20070919amended_notice_order_no_30434.pdf

Office of the Secretary
Service Date
September 19 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
A VISTA CORPORATION FOR AN ORDER
REVISING A VISTA CORPORATION'
OBLIGATIONS TO ENTER INTO
CONTRACTS TO PURCHASE ENERGY
GENERATED BY WIND-POWERED SMALL
POWER GENERATION FACILITIES
CASE NO. A VU-07-
AMENDED NOTICE OF
SCHEDULING
ORDER NO. 30434
On April 2, 2007, Avista Corporation (Avista; Company) filed an Application with
the Idaho Public Utilities Commission (Commission) requesting a change in the Company
PURPA obligations for wind QFs. Avista proposes raising the cap on entitlement to published
avoided cost rates for wind-powered small power generation facilities that are qualifying
facilities (QFs) under Sections 201 and 210 of the Public Utility Regulatory Policies Act of 1978
(PURPA) from the current level of 100 kW to 10 average megawatts per month (10 aMW),
subject to the following conditions:
1. Reducing the published avoided cost rates applicable to purchases by
A vista of electric power from wind-powered QFs by 12%, as a
percentage reduction to be applied against scheduled avoided cost rates
except where the QF developer agrees in the power purchase and sale
contract with Avista to deliver QF output to Avista on a firm hourly
schedule, in which case the percentage reduction shall be 6%;
2. Removing the requirement that the 90%/110% performance band
requirement not be applied to purchases from wind-powered QFs;
3. Authorizing A vista to purchase state-of-the-art wind forecasting services
to provide A vista with forecasted wind conditions in those geographic
areas in which wind generation resources are located, provided that QFs
will reimburse A vista for their share of the ongoing cost of the wind
forecasting service, in proportion to their percentage share of the wind-
generator capability being supplied to A vista from that area;
4. Requiring QFs to deliver a "mechanical availability guarantee" to Avista
to demonstrate monthly, except for scheduled maintenance and events of
force majeure or uncontrollable force, that the QF was physically capable
and available to generate a full output during 85% of the hours in a
month;
AMENDED NOTICE OF SCHEDULING
ORDER NO. 30434
5. ... (Disaggregation issue - separately noticed on June 28, 2007)
6. Clarifying that the cap on entitlement to published avoided cost rates
shall be raised to 10 aMW only until Avista s total wind portfolio from
all sources totals 400 MW.
A Notice of Petition in Case No. A VU-07-02 was issued on May 15, 2007. On
June 28, 2007, the Commission issued a Notice establishing an intervention deadline of July 18
2007. The following parties requested and were granted intervenor status: Exergy Development
Group of Idaho LLC; Renewable NW Project and NW Energy Coalition; Idaho Windfarms LLC;
and INL Biofuels and Renewable Energy Technologies.
On July 31 and August 10, 2007 Commission Staff sponsored joint settlement
workshops in Case Nos. A VU-07-02 (A vista), IPC-07-03 (Idaho Power), and PAC-07-
(PacifiCorp) to explore whether parties of record could agree to a common generic wind
integration adjustment to published rates. IDAP A 31.01.01.272-276.
On August 22, 2007, the Commission being informed that the participants in the joint
settlement workshops in the above dockets were unable to reach a compromise generic
settlement, issued a Notice of Modified Procedure and CommentlProtest Deadline in Case No.
A VU-07-02 establishing an initial comment deadline of Friday, September 21 , 2007 and a
reply deadline of Friday, October 5, 2007.
