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HomeMy WebLinkAbout20131213Workshop Comments.pdf^llml0Npggl6p= i , l; I ' An lDAcoRP company ?ili: llill l: Pil tr: 3l+ JULIAA. HILTONCorporateCounset i-''; ihilton@idahopower.com .j'i.;'-i iij:'-; .'1' '' 'r 'i'' December 13,2013 VIA HAND DELIVERY Jean D. Jewell, Secretary ldaho Public Utilities Commission 47 2 W est Washington Street Boise, ldaho 83702 Re: Case No. GNR-E-11-03 PURPASAR and IRP Methodologies - Idaho Power Company's Workshop Comments Dear Ms. Jewell: Enclosed forfiling in the above matter are an original and seven (7) copies of ldaho Power Company's Workshop Comments. Very truly yours,#ffi JAH:csb Enclosures 1221 W. ldaho St. (83702) P.O. Box 70 8oise, lD 83707 DONOVAN E. WALKER (lSB No. 5921) JULIA A. HILTON (lSB No. 7740\ ldaho Power Company 1221West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 dwalker@idahopower.com ih ilton@ idahopower. com Attorneys for ldaho Power Company IN THE MATTER OF THE COMMISSION'S REVIEW OF PURPA QF CONTRACT PROVISIONS INCLUDING THE SURROGATE AVOIDED RESOURCE (SAR) AND INTEGRATED RESOURCE PLANNTNG (rRP) METHODOLOGIES FOR CALCULATING AVOIDED COST RATES. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. GNR-E-11-03 IDAHO POWER COMPANY'S WORKSHOP COMMENTS ldaho Power Company ("ldaho Powe/' or "Company") hereby respectfully submits to the ldaho Public Utilities Commission ("Commission") its comments on the Public Utility Regulatory Policies Act of 1978 ('PURPA') contracting procedures workshops ("Comments"). I. INTRODUCTION On December 18, 2012, the Commission issued Order No. 32697 in the above- captioned case. In that Order, the Commission directed the parties to participate in workshops "to begin to form a structure for fair and reasonable contracting procedures IDAHO POWER COMPANY'S WORKSHOP COMMENTS - 1 and rules" and submit a proposal for approval of such terms to the Commission by December 13,2013. ld. Several parties to the case participated in workshops on September 17, 2013, and November 14, 2013, to discuss PURPA contracting procedures. Following the September workshop, the utilities agreed to draft a proposal for qualifying facilities ('QF") to evaluate prior to the November workshop. Due to differences between the utilities, the three utilities were not able to agree upon a single proposal. ldaho Power brought its own draft tariff to the November workshop while Avista and PacifiCorp brought a single draft tariff that contained some common sections and carved out sections with language proposed by each utility. At the November 14 workshop, the parties who were present agreed to certain limited concepts regarding timing of responses between utilities and QFs and information provided by a QF prior to receiving indicative pricing and/or draft energy sales agreements. However, parties did not agree to actual language reflecting such terms, and several parties sought additional inclusions and omissions that were not agreed upon. Following the workshop, PacifiCorp drafted a tariff aimed at incorporating the agreed-upon timelines and information, which was provided to all parties on December 4,2013 (the "PacifiCorp Draft"). The PacifiCorp Draft appears to be accurate in those timelines and lists of information discussed in the workshop, but it is not agreed upon by all parties. ldaho Power files these Comments in order to describe the limited nature of agreement, to mention areas of concern and disagreement with the PacifiCorp Draft, and to raise issues that are necessary to resolve before implementing a PURPA IDAHO POWER COMPANY'S WORKSHOP COMMENTS - 2 contracting process document. ldaho Power includes, as Attachment 1 to these Comments, a redlined draft of the extensive changes that the Company believes are necessary before a contract process document is implemented. !I. LIMITED AREAS