The URL can be used to link to this page

Home My WebLink About20091016Sagebrush, Idaho Forest Group Sur-reply.pdfMcDevitt & Miller LLP Lawyers (208) 343-7500 (208) 336-6912 (Fax) E' C1"\\Jr;nR ~ \.~.'".. .... 420 W. Bannock Street (, PM 3: 36 P.o. Box 2564-837t!lß9 OCl \ Boise, Idaho 83702 \D~ 1-\0 Pt,Jt\ìL,'¡Ç,C',I(~'\¡I~S Cn~,Ah~\:i;:I,.)i, Uí\U1\l::. J'-I'" . Chas. F. McDevitt Dean J. (Joe) Miler October 16, 2009 Via Hand Delivery Jean Jewell, SecretaIdao Public Utities Commssion 472 W. Washigton St. Boise, Idaho 83720 Re: Sagebrush Energy and Idaho Forest Group Case No. GNR-E-09-03 Dear Ms. Jewell: Enclosed for fig in the above matter, please fid an origial and seven copies of a Sur-Reply of Sagebrush Energy and Idaho Forest Group. Kidly retu a fie staped copy to me. Very Truy Yours, \;~ DJM/hh Enclosures ORIGINAL Dean J. Miler (ISB No. 1968) McDEVITT & MILLER LLP 420 West Banock Street P.O. BOX 2564-83701 Boise, Idaho 83702 Tel: 208-343-7500 Fax: 208-336-6912 joerl)mcdevitt - miler .com C,. \\It= DRE.lt: ,,~.-' in~9 OC1 \ (, p~ 3: 36 Attorney for Idaho Forest Group LLC and Sagebrush Energy LLC BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF A REVIEW OF THE SURROGATE AVOIDABLE RESOURCE (SAR) METHODOLOGY FOR CALCULATING PUBLISHED AVOIDED COST RATES CASE NO. GNR-E-09-03 SUR-REPLY OF SAGEBRUSH ENERGY AND IDAHO FOREST GROUP TO EXERGY REPLY COMMENTS On October 6, 2009, the Commission issued Order No. 30922 which established an October 16,2009, deadline for the fiing of Sur-Reply Comments in response to the Reply Comments of Exergy Development Group dated September 29,2009. Sagebrush Energy LLC (Sagebrush) and Idaho Forest Group (Idaho Forest) respectfully submit the following in response to Order No. 30922. For the reasons stated in their initial Comments, and as fuer argued in Exergy's Reply Comments, Sagebrush and Idaho Forest continue to believe it would be unwise for the Commission to move away from the established, and time-tested SAR methodology in favor ofan unown methodology. Sagebrush and Idaho Forest wil not repeat those arguents in this Sur-Reply. Rather, Sagebrush and Idaho Forest desire to elaborate on, and support, Exergy's contention that the Commission, ifit does undertake an SUR-REPLY OF SAGEBRUSH ENERGY AND IDAHO FOREST GROUP TO EXERGY REPLY COMMENTS-l '. ~ ~ l ;:t, ,.~. investigation of a wind SAR, should not adopt any policy that would have the explicit or practical effect of a moratorium on the utilty's obligation to negotiate in good faith with project developers for the execution of purchase power agreements. As Staf notes in its Comments, "In addition, the process of developing a wind SAR is likely to be contentious and time-consumg." (Sta Comments pg. 10). The Commission should not be under any ilusion that a moratorium would be short lived. Recent experience teaches that once in place, a moratorium extends much longer than originally anticipated. See, Order No. 29872, Case No. IPC-E-05-02 (projected nie- month moratorium lasted more than two yea). A moratorium and associated grandfathering criteria would produce more litigation. No matter how carefully the Commission attempted to define grandfathering criteria, disputes will invarably arse, forcing developers to incur additional expense of litigating entitlement to grandfathering status. See e.g. Petition of Magic Wind to Determine Exemption