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HomeMy WebLinkAbout20120629Reading Rebuttal.pdfRECEIVED nllnL JUN ?.' P11 4, OS cz ATTORNEYS AT LAW f . . . Tel: 208-938-7900 Fax: 208-938-7904 P.O. Box 7218 Boise, ID 83707 - 515 N. 27th St. Boise, ID 83702 June 29, 2012 Ms. Jean Jewell Commission Secretary Idaho Public Utilities Commission 472 W. Washington Boise, ID 83702 RE: GNR-E-11-03 - Rebuttal Testimony of Dr. Don Reading Dear Ms. Jewell: Enclosed please find the Prepared Rebuttal Testimony of Dr. Don Reading, submitted for filing in the above-referenced docket on behalf of Clearwater Paper Corporation, J.R. Simplot Company, and Exergy Development Group of Idaho, LLC. Per the Commission's Rules of Procedure, we have enclosed and original and nine (9) copies, as well as a compact disc containing a copy of the testimony in word format. Sincerely, P.4e, 0, Peter Richardson Richardson & O'Leary PLLC end.' RE CE IV ED Peter J Richardson (ISB # 3195) ?I)% JUIN 29 PM [ OS Gregory M. Adams (ISB # 7454) DA1C• PUBLIC Richardson & O'Leary, PLLC JTLdE iMSO 515 N. 27th Street P.O. Box 7218 Boise, Idaho 83702 Telephone: (208) 938-7901 Fax: (208) 938-7904 peter@jichardsonandolega.co greg@richardsonandoleM.co Attorneys for Clearwater Paper Corporation, J.R. Simplot Company, and Exergy Development Group of Idaho, LLC BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE COMMISSION'S ) REVIEW OF PURPA QF CONTRACT ) CASE NO. GNR-E-1 1-03 PROVISIONS INCLUDING THE ) SURROGATE AVOIDED RESOURCE (SAR) ) AND INTEGRATED RESOURCE PLANNING) METHODOLOGIES FOR CALCULATING ) PUBLISHED AVOIDED COST RATES ) CLEARWATER PAPER CORPORATION J.R. SIMPLOT COMPANY EXERGY DEVELOPMENT GROUP OF IDAHO, LLC REBUTTAL TESTIMONY OF DR DON READING June 29, 2012 I INTRODUCTION 2 3 Q. PLEASE STATE YOUR NAME AND BUSINESS ADDRESS. 4 A. My name is Don Reading and my business address is 6070 Hill Road, Boise, Idaho 5 Q. ARE YOU THE SAME DON READING THAT FILED DIRECT TESTIMONY IN 6 THIS CASE ON MAY 4,2012? 7 A. Yes lam. 8 Q. WHAT IS THE PURPOSE OF YOUR REBUTTAL TESTIMONY? 9 A. I will be rebutting certain aspects of the direct testimony of Commission Staff witnesses 10 Mr. Rick Sterling and Dr. Cathleen McHugh. Specifically, I will discuss Mr. Sterling's positions 11 on REC ownership, the use of a SCCT for determining capacity costs, Idaho Power's Schedule 12 74, fuel cost risk, and contract length; and Dr. McHugh's position on the first deficit year 13 approach in the calculation of avoided cost rates offered to PURPA projects. There are numerous 14 other positions they take in their testimony that I have already countered in my direct testimony. 15 Therefore, although I continue to oppose those positions, I will not again challenge them here. 16 Q. WHAT COMMENTS DO YOU HAVE ABOUT MR. STERLING'S 17 RECOMMENDATIONS ON THE OWNERSHIP OF RENEWABLE ENERGY CREDITS 18 ("RECS") CREATED BY QF GENERATION? 19 A. Mr. Sterling states that he behaves the issue of REC ownership should be resolved in this 20 case, agreeing with Rocky Mountain Power and opposing Avista's recommendation that the 21 ownership of RECs should be decided in a separate case (Idaho Power was silent on the issue). Reading Rebuttal Clearwater, Simplot, Exergy -1 I Mr. Sterling presents a review of the arguments over who should own the RECs' and 2 acknowledges, 3 "All of the arguments. . . . have merit and may be persuasive in justifying REC 4 ownership be (sic) either the utility or the QF."2 5 6 However, he decides that REC ownership should be granted to the purchasing utilities.3 He 7 supports this decision with several assertions. 8 Q. COULD YOU PLEASE OUTLINE MR. STERLING'S ARGUMENTS AND 9 COMMENT ON THE LOGIC OF THOSE ARGUMENTS? 10 A. Yes. In concluding that purchasing utilities should be granted REC ownership, he argues: 11 "[i]f Idaho was in a position where additional incentive was needed in order to 12 stimulate further development of renewables or achieve an RPS standard, then it 13 might be reasonable to assign ownership of RECs to QF project owners so that 14 they would have an additional revenue stream that could enhance project 15 economics. However, as recent history demonstrates, Idaho is not in a situation 16 where renewables development is stalled or needs to be accelerated. "4 17 18 Mr. Sterling's argument is thus, most simply, that recent history demonstrates renewable 19 development is neither stalled nor in need of acceleration, and therefore PURPA projects do not 20 need the benefit of REC ownership. However, this is a rearview mirror look at the QF industry in 21 Idaho, and it belies the thrust of his testimony and the proposals of the utilities going forward. 22 The positions taken by Mr. Sterling and the utilities in this case will certainly produce 23 unfavorable rates for REC-producing wind and solar projects. Mr. Sterling recommends Direct Testimony of Rick Sterling, Idaho Commission Staff, pp. 39-42, GNR-E-1 1-03. 2 lbid.,p. 42. Ibid. 4 Reading Rebuttal Clearwater, Simplot, Exergy -2 abandoning the SAR method for the calculation of avoided cost rates for wind and solar projects 2 larger than 100 kW, ". . . admittedly mostly due to its ability to produce favorable rates" under 3 PURPA contracts.5 There is no rational basis for Mr. Sterling's recommendation to award RECs 4 to the purchasing utility rather than the QF. As I stated in my direct testimony, if the Commission were to accept the proposal advocated by the utilities and supported by Mr. 6 Sterling, the result would be "PURPA-killing."6 7 Q. DOES MR. STERLING PRESENT OTHER ARGUMENTS IN SUPPORT OF HIS 8 RECOMMENDATIONS REGARDING REC OWNERSHIP? 9 A. Yes. He concludes that utility ownership of RECs is consistent with the IRP method of 10 calculating avoided cost rates. He states, 11 Q. Aside from the need for the Commission, the Legislature, or the courts to 12 determine REC ownership, are there pricing issues associated with RECs that 13 need to be considered in setting avoided cost rates? 