OF AGREEMENT The parties agreed in concept to some timelines and information to be exchanged between utilities and QFs. Parties agreed that certain information was required by each utility prior to providing a QF with pricing information, draft energy sales agreements, and fina! energy sales agreements. The agreed-upon lists of information are contained in Sections lll(1), lV(1), and lV(3) of the PacifiCorp Draft and Sections l(B)(1), I(CX1), and l(CX3) of ldaho Power's draft. While ldaho Power agrees to these lists of information, some QFs questioned the need to include language that the proposed draft tariff only applies to sales where a QF connects directly with a utility. ldaho Power would have different requirements for the provision of required information in these sections if the process document were to also apply to off-system sales. The parties also agreed to timelines where a utility will notify parties of incomplete information within 5 business days, provide pricing information and draft energy sales agreements within 20 business days of receiving all necessary information, and provide final, executable energy sales agreements 10 business days after parties are in full agreement on the terms of the energy sales agreement. These timelines can be found in Sections ll, lll(2), lV(2), V(4), and V(3) of the PacifiCorp Draft and Sections l(A), I(BX2), l(CX2), l(CX4), and l(D)(3) of ldaho Power's draft. The parties agreed to timelines and procedures for negotiations. These timelines include a requirement that a QF must respond to draft energy sales agreements within IDAHO POWER COMPANY'S WORKSHOP COMMENTS.3 90 calendar days of its receipt and execute a final energy sales agreement within 10 business days of its receipt. lf a QF does not meet these timelines, the process outlined in the process document would begin again. These timelines and procedures can be found in Sections V(1) and V(3) of the PacifiCorp Draft and Sections l(D)(1) and l(DX3) of ldaho Power's draft. Please note that because the parties did not all agree to the language in the PacifiCorp Draft, Idaho Power's Section l(DX3) contains an important clarification that the timelines applicable to the utility and the QF are based upon the other party's receipt of the document. III. IDAHO POWER'S PROPOSED PURPA CONTRACTING PROCEDURES The parties did not agree to other important items such as language on the non- binding nature of draft contracts and reference to other processes required for a QF to deliver energy to ldaho Power. ldaho Power believes that, especially in light of current cases, language describing the non-binding nature of a draft contract is necessary to include in a document describing PURPA contracting procedures. ldaho Power believes that without such language specifically describing the intent of a draft, the QF community will use draft contracts to attempt to create a legally enforceable obligation in a manner that is not consistent with Commission orders. ldaho Power will not agree to a tariff that does not include such language, and QFs have stated that they will not agree to a tariff that includes it. Additionally, it is necessary for an ldaho Power contracting process document to include, at a minimum, a reference to the generation interconnection and designated network resource processes in order to put QFs on notice that these paralle! tracks exist IDAHO POWER COMPANY'S WORKSHOP COMMENTS.4 and are required prior to a QF's interconnection and The referenced generation interconnection and designated network resource processes are procedures that are required to comply with Idaho Power's Schedule 72 and other Federal Energy Regulatory Commission regulations. IV. CONCLUSION While the workshops were helpful and some progress was made toward developing a contracting process document, it is apparent that the parties