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Home My WebLink About20110328Statement of Position and Straw Man Proposal.pdfBenjamin J. Otto (ISB No. 8292) 710 N 6th Street PO Box 844 Boise,ID 83701 Ph: (208) 345-6933 x 12 Fax: (208) 344-0344 botto~idaoconservation.org RECEI ZOH MAR 25 PH ~: ~ 9 Attorney for Idao Conservtion League BEFORE TH IDAHO PUBliC UTIliTIES COMMISSION IN THE MA ITR IF THE ) COMMISSION'S INVSTIGATION ) INTO DISSAGGREGATION AND AN ) APPROPRIATE PUBliSHED ) AVOIDED COSTS RATE EliGABIliTY ) CAP STRUCUTRE FOR PURPA ) QUAliFYG FACIliTIES. ) CASE NO. GNR-E-ll-OI The Idaho Conservation League (lCL) submits the following statement of position and strawman proposal. In Order Numbers 32176 and 32195, the Idaho PUC solicited: "information and investigation of a published avoided costs rate eligipility AAP strctue that: (l) allows small wind and solar QFs to avail themselves of published rates for projects producing 10 aMW or less and (2) prevents large QFs froii.disaggregating in order to obtain a published avoided cost rate that exceeds a utilties avoided cpst." The attched strawman attempts to answer this solicitation by laying fort crite.ria anf! a procedure to determine if a QF is eligible for the published rate. Of course, a complete resolution ofthis dispute requires addressing two elements; which QFs are. eligible tn re.ceive published rates, and how to set an appropriate avoided rate iipQn Which piiblishe4 rates are b~ed. This strawman focuses only on a mechanism to define which Qrs are eligible to rç~e.ive. the published rate. The second critical issue to improve the avoided cost rate strctue and ICL Statement of Position 1 March 25,2011 methodology for all sizes of QFs. ICL believes that determining which QFs are eligible to receive published rates is an important first step tht will feed into establishing an appropriate avoided cost rate strctue. The Strawman is divided into two sections. Firt, it sets fort four primar criteria that interested paries can use to determine the size of a qualifyng facilty. Those criteria are: energy source, ownership, location, and time. ICL modeled these criteria on the federal regulations promulgated to implement PURA, specifically 18 C.F.R. § 292.204. Second, the strawman sets fort an administrative and enforcement mechanism. The goal of this section is to devise a system that allows the QF and utilty to determine of whether the QF exceeds the 10 aMW limit with minimal involvement from the Commission. The other goal of the section is provide a self- enforcement provision by incorporating the obligation to remain within the maximum size criteria for the lengt of the power purchase agreement. ICL offers this strwman in the hopes all parties can work together to resolve this issue. With this in mind, ICL encourges all paries to review the strwman and consider convening an informal workshop to discuss and revise this proposal. Respectfully submitted this 25th day of March 2011, Ben~.~ Idaho Conservation League ICL Statement of Position 2 March 25, 2011 Strawman Mechanism for Determining the Size of a QuaUfying Facilty Tbat is Eligible to Receive the Publihed Rate Basic Rule: The maximum size of a qualifying facilty eligible to receive the published rate is 10 average megawatts. The average megawatt output of the qualifying facilty is measured on a monthly basis. Criteria for measuring the size of a gualüying facilty: When measurg the maximum size of a qualifyng facilty that is comprised of more than one electrical generator the following factors apply: i. Energy Source: Each electrical generator that comprises the qualifyng facilty uses the same energy resource. A. Eligible energy resources include biomass, geothermal, sun, waste, water, or other resources that meet the fuel use criteria under PUR A as specified in 18 C.F.R. § 292.204(b ). II. Ownership: Each electrcal generator that comprises the qualifyg facilty is either: A. Owned by the same person or affliate; or B. The same person or affiliate has the power to control the management, operation, or policies of the person who owns each electrcal generator. 1. For the purose of this criteria the following definitions apply 1. "Owns" means the same person or affliate liolpS iiQre t, 5Q% af the equity ownership in the eleçtrc~l generalar. . 2. "Person" means natual persons, corporations, limited liabilty companies, limited parerships, general paierships, liniited liabilty parterships, joint ventues, trts, land tnts, Qll$ine.SS trts, or other organizations, irrespective Qfw1l~the.rtley arele.gal entities, and governments and agenciçs anq P91itica1 Sll~visiollS thereof. 