14 A. Yes, there are. For example, under the IRP methodology, a utility's 20-year 15 portfolio of new resources is modeled in computing avoided cost rates. Each 16 utility's 20-year resource portfolio contains some renewable plants because they 17 either represent the lowest cost resources or because they help satisfy expected 18 RPS requirements or both. The utility would possess the RECs associated with 19 resources contained in its preferred portfolio, and presumably any price premium 20 associated with those RECs would be included in the cost of the projects. 21 Consequently, the cost of RECs would, already be accounted for in computing 22 avoided cost rates using the IRP methodology. Therefore, a utility paying the 23 computed avoided cost to a QF under the IRP methodology should be entitled to 24 ownership of the RECs.7 25 26 There are two significant problems with Mr. Sterling's testimony. 'Ibid., p. 6. 6 DfreCt Testimony of Don Reading, Joint Parties, p. 69, GNR-E-1 1-03. 7 Direct Testimony of Rick Sterling, Idaho Commission Staff, p. 46, GNR-E- 11-03 (underscoring added). Reading Rebuttal Clearwater, Simplot, Exergy -3 I Q. WHAT ARE THOSE PROBLEMS? 2 A. I underscored the first problem in the quote above where Mr. Sterling mentions the need 3 for the Commission, the Legislature, or the courts to "determine REC ownership." This "need" 4 cannot be dismissed as a mere aside. It is a fundamental determination that must be addressed before the Commission can proceed into the REC morass. Ms. Grow, Idaho Power's Vice President of Power Supply, prefiled testimony on this issue stating: 7 "the Idaho Legislature, which is currently in session, may be considering 8 proposed legislation that would address the ownership of RECs from PURPA QF 9 projects, and thus the Company has no specific request of the Commission in this 10 regard at this time."8 11 12 It appears from Ms. Grow's prefiled direct testimony that Idaho Power believes the question 13 should be answered by the Legislature, as suggested by Mr. Sterling. Thus, it appears as though 14 both Mr. Sterling and Ms. Grow concur that the Legislature may be the proper place to answer 15 this most fundamental of questions. 16 Q. DO YOU KNOW IF THE IDAHO LEGISLATURE HAS ADDRESSED THIS 17 QUESTION? 18 A. I know that the Idaho Legislature had a bill before it in the last session that addressed this issue and that Idaho Power, Avista and Rocky Mountain Power were listed as the primary contacts for that legislation. Attached as Exhibit 507 is a copy of the Statement of Purpose and Senate Bill 1364 entitled: Direct Testimony of Lisa Grow, Idaho Power, p. 14, GNR-E- 11-03. Reading Rebuttal Clearwater, Simplot, Exergy -4 19 20 21 1 RELATING TO THE PUBLIC UTILITIES COMMISSION; AMENDING CHAPTER 5, 2 TITLE 61, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 6 1-542, 3 IDAHO CODE, TO DEFINE THE AUTHORITY OF THE PUBLIC UTILITIES 4 COMMISSION AND ITS JURISDICTION OVER THE ENVIRONMENTAL 5 ATTRIBUTES OF PUBLIC UTILITY REGULATORY POLICIES ACT QUALIFYING 6 FACILITIES AND TO PROVIDE FOR USE AND IMPLEMENTATION OF 7 ENVIRONMENTAL ATTRIBUTES; AND DECLARING AN EMERGENCY. 8 9 So, apparently Ms. Grow was correct that the Idaho Legislature was going to address the 10 ownership of RECs. The bill was referred to a Senate Committee and no action was apparently 11 taken on it as shown on attached Exhibit 508, the "Final Bill Status" report of the 2012 Idaho 12 Legislature. 13 Q. WHAT DO YOU MAKE OF THE FACT THAT IDAHO POWER DECLINED TO 14 ADDRESS REC OWNERSHIP BECAUSE IT THOUGHT THE LEGISLATURE WAS 15 GOING TO DO SO, COUPLED WITH THE FACT THAT THE STAFF BELIEVES 16 THAT THE LEGISLATURE MAY BE THE BEST PLACE TO ADDRESS REC 17 OWNERSHIP? 18 A. Well, it is all quite confusing. I am sure Idaho Power would have liked the Legislature to 19 pass its REC bill - but it didn't. I can also see why it would have preferred the Legislature to 20 address the question given the PUC Staff's prior, very strong comments that RECs belong to the 21 developers. 22 Q. THE PUC STAFF HAS PREVIOUSLY TAKEN THE POSITION THAT RECs 23 BELONG TO THE DEVELOPERS? Reading Rebuttal Clearwater, Simplot, Exergy -5 A. Yes, and on more than one occasion. The Staff has filed unequivocal comments with the 2 Commission arguing that RECs belong to the developers of QF projects. In IPC-E-04-02 Idaho 3 Power had asked the Commission to grant it a right of first refusal to RECs in the PURPA QF 4 context. In response the PUC Staff filed comments that provided: 5 Staff recommends that the Commission issue a declaratory order stating that 6 mandatory purchases from QFs under PURPA do not convey ownership of any 7 marketable environmental attributes. Accordingly, any environmental attributes 8 associated remain with the QF. Staff further recommends that the Commission 9 deny the Company's proposal to require that QF developers from whom Idaho 10 Power purchases energy grant Idaho Power a 'right of first refusal' to purchase 11 the environmental attributes associated with the QF facility.9 12 13 The rationale was based on a legal argument that I am not prepared to address; suffice it to say 14 that the Staff was concerned about something in the U.S. Constitution regarding taking people's 15 property without compensation. In IPC-E-04-16 Staff filed comments in response to Idaho 16 Power's request for a Commission order exonerating them from any ratemaking penalty for its 17 waiver of environmental attributes in a PURPA contract. Once again, the Staff filed comments 18 that strongly and unequivocally asserted that environmental attributes belong to the developer: 19 Staff incorporates its related comments filed in Case No. IPC-E-04-02 as if 20 expressly set forth herein and includes same as attachment to these comments. In 21 those attached comments, Staff stated its belief that neither PURPA nor Title 61 22 of the Idaho Code gives the Commission jurisdiction over environmental 23 attributes. Staff recommended that if the Commission determined that it has 24 jurisdiction, that the Commission issue a declaratory order stating that mandatory 25 purchases from QFs under PURPA do not convey ownership of any marketable 26 environmental attributes. Accordingly, Staff recommended that any 27 environmental attributes remain with theQF.'