20130122Answer to IPC Petition.pdf

UDA LAW FIRM, P.C.
ATTORNEY AT LAW
MICHAEL ). UDA, MS
January 17, 2013
OVERNIGHT SERVICE:
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702
RE: GNR-E-11-03
Dear Ms. Jewell,
7 WEST 6Th AVENUE, SUITE 4E
HELENA, MT 59601
TELEPHONE: [phone]
EMAIL: [e-mail]
F.
Lfl
r
Enclosed for filing please find the original and seven copies of Mountain Air Projects, LLC 's
Answer to Idaho Power Company's Petition for Clarification and/or Reconsideration. Thank
you for your assistance.
Sincerely,
CthleeAnN. ~Uda
Legal Secretary
To Michael J. Uda
Enclosures
Admitted in Oregon and Montana
F.
Michael J. Uda
Uda Law Firm, P.C.
7 W. 6th Avenue, Suite 4E
Helena, MT 59601
Telephone [phone]
Facsimile: [phone]
Email: [e-mail]
22? 1iO: jf
Attorney for Mountain Air Projects, LLC.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE COMMISSION'S ) CASE NO. GNR-E-11-03
REVIEW OF PURPA QF CONTRACT )
PROVISIONS INCLUDING THE )
SURROGATE AVOIDED RESOURCE (SAR) ) ANSWER TO IDAHO POWER
AND INTEGRATED RESOURCE PLANNING ) COMPANY'S PETITION FOR
(IRP) METHODOLOGIES FOR ) CLARIFICATION AND/OR
CALCULATING PUBLISHED AVOIDED ) RECONSIDERATION
COST RATES. )
Pursuant to Rule of Procedure 331 of the Idaho Public Utilities Commission (the
"Commission"), Mountain Air Projects, LLC ("Mountain Air") submits this Answer to Idaho
Power Company's ("Idaho Power") January 8, 2013 Petition for Clarification and/or
Reconsideration (the "Petition") of the Commission's Order No. 32697 issued on December 18,
2012 in this proceeding (the "December 18 Order").' Mountain Air respectfully requests that the
Commission deny Idaho Power's request for clarification regarding curtailment because its
requested clarification is flatly contradicted by the plain language of the December 18 Order, and
because its request is not supported by the language in the existing contracts at issue in this
proceeding or by any other evidence in the record.
Mountain Air acknowledges this Answer is beyond the seven (7) days for filing an answer permitted under
Commission Rule 331.05 (time calculated pursuant to Commission Rule 331.02.) Mountain Air respectfully moves
the Commission for leave to file this answer out of time pursuant to Commission Rule 256, but Mountain Air does
not request expedited treatment of this motion pursuant to Commission Rule 256.2.
ANSWER TO IDAHO POWER COMPANY'S
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
In the Petition, Idaho Power requests that the Commission clarify its finding that Idaho
Power may not rely on Section 292.304(f) of the regulations of the Federal Energy Regulatory
Commission ("FERC"), 18 C.F.R. § 292.304(f), to curtail purchases from qualifying facilities
("QFs") under existing contracts entered into pursuant to the Public Utility Regulatory Policies
Act of 1978 ("PURPA"). Specifically, the Commission found that:
[W]hile each power purchase agreement (PPA) that we have reviewed contains a
general reference to 18 C.F.R. § 292.304(f), curtailment under this section was
not reasonably contemplated when the parties entered into their agreements.
The apparent need for such authority to curtail under these circumstances has only
presented itself within the last several years in Idaho - and, as evidenced by the
testimony, seems to be a problem only on Idaho Power's system.
December 18 Order at 36. In the Petition, Idaho Power requests clarification that:
[T]he Commission's finding that curtailment under 18 C.F.R. § 304(f) "was not
reasonably contemplated when the parties entered into their agreements" refers
only to the factual, operation circumstances that exist today, that may not have
existed at the time of contracting, and specifically does not mean that the parties
did not contemplate the application of FERC regulations or federal law to the
PURPA contracts when entering into those agreement, including 18 C.F.R.
§304(1).
Petition at 5-6 (emphasis added). In other words, Idaho Power is requesting that the Commission
"clarify" that it meant the opposite of what it actually found, i.e., that the Commission's finding
that the parties to Idaho Power's existing PURPA contracts did not contemplate curtailment
under 18 C.F.R. § 292.304(f) actually means that the parties did contemplate curtailment under
this provision. Because Idaho Power's requested clarification is directly contradicted by the
actual language in the December 18 Order, the Commission should deny Idaho Power's request
for clarification regarding curtailment.