do not agree to one unified document. There are some aspects that would necessitate each utility to complete its own utility-specific contracting procedures, and some issues that the utilities and QF representatives do not, and likely will not, agree upon. ldaho Power believes that if a process document for PURPA contracting procedures is to be implemented, it is important that, at a minimum, information about the non-binding nature of draft energy sales agreements be included, as well as information regarding the interconnection and designated network resource requirements. Respectfully submitted this 13th day of Decemb er 2013. Attorney for ldaho Power Company IDAHO POWER COMPANY'S WORKSHOP COMMENTS - 5 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 13th day of December 2013 | served a true and correct copy of IDAHO POWER COMPANY'S WORKSHOP COMMENTS upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Kristine A. Sasser Deputy Attorney General ldaho Public Utilities Commission 47 2 W est Washington (83702) P.O. Box 83720 Boise, ldaho 83720-007 4 Avista Corporation Michael G. Andrea Avista Corporation 1411 East Mission Avenue, MSC-23 Spokane, Washingto n 99202 Pacificorp d/b/a Rocky Mountain Power Daniel E. Solander PacifiCorp dlbla Rocky Mountain Power 201 South Main Street, Suite 2300 Salt Lake City, Utah 84111 Exergy Development, Grand View Solar II, J.R. Simplot, Northwest and lntermountain Power Producers Coalition, Board of Gommissioners of Adams County, ldaho, and Glearwater Paper Corporation Peter J. Richardson Gregory M. Adams RICHARDSON ADAMS, PLLC 515 North 27th Street (83702) P.O. Box 7218 Boise, ldaho 83707 Exergy Development Group of ldaho, LLG James Carkulis, Managing Member Exergy Development Group of ldaho, LLC 802 West Bannock Street, Suite 1200 Boise, ldaho 83702 X Hand Delivered U.S. Mail Overnight Mail FAXX Email kris.sasser@puc.idaho.qov Hand DeliveredX U.S. Mail _Overnight Mail FAX Email michael.andrea@avistacorp.com Hand Delivered U.S. Mail Overnight Mail FAX Email daniel.solander@pacificorp.com Hand Delivered U.S. Mail Overnight Mail FAX Emai! peter@richardsonadams.com q reo@ richa rd sonad ams. co m Hand Delivered U.S. Mail Overnight Mail FAX Email icarkulis@exerqvdevelopment.com IDAHO POWER COMPANY'S WORKSHOP COMMENTS.6 Dr. Don Reading 6070 Hill Road Boise, ldaho 83703 Grand View Solar ll Robert A. Paul Grand View Solar ll 15690 Vista Circle Desert Hot Springs, California 92241 J.R. Simplot Company Don Sturtevant, Energy Director J.R. Simplot Company One Capital Center 999 Main Street P.O. Box27 Boise, ldaho 83707 -0027 Northwest and Intermountain Power Producers Coalition Robert D. Kahn, Executive Director Northwest and !ntermountain Power Producers Coalition 1 1 17 Minor Avenue, Suite 300 Seattle, Washington 981 01 Board of Commissioners of Adams Gounty, ldaho Bi!! Brown, Chair Board of Commissioners of Adams County, ldaho P.O. Box 48 Council, ldaho 83612 Glearuvater Paper Corporation Marv Lewallen Cleanruater Paper Corporation 601 West Riverside Avenue, Suite 1 100 Spokane, Washington 99201 Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email dreadinq@mindsprinq.com d r@beniohnsonassociates. com _Hand DeliveredX U.S. Mai! _Overnight Mai! FAXX Email ro bertapau 108@g ma i l. co m Hand Delivered U.S. Mai! Overnight Mai! FAXX Email don.sturtevant@simplot.com Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email rkahn@nippc.orq Hand DeliveredX U.S. Mail Overnight Mail FAXX Email bdbrown@frontiernet.net Hand Delivered U.S. Mail Overnight Mail FAX Email marv. lewallen@cleanruaterpaper.com IDAHO POWER COMPANY'S WORKSHOP COMMENTS - 7 Renewable Energy Goalition and Dynamis Energy, LLC Ronald L. Williams WILLIAMS BRADBURY, P.C. 1015 West Hays Street Boise, ldaho 83702 Renewable Energy Coalition John R. Lowe, Consultant Renewable Energy Coalition 12050 SW Tremont