REQUEST FOR MOTION TO RECONSIDER upon
the following named parties by the method indicated below.
Commission Staff
Kristin A. Sasser
Deputy Attorney General
Idaho Public Utilities Commission
472 WEST WASHINGTON
BOISE IDAHO 83720-0074
HAND DELIVERED
Idaho Power co.
1221 west Idaho street
p.o.box 70
Boise Idaho
Donavan Walker
Hand Delivered