° Comments of the Commission Staff, Case No. IPC-E-04-02, p. 8. 10 Staff Comments, Case No. IPC-E-04- 16, August 13, 2004 at p. 4 (underscoring added). Reading Rebuttal Clearwater, Simplot, Exergy -6 1 2 I am not a lawyer, but I don't think it is a mere coincidence that the underscored portion of the 3 above quote is the exact same Idaho Code Title that Idaho Power's proposed legislation was 4 proposed to amend and to which Ms. Grow's testimony obviously referred. 5 Q. IT SEEMS SOMETHING MUST HAVE CHANGED TO HAVE STAFF NOW 6 TAKING SUCH A DIFFERENT POSITION ON REC OWNERSHIP IN THE PURPA 7 CONTEXT? 8 A. One would think so, but Staff's testimony suggests otherwise. Why else would they 9 preface their REC ownership testimony with the identification of the "need for the Commission, 10 the Legislature, or the courts to determine REC ownership?" 11 Q. YOU STATED YOU HAD TWO PROBLEMS WITH STAFF'S TESTIMONY 12 NOTED ABOVE. YOU HAVE ADDRESSED THE FIRST, REC OWNERSHIP; WHAT 13 IS THE SECOND ISSUE? 14 A. Staff's underlying reasoning, that IRP's value RECs, might have been valid if the value 15 of any environmental attributes were in fact included in the computation of avoided costs. 16 According Idaho Power's 2011 Integrated Resource Plan, 17 The value of RECs is not included in the levelized cost estimates but is accounted 18 for when analyzing the total cost of each resource portfolio. 19 20 Therefore, the value of RECs is not part of the calculation of the levelized cost of the Company's 21 generation plant. The value of RECs enters the portfolio analysis only after levelized costs are "Idaho Power 2011 IRP, p. 72. Reading Rebuttal Clearwater, Simplot, Exergy -7 found. The IRP methodology that is proposed by Idaho Power, as well as the other utilities, to 2 find avoided costs is focused on the determination of levelized costs and hence avoided cost 3 calculations do not include compensation for the value of RECs. As I stated in my direct 4 testimony, the avoided costs in Idaho compensate the QFs only for energy and capacity, and I 5 continue to recommend the ownership of RECs remain with the QF.'2 6 Q. MR. STERLING RECOMMENDS THE USE OF A PEAKER (SCCT) FOR THE 7 CAPITAL COSTS RATHER THAN A BASE LOAD GAS-FIRED GENERATION UNIT. 8 WHAT WAS HIS RATIONALE FOR THIS CHANGE? 9 A. Mr. Sterling concludes that an SCCT can be considered a capacity-only resource... He 10 argues that because the SCCT is the least cost capacity-only resource, it better matches a QF's 11 performance. According to Mr. Sterling, a QF cannot be counted on to provide power during the 12 utilities' system peaks: 13 SCCTs are generally added to utilities' resource portfolios to satisfy 14 capacity-only needs, and are usually the least cost capacity resource available. 15 Therefore, the cost of an SCCT can reasonably be considered a capacity-only 16 cost. Utilities that add CCCTs to their portfolio do so because they have a need 17 for both capacity and energy, thus the cost of a CCCT can be considered both a 18 capacity and energy cost. CCCTs, because they are more efficient, generate 19 energy at a lower variable cost than SCCTs, but the tradeoff is that they are more 20 costly to construct. 21 Under the methodology as proposed by the utilities, capacity and energy 22 values are being calculated independently. Therefore, I maintain that the proper 23 resource to use as the basis for computing capacity value is the lowest cost 24 resource that could be added to provide capacity equivalent to what would 12 Direct Testimony of Don Reading, Joint Parties, p. 59, GNR-E-1 1-03. Reading Rebuttal Clearwater, Simplot, Exergy -8 I otherwise be provided by the QF. I believe that using a SCCT is probably most 2 appropriate because it represents the lowest cost, nearly capacity-only resource.13 3 4 The optimal generation expansion path for a utility is to add a resource that meets the system 5 needs at least cost. When the system requires smaller resource additions to meet growing 6 demand, the optimal path is generally a peaking unit that has low capacity costs but at a trade-off 7 of higher running costs. These peaking units would be added until they ceased to be the least cost 8 resource, i.e. when their lower capacity and higher energy costs began to exceed the base load 9 CCCT's higher capacity costs and lower running costs. Therefore, for a least cost growth path, a 10 SCCT contributes more to the system than just capacity. As I stated in my direct testimony, all 11 three of the utilities have either recently added or will soon add a CCCT to their resource stack .14 12 Therefore, a CCCT is a more logical choice to use for the calculation of long-run avoided costs. 13 Q. DOES MR. STERLING SUPPORT IDAHO POWER'S PROPOSED SCHEDULE 14 74 THAT WOULD ALLOW THE UTILITY TO CURTAIL QFS FOR ECONOMIC 15 REASONS? 16 A. Yes. His reasoning for support of Idaho Power's curtailment tariff is based on the same 17 flawed logic presented by Idaho Power witness Tessia Park in her direct testimony. He also 18 agrees , with Idaho Power that the curtailment provisions apply not only to QF contracts going 19 forward but also existing contracts. 20 Q. Idaho Power proposes that Schedule 74 apply to all QF facilities, both existing 21 and new, that have Generator Output Limiting Controls (GOLCs) installed. Do Direct Testimony of Rick Sterling, Idaho Commission Staff, p. 17, GNR-E- 11-03. 14 Direct Testimony of Don Reading, Joint Parties, p. 9, GNR-E-1 1-03. Reading Rebuttal Clearwater, Simplot, Exergy -9 1 you believe that, if approved, the Company would have the authority to apply the 2 proposed tariff to existing facilities whose contracts were in place prior to the new 3 tariff being adopted? 