Street Portland, Oregon 97225 Dynamis Energy, LLC Wade Thomas, General Counsel Dynamis Energy, LLC 776 East Riverside Drive, Suite 150 Eagle, ldaho 83616 Interconnect Solar Development, LLC R. Greg Ferney MIMURA LAW OFFICES, PLLC 2176 East Franklin Road, Suite 120 Meridian, ldaho 83642 Bill Piske, Manager Interconnect Solar Development, LLC 1303 East Carter Boise, ldaho 83706 Renewable Northwest Project, ldaho Windfarms, LLC, and Ridgeline Energy LLG Dean J. Miller Chas. F. McDevitt McDEVITT & MILLER LLP 420 West Bannock Street (83702) P.O. Box 2564 Boise, ldaho 83701 Megan Walseth Decker Senior Staff Counsel Renewable Northwest Project 421 SW 6th Avenue, Suite 1125 Portland, Oregon 97204 Hand Delivered U.S. Mail Overnight Mail FAXX Email ron@williamsbradbury.com Hand Delivered U.S. Mail Overnight Mai! FAXX Email iravenesanmarcos@vahoo.com _Hand DeliveredX U.S. Mail Overnight Mail FAXX Email wthomas@dvnamiseneroy.com Hand Delivered U.S. Mail Overnight Mail FAXX Email qreq@mimuralaw.com _Hand DeliveredX U.S. Mail Overnight Mail FAXX Email billpiske@cableone.net _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email ioe@mcdevitt-miller.com chas@mcdevitt-m i I ler. co m Hand Delivered U.S. Mail Overnight Mail FAX Email meoan@rnp.orq IDAHO POWER COMPANY'S WORKSHOP COMMENTS - 8 ldaho Windfarms, LLC Glenn lkemoto Margaret Rueger ldaho Windfarms, LLC 672Blair Avenue Piedmont, California 9461 1 Twin Falls Canal Company, North Side Canal Company, Big Wood Canal Company, and American Falls Reservoir District No.2 C. Tom Arkoosh ARKOOSH LAW OFFICES 802 West Bannock, Suite 900 P.O. Box 2900 Boise, ldaho 83701 ELECTRONIC SERVICE ONLY Donald W. Schoenbeck RCS, lnc. 900 Washington Street, Suite 780 Vancouver, Washington 98660 ELECTRONIC SERVICE ON LY Twin Falls Ganal Company Brian Olmstead, General Manager Twin Falls Canal Company P.O. Box 326 Twin Falls, ldaho 83303 ELECTRONIC SERVICE ON LY North Side Canal Gompany Ted Diehl, General Manager North Side Canal Company 921 North Lincoln Street Jerome, ldaho 83338 Birch Power Company Ted S. Sorenson, P.E. Birch Power Company 5203 South 11th East Idaho Falls, ldaho 83404 Hand Delivered U.S. Mail Overnight Mail FAXX Email qlenni@envisionwind.com ma rqa ret@envisio nwi nd. co m Hand Delivered U.S. Mail Overnight Mail FAXX Email tom.arkoosh@arkoosh.com eri n. ceci I @arkoosh. com Hand Delivered U.S. Mail Overnight Mail FAXX Email dws@r-c-s-inc.com _Hand Delivered U.S. Mail Overnight Mail FAXX Email olmstead@tfcanal.com Hand Delivered U.S. Mail Overnight Mail FAX X Email nscanal@cableone.net _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email ted@tsorenson.net IDAHO POWER COMPANY'S WORKSHOP COMMENTS - 9 Blue Ribbon Energy LLC M. J. Humphries Blue Ribbon Energy LLC 3470 Rich Lane Ammon, ldaho 83406-7728 Arron F. Jepson Blue Ribbon Energy LLC 10660 South 540 East Sandy, Utah 84070 ldaho Gonservation League Benjamin J. Otto ldaho Conservation League 710 North Sixth Street (83702) P.O. Box 844 Boise, ldaho 83701 Snake River Alliance Liz Woodruff, Executive Director Ken Miller, Clean Energy Program Director Snake River Alliance P.O. Box 1731 Boise, ldaho 83701 Energy lntegrity Project Tauna Christensen Energy lntegrity Project 769 North 1 100 East Shelley, ldaho 83274 ldaho Wind Partners !, LLC Deborah E. Nelson Kelsey J. Nunez GIVENS PURSLEY LLP 601 West Bannock Street (83702) P.O. Box 2720 Boise, ldaho 83701 -2720 Mountain Air Projects, LLC J. Kahle Becker The Alaska Center 1020 West Main Street, Suite 400 Boise, ldaho 83702 Hand DeliveredX U.S. Mail Overnight Mail FAXX Email blueribbonenerqv@qmail.com Hand Delivered U.S. Mail Overnight Mail FAX Email arronesq@aol.com Hand DeliveredX U.S. Mail Overnight Mail FAXX Email botto@idahoconservation.org Hand Delivered U.S. Mail Overnight Mail FAX Email lwood ruff@snakeriveralliance.orq km i I ler@snakeriveral I ia nce. o rq Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email tauna@enerqvinteqrityproiect.orq _Hand DeliveredX U.S. Mail _Ovemight Mail -FAXX Email den@qivenspurslev.com kin@oivenspurslev.com _Hand DeliveredX U.S. Mail Overnight Mail FAXX Email kahle@kahlebeckerlaw.com IDAHO POWER COMPANY'S WORKSHOP COMMENTS - 1O MichaelJ. Uda UDA LAYT/ FIRM, P.C. 7 West 6h Avenue, Suite 4E Helena, Montana 59601 _Hand DeliveredX U.S. Mail _Ovemight Mail _FAXX Email muda@mthelena.com IDAHO POWER COMPANYS WORKSHOP COMMENTS . 