HomeMy WebLinkAbout20120727Reply to Objection.pdfJ. Kahle Becker (ISB No. # 7408)
The Alaska Center
1020 W. Main St. Suite 400
Boise, ID 83702
Telephone: (208) 333-1403
Facsimile: (208) 343-3246
Email: kahte(dkahlebeckerlaw.com
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2012JUL27 AM 10:32
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Michael J. Uda
Uda Law Firm, P.C.
7 W. 6th Avenue, Suite 4E
Helena, MT 59601
Telephone (406) 457-5311
Facsimile: (406) 447-4255
Email: rnuda@mthetena.com
Attorneys for Mountain Air Projects, LLC.
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
) REPLY TO IDAHO POWER
) COMPANY'S OBJECTIONS TO
) THE PETITION FOR LATE
) INTERVENTION
)
)
Petitioner Mountain Air Projects, LLC's ("Mountain Air"), by and through undersigned counsel,
hereby files its reply in support of its Petition for Late intervention filed on July 16, 2012. At the outset,
Mountain Air understands that its Petition is undeniably late. However, Mountain Air has a substantial and
very concrete economic interest because six of its qualifying facility ("QF") subsidiaries (the "Mountain Air
QFs") have, under the Public Utility Regulatory Policy Act of 1978 ("PURPA"), each executed a power
purchase agreement ("PPA") with Idaho Power Company ("Idaho Power"). Pursuant to these PPAs, the
Mountain Air QFs will sell all of their net output to Idaho Power, at forecast avoided cost rates, ("the
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 1 -
Mountain Air PURPA PPAs"). Each of the Mountain Air PURPA PPAs was approved by order of the
Idaho Public Utilities Commission ("Commission") on November 16, 2010.
Applying Schedule 74 to such existing PPAs, as proposed by Idaho Power and as supported
Commission Staff, may result in serious and irreparable injury to Mountain Air. As stated in its petition,
Mountain Air became concerned about the application of Schedule 74 to its existing PPAs following a
review of the direct testimony of Commission Staff witness Rick Sterling on May 4, 2012. At this point,
potential lenders and investors to the project began a due diligence inquiry and grew concerned that a
curtailment of the scope proposed by Idaho Power in Schedule 74 could significantly disrupt the anticipated
revenue streams to the Mountain Air QFs. This concern was elevated after reviewing Mr. Sterling's rebuttal
testimony on June 29, 2012, a concern which motivated Mountain Air to file its petition to intervene.
Thus, Mountain Air has a significant investment backed interest in the outcome of this proceeding as
it relates to Schedule 74. Without being permitted to participate fully as a party, Mountain Air will not be
able to act to protect its interests. Although Idaho Power is correct that Mountain Air had notice of the
existence of the instant proceeding, Mountain Air did not have actual notice of the potential that Schedule 74
could be applied to the Mountain Air PURPA PPAs until after May 4, 2012, and its potential lenders and
investors did not grow substantially concerned until sometime thereafter. It became clear after June 29,
2012, that Mountain Air must do something to protect its economic interests in its existing PPAs.
At this point, it became apparent that no other party in this proceeding would or could act to protect
Mountain Air's interests. Although Mountain Air concedes that its petition to intervene was submitted very
late in the process, this lateness does not outweigh the potential economic injury to Mountain Air of a
Commission order approving the application of Schedule 74 to Mountain Air's existing PPAs. Notably,
Idaho Power does not contest that Mountain Air has a substantial interest in the outcome of this proceeding.
Mountain Air must be permitted to intervene to protect those interests, and Idaho Power's concerns about the
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 2 -
lateness of Mountain Air's petition do not override that salient fact. If the Commission adopts schedule 74
without input from Mountain Air, Mountain Air will have suffered a substantial economic blow without any
ability to act to protect its interests.
