20120719Petition for Late Intervention.pdf

UDA LAW FIRM, P.C.
ATTORNEY AT LAW
MICHAEL J. UDA, MS 7 WEST 61", AVENUE, SUITE 4E
HELENA, MT 59601
TELEPHONE: [phone]
EMAIL: [e-mail]
July 17, 2012
Jean Jewell
Commission Secretary
State of Idaho
Public Utilities Commission
472 W. Washington 83702
P0 Box 83720
Boise, ID 83720-0074
RE: GNR-E-11-03
Dear Ms. Jewell,
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Enclosed are the following documents and seven copies of each: Motion for Admission Pro Hac
Vice, Affidavit of Michael J. Uda, and Petition for Late Intervention.
Sincerely,
Cathleen Uda
Administrative Assistant
cathyuda(àmthelena.com
Admitted in Oregon and Montana
RE C E V ED
J. Kahle Becker (ISB No. # 7408)
The Alaska Center
1020 W. Main St. Suite 400
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
Email: kahlekahlebeckerlaw.com
Michael J. Uda'
Uda Law Firm, P.C.
7 W. 6th Avenue, Suite 4E
Helena, MT 59601
Telephone [phone]
Facsimile: [phone]
Email: muda(mthelena.com
Attorneys for Mountain Air Projects, LLC.
20.12JIJL 19 PH 3: H
UTUJTIES OOM•MSlON
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE )
COMMISSION'S REVIEW OF PURPA )
QF CONTRACT PROVISIONS )
INCLUDING THE SURROGATE )
AVOIDED RESOURCE (SAR) AND )
INTEGRATED RESOURCE PLANNING)
(IRP) METHODOLOGIES FOR )
CALCULATING PUBLISHED )
AVOIDED COST RATES )
Case No. GNR-E-1 1-03
MOUNTAIN AIR PROJECTS, LLC'S
PETITION FOR LATE INTERVENTION
Mountain Air Projects, LLC ("Mountain Air") hereby petitions the Idaho Public Utilities
Commission ("Commission") for late intervention in the above-entitled proceeding pursuant to
Rules 71 through 75 of the Commission's Rules of Practice and Procedure, IDAPA
31.01.01.072-.075. In support of this Petition, Mountain Air states as follows:
The name and address of Mountain Air is:
Mountain Air Projects, LLC
6000 N. Foxtail Way
Mr. Uda is admitted in Oregon (OSB No. 914525) and Montana (MT 4170) and has submitted concurrently with
this petition a motion for admittance pro hac vice to the Commission with Mr. Becker acting as Idaho counsel. Mr.
Uda understands he will not be permitted to participate as legal counsel until the Commission approves the motion
pro hac vice for his limited participation in this proceeding.
Petition for Late Intervention of Mountain Air Projects, LLC 1
Glenns Ferry, ID 83623
Attn.: Todd Haynes
2.Mountain Air's representatives for the purpose of service of pleadings and other
written materials are:
J. Kahle Becker, Idaho
The Alaska Center
1020 W. Main St. Suite 400
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
Email: kahlekahlebeckerlav.com
Michael J. Uda
Uda Law Firm, P.C.
7 W. 6th Avenue, Suite 4E
Helena, MT 59601
Telephone [phone]
Facsimile: [phone]
Email: [e-mail]
3.Mountain Air is a subsidiary of Tema Energy USA. Tema is an independent
energy company involved in the development, construction, financing and operation of
renewable energy projects. The Mountain Air projects are Cold Springs Windfarm, LLC ("Cold
Springs"); Desert Meadow Windfarm, LLC ("Desert Meadow"); Hammett Hill Windfarm, LLC
("Hammett Hill"); Mainline Windfarm, LLC ("Mainline"); Ryegrass Windfarm, LLC
("Ryegrass"); and Two Ponds Windfarm, LLC ("Two Ponds") (collectively, the "Mountain Air
QFs").
4.Each of the Mountain Air QFs is a direct, wholly owned subsidiary of Mountain
Air, and is developing, and will own and operate, wind generation facilities with a gross capacity
of 23.0 MW, and an average net output of less than 10 MW per month, that will interconnect to
the Idaho Power transmission system. Each of the Mountain Air QFs has been self-certified as a
QF, and will sell all of its net output under PURPA to Idaho Power, pursuant to a long-term
Petition for Late Intervention of Mountain Air Projects, LLC 2
PURPA PPA with forecast avoided cost rates (the "Mountain Air PURPA PPAs"). Each of the
Mountain Air PURPA PPAs was executed on November 12, 2010, and approved by order of the
Idaho PUC issued on November 16, 2010.