3. "Affliate" means any other Person who, directly or indirectly though one or more intermediaries, controls, is controllçd by, or is under common control with, such Person. a. "Affliate" does not include passive investors w1lQse sole. ownership interest in the electrcal generator is using production ta credits, green tag values, or depreciation~ or a combination of these. 4. "Control' means the possession, directly or indire.ctly thQugJ Qne or more intermediares, of the power to dirçct the nianagement, operations, or policies of a person,whether tl0ugh tle o'Wership of stock, by contrct, or otherwse. 1 Strawman Mechanism for Determining the Size of a Qualifying Facilty That is Eligible to Receive the Publihed Rate III. Location: Each electrcal generator that comprises the qualifying facilty is located at the same site. A. "same site" means an electrcal generator is within one mile of another electrcal generator regardless of the person who owns the land upon which each electrcal generator is located. B. For puroses of hydroelectrc generators only, "same site" mean either: 1. for natul water courses the same impoundment; or 11. for non-natul water coures, the same location where the water level changes, i.e. canal drop, IV. Time the OF comes on-line: In the power purchase agreement, each electrcal generator wil begin deliverig electrcity to the purchasing utilty within the same 24-month period. Administrative and enforcement mechanism The qualifying facilty and purchasing utilty wil work together to make an initial determination of the maximum size of a qualifying facilty that requests a power purchase agreement at the published rate. i. Initial size determination: A. Qualifingfacilty responsibilty: At the time the qualifying facilty initiates a formal request to enter into a power purhase agreement for the published rate the qualifying facility must submit sufficient documentation to reasonably allow the purchasing utilty to make an initial determination of the maximum size. B. Purchasing utilty responsibilty: Within fifteen (15) days of receiving the documentation described above, the purchasing utilty wil provide to the qualifying facilty a wrtten explanation, based solely on the criteria described above, whether the maximum size of the qualifyng facilty is 10 average megawatts. If the purchasing utilty determines the maximum size exceeds 10 average megawatts, the wrtten explanation must describe the criteria and documentation upon which it made such determination. II. Challenging the initial determination A. Qualifingfacilty right to challenge: Within fifteen (15) days of receiving the purchasing utilty's wrtten explanation described above, the qualifying facility may ask the Commission to review the documentation submitted by the qualifying facility and the utilty's wrtten explanation making the initial determination. B. Commission review: Unless the Commission requests more information, the documentation supplied by the qualifying facilty to the utilty and the utility's wrtten 2 Strawman Mechanism ff)r Determining tlie Size of a Qualifyng FacU~ty That is Eligible to Receive the Published Rate explanation of its initial determinatiol1 wil form the entire record upon which the Commission wil review and resolve the dispute. III. Final determination of maximum size A. Qualifingfacilty and purchasing utilty agree: If the paries agree the qualifying facility does not exceed the maximum size of 10 average megawatt the utilty's written explanation of such determination will serve as the final determination. Such final determination wil be incorporatea into the power purchase ageement as described below. B. Qualifingfacility and purchasing utilty disagree: If the Commission is asked to review and resolve the initial determination, the Commission's final order resolving such dispute wil serve as the final determination. This final order will be incorporated into the power purchase agreement as described below. iv. Power Purchase Agreement: In each contract wherein the utilty agrees to purchase, and the qualifyng facilty agrees to sell, the electrcal output for the published rate, the qualifying facilty shall: A. Wart that the maximum size of the qualifying facilty is 10 average megawatts. B. Warrant and represent the qualifyng facilty wil not make any changes in its ownership, control, or management durg the term of the contraçt that wolùd caiie it to exceed the maximum size eligible for the published rate. C. Agree to provide at the reasonable request of the purchasing utilty, but no more frequently than every two years, with documentation of continued eligibilty under the criteria described, subject to the utilty maintaining the confidentiality of the documentation provided; and D. Acknowledge that, if the purchasing utilty believes, based on documentation received from the qualifying facilty, that the maximum size of the qualifying facility exceeds 10 average megawatt; the purchasing utilty may request the Commission to make a new deterination of the size of the qualifying facilty. E. Acknowledge that, if the Commission determined the qualifying facilty exceeds the maximum size based on the same criteria used to make the initial determination, the qualifyg facilty wil be in default under the contract. 