Idaho Power also argues that the lateness of Mountain Air's petition has already disrupted the
proceeding, but the inconvenience to Idaho Power of having to respond to a late petition for an intervention
cannot outweigh Mountain Air's undeniable interest in protecting its substantial investment in its existing
PPAs. Moreover, if the burden of filing an opposition to a late filed petition to intervene were the sort of
burdensomeness anticipated by Commission Rule 73 no late interventions could ever be granted. Plainly,
this is not what Commission Rule 73 prescribes.
Idaho Power further contends that permitting Mountain Air's attorney to conduct cross examination
at the hearing of this matter may extend the length of the technical hearing, currently set for August 7-9.
Mountain Air does not believe there is any evidence to support such a claim. Mountain Air will carefully
structure its participation so as to limit its examination to the relatively narrow issue of Idaho Power's
proposed Schedule 74. Indeed, if Mountain Air perceives that the subject of proposed Schedule 74 is
adequately covered by other parties, Mountain Air may choose not to conduct any cross examination.
However, Mountain Air must be permitted the opportunity to do so to ensure that its substantial economic
interests are adequately protected.
Idaho Power alleges that, without discovery, it cannot determine whether and how Mountain Air will
be affected by the outcome of this proceeding. The relevant facts here do not need further discovery.
Mountain Air has existing QF contracts. Idaho Power knows this to be the case. Idaho Power also knows it
intends, if permitted by the Commission, to apply its Schedule 74 economic and/or environmental
curtailments to existing PURPA PPAs, including the Mountain Air PURPA PPAs. There is no need for
discovery on these issues.
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 3 -
Idaho Power also argues that since the issues in this proceeding have already been decided, Mountain
Air must intend in some way to broaden the scope of the case. This is plainly untrue. Mountain Air's
intention is to limit its participation in this proceeding to the issues raised by application of Schedule 74 to
Mountain Air's existing PURPA contracts. Also, contrary to Idaho Power's assertion, Mountain Air does
not belong to any of the wind development umbrella organizations identified by Idaho Power who are
already parties to the proceeding. None of the existing parties to this proceeding has an interest in
adequately protecting Mountain Air from an adverse ruling by the Commission, a ruling which could
potentially undermine financial commitments made to the Mountain Air projects.
In conclusion, in balancing the interests of fairness as between the parties in deciding whether to
permit Mountain Air's admittedly late intervention, the balance of equities is decidedly in favor of granting
Mountain Air's late petition to intervene. Mountain Air has no recourse but to intervene given the
potentially serious economic consequences to Mountain Air if the Commission decides to adopt Schedule
74's curtailment provisions as proposed by Idaho Power and Commission Staff and apply these curtailments
to Mountain Air's fully executed PPAs. This potential for serious economic injury significantly outweighs
the inconvenience to Idaho Power of having to respond to Mountain Air's petition to intervene. The other
potential disruptions or inconveniences claimed by Idaho Power are, at best, speculative. Mountain Air has
no intention of broadening the issues, conducting burdensome cross examination, or delaying the timely
disposition of this proceeding. Frankly, such behavior is contrary to Mountain Air's interest, which is to
attempt to convince the Commission as soon as possible that Schedule 74 should not be applied to Mountain
Air's fully executed and Commission-approved PPAs. To engage in delay or other obstructionist behavior
would ill suit this purpose. For this reason, Mountain Air respectfully requests the Commission grant
Mountain Air's petition for late intervention.
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 4 -
DATED this 26th day of July 2012.
J. Kahle Becker, Idaho (ISB No. # 7408)
The Alaska Center
1020 W. Main St. Suite 400
Boise, ID 83702
Telephone: (208) 333-1403
Facsimile: (208) 343-3246
Email: kahte(a)kahlebeckerlaw.com
By:
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 5 -
CERTIFICATE OF SERVICE
1 hereby certify that a true and correct copy of the foregoing Mountain Air Project's Reply to Idaho
Power's Objection to their Petition for Late Intervention was served via e-mail on this 26th day of July,
2012 upon the following:
IDAHO POWER COMPANY: Donovan E. Walker
Jason B. Williams
Idaho Power Company
P0 Box 70
Boise, ID 83707-0070
E-mail: dwalker(idahopower.com
jwilliarns@idahopower.com
AVISTA CORPORATION: Michael G. Andrea
Avista Corporation
1411 E. Mission Ave.
Spokane, WA 99202
E-mail: michael.andrea(à)avistacorp.com
PACIFICORP, dba ROCKY MOUNTAIN Daniel Solander
POWER: Pacificorp/dba Rocky Mountain Power
201 S. Main St., Suite 2300
Salt Lake City, UT 84111
E-mail: danielsolander@pacificorp.com
COMMISSION STAFF: Kristine A. Sasser
Deputy Attorney General
Idaho Public Utilities Commission
473 W. Washington (83702)
P0 Box 83720
Boise, ID 83720-0074
E-mail: kris.sasser@puc.idaho.gov
THE NORTHWEST AND INTERMOUNTAIN Peter J. Richardson
POWER PRODUCERS COALITION: Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peter(richardsonandoleary.com
greg(richardsonandolearY.cOm
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 6 -
Robert D. Kahn
Executive Director
Northwest and Intermountain Power Producers
Coalition
1117 Minor Avenue, Suite 300
Seattle, WA 98101
E-mail: rkahn()nippc.org
J.R. SIMPLOT COMPANY:
GRAND VIEW SOLAR II:
EXERGY DEVELOPMENT GROUP
OF IDAHO, LLC
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peter@richardsonandoleary.com
greg(richardsonando1earv.com
Don Sturtevant
Energy Director
J.R. Simplot Company
P0 Box 27
Boise, ID 83707-0027
E-mail: don. sturtevant(dsimp1ot.com
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peter(i)richardsonandoleary.com
greg(drichardsonandoleary.com
Robert A. Paul
Grand View Solar II
15690 Vista Circle,
Desert Hot Springs, CA 92241
E-mail: robertpaul08(ä)gmail.com
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 7 -
E-mail: eeter@richardsonandoleary.com
gre(c)richardsonandolearv.com
James Carkulis
Managing Member
Exergy Development Group of Idaho, LLC
802 W. Bannock St., Suite 1200
Boise, ID 83702
E-mail: jcarkulis(dexergydevelopment.com
Dr. Don Reading
6070 Hill Road
Boise, ID 83703
E-mail: dreadingmindsrring.com
RENEWA BLE ENERGY COALITION
INTERCONNECT SOLAR DEVELOPMENT, LLC
DYNAMIS ENERGY, LLC.
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 8 -
Ronald Williams
Williams Bradbury, PC
1015 W. Hays St.
Boise, ID 83702
E-mail: ron)williamsbradbury.com
John R. Lowe
Consultant to Renewable Energy Coalition
12050 SW Tremont St.
Portland, OR 97225
R. Greg Ferney
Mimura Law Offices, PLLC
2176 E. Franklin Rd, Ste 120
Meridian, ID 83642
E-mail: gregmimuralaw.com
Bill Piske, Manager
Interconnect Dolar Development, LLC
1303 E. Carter
Boise, ID 83706
E-mail: billDiske(cableone.net
Ronald Williams
Williams Bradbury, PC
1015 W. Hays St.
Boise, ID 83702
E-mail: ron(wiIIiamsbradbury.corn
Wade Thomas
General Counsel
Dynamis Energy, LLC
776 W. Riverside Dr., Suite 15
Eagle, ID 83616
E-mail: wthomas@dynamisenergy.com
NORTHSIDE CANAL COMPANY C. Thomas Arkoosh
TWIN FALLS CANAL COMPANY: Capitol Law Group, PLLC
205 N. 10th St., 4th Floor
P0 Box 2598
Boise, ID 83701
E-mail: tarkoosh(Zicaitollawgroup,com
ELECTRONIC SERVICE ONLY
Brian Olmstead, General Manager
E-mail: olmstead@tfcanal.com
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: lthomasccapitollawuroup.coin
THE BOARD OF COUNTY COMMISSIONERS Peter J. Richardson
OF ADAMS COUNTY, IDAHO: Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peter(richardsonandoleary.com
gregrichardsonandolearv.com
Bill Brown, Chair
Board of Commissioners of Adams
County, Idaho
P0 Box 48
Council,, ID 83612
E-mail: bdbrown(frontiemet.net
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 9 -
BIRCH POWER COMPANY: Ted S. Sorenson, PE
Birch Power Company
5203S. lithE .