5.Mountain Air has a direct and substantial interest in the outcome of this proceeding.
Each of the Mountain Air QFs is developing, and will own and operate, wind generation
facilities that will be interconnected to the Idaho Power transmission system and will sell all of
its net output to Idaho Power at forecast avoided cost rates pursuant to long-term PURPA PPAs
with Idaho Power that were approved by the Idaho PUC. In addition, the threat of retroactive
modification of the existing, fixed-rate Mountain Air PURPA PPAs could endanger Mountain
Air's efforts to obtain permanent financing for the Mountain Air QFs' projects. As such,
Mountain Air will be directly affected by the outcome of this proceeding. No other party can
adequately represent Mountain Air's interests in this proceeding. Unless Mountain Air is
permitted to intervene and to participate fully, it may be bound or adversely affected by Idaho
Power's proposal and the Commission's order in this proceeding. Thus, Mountain Air's
intervention, and its participation as a party in this proceeding, is in the public interest.
6.In particular, Mountain Air is gravely concerned about Idaho Power's proposed
Schedule 74, Policy and Procedure for Operational Dispatch of Certain PURPA Qualifying
Facilities, which appears to permit Idaho Power to curtail QFs in circumstances beyond those
permitted by Federal Energy Regulatory Commission ("FERC") rule, 18 C.F.R. § 292.304(f).
As set forth above, since each of the Mountain Air QFs have existing PPA's with forecast long-
term avoided cost rates, any imposition of a curtailment except under the limited "light loading"
circumstances expressly set forth in 18 C.F.R. § 292.304(f) may have a substantial and
deleterious impact on the Mountain Air QFs. The forecast long-term avoided cost rates in the
Petition for Late Intervention of Mountain Air Projects, LLC 3
Mountain Air QF PPAs did not contemplate substantial curtailments of any sort other than those
otherwise permitted under 18 C.F.R. § 292.304(f) and Idaho Power's existing tariffs and the
Commission's current set of orders and regulations governing the appropriate method for
calculating avoided costs. The Mountain Air QFs had their financing commitments established
under the laws, tariffs, orders and regulations that existed at the time those commitments were
made. Any change in Idaho Power's curtailment policy that would affect these existing
Mountain Air QFs could therefore undermine those prior financing commitments. Schedule 74
appears to be a substantial departure from prior Idaho Power curtailment policy, and thus directly
and substantially affects the interests of each of the Mountain Air QFs. Further Mountain Air
would highlight the fact that the Wind Integration Charge does not apply to all wind generators
connected to the Idaho Power system, and curtailment under Schedule 74 does not apply to QFs
that do not have GOLCs and/or a nameplate capacity of less than 10 MW. Consequently, wind
generator QFs that, like the Mountain Air QFs, are subject to the charge will not only be subject
to their proportional share of curtailment, but will also share of curtailment of exempt QFs if
Schedule 74 is approved by the Commission.
The Commission rule governing timely intervention (IDAPA 31.01.01.073) states:
Petitions not timely filed must state a substantial reason for delay. The
Commission may deny or conditionally grant petitions to intervene that are not
timely filed for failure to state good cause for untimely filing, to prevent
disruption, prejudice to existing parties or undue broadening of the issues, or for
other reasons. Intervenors who do not file timely petitions are bound by orders
and notices earlier entered as a condition of granting the untimely petition.
8. Mountain Air only become aware that Schedule 74 might be applied to existing
contracts following May 4, 2012, when Commission Staff witness Rick Sterling submitted
prefiled direct testimony which for the first time stated his belief that Schedule 74 could be used
Petition for Late Intervention of Mountain Air Projects, LLC 4
to curtail existing QF contracts for purely economic reasons.2 Although Mountain Air
previously had been aware there was an ongoing avoided cost proceeding at the Commission,
Mountain Air assumed with some justification, that this would be prospective ratemaking only
and any new methodology or tariff provisions would not apply to Mountain Air's existing
contracts. Although Mountain Air had hoped that at some point the proceeding would clarify
that Schedule 74 could not apply to existing QF contracts, it became clear to Mountain Air
following Mr. Sterling's submittal of prefiled rebuttal testimony on June 29, 2012, that the issue
of whether Schedule 74 will apply to existing QF contracts will continue to be a major issue in
this proceeding. This realization prompted Mountain Air to file this petition to intervene to
protect its interests as they relate to potential economic curtailment of the Mountain Air QFs.