11 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. GNR.E-I 1.03 IDAHO POWER COMPANY ATTACHMENT 1 SCHEDULE 73 ENERGY SALES AGREEMENT PROCEDURES FOR QUALIFYING FACILITIES STATE OF IDAHO ies AVAILABILITY Service under this schedule is available to Owners of Qualifvinq Facilities (QF) throuohout the Companv's service area within the State of ldaho. APPLlCABILIry ToownersofexistingorpropoSeo@$r+}whodesiretomakeenerqV sales to fU+iti+Vllhe Sgpeny under the Public Utility Regulatory Policy Act of 1978 at published or neootiated avoided cost rates, and will deliver the output of such QFs at a point of delivery on tU+ti+Vllleho_Powel's electrical system that is located in the State of ldaho. Owners shall enter into awrittenagreementwith@pursuanttotheprocedures set forth below. Additional or different requirements may apply to ldaho QFs seeking to make sales to third-_parties or out-of-system QFs seeking to wheel power to ldaho for sale to fUtili+y].lSlAho Powef. I. ENERGY SALES AGREEMENTS l{- A. Communications Unless otherwise directed bV tutitityllhe_Cgp3ny, all communications shall be directed in writing, by mail or email, as follows: @ldaho PowerCompany ATTN: Coqeneration and Small Power Production 1221 West ldaho Street Boise. ldaho 83702 IEMAILI Where tU+t++Vllhe Sompeny is unable to respond on the basis of incomplete or missing information from the Owner, tU+tityilhe rcompanV shall, within five (5) business days, notify the Owner in writing that additional information is required and identify what additional information is required. Thereafter, [Utility]lhe Companv shall respond in a timely manner following receipt of all required information as more fully described below. €e*inueO)B. Procedures for Obtainino lndicative Pricino and a Draft Perve+Purehase-Enerqv Sales Aoreement: Standard QFs (Published Rates) 1. To obtain an indicative pricing proposal and a draft pewer-purehase enerov sales agreement with respect to a proposed Project, the Owner 1 shallprovideto@allgenera!informationregardingthe Project that is reasonably required for @ to determine the applicable published rate and to draft ap @ sales agreement. A Project is defined as an existing or proposed QF that can satisff the applicability requirements of this Schedule -73. General information regarding a Project shall include, but not be limited to: 1 SCHEDULE 73 ENERGY SALES AGREEMENT PROCEDURES FOR QUALIFYING FACILITIES (Continued) l. ENERGY SALES AGREEMENTS (Continued) B. Procedures for Obtainino lndicative Pricinq and a Draft Power+ur€ha€e-Enerov Sales Aoreement: Standard QFs (Published Rates) (Continued) a) plroject eQwner and contact information; b) generation and other related technology applicable to the site; c) design capacity, station service requirements, and the net amount of power, all in kilowatts (kW), to be delivered to [Utitity]lhe._9@e_ny's electric system; d) schedule of estimated power deliveries, in sufficient detail to determine and to calculate the applicable price; e)ability,ifany,torespondtodispatchordersfrom@; 0 map of site location, electrical interconnection point, and point of delivery;g) anticipated commencement date for power deliveries; h) list of acquired and outstanding Project permits, including a description of the status and timeline for acquisition of any outstanding permits;i) demonstration