Idaho Falls, ID 83404
E-mail: ted(a)tsorenson.net
IDAHO WINDFARMS, LLC Glenn Ikemoto
Margaret Rueger
Idaho Windfarms, LLC
672 Blair Avenue
Piedmont, CA 94611
E-mail: glenni(envisionwind.com
margaret(Zienvi sionwind.com
Dean J. Miller
McDevitt & Miller, LLP
420 W. Bannock St. (83702)
P0 Box 2564
Boise, ID 83701
E-mail: joemcdevitt-miller.com
BLUE RIBBON ENERGY, LLC: M.J. Humphries
Blue Ribbon Energy LLC
3470 Rich Lane
Ammon, ID 83406
E-mail: bIueribbonenergvgmai I .com
Arron F. Jepson
Blue Ribbon Energy LLC
10660 South 540 East
Sandy, UT 84070
E-mail: arronesgaoI.com
RENEWABLE NORTHWEST PROJECT: Dean J. Miller
McDevitt & Miller, LLP
420 W. Bannock St. (83702)
P0 Box 2564
Boise, ID 83701
E-mail: joe(ämcdevitt-mi1ler.com .
Megan Walseth Decker
Senior Staff Counsel
Renewable Northwest Project
421 SW 6th Avenue, Suite 1125
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 10 -
Portland, OR 97204
E-mail: megan(rnp.org
IDAHO CONSERVATION LEAGUE:
SNAKE RIVER ALLIANCE:
CLEARWATER PAPER CORPORATION:
ENERGY INTEGRITY PROJECT:
IDAHO WIND PARTNERS I, LLC
Benjamin J. Otto
Idaho Conservation League
710 N. Sixth Street (83702)
P0 Box 844
Boise, ID 83701
E-mail: botto(idahoconservation.org
Liz Woodruff
Ken Miller
Snake River Alliance
P0 Box 1731
Boise, ID 83701
Email: lwoodruff(snakeriveralliance.org
krnil ler(snakeriveral I iance.org
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peterrichardsonandoleary.com
greg(richardsonandoleary.cOm
Mary Lewallen
Clearwater Paper Corporation
601 W. Riverside Ave., Suite 1100
Spokane, WA 99201
E-mail: mary.lewallen(clearwaterDaper.com
Tauna Christensen
Energy Integrity Project
769N. IIOOE.
Shelley, ID 83274
E-mail: tauna(energyintegrityDroject.org
Deborah E. Nelson
Kelsey J. Nunez
Givens Pursley LLP
601 W. Bannock Street (83702)
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 11 -
P0 Box 2720
Boise, ID 83701-2720
E-mail: den(givensurslev.com
kn(givenspiirsley.com
RIDGELINE ENERGY, LLC Dean J. Miller
Chas. F. McDevitt
McDevitt & Miller, LLP
420 W. Bannock St. (83702)
P0 Box 2564
Boise, ID 83701
E-mail: ioe(rncdevitt-miller.com
chas(uimcdevitt-mi1ler.com
The foregoing was filed via overnight service (original and 7 copies) and e-mail to the following:
Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise ID 83720-0074
Phone: 208-334-0338
E-mail: Jean.Jewel l(iuc.idaho.gov
aY
Cathleen N. Uda
Legal Secretary to
Michael J. Uda
Mountain Air Projects' Reply to Idaho Power's
Objection to their Petition for Late Intervention - 12 -