3 CERTIFICATE OF SERVICE I hereby certify that on this 25th day of March, 2011 true and correct copies of the foregoing STATMENT were delivered to the followig persons via the method of servce noted: Hand delivery: Jean Jewell Commission Secreta (Original and seven copies provided) Idaho Public Utilties Commission 427 W. Washington St. Boise, ID 83702-59 Electronic Mail only: PUC Donald L. Howell, II Krstine Sasser Deputy Attorneys General Idaho Public Utilties Commission 472 W. Washington Boise ID 83702 Don.howell~puc.idaho.gov Krs.sasser~puc.idaho.gov Rocky Mountain Power Daniel Solander PacifiCorp/dba Rocky Mountain Power 201 S. Main St., Suite 2300 Salt Lake City, UT 84111 Daniel.Solander~pacificorp.com Idaho Power Lisa D. Nordstrom Donovan E. Walker Idaho Power Company 1221 West Idaho Street Boise, Idaho 83707-0070 Inordstrom~idahopower.com dwalker~idahopower.com Ken Kaufman Lovinger Kaufman, LLP 825 NE Multnomah, Suite 925 Portland, OR 97232 Kaufman~lklaw.com A vista Michael G. Andrea A vista Corporation 1411 E. Mission Ave. Spokane, W A 99202 NIPPC/Simplot/Adams County Board of Commissioners/Grandview Solar II/Exergy Development Peter J. Richardson Gregory M. Adas Richardson & O'Lear, PLLC 515 N. 27th Street Boise, ID 83702 peter~chardsonandolea.com greg~richardsonandolear.com Robert D. Kah, Executive Director CERTIFICATE OF SERVICE 1 March 25, 2011 Nortwest and Intermountain Power Producers Coalition 117 Minor Ave., Suite 300 Seattle. WA 98101 rkah~nippc.org Don Stuevant, Energy Director lR. Simplot Company Boise, il 83707 Don.stuevant~simplot.com Robert A. Paul Grdview Solar II 1590 Vista Circle Desert Hot Springs, CA RobertpauI08~gmail.com James Carkulis. Managing Member Exergy Development Group of Idao 802 W. Banock St., Suite 1200 Boise, ID 83702 jcarkulis~exergydevelopment.com Bil Brown, Chair Board of Commissioners of Adas County P.O. Box 48 Council, ID 83612 dbbrown~frontiernet.net Dvnamis EnergyCedar Creek Wind LLC Ronald Wiliams Willams and Bradbury, P.C. 1015 W, Hays St. Boise. ID 83702 ron~wiliamsbradbur.com Wade Thomas, General Counsel Dynamis Energy. LLC 776 W. Riverside Dr., Suite 15 Eagle, ID 83616 wtomas~dynamisenerg.com Scott Montgomery, President CERTIFICATE OF SERVICE Ceda Creek Wind, LLC 668 Rockwood Dr. Nort Salt Lake City, UT 84054 scott~westernenergy.us Dana Zentz, Vice President Sumit Power Group, Inc. 2006 E. Westminster Spokane, W A 99223 dzentz~summitpwer.com Renewable Energy Coalition Thomas H. Nelson, Attorney P.O. Box 1211 Welches, OR 97067 nelson~thelson.com John R. Lowe, Consultant Renewable Energy Coalition 12050 SW Tremont St. Portland. OR 97225 jravensaarcos~yahoo.com Interconnect Solar Development, LLC R. Greg Ferney Mimura Law Offce, PLLC 2176 E. Franin Rd., Suite 120 Meridian, il 83642 greg~mimurlaw.com Bil Piske, Manager Interconnect Solar Development, LLC 1303 E. Carer Boise, ID 83706 bilpiske~cableone.net Intermountain Wind, LLC Dean J. Miler McDevitt & Miler, LL P.O. Box 2564 Boise, ID 83701 joe~mcdevitt -miler. com Paul Marin 2 March 25, 2011 Intermountain Wind, LLC P.O. Box 353 Boulder, CO 80306 paulmartin~intermountainwind.com Twin Falls and North Side Canal Companies Shelley M. Davis Barker Rosholt & Simpson, LLP 1010 W. Jefferson St. Boise, ID 83701 smd~idahowaters.com Brian Olmstead, General Manager Twin Falls Canal Company P.O. Box 326 Twin Falls, ID 83303 olmstead~tfcanal.com Ted Diehl, General Manager Nort Side Canal Company 921 N. Lincoln St. Jerome, ID 83338 nscanal~cableone.net Birch Power Company Ted Sorenson, P.E. Birch Power Company 5203 South 11th East Idaho Falls, ID 83404 ted~tsoreson.net Idaho Windfarms. LLC Glenn Ikemoto Margaret Rueger Idaho Windfars, LLC 672 Blair Avenue Piedmont, CA 94611 glenn~envisionwind.com margaret~envisionwind.com Blue Ribbon Energy M.J. Humphres Blue Ribbon Energy, LLC CERTIFICATE OF SERVICE 4515 S. Ammon Road Ammon, Id 83406 blueribbonenergy~gmail.com Aron F. Jepson Blue Ribbon Energy LLC 10660 South 540 East Sandy UT 84070 aronesq~aol.com INL-CREG Gar Seifert Kur Meyers Idao National Lab Conventional Renewable Energy Group 2525 Fremont Ave. Idaho Falls, Id 83415-3810 dA~ Benramin J. Oto Idaho Conservation League 3 March 25, 2011