of ability to obtain QF status;j) fuel type(s) and source(s); k) plans to obtain, or actual, fuel and transportation agreements, if applicable;l) plans to obtain electricity transmission agreements; (required for any Project that interconnects electrically with the electrical system other than @'s electrical system); m) proposed contract term and proposed pricing structure (levelized price or non-levelized price); n) evidence of ability to obtain site control for the entire term of the power sale; o) assurance of fuel supply or motive force;p) anticipated timelines for completion of key Project milestones; andq) adequate assurance that plroject interconnection is to occur on or prior to the requested first delivery date. 2. Following satisfactory receipt of all information required in Paragraph 1, tU+it+tyilhe Compely shall, within twentv (20) business days, provide the Owner with an indicative pricing proposal and draft pewe+-pu+enase enerqv sales agreement containing terms and conditions tailored to the individual characteristics of the proposed Project. The indicative draft enerqv sales aqreement will not be final or bindino on either partv. Prices and other terms and conditions will be final and bindinq onlv upon the ldaho Public Utilities Commission approval of a fullv executed enerov sales aqreement. €en+inueA) 2 SCHEDULE 73 ENERGY SALES AGREEMENT PROCEDURES FOR QUALIFYING FACILITIES (Continued) EtECTRIC SERVICE SCHEDUTE Ne- CentinueC ENERGY SALES AGREEMENTS (Continued) C. Procedures for Obtainino lndicative Pricino and a Draft PewerPurehaseEnerqv Sales -Aoreement: Non-Standard QFs 1. To obtain an indicative pricing proposal with respect to a proposed Project, the Owner shall provide to ftlt+lity]lhe JamEty all general information regarding the Project that is reasonably required for ftltili$llhe Companv to calculate the avoided cost price. A Project is defined as an existing or proposed QF that can satisfy the applicability requirements of this Schedule -73. General information regarding a Project shall include, but not be limited to: a) pProject eQwner and contact information; b) generation and other related technology applicable to the site; c) design capacity, station service requirements, and the net amount of power, all in kilowatts (kW), to be delivered to [Utiffilhe tQompany's electric system; d) schedule of estimated power deliveries, in sufficient detail to determine and to calculate the applicable price; e) ability, if any, to respond to dispatch orders from [Utility]lhe-.lCornpgqy;0 map of site location, electrical interconnection point, and point of delivery; anticipated commencement date for power deliveries; list of acquired and outstanding Project permits, including a description of the status and timeline for acquisition of any outstanding permits; demonstration of ability to obtain QF status; fuel type(s) and source(s); plans to obtain, or actual, fuel and transportation agreements, if applicable;l) plans to obtain electricity transmission agreements, (required for any Project that interconnects electrically with the electrical system other than fUti{ity}lhe tQg4pgly's electrica I system ); and m) proposed contract term and proposed pricing structure (levelized price or non-levelized price). 2. Following satisfactory receipt of all information required in Paragraph 1, [U+titV[hC Sompely shall, within twentv (20) business days, provide the Owner with an indicative pricing proposal tailored to the individual characteristics of the proposed Project. The indicative pricinq proposal will not be final or bindino on either partv. Prices and other terms and conditions will be final and bindino onlv upon the ldaho Public Utilities Commission approval of a fullv executed enerov sales aqreement. €en+inuee) s) h) i) i) k) SCHEDULE 73 ENERGY SALES AGREEMENT PROCEDURES FOR QUALIFYING