4 A. Yes, I do. As explained by Idaho Power witness Tessia Park, FERC rules at 18 5 CFR 292.304(f) includes a provision that relieves utilities from an obligation to 6 purchase during any period which, due to operational circumstances, purchases 7 from QFs will result in costs greater than those which the utility would incur if it 8 13 did not make such purchases, but instead generated an equivalent amount of 9 energy itself. Because this is a part of FERC rules, I think Idaho Power has 10 always had that authority whether or not it is expressly spelled out in a contract or 11 a tariff.'5 12 13 Since I discussed the problems with Ms. Park's analysis that Mr. Sterling relied on in my direct 14 testimony I will not repeat them here. However, Mr. Sterling does not factor into his reasoning 15 the chilling effect such a provision would have on a QF's ability to gain financing. He also does 16 not seem to see the potential legal problems that could arise through attempting to alter existing 17 signed and Commission-approved contracts. 18 Q. COMMISSION STAFF PROPOSES THE MAXIMUM LENGTH OF A QF 19 CONTRACT BE REDUCED FROM THE CURRENT 20 YEARS TO FIVE YEARS 20 SUPPORTING IDAHO POWER'S PROPOSAL FOR PROJECTS USING THE IRP 21 METHODOLOGY, WHILE SMALLER PROJECTS USING THE SAR 22 METHODOLGOY WOULD REMAIN AT TWENTY-YEARS UNDER STAFF'S 23 APPROACH. WHAT COMMENTS DO YOU HAVE ABOUT THE LOGIC OF MR 24 STERLINGS POSITION? 25 A. Mr. Sterling outlines the history of the Commission's decisions that have adjusted the 15 Direct Testimony of Rick Sterling, Idaho Commission Staff, GNR-E- 11-03, pp. 37 - 38. Reading Rebuttal Clearwater, Simplot, Exergy -10 contract length from its original 35 years down to 20 years, down again to five years, and then 2 back up to 20 years. He contends that reducing the contract length to five years would not 3 adversely impact QF development As part of his justification he discusses QF development 4 during the 68 month period when contract length was limited to five years. 5 Q. During the approximately five and a half year period when contract length 6 was limited to five years (September 1996 through May 2002), how many 7 PURPA contracts were signed? 8 A. There was only one PURPA contract signed in Idaho during this time frame. 9 However, at the time, the eligibility cap for published rates was also limited to 10 facilities one megawatt or smaller. In addition, published rates were also quite 11 low, primarily due to low natural gas prices. Furthermore, most PURPA hydro 12 and cogeneration projects had already been developed, while wind, solar and 13 biogas technologies had yet to fully develop. The combination of all of these 14 factors, not shortened contract length alone, caused very few PURPA projects to 15 be developed in Idaho during this time period. 16 16 17 He is correct that the 1 MW cap would impact the number and momentum of QF developments; 18 however, currently gas prices are lower than they were during that period, and a major fact that 19 wind, solar, and biogas were not being developed was due to the shorter contract length that 20 prevents QFs from obtaining financing. 21 He dismisses the significant impact on financing of QF projects by limiting them to only 22 a five year contract. 23 24 Q. Do you believe that the Commission has a responsibility to ensure contract 25 lengths are long enough to enable QFs to obtain financing? 26 A. No, not necessarily. Long-term contracts have been used by the Commission in 27 the past to boost development of PURPA projects. However, circumstances have 28 changed. It would be contrary to the public interest to encourage PURPA 16 Ibid., pgs 27, 28. Reading Rebuttal Clearwater, Simplot, Exergy -11 I development at a time when it is not needed to serve customers and at a time 2 when poor economic conditions strain customers' ability to pay. I believe it would 3 be good public policy for the Commission to use effective tools, such as limiting 4 maximum contract length, to control the pace of PURPA development. 17 5 6 Mr. Sterling apparently does not believe the Commission, under PURPA, has to provide 7 contracts long enough that QFs can find financial backing. However, according to Idaho Power 8 witness Mr. Hieronymus, one of the mandates of PURPA is to encourage cogeneration and small 9 power production. 10 Section 210 tasked FERC to devise rules that "it determines necessary to 11 encourage cogeneration and small power production and to encourage geothermal 12 facilities of not more than 80 megawatts capacity."8 13 14 As I stated in my direct testimony, "Limiting PURPA contract terms to five years would preclude 15 the vast majority of QF developers from being able to secure financing for their projects" and thus 16 would be discouraging rather than encouraging QF development. 19 Mr. Sterling also believes that 17 shortening the contract length to five years would "control the pace" of PURPA activity in Idaho. As 18 pointed out above and in my direct testimony, adopting Mr. Sterling's positions and the utilities' 19 proposal in this case will essentially kill PURPA development. The loss of tax credits and renewable 20 power incentives at both the state and federal level, in combination with current low gas prices, will 21 already stop or at a minimum significantly slow QF development in Idaho. Imposing a set of policies 22 aimed at stifling QF development, thus merely represents 'insult to injury" to the QF industry 17 Ibid., pgs 28, 29. ' Direct Testimony of William Hieronymus, Idaho Power Company, GNR-E- 11-03, p. 18. 19 Direct Testimony of Don Reading, Joint Parties, GNR-E- 11-03, p. 46. Reading Rebuttal Clearwater, Simplot, Exergy -12 1 Q. ARE THERE ADDITIONAL REASONS COMMISSION STAFF GIVES IN 2 SUPPORT OF REDUCING QF CONTRACT LENGTH TO FIVE YEARS? 3 A. Mr. Sterling contends that ratepayers' fuel cost risks are lower for a utility-owned 4 resource than for PURPA projects. 5 Fuel costs associated with utility-owned resources are also passed on to 6 customers, partly through base rates and partly through PCAS. However, fuel 7 costs are tracked annually and rates are adjusted accordingly. Consequently, while 8 customers are exposed to fuel price risk for both PURPA and utility-owned 9 resources, the annual adjustment of rates for Utility-owned resources exposes 10 customers to less risk for utility-owned resources than for PURPA resources. 