9.Obviously, the deadline for intervention in this proceeding has long since passed,
but Mountain Air had no reason to suspect or know that a historically prospective ratemaking
hearing might result in the application of a new curtailment tariff to existing agreements.
Moreover, there was no reason to suspect that Idaho Power would propose to radically change
the scope of its interpretation of 18 C.F.R. § 292.304(f).
10.The Commission recently granted the late intervention of Idaho Wind Partners I,
LLC in Order No. 32547 (May 9, 2012) and also recently granted late intervention to Ridgeline
Energy, LLC in Order No. 32557 (May 25, 2012). In the Ridgeline Energy, LLC Order, the
Commission noted that
Ridgeline maintains that it will not disrupt or prejudice existing parties or unduly
broaden the issues. Ridgeline agrees to limit its participation to submission of a
legal brief on or before July 20, 2012, relating to legal issues associated with
Mr. Sterling in fact, devotes almost the entirety of his rebuttal testimony to a defense of schedule 74, and
also analyzes the applicability of Schedule 74 to the Idaho Wind Partners existing PPAs, concluding that it would be
appropriate to apply the curtailment provisions to those contracts since the current avoided cost methodology does
not contemplate costs associated with low loading periods.
Petition for Late Intervention of Mountain Air Projects, LLC 5
Idaho Power's proposed Schedule 74 and cross-examination of Idaho Power's
witness, Tessia Park, at the technical hearing scheduled to begin August 7, 2012.
By adopting the self-imposed limitations to Ridgeline's participation in these
proceedings, we find that granting this late intervention will not prejudice any
party and that late intervention should be granted.
Similarly, Mountain Air's participation in this proceeding will not broaden the scope of
this proceeding nor introduce new issues. Nor will its participation unduly prejudice other
parties or cause any disruption to the proceeding. Mountain Air will accept the procedural
schedule as is, with a recognition that it will have no right to introduce testimony in this
proceeding. Instead, Mountain Air will limit itself to submitting a legal brief on or before July
20, 2012, and conducting cross examination on the issues relating to Idaho Power's proposed
Schedule 74. Mountain Air wishes to intervene to protect its interests in this proceeding, and
believes that its participation may help assist the Commission in developing a more complete
record and in crafting an appropriate order.
11.Mountain Air takes issue with proposed Schedule 74 and believes it would be a
violation of PURPA. Specifically, Mountain Air does not believe the Commission may legally
retroactively apply Schedule 74 to contracts executed prior to the effective date of Schedule 74.
Mountain Air further contends that Schedule 74 cannot be applied to curtail QFs with contracts
at forecast avoided cost rates. Finally, Mountain Air believes that the scope of curtailment under
Schedule 74 violates Section 292.304(f) of FERC's regulations because it authorizes QF
curtailment in circumstances beyond those contemplated by this provision, namely, on economic
and environmental grounds.
12.Mountain Air believes that it should be permitted to intervene in this proceeding
given that Schedule 74 may have a substantial effect on the existing PPAs of the Mountain Air
QFs.
Petition for Late Intervention of Mountain Air Projects, LLC 6
WHEREFORE, Mountain Air respectfully requests that the Commission grant this
Petition for Late Intervention and authorize Mountain Air to participate in the above-entitled
proceedings with full rights as a formal party.
DATED this 16th day of July 2012.