YOU ARE HEREBY NOTIFIED that on September 14 2007, Renewable Northwest
Project and NW Energy Coalition (collectively RNP) filed a Motion to Vacate the September
and October 5 , 2007 comment deadlines in Case No. A VU-07-02 (and related Case Nos. PAC-
07-07 and IPC-07-03). RNP in its Motion states that it has conferred with respective
counsel for Avista, PacifiCorp and Idaho Power, and represents to the Commission that the
utilities do not oppose vacation of the comment deadlines. RNP requests an extension for two
reasons. First, good faith settlement negotiations have continued among the parties. RNP has
reached a settlement agreement in principle with two of the three utilities, and believes that an
agreement in principle can be achieved with the third utility. RNP and the utilities have
discussed the proposed settlement with several other parties; however, because there are a large
number of parties in these cases it will take several days at a minimum to complete these
discussions. The requested vacation of the comment deadlines will allow completion of the
settlement discussions and preparation of settlement documents.
AMENDED NOTICE OF SCHEDULING
ORDER NO. 30434
Second, in the event settlement is not achieved, RNP wishes to conduct additional
written discovery in these cases. RNP's requests for production will be significant in scope, it
states, and will likely require the full 28-day time for response, as provided by Rule of Procedure
225.03. The requested vacation of comment deadlines, it states, will allow the development of a
more complete record in this matter.
For the foregoing reasons, RNP requests the Commission vacate the deadlines for
initial and reply comments in Case No. A VU-07-02. Ifnecessary, RNP states it will provide a
status report (including proposed new comment deadlines) for the Commission s consideration
no later than Monday, October 1 , 2007.
Commission Findings
The Commission has reviewed the filings of record in Case No. A VU-07-
including Renewable Northwest Project/NW Energy Coalition s Motion to Vacate the
established September 21 and October 5, 2007 comment deadlines. RNP represents that it has
achieved an agreement in principle with two of the three utilities with wind integration
adjustment dockets before the Commission and desires additional time to pursue settlement
discussions with the third utility and to solicit support from other intervening parties. We find
that all parties of record were provided with electronic copies of the Motion on September 13
2007 and hard copies by U.S. Mail. We further find that no parties have communicated
opposition to the filed Motion.
The Commission considers RN~'s Motion to Vacate in the context of a history of
protracted proceedings that date back to Idaho Power s June 17 2005 petition in Case No. IPC-
05-22 requesting a temporary suspension of the Company s obligation under Sections 201 and
210 of the Public Utility Regulatory Policies Act of 1978 (PURPA) and various Commission
Orders to enter into new contracts and purchase energy generated by qualifying wind-powered
small power production facilities (QFs). On August 4, 2005 , the Commission reduced the
published rate eligibility cap for non-firm wind projects from 10 aMW to 100 kW. Order No.
29839. In the interim there have been public workshops, the utilities have conducted wind
integration studies, utility-specific wind integration adjustments have been proposed, and the
parties have engaged in settlement discussions. The Commission believes the time for further
delay has ended. It is now the time for action and bringing this matter to a close.
AMENDED NOTICE OF SCHEDULING
ORDER NO. 30434
The Commission appreciates RNP's continued efforts to achieve a proposed
settlement in the three wind integration dockets. IDAPA 31.01.01.271-277 (Settlements). If
agreement is to be reached, however, we find that it must be achieved quickly. Accordingly,
YOU ARE HEREBY NOTIFIED that to provide a small window for the conclusion of
settlement discussion, we find it reasonable to vacate the September 21 , 2007 initial comment
deadline. We maintain the October 5, 2007 date for presentation of settlement documents or the
filing of initial comments. We establish an October 19,2007 deadline for reply comments in the
event that parties' efforts at settlement have been unsuccessful or that all parties have not joined
in the settlement.
ORDER
In consideration of the foregoing, IT IS HEREBY ORDERED that the Motion to
Vacate of Renewable Northwest Project and NW Energy Coalition is granted in part and the
additional scheduling set forth above is adopted.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this Iqrl
day of September 2007.
, PRESIDENT
J~~
ARSHA H. SMITH, COMMISSIONER
ATTEST:
fdE,fJJe D. Jewell
Co mISSIon Secretary
bls/O:A VU-07-02 sw2
AMENDED NOTICE OF SCHEDULING
ORDER NO. 30434