FACILITIES (Continued) l. ENERGY SALES AGREEMENTS (Continued) C. Procedures for Obtainino Indicative Pricinq and a Draft Enerov Sales Aqreement: Non-Standard QFs (Continued) 3. !f the Owner desires to proceed with the Project after reviewing ftJ+ili+y]lhe Companv's indicative pricing proposal, it shall request in writing that tU+tityl!f;g Jom@y prepare a draft agreement to serve as the basis for negotiations between the parties. ln connection with such request, the Owner shall provide tU+iti+Vfihe Companv with any additional Project information that [U+ilftg1ne Cr*r* reasonably determines to be necessary for the preparation of a draft @ agreement, which includes, but shall not be limited to: any additional information that was requested in tu{il+ty}the Company's indicative pricing proposal; updated information of the categories described in Section lVQ. Paragraph 1; c) evidence of ability to obtain site control for the entire term of the power sale;d) assurance of fuel supply or motive force; e) anticipated timelines for completion of key Project milestones; and 0 adequate assurance that plroject interconnection is to occur on or prior to the requested first delivery date. 4. Once the Owner has satisfied the requirement to provide all requested information, fUt+lity]lhe JqpanV shall, within twentv (20) business days, provide the Owner with a draft agreement containing a comprehensive set of proposed terms and conditions. Such draft shall serve as the basis for subsequent negotiations between the parties and. unless clearlv indicated. shall not be construed as a bindinq proposal bv the Companv. Prices and other terms and conditions will be final and bindinq onlv upon the ldaho Public Utilities Commission approval of a fullv executed enerov sales aoreement. D. Procedures for Neootiatino an PewerPn+ehaseEnerqv Sales Aoreement: All QFs 1. After reviewing the draft agreement, the Owner shal{ngy prepare an initial set of written comments and proposals regarding the draft agreement and shall provide such comments and proposals, or notice that it has none, to tU+ti+V]!he rcompeny tU+ti+Vflhe Jomgty shall not be obligated to commence negotiations with an Owner until {Uti{ityfll has received an initial set of written comments and proposals from the Owner, or notice a) b) 4 from the Owner that it has no such comments or proposals. Following tU+ti$[hglgrngly's receipt of such comments and proposals from the Owner, or notice from the Owner that it has no such comments or proposals, the Owner shall contact [tltili*]lhelerngly to schedule contract €en+inuea) negotiations SCHEDULE 73 ENERGY SALES AGREEMENT PROCEDURES FOR QUALIFYING FACILITIES (Continued) l. ENERGY SALES AGREEMENTS (Continued) D. Procedures for Neqotiatino an Enerov Sales Aqreement: All QFs (Continued) such times and places as are mutually agreeable to the parties. lf fu{ili+y}tne Companv has not received written comments and proposals from the Owner, or notice from the Owner that it has no such comments or proposals, within ninetv (90) calendar days of the receipt of a draft agreement from {Utility}lhe tCompany, fUtility]lhC Jq-panV shall have no further obligation to such Owner under this tariff unless or until such time Owner resubmits the Project to fUtility]lhe tQgApgly in accordance with this sSchedule 73. ln connection with any contract negotiations between fut+lity]lhe Ce11pgly and the Owner, futility]thg tompely: a) shall not unreasonably delay negotiations and shall respond in good faith to any additions, deletionsr or modifications to the draft pewer @ agreement that are proposed by the Owner; b) may request to visit the site of the proposed Projectif+ueh-a-visitSas @;c) shall update its pricing proposals at appropriate intervals to accommodate any changes to {U+i{ity}!he tQgapggy's avoided-_cost calculations, the proposed Project, or proposed