11 Moreover, recovery of costs for utility-owned resources is not guaranteed. 12 However, as previously stated, once a PURPA contract is approved by the 13 Commission, customers are obligated to pay 100 percent of the costs. 20 14 15 I am assuming when he says, "the annual adjustment of rates for Utility-owned resources 16 exposes customers to less risk for utility-owned resources than for PURPA resources" he 17 believes that the power supply costs that are passed on to customers annually will be lower than 18 the those found in signed PURPA contracts. As I stated in my direct testimony, natural gas prices 19 have been historically very volatile. When a utility's natural gas plant is approved and put into its 20 rate base, its customers will annually be responsible for whatever the prices may be, whenever 21 they may occur, over the life of the plant. Only if one assumes that natural gas prices will remain 22 at their current low levels indefinitely into the future can you conclude that customers will pay 23 less for generation from a utility gas resource than a PURPA project. 24 Mr. Sterling also states that the cost recovery for utility-owned resources is not 20 Direct Testimony of Rick Sterling, Idaho Commission Staff, (INR-E-1 1-03, p. 31. Reading Rebuttal Clearwater, Simplot, Exergy -13 1 "guaranteed." In a strict theoretical sense, I would agree that regulation does not 'guarantee' 2 recovery, but rather gives the utility the 'opportunity' to earn its approved rate of return. 3 However, as a practical matter, the utilities usually do fully recoup their investment in a 4 generation plant. For example, in the case of Idaho Power's Langley Gulch Plant, the 5 Commission did essentially 'guarantee' the Company it would be able to recover its investment 6 when it approved a certificate to build the plant. Even if, for example, the plant were to 7 experience a temporary outage, the utility would continue to earn its 'unguaranteed' rate of 8 return on the temporarily out-of-service investment. In contrast, , a PURPA project is afforded 9 no such benefit, and only earns revenue when it is able to deliver power; therefore, when 10 unforeseen problems knock the QF offline, QF owners are not able to recoup their investments 11 for lost generation. 12 Q. WHAT IS YOUR RESPONSE TO DR. MCHUGH'S OPINION ON THE FIRST 13 YEAR DEFICIT APPROACH ADVOCATED BY THE UTILITIES? 14 A. Dr. McHugh is advocating for the Staff to reverse itself and reinstate the first year deficit 15 approach in the calculation of avoided cost rates offered to PURPA projects. She reviews Staff's 16 nine areas of concern when they recommended it be abandoned several years ago. She explains 17 why some of the reasons are no longer valid and offers a new method of calculating the first year 18 deficit based on both capacity and energy. She goes on to state the rationale for reinstating the 19 first year deficit was 'sound': 20 Q. Why was the "first deficit year" concept abandoned? Reading Rebuttal Clearwater, Simplot, Exergy -14 I A. At the time this was abandoned, Staff expressed concerns that determining the 2 first deficit year was problematic even though the underlying rationale for it was 3 sound.21 4 As I pointed out in my direct testimony, this means a utility acting prudently to meet its demand 6 should always be in surplus; however, reducing avoided cost payments to PURPA projects for 7 these surplus periods does not represent the proper calculation of the avoided cost for the utility 8 in the long-term. I certainly disagree with her conclusion that the underlying reasoning for the 9 first year deficit is sound. It is interesting that she agrees with and quotes Avista witness Mr. 10 Kalich when on page 21, lines 5 through 9 of his direct testimony he states, 11 It is not fair to pay one resource with a low capacity factor and an equivalently 12 high on-peak contribution the same per-MWhpayment as second base load plant 13 operating with a relatively high capacity factor all year round Using the method, 14 the low capacity factor resource would receive much lower total compensation 15 even though the resource provided the same on-peak capacity benefit to the 16 utility. 22 17 18 However as I pointed out in my direct testimony Mr. Kalich also says, 19 It is often true that utilities are surplus in early years; being so is an essential part 20 of providing reliable utility service. It also is true that QF developers would be 21 affected by these surpluses were they to receive lower early-year payments during 22 surplus years. But this effect is a reflection of true avoided costs. 23 23 24 I strongly disagree that paying QFs lower early-year payments accurately reflects of "true avoided 25 costs." It is not true that by implementing the first deficit year, and thereby denying QFs capacity 21 Direct Testimony of Cathleen MChugh, Idaho Commission Staff, GNR-E- 11-03, P. 7. Emphasis in original. 22 ibid.,pgs 10, 11. 23 Direct Testimony of Avista Witness Clint Kalich, GNR-E- 11-03, pp. 1 3-14. Reading Rebuttal Clearwater, Simplot, Exergy -15 I payments in the early years, accurately reflects a utility's own generation plant. This is so because 2 the utility receives full recovery of its capacity costs for the entire life of the plant - including the 3 early years. 4 Q. DR. READING, DO YOU HAVE ANY CONCLUDING COMMENTS? 5 A. As I pointed out above there are numerous other positions taken by the Commission Staff 6 in their testimony that I have already dealt with in my direct testimony that I continue to oppose. 7 It is for the sake of brevity that they have not been addressed in the above rebuttal testimony. 8 The Commission Staff in their direct testimony consider a wide range of issues dealing with the 9 implementation of PURPA in Idaho and make recommendations on each aspect. It appears that if 10 one were to put Staff's recommendations into two categories, one labeled pro-QF development 11 and the other anti-QF development, virtually all would fall in the anti-QF development category. 