By: 2. V"Peja
J. Kahle Becker, Idaho (ISB No. # 7408)
The Alaska Center
1020 W. Main St. Suite 400
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Petition for Late Intervention of Mountain Air Projects, LLC 7
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing Motion for Admission was servied via e-
mail on this 16th day of July, 2012 upon the following:
IDAHO POWER COMPANY:
(Exhibit Nos. 1-100)
AVISTA CORPORATION:
(Exhibit Nos. 101-200)
Donovan E. Walker
Jason B. Williams
Idaho Power Company
P0 Box 70
Boise, ID 83707-0070
E-mail: dwalker(didahopower.com
jwi II iams(ä)idahoDower.conl
Michael G. Andrea
Avista Corporation
1411 E. Mission Ave.
Spokane, WA 99202
E-mail: michael .andreaavi stacorp.com
PACIFICORP, dba ROCKY
MOUNTAIN POWER:
(Exhibit Nos. 201-300)
Daniel Solander
PacifiCorp/ dba Rocky Mountain Power
201 S. Main St., Suite 2300
Salt Lake City, UT 84111
E-mail: [e-mail]
COMMISSION STAFF: Kristine A. Sasser
(Exhibit Nos. 301-400) Deputy Attorney General
Idaho Public Utilities
Commission
472 W. Washington (83702)
P0 Box 83720
Boise, ED 83720-0074
E-mail: kris.sasserPt,puc.idaho.gov
THE NORTHWEST AND Peter J. Richardson
INTERMOUNTAIN POWER Gregory M. Adams
PRODUCERS COALITION: Richardson & OLeary, PLLC
(Exhibit Nos. 401-500) P0 Box 7218
Boise, ID 83702
E-mail:
peter(&,richardsonandoleary.com
greg(ärichardsonandoleary.com
Robert D. Kahn
Executive Director
Northwest and Intermountain Power
Producers Coalition
1117 Minor Ave., Suite 300
Seattle, WA 98101
E-mail: rkahn(&,nippc.org
J.R. SIMPLOT COMPANY: Peter J. Richardson
(Exhibit Nos. 501-600) Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peterrichard son ando(eary.com
greg(&ri chard sonandoleary .com
Don Sturtevant
Energy Director
J.R. Simplot Company
P0 Box 27
Boise, ID 83707-0027
E-mail: don. sturtevant@simp lot, corn
GRAND VIEW SOLAR II:
(Exhibit Nos. 601-700)
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peten'ärichardsonandoleary.com
greg(richardsonandoleary.com
Robert A. Paul
Grand View Solar II
15690 Vista Circle,
Desert Hot Springs, CA 92241
E-mail: robertapau I 08(dgmai I .com
EXERGY DEVELOPMENT
GROUP OF IDAHO, LLC:
(Exhibit Nos. 701-800)
RENEWABLE ENERGY COALITION:
(Exhibit Nos. 801-900)
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peter(ri chard sonandoleary.com
greg,richardsonandoleary.com
James Carkulis
Managing Member
Exergy Development Group of Idaho, LLC
802 W. Bannock St., Suite 1200
Boise, ID 83702
E-mail:
jcarkul isi)exergydeveIopment.com
Dr. Don Reading
6070 Hill Road
Boise, ID 83703
E-mail: dreading,mindspring.com
Ronald Williams
Williams Bradbury, P.C.
1015 W. Hays St.
Boise, ID 83702
E-mail: ron(william sbradbury.com
John R. Lowe
Consultant to
Renewable Energy Coalition
12050 SW Tremont St.
Portland, OR 97225
E-mail:
[e-mail]
INTERCONNECT SOLAR
DEVELOPMENT, LLC:
(Exhibit Nos. 901-1000)
R. Greg Ferney
Mimura Law Offices, PLLC
2176 E. Franklin Rd., Suite 120
Meridian, ID 83642
E-mail: greg(mimuralaw.com
Bill Piske, Manager
Interconnect Solar Development, LLC
1303 E. Carter
Boise, ID 83706
E-mail: bilIpiskecableone.net
DYNAMIS ENERGY, LLC:
(Exhibit Nos. 100 1-1 100)
Ronald L. Williams
Williams Bradbury, P.C.