In addition, Idaho Power's request for clarification is not supported by the provisions of
the existing PURPA contracts at issue in this proceeding. According to Idaho Power, each of its
PURPA contracts "contained a specific reference to 18 C.F.R. § 292.304 and its applicability to
that purchase agreement." Petition at 5 (emphasis added). Idaho Power's claim is misleading, at
best. Each of Mountain Air's six affiliated QFs entered into a PURPA contract with Idaho
Power (which were approved by the Commission by order dated December 23, 2010). Mountain
Air has reviewed these existing PURPA contracts, and the only provision that could be construed
ANSWER TO IDAHO POWER COMPANY'S 2
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
as referring to 18 C.F.R. 292.304 is the following provision in Article VII ("Purchase Price and
Method of Payment"), namely, Article 7.7, which provides as follows:
Continuing Jurisdiction of the Commission - This Agreement is a special contract
and, as such, the rates, terms and conditions contained in this Agreement will be
construed in accordance with ... 18 CFR § 292.303-308.
Therefore, there is no a "specific reference" to 18 C.F.R. § 292.304, much less a reference to the
narrow curtailment provisions in 18 C.F.R. § 292.304(f). Instead, the reference in the contracts
is a general reference to the FERC regulations governing relations between a QF and its host
utility, namely, the rules governing the host utility's obligations to QFs (18 C.F.R. § 292.303),
rates for purchases from QFs (18 C.F.R. 292.304), rates for sales to QFs (18 C.F.R. § 292.305),
interconnection costs (18 C.F.R. § 292.306), system emergencies (18 C.F.R. § 292.307), and
standards for operating reliability (18 C.F.R. § 292.308). It is therefore inaccurate to suggest that
the parties to these contracts contemplated that the contracts' general reference to this broad
range of FERC regulations equated to a mutual agreement to allow curtailment under the specific
low-loading conditions governed by 18 C.F.R. 292.304(f).
Finally, there is no other evidence in the record that Mountain Air's affiliated QFs, or any
other similarly-situated party, contemplated curtailment pursuant to 18 C.F.R. § 292.304(f) when
entering into the existing PURPA contracts at issue in this proceeding. Consequently, the
Commission should deny the request for reconsideration and reaffirm its finding that
"curtailment under [18 C.F.R. § 292.304(f)] was not reasonably contemplated when the parties
entered into their agreements." December 18 Order at 36.
For these reasons, Mountain Air respectfully requests that the Commission deny Idaho
Power's request for clarification and/or reconsideration of the Order's findings regarding
curtailment.
Respectfully submitted this 17th day of January, 2013.
Mountain Air Projects, LL2
IicJIael J. Uda
Law Firi.
W. 6th Avenue, Suite 4E
ANSWER TO IDAHO POWER COMPANY'S 3
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
Helena, MT 59601
Telephone [phone]
Facsimile: [phone]
Email: [e-mail]
ANSWER TO IDAHO POWER COMPANY'S
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing Answer to Idaho Power Company's
Petition for Clarification and/or Reconsideration was served via e-mail on this 17th day of January,
2013 upon the following:
IDAHO POWER COMPANY:
(Exhibit Nos. 1-100)
AVISTA CORPORATION:
(Exhibit Nos. 10 1-200)
PACIFICORP, dba ROCKY MOUNTAIN
POWER
(Exhibit Nos. 201-300)
Donovan E. Walker
Jason B. Williams
Idaho Power Company
P0 Box 70
Boise, ID 83707-0070
E-mail: [e-mail]
jwi1liamsidahopower.com
Michael G. Andrea
Avista Corporation
1411 E. Mission Ave.
Spokane, WA 99202
E-mail: [e-mail]
Daniel Solander
PacifiCorp/ dba Rocky Mountain Power
201 S. Main St., Suite 2300
Salt Lake City, UT 84111
E-mail: [e-mail]
ANSWER TO IDAHO POWER COMPANY'S
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
COMMISSION STAFF:
THE NORTHWEST AND
INTERMOUNTAIN
POWER PRODUCERS
COALITION:
J.R. SIMPLOT COMPANY:
Kristine A. Sasser
Deputy Attorney General
Idaho Public Utilities
Commission
472 W. Washington (83702)
P0 Box 83720
Boise, ID 83720-0074
E-mail: [e-mail]
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: [e-mail]
gre.richardsonandolearv.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
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail:
peter)richard sonandoleary.com
greg(Z1richardsonandoleary.com
Don Sturtevant
Energy Director
J.R. Simplot Company
P0 Box 27
Boise, ID 83707-0027
E-mail: [e-mail]
ANSWER TO IDAHO POWER COMPANY'S
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
GRAND VIEW SOLAR II:
EXERGY DEVELOPMENT
GROUP OF IDAHO, LLC:
RENEWABLE ENERGY COALITION:
ANSWER TO IDAHO POWER COMPANY'S
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: [e-mail]
gregrichardsonandoleary.com
Robert A. Paul
Grand View Solar II
15690 Vista Circle,
Desert Hot Springs, CA 92241
E-mail: [e-mail]
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peterrichardsonandoleary.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:
icarkuliscexergydeveiopment.com
Dr. Don Reading
6070 Hill Road
Boise, ID 83703
E-mail: dread ingmindspring.com
Ronald Williams
Williams Bradbury, P.C.