12 A plainly stated purpose of PURPA law is to 'encourage' independent power production. Taken 13 together could lead one to conclude that Staff is strongly anti - if that is the case it is opposed to 14 federal law and in my mind not in the public interest. If Staffs recommendations were adopted, 15 as said in my direct testimony, it would be "PURPA-killing." It would be difficult for the 16 industry to rebuild itself and contribute to electric system needs in any cost effective manner. 17 Q. DOES THIS CONCLUDE YOUR REBUTTAL TESTIMONY ON JUNE 29,2012? 18 A. Yes itdoes. Reading Rebuttal Clearwater, Simplot, Exergy -16 STATEMENT OF PURPOSE RS21243C1 This legislation will require any benefits derived from RECs associated with the sale of renewable energy to investor owned utilities to flow to the benefit of the utilities' customers. FISCAL NOTE There is no impact to the General Fund Contact Name: Rich Hahn Office Idaho Power Company Phone (208) 388-2153 Neil Colwell Avista Corporation (208) 343-3821 Russ Westerberg Rocky Mountain Power (208) 336-0305 Statement of Purpose / Fiscal Note S1364 Exhibit 507 GNR-E-11--03 D. Reading: Simplot, Exergy, Clearwater Page 1 LEGISLATURE OF THE STATE OF IDAHO Sixty-first Legislature Second Regular Session - 2012 IN THE SENATE SENATE BILL NO. 1364 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO THE PUBLIC UTILITIES COMMISSION; AMENDING CHAPTER 5, TITLE 61, 3 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 61-542, IDAHO CODE, TO 4 DEFINE THE AUTHORITY OF THE PUBLIC UTILITIES COMMISSION AND ITS JURIS- 5 DICTION OVER THE ENVIRONMENTAL ATTRIBUTES OF PUBLIC UTILITY REGULATORY 6 POLICIES ACT QUALIFYING FACILITIES AND TO PROVIDE FOR USE AND IMPLEMEN- 7 TATION OF ENVIRONMENTAL ATTRIBUTES; AND DECLARING AN EMERGENCY. 8 Be It Enacted by the Legislature of the State of Idaho 9 SECTION 1. That Chapter 5, Title 61, Idaho Code, be, and the same is 10 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 11 ignated as Section 61-542, Idaho Code, and to read as follows: 12 61-542. ENVIRONMENTAL ATTRIBUTES OF PURPA QUALIFYING FACILITIES. (1) 13 Definitions: 14 (a) "Environmental attributes" means any and all claims, credits, 15 benefits, emissions reductions, offsets and allowances, howsoever 16 entitled, resulting from the avoidance of the emission of any gas, 17 chemical or other substance into the air, soil or water. Erivironmen- 18 tal attributes shall include, but are not limited to (i) green tags, 19 green and/or clean energy credits, renewable energy credits or renew- 20 able energy certificates; (ii) any avoided emissions of pollutants to 21 the air, soil or water such as sulfur oxides, nitrogen oxides, carbon 22 monoxide and other pollutants; (iii) any avoided emissions of carbon 23 dioxide, methane and other greenhouse gases. Environmental attributes 24 do not include: (i) tax credits or other tax incentives existing now 25 or in the future associated with construction, ownership or operation 26 of the qualifying facility; or (ii) adverse wildlife or environmental 27 impacts. 28 (b) 'PURPA" means the public utility regulatory policies act of 1978, 29 16 U.S.C. section 824a-3. 30 (c) "Qualifying facility" means a qualifying small power or cogeriera- 31 tion facility as defined in 18 CFR 292.101(b) (1) as that section may be 32 amended or superseded. 33 (d) "Public utility" means an electrical corporation as defined in sec- 34 tions 61-119 and 61-129, Idaho Code. 35 (2) Ownership The legislature hereby finds that, to the extent that 36 environmental attributes are generated by or associated with qualifying 37 facilities, such environmental attributes are attributes of the power pur- 38 chased by the public utility from such qualifying facilities at avoided cost 39 rates. All environmental attributes generated by or associated with such 40 qualifying facilities shall be owned by the public utility purchaser of the 41 power from the qualifying facilities, unless, with regard to any specific 42 qualifying facility, such ownership is expressly assigned to the qualify- Exhibit 507 GNR- E - 11-03 D. Reading: Simplot, Exergy, Clearwater Page 2 2 i ing facility by specific agreement with the public utility purchaser of the 2 power, and such agreement is approved by the commission. 3 (3) Use Environmental attributes owned by a public utility pursuant 4 to this section may be used for any, or all, of the following purposes: 5 (a) Environmental attributes maybe used by a public utility to satisfy 6 the requirements of any state or federal renewable portfolio standards 7 or requirements applicable to such public utility; 8 (b) Environmental attributes may be sold, and the proceeds of such sale 9 utilized to offset, or partially offset, the power supply expense paid 10 by customers of the public utility as determined by the commission, 11 (c) Environmental attributes may be assigned to a qualifying facility, 12 as referenced in subsection (2) of this section, by specific agreement 13 approved by the commission Should the owner of a qualifying facility 14 desire to enter into such specific agreement assigning ownership of the 15 environmental attributes to the qualifying facility, the public util- 16 ity owner of the environmental attributes shall negotiate in good faith 17 with the owner of such qualifying facility. 18 (4) Implementation. The legislature hereby directs the commission 19 to implement this requirement for all qualifying facility power purchase 20 agreements entered into by public utilities subsequent to the date of enact- 21 ment of this section. 