1015 W. Hays Street
Boise, ID 83702
E-mail: ronwilliamsbradbury.coni
Wade Thomas
General Counsel
Dynamis Energy, LLC
776 W. Riverside Dr., Suite 15
Eagle, ID 83616
E-mail:
wthomasdynam isenergv.com
NORTH SIDE CANAL COMPANY
TWIN FALLS CANAL COMPANY:
(Exhibit Nos. 1101-1200)
C. Thomas Arkoosh
Capitol Law Group, PLLC
205 N. 10' St., 4th Floor
P0 Box 2598
Boise, ID 83701
E-mail:
ELECTRONIC SERVICE ONLY
Brian Olmstead
General
Manager
E-mail: olmsteadi)tfcanaLcom
Ted Diehl
General Manager
North Side Canal Company E-
mail: nscanal(cableone.net
Don
Schoenbeck
RCS
E-mail: dws(&r-c-s-inc.com
Lori Thomas
Capitol Law Group, PLLC
E-mail: Ithomascapitollawgroup.coni
THE BOARD OF COUNTY
COMMISSIONERS OF ADAMS COUNTY,
IDAHO: (Exhibit Nos. 1201-1300)
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: oeter(ri chard sonandoleary.com
gregrichardsonandoIeary.com
Bill Brown, Chair
Board of Commissioners
of Adams County, ID
P0 Box 48
Council, ID 83612
E-mail: [e-mail]
BIRCH POWER COMPANY:
(Exhibit Nos. 1301-1400)
Ted S. Sorenson, P.E.
Birch Power Company
5203 South I 11h East
Idaho Falls, ID 83404
E-mail:
tedtsorenson. net
IDAHO WINDFARMS, LLC:
(Exhibit Nos. 1401-1500)
Glenn Ikemoto
Margaret Rueger
Idaho Windfarms, LLC
672 Blair Avenue
Piedmont, CA 94611
E-mail: gIenni(4envisionwind.com
margaret()envisionwind.com
Dean J. Miller
McDevitt & Miller, LLP
420 W. Bannock St. (83702)
P0 Box 2564
Boise, ID 83701
E-mail: joemcdev itt-mi ller.com
BLUE RIBBON ENERGY LLC:
(Exhibit Nos. 1501-1600)
M.J. Humphries
Blue Ribbon Energy LLC
3470 Rich Lane
Ammon, ID 83406
E-mail: [e-mail]
Arron F. Jepson
Blue Ribbon Energy LLC
10660 South 540 East
Sandy, UT 84070
E-mail: arronesgEi)aol.com
RENEWABLE NORTHWEST PROJECT:
(Exhibit Nos. 1601-1700)
Dean J. Miller
McDevitt & Miller, LLP
420 W. Bannock St. (83702)
P0 Box 2564
Boise, ID 83701
E-mail: [e-mail].
Megan Walseth Decker
Senior Staff Counsel
Renewable Northwest
Project
421 SW 6th Avenue, Suite
1125 Portland, OR 97204
IDAHO CONSERVATION LEAGUE:
(Exhibit Nos. 1701-1800)
SNAKE RIVER ALLIANCE:
(Exhibit Nos. 1801-1900)
CLEAR WATER PAPER CORPORATION:
(Exhibit Nos. 1901-2000)
ENERGY INTEGRITY PROJECT:
(Exhibit Nos. 2001-2100)
Benjamin J. Otto
Idaho Conservation League
710 N. Sixth Street (83702)
P0 Box 844
Boise, ID 83701
E-mail: bottoidahoconservation.org
Liz Woodruff
Ken Miller
Snake River Alliance
P0 Box 1731
Boise, ID 83701
Email:
[e-mail]
[e-mail]
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ED 83702
E-mail: [e-mail]
[e-mail]
Mary Lewallen
Clearwater Paper Corporation
601 W. Riverside Ave., Suite 1100
Spokane, WA 99201
E-mail: [e-mail]
Tauna Christensen
Energy Integrity Project
769N 1100
Shelley, ID 83274
E-mail:
tauna(energyi ntegrityproject.org
IDAHO WIND PARTNERS I, LLC: Deborah E. Nelson
(Exhibit Nos. 2101-2200) Kelsey J. Nunez
Givens Pursley LLP
601 W. Bannock Street (83702)
P0 Box 2720
Boise, ID 83701-2720
E-mail: dengivenspursley.com
kjngivenspursIey.com
RIDGELINE ENERGY, LLC: Dean J. Miller
(Exhibit Nos. 2201-2300) Chas. F. McDevitt
McDevitt & Miller, LLP
420 W. Bannock St. (83702)
P0 Box 2564
Boise, ED 83701
E-mail: ioemcdevitt-milIer.corn
chas@mcdevitt-nhi ller.com
The foregoing was tiled via e-mail to the following:
Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise ID 83720-0074
Phone: [phone]
E-mail: Jean.Jewell(ä)puc.idaho.gov
Cathleen N. Uda
Legal Secretary to
Michael J. Uda