terms of the draft @agreement;d) may request any additional information from the Owner necessary to finalize the terms of the @ agreement and satisfy tUt+t++Vilhelg4pany's due diligence with respect to the Project. When both parties are in full agreement as to all terms and conditions of the draft agreement, fUtili{y}lhg Jq.pany shall prepare and forward to the Owner, within ten (10) business days, a final, executable version of the @ agreement. Within ten (10) business davs of receipt of the final. executable version. Owner shall sign and fonuard to {U+ility}lhe tQg4pany w*nin-+en--(+g) Uusiness-aap-a fully executed version of the @sales agreement. lf the fully executed version of the power @ agreement is not @ tU+tityilhe Jgrngly within ten (10) business days, @ obligations under this Schedule -73 shall be deemed complete and Owner must initiate a new request under Section l#E or Section lVe. The timelines in this section may be modified by mutual consent of the parties. 2. 3. v+.!.l. pRocESS FoR NEGOTTATTNG TNTERCONNECTTON AGREEMENTS lnadditiontonegotiatingan@agreement,QFsintendingto of ldaho must enter into an interconnection agreement governing the physical interconnection of the Project to [t+ili*]!he-.lQ9moa!y or a€c--[hi4[party's electrica! system pursuant to the Companv's Schedule 72 (lnterconnections to Non-Utilitv Generation). jUtili$].Ihe Co1ppgly's obligation to purchase from a QF will be conditioned on the consummation of all necessary interconnection arrangements ' 5 SCHEDULE 73 ENERGY SALES AGREEMENT PROCEDURES FOR QUALI FY]NG FACILITI ES (Continued) ll. PROCESS FOR NEGOTIATING INTERCONNECTION AGREEMENTS (Continued) It is recommended that the Owner initiate its request for interconnection as earlv in the plannino process as oossible to ensure that necessarv interconnection arranoements and understandino of potential costs and schedules oroceed on a oarallel track with neootiation of the enerov sales aqreement. Please refer to the Companv's Schedule 72 (lnterconnection to Non-Utilitv Generation) for procedures and contact information. I!I. DESIGNATION AS A NETWORK RESOURCE ln addition to comoletion of an enerqv sales aoreement and a interconnection aoreement. the QF Owner is also responsible for all network transmission modifications or uporades reouired to enable the QF Proiect's enerov to be delivered to a point on ldaho Power's electrical svstem that enables the QF Proiect's enerov to be consumed by ldaho Power customers and to be classified as a Companv Desionated Network Resource (DNR). A. Communications lnitial communications reqardino the Desionated Network Resource process should be directed to the Companv in writinq as follows: ldaho Power Companv ATTN: Cooeneration and Small Power Production B. Procedures The Companv shall provide the Owner with a transmission capacitv questionnaire. Onlv after the Owner has provided (1) an accurate and complete questionnaire. (2) evidence that the proposed Proiect Owner has filed an application for interconnection and (3) made substantial proqress in understanding and neqotiatinq an eneroy sales aoreement shall the Companv submit a Transmission Service Request (TSR) to the Companv's transmission business unit. The most efficient processino of the TSR is to simultaneouslv process this request with the interconnection aoplication: therefore it is recommended that the Owner complete the necessarv requirements to enable this to occur. Results of the network transmission studies initiated bv the TSR will be communicated to the Owner in a timelv manner and will be included in the finalGlA. Upon successfu! comoletion of the GIA requirements includino any Companv network transmission modifications or additions. and the first enerov 0 date requirements within the enerqv sales aqreement. the Proiect will be elioible to receive ldaho Power DNR status.