Status, Case No. IPC-E-05-34, Petition of Cassia Wind to Determine Exemption Status, Case No. IPC-E-05-35. Finally, Sagebrush and Idaho Forest reiterate their arguents made agaist a moratorium in Case No. AVU-E-09-04. There, Sagebrush and Idaho Forest argued that a request for a moratorium should be evaluated under the law of preliminar injunctions and that to be entitled to relief an applicant must show: l. That the applicant is entitled to the relief demanded and there is a substantial likelihood the applicant is likely to prevaiL. If the applicant's claim is not free from doubt, an injunction is improper. Harris v. Cassia County, 106 Idaho 513,681 P.2d 988(1984). SUR-REPLY OF SAGEBRUSH ENERGY AND IDAHO FOREST GROUP TO EXERGY REPLY COMMENTS-2 2. That the applicant wil suffer irreparable injur in the absence of an injunction. ,\, ~ "A preliminar injunction is granted onlyin'extreme case where the right is very clear and it appears that irreparable injur wil flow from its refusal." Evans v. District Court, 47 Idaho 267, 270275 P. 99 (1929); Hars, supra. Here, it is far from certain that the Commission wil ultimately adopt a wind SAR and none of the utility comments fied herein allege anything in the natue of irreparable injur in the absence of a moratorium. Conclusion Based on the reasons and authorities cited herein, Sagebrush and Idaho Forest respectfully request that if the Commission enters an Order initiating fuer investigation of the surogate avoided resource, that the Order contain specific ordering language along the following lines: "Nothing in this Order excuses Idaho Power Company, Avista Corporation and Rocky Mountain Power from their obligation to negotiate with QF developers and enter into purchase power agreements containing avoided cost rates established in Order No. 30744 and the erata thereto." DATED this --day of October, 2009. IDAHO FOREST GROUP LLC SAGEBRUSH ENERGY LLC BY~ll an J. Miler Attorney for Idaho Forest Group LLC and Sagebrush Energy LLC SUR-REPLY OF SAGEBRUSH ENERGY AND IDAHO FOREST GROUP TO EXERGY REPLY COMMENTS-3 CERTIFICATE OF SERVICE I herby cefy that on the Ii day of Ocber, 2009, I cansed to be sered, via the methodes) indicated below, tre and correct copies of the foregoing document, upon: w,I By:-J~lt McDEVITI & MILLER LLP Jean Jewell, Secretar Idaho Public Utilities Commssìon 472 West Wasrungton Street P.O. Box 83720 Boise, il 83720-0074 i i ewell(lpuc.state.id. us Hand Delivered u.s. Mail Fax Fed. Express Email Scott Woodbury Idaho Public Utilties Commìssìon 472 West Washìngton Street P.O. Box 83720 Boìse, il 83720-0074 scott. woodbury(á)puc.daho.gov Hand Delivered U.s. Mail Fax Fed. Express Email Bar Klìne, Esq. Lìsa Nordstrom, Esq. Idaho Power P.O. Box 70 Boise, il 83702 bkline(lidahopower .com Inordstrom(lidahopower .com Hand Delivered U.S. Mail Fax Fed. Express Email Dean Brockbank Danel Solander Mark Moench Rocky Mountaìn Power One Utah Center 201 S. Main Street, Suìte 2300 Salt Lake Cìty, UT 841 I I datareguestilpacifcorp.com Hand Delivered U.S. Mail Fax Fed. Express Email Michael G. Andrea Senior Counsel A vìsta Corporation 1411 E.Mission Avenue, MSC-23 Spokane, W A 99202 michael.andrea(iavistacorp.com . Hand Delivered U.S. Mail Fax Fed. Express Email ~w.\- .\- w w~.\- ¡ ~ w w l4 . ~w w ¥. w~.\- SUR-REPLY OF SAGEBRUSH ENERGY AND IDAHO FOREST GROUP TO EXERGY REPLY COMMENTS-4