22 t SECTION 2 An emergency existing therefor, which emergency is hereby 23 declared to exist, this act shall be in full force and effect on and after its 24 passage and approval. Exhibit 507 GNR-E - ii -03 D. Reading: Simplot, Exergy, Clearwater Page FINAL BILL STATUS 2012 SECOND REGULAR SESSION SIXTY-FIRST IDAHO LEGISLATURE January 9, 2012 through March 29, 2012 CONTAINING COMPLETE COMPILATION OF ALL LEGISLATION INTRODUCED Compiled by Legislative Services Research and Legislation with the cooperation of Office of the Secretary of the Senate Office of the Chief Clerk of the House of Representatives Exhibit 508 GNR-E -11-03 D. Reading: Simplot, Exergy, Clearwater Page 1 03/14 House intro - 1st rdg - to St Aft 03/21 apt out - rec dip - to 2nd rdg 03/22 2nd rdg - to 3rd rdg 03/26 3rd rdg - PASSED - 67-0-3 AYES -- Anderson, Andrus, Barbieri, Barrett, Bateman, Batt, Bayer, Bedke, Bell, Bilbao, Black, Holz, Boyle, Buckner-Webb, Burgoyne, Chadderdon, Chew, Collins, Crane, Cronin, OeMordaunt, Ellsworth, Eskridge, Gibbs, Guthrie, Nagedorn, Hart, Hartgen, Harwood, Henderson, Higgins, Jaquet, Killen, King, Lacey, Lake, Loertscher, Luker, Marriott, McMillan, Moyle, Nesset, Nielsen, Nonini, Palmer, Patrick, Pence, Perry, Raybould, Ringo, Roberts, Ruache, Schaefer, Shepherd, Shirley, Simpson, Smith(30), Smith(24), Stevenson, Tha.yn, Thompson, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker NAYS -- None Absent and excused -- BloCk(Block), McGeachin, Sims Floor Sponsor - Moyle Title apvd - to Senate 03/27 To enrol 03/28 Rpt enrol - Pres signed Sp signed 03/29 To Governor apt delivered to Governor on 03/29 04/05 Governor signed Session Law Chapter 310 Effective: 04/05/12 S1367 ...........................................by FINANCE APPROPRIATION - GOVERNOR, EXECUTIVE OFFICE OF - Appropriates $1,910,200 to the Executive Office of the Governor for fiscal year 2013; limits the number of full- time equivalent positions to 26; exempts appropriation object and program transfer limitations; and provides guidance for employee compensation and benefits. 03/01 Senate intro - 1st rdg - to printing 03/02 Apt prt - to Fin 03/05 apt out - rec dip - to 2nd rdg 03/06 2nd rdg - to 3rd rdg 03/07 3rd rdg - PASSED - 33-0-2 AYES -- Andreason, Hair, Bilyeu, Bock, Brackett, Broadsword, Cameron, Corder, Darrington, Davis, Fuicher, Goedde, Hammond, Heider, Hill, Johnson, Keough, LeFavour, Lodge, Mcaague, Mortimer, Nuxoll, Pearce, Rice, Schmidt, Siddowsy, Smyser, Stennett, Tippets, Toryanski, Vick, Werk, Winder NAYS -- None Absent and excused -- Malepeai, McKenzie Floor Sponsor - Toryanski Title apvd - to House 03/08 House intro - 1st rdg - to 2nd rdg 03/09 2nd rdg - to 3rd rdg 03/16 3rd rdg - PASSED - 61-3-6 AYES -- Anderson, Andrus, Bateman, Hatt, Bayer, Hedke, Bell, Bilbao (Reynoldson), Black, Holz, Boyle, Buckner-Webb, Chadderdon, Chew, Collins, Crane, Cronin, OeMordaunt, Ellsworth, Eskridge, Gibbs, Guthrie, Hagedorn, Hart, Hartgen, Harwood, Higgins, Jaquet, Killen, King, Lacey, Lake, Loertscher, Luker, Marriott, McGeachin, Moyle, Nesset, Nielsen, Nonini, Palmer, Patrick, Pence, Perry, Raybould, Ringo, Rusche, Shepherd, Shirley, Simpson, Sims, Smith(30), Smith(24), Stevenson, Thayn, Thompson, Trail, Vander Woude, Wills, Wood (27), Wood(35) NAYS -- Barrett, McMillari(McMillan), Schaefer Absent and excused -- Barbieri, Block (Block), Burgoyne, Henderson, Roberts, Mr. Speaker Floor Sponsor - Thompson Title apvd - to Senate 03/19 To enrol Apt enrol - Pres signed 03/20 Sp signed 03/21 To Governor 03/22 Rpt delivered to Governor on 03/21 03/26 Governor signed Session Law Chapter 133 Effective: 07/01/12 S1368 ...........................................by FINANCE APPROPRIATION - LIEUTENANT GOVERNOR - Appropriates $142,800 to the Office of the Lieutenant Governor for fiscal year 2013; limits the number of full-time employees to 3; and provides guidance for employee compensation and benefits. Exhibit 508 GNR- E -11-03 D. Reading: Simplot, Exergy, Clearwater Page 1 Rpt delivered to Governor on 03/29 04/05 Governor signed Session Law Chapter 308 Effective: 07/01/12 S1364 .....................................by STATE AFFAIRS PUBLIC UTILITIES COMMISSION - Adds to existing law to define the authority of the Public Utilities Commission and its jurisdiction over the Environmental Attributes of Public Utility Regulatory Policies Act qualifying facilities. 03/01 Senate intro - 1st rdg - to printing 03/02 Rpt prt - to St Aft $1365 .....................................by STATE AFFAIRS UNCLAIMED PROPERTY - Amends existing law to provide that personal information related to unclaimed property is exempt from disclosure; and to provide that the audit methodology of the unclaimed property program is exempt from disclosure under the Public Records Act. 03/01 Senate intro - 1st rdg - to printing 03/02 Apt prt - to St Aft 03105 Rpt out - rec d/p - to 2nd rdg 03/06 2nd rdg - to 3rd rdg 03/07 3rd rdg - PASSED - 33-0-2 AYES -- Andreason, Bair, Bilyeu, Bock, Brackett, Broadsword, Cameron, Corder, Derrington, Davis, Fuicher, Goedde, Hammond, Heider, Hill, Johnson, Keough, LeFavour, Lodge, Mcaague, Mortimer, Nuxoll, Pearce, Rice, Schmidt, Siddoway, Smyser, Stennett, Tippets, Toryanski, Vick, Werk, Hinder NAYS -- None Absent and excused -- Malepeai, McKenzie Floor Sponsor - Bill Title apvd - to House 03/08 House intro - 1st rdg - to St Aft 03/21 Rpt out - rec dip - to 2nd rdg 03/22 2nd rdg - to 3rd rdg 03/26 3rd rdg - PASSED - 67-0-3 AYES -- Anderson, Andrus, Barbieri, Barrett, Bateman, Batt, Bayer, Bedke, Bell, Bilbao, Black, Heir, Boyle, Buckner-Webb, Burgoyne, Chedderdon, Chew, Collins, Crane, Cronin, DeMordaunt, Ellsworth, Eskridge, Gibbs, Guthrie, Hagedorn, Hart, Hartgen, Harwood, Henderson, Higgins, Jaquet, Killen, King, Lacey, Lake, Loertscher, Laker, Marriott, McMillan, Moyle, Nesset, Nielsen, Nonini, Palmer, Patrick, Pence, Perry, Raybould, Ringo, Roberts, Rusche, Schaefer, Shepherd, Shirley, Simpson, Smith(30), Smith(24), Stevenson, I'hayn, Thompson, trail, Vander Woude, Wills, Wood(27(, Wood(35), Mr. Speaker NAYS -- None Absent and excused -- Block(Block), McGeachin, Sims Floor Sponsor - Buckner-Webb Title apvd - to Senate 03/27 To enrol 03/28 Rpt enrol - Pres signed Sp signed 03/29 To Governor apt delivered to Governor on 03/29 04/05 Governor signed Session Law Chapter 309 Effective: 07/01/12 $1366 ......................................by STATE AFFAIRS RULEMAKING - Amends existing law to provide statutory procedures for negotiated rulemaking and to provide for notices of rulemaking to be placed on an agency's website. 03/01 Senate intro - 1st rdg - to printing 03/02 Rpt prt - to St Aft 03/07 Apt out - rec d/p - to 2nd rdg 03/08 2nd rdg - to 3rd rdg 03/13 3rd rdg - PASSED - 34-0-1 AYES -- Hair, Bilyeu, Bock, Brackett, Broadsword, Cameron, Corder, Darrinqton, Davis, Fuicher, Goedde, Hammond, ((eider, Hill, Johnson, Keough, LeFavour, Lodge, Malepeai, McKague, McKenzie, Mortimer, Nuxoll, Pearce, Rice, Schmidt, Siddoway, Smyser, Stennett, Tippets, Toryanski, Vick, Werk, Winder NAYS -- None Absent and excused -- Andreason Floor Sponsor - McKenzie Title apvd - to Rouse CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 29th day of June, 2012, a true and correct copy of the within and foregoing REBUTTAL TESTIMONY OF DR DON READING ON BEHALF OF EXERGY DEVELOPMENT GROUP OF IDAHO, LLC, J. R. SIMPLOT COMPANY AND CLEARWATER PAPER CORPORATION was served as shown to Jean D Jewell, Secretary X Hand Delivery Idaho Public Utilities Commission U.S. Mail, postage pre-paid 472 West Washington - Facsimile Boise, Idaho 83702 - Electronic Mail jean.jewell@puc.idaho.gov Donald Howell X Hand Delivery Kris Sasser U S Mail, postage pre-paid Idaho Public Utilities Commission - Facsimile 472 West Washington - Electronic Mail Boise, Idaho 83702 donald.howell@puc.idaho.gov krisine.sasser(ipuc.idaho.gov Donovan E Walker - Hand Delivery Jason B Williams —U .S. Mail, postage pre-paid Idaho Power Company - Facsimile P0 Box 70 X Electronic Mail Boise, ID 83707-0070 dwalker@idahopower corn jwilliams kidahopower.com Michael G. Andrea - Hand Delivery Avista Corporation —U .S. Mail, postage pre-paid P.O. Box 3727 - Facsimile Spokane, WA 99220 X Electronic Mail michael andrea@avistacorp com Dame! Solander - Hand Delivery PacifiCorp/dba Rocky Mountain Power —U .S. Mail, postage pre-paid 201 5 Main St Ste 2300 - Facsimile Salt Lake City, UT 84111 X Electronic Mail daniel.solander@pacificorp.com Dean J. Miller - Hand Delivery McDevitt & Miller, LLP _U.S. Mail, postage pre-paid 420 W Bannock St Facsimile Boise, ID 83702 X Electronic Mail joe@,mcdevitt-miller.com Tauna Christensen Energy Integrity Project 769N 1100E Shelley ID 83274 tauna(energvintegrityproject.or John R. Lowe Consultant Renewable Energy Coalition 12050 SW Tremont St Portland, OR 97225 jravenesanmarcosyahoo.com R. Greg Femey Mimura Law Offices PLLC Interconnect Solar Development, LLC 2176 E Franklin Rd Ste 120 Meridian, ID 83642 gregmimuralaw.com Bill Piske, Manager Interconnect Solar Development, LLC 1303 E. Carter Boise, ID 83706 billniskecableone.net Ronald L. Williams Williams Bradbury, PC 1015 W. Hays Street Boise, ID 83702 ronwilliamsbradburv.com Wade Thomas General Counsel Dynamis Energy, LLC 776 W. Riverside Dr., Ste 15 Eagle, ID 83616 wthomas@dynamisenergv.com C Thomas Arkoosh Capitol Law Group PLLC 205NlOthSt 4thFloor P0 Box 2598 Boise ID 83701 tarkoosh(canito1lawroun.com - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery U.S. Mail, postage pre-paid Facsimile Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail CERTIFICATE OF SERVICE GNR-E-1 1-03 - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery —U .S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery U.S. Mail, postage pre-paid Facsimile X Electronic Mail Brian Olmstead General Manager Twin Falls Canal Company P0 Box 326 Twin Falls, ID 83303 olmsteadffcanal.com Robert A. Paul Grand View Solar II 15690 Vista Circle Desert Hot Springs, CA 92241 robertanaul08(mail.com James Carkulis Exergy Development Group of Idaho, LLC 802 W. Bannock, Ste 1200 Boise, ID 83702 icarkulisexervdeveloDment.com Arron F. Jepson Blue Ribbon Energy, LLC 10660 South 540 East Sandy, UT 84070 arronesg@aol.com M.J. Humphries Blue Ribbon Energy, LLC 4515 S. Ammon Rd. Ammon, ID 83406 blueribbonenervmail.com Ted Diehl General Manager North Side Canal Company 921 N. Lincoln St. Jerome, ID 83338 nscanalcableone.net Bill Brown Adams County Board of Commissioners P0 Box 48 Council, IT 83612 bdbrown@frontiemet.net CERTIFICATE OF SERVICE GNR-E-1 1-03 Ted S. Sorenson, PE - Hand Delivery Birch Poer Company _U.S. Mail, postage pre-paid 5203 South 1 1th East - Facsimile Idaho Falls, ID 83404 X Electronic Mail ted@tsorenson net Glenn Ikemoto - Hand Delivery Margaret Rueger —U .S. Mail, postage pre-paid Idaho Windfarms, LLC - Facsimile 6762 Blair Avenue X Electronic Mail Piedmont, CA 94611 glenthenvisionwind.com margaretenvisionwind.com Megan Walseth Decker - Hand Delivery Senior Staff Counsel —U .S. Mail, postage pre-paid Renewable Northwest Project - Facsimile 917 SW Oak Street Ste 303 X Electronic Mail Portland, OR 97205 megan@,Mp.org Benjamin J. Otto - Hand Delivery Idaho Conservation League U.S. Mail, postage pre-paid 710 N Sixth Street (83702) - Facsimile P0 Box 844 X Electronic Mail Boise, ID 83701 botto@idahoconservation org Ken Miller - Hand Delivery Liz Woodruff U.S. Mail, postage pre-paid Snake River Alliance - Facsimile P0 Box 1731 X Electronic Mail Boise, ID 83701 kmi1lersnakeriveral1iance.org lwoodruff@snakenveralhance org Robert D Kahn Hand Delivery Executive Director —U .S. Mail, postage pre-paid Northwest & Intermountain Power Producers Facsimile Coalition X Electronic Mail 1117 Minor Ave., Ste 300 Seattle, WA 98101 rkahnnippc.org CERTIFICATE OF SERVICE GNR-E-1 1-03 Don Sturtevant Energy Director J.R. Simplot Company P0 Box 27 Boise, ID 83707-0027 don. sturtevantsimnlot.com Mary Lewallen Clearwater Paper Corporation 601 W Riverside Ave Ste 1100 Spokane WA 99201 marv.1ewallen(clearwaterPaver.cQm Don Schoenbeck RCS 900 Washington St., Suite 780 Vancouver, WA 98660 dws(x-c-s-inc.com Lori Thomas Capital Law Group, PLLC P0 Box 2598 Boise, ID 83701-2598 lthomas@capitallawgroun.com Deborah E. Nelson Kelsey J. Nunez Givens Pursley LLP 601 W. Bannock Street Boise, ID 83702 den(givenspurs1ev.com kjngivensyurslev.com - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail - Hand Delivery U.S. Mail, postage pre-paid Facsimile X Electronic Mail hnna C. Tiptop' CERTIFICATE OF SERVICE GNR-E-1 1-03