1015 W. Hays St.
Boise, ID 83702
E-mail: [e-mail]
John R. Lowe
Consultant to
Renewable Energy Coalition
12050 SW Tremont St.
Portland, OR 97225
E-mail:
jravenesanrnarcosyahoo.com
INTERCONNECT SOLAR
DEVELOPMENT, LLC:
DYNAMIS ENERGY, LLC:
R. Greg Ferney
Mimura Law Offices, PLLC
2176 E. Franklin Rd., Suite 120
Meridian, ID 83642
E-mail: gregmimuralaw.com
Bill Piske, Manager
Interconnect Solar Development, LLC
1303 E. Carter
Boise, ID 83706
E-mail: bi1lpiske(cableone.net
Ronald L. Williams
Williams Bradbury, P.C.
1015 W. Hays Street
Boise, ID 83702
E-mail: ronwilliamsbradbury.corn
Wade Thomas
General Counsel
Dynamis Energy, LLC
776 W. Riverside Dr., Suite 15
Eagle, ID 83616
E-mail:
wthomas(dynamisenergy.com
ANSWER TO IDAHO POWER COMPANY'S 9
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
NORTH SIDE CANAL COMPANY
TWIN FALLS CANAL COMPANY:
C. Thomas Arkoosh
Capitol Law Group, PLLC
205 N. 10" S•, 4" Floor
P0 Box 2598
Boise, ID 83701
E-mail:
tarkoosh(2capitollawgroup.com
ANSWER TO IDAHO POWER COMPANY'S
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
ELECTRONIC SERVICE ONLY
Brian Olmstead
General
Manager
E-mail: [e-mail]
Ted Diehl
General Manager
North Side Canal Company
E-mail: [e-mail]
Don Schoenbeck RCS
E-mail: dws(r-c-s-inc.com
Lori Thomas
Capitol Law Group, PLLC
E-mail: [e-mail]
THE BOARD OF COUNTY
COMMISSIONERS OF ADAMS COUNTY,
IDAHO:
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peter(,richardsonandoleary.com
greg,richardsonandoIeary.com
Bill Brown, Chair
Board of Commissioners
of Adams County, ID
P0 Box 48
Council, ID 83612
E-mail: bdbrownfrontiemet.net
BIRCH POWER COMPANY:
ANSWER TO IDAHO POWER COMPANY'S 10
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
Ted S. Sorenson, P.E. Birch
Power Company 5203 South 11th
East Idaho Falls, ID 83404
E-mail: [e-mail]
IDAHO WINDFARMS, LLC:
BLUE RIBBON ENERGY LLC:
Glenn Ikemoto
Margaret Rueger
Idaho Windfarms, LLC
672 Blair Avenue
Piedmont, CA 94611
E-mail: gIenni(envisionwind.com
margaretc/envisionwind.com
Dean J. Miller
McDevitt & Miller, LLP
420 W. Bannock St. (83702)
P0 Box 2564
Boise, ID 83701
E-mail: joe(mcdevitt-miller.com
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: arronesg(aol.corn
ANSWER TO IDAHO POWER COMPANY'S 12
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
RENEWABLE NORTHWEST PROJECT: 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
E-mail: meganrnp.org
ANSWER TO IDAHO POWER COMPANY'S 12
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
IDAHO CONSERVATION LEAGUE: Benjamin J. Otto
Idaho Conservation League
710 N. Sixth Street (83702)
P0 Box 844
Boise, ID 83701
E-mail: [e-mail]
SNAKE RIVER ALLIANCE:
Liz Woodruff
Ken Miller
Snake River Alliance
P0 Box 1731
Boise, ID 83701
Email: woodruffcsnakeriveralliance.org
kmi llersnakeriveralliance.org
CLEAR WATER PAPER CORPORATION:
ENERGY INTEGRITY PROJECT:
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
E-mail: peter@,richardsonandoleary.com
gregrichardsonandolearv.com
Mary Lewallen
Clearwater Paper Corporation
601 W. Riverside Ave., Suite 1100
Spokane, WA 99201
E-mail: [e-mail]
Tauna Christensen
Energy Integrity Project
769N I 100
Shelley, ID 83274
E-mail: taunaenergyintegrityproject.org
ANSWER TO IDAHO POWER COMPANY'S 13
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION
IDAHO WIND PARTNERS I, LLC: Deborah E. Nelson
Kelsey J. Nunez
Givens Pursley LLP
601 W. Bannock Street (83702)
P0 Box 2720
Boise, ID 83701-2720
E-mail: den(ivensnurs1ev.com
kjn(givenspursley.com
RIDGEL1NE ENERGY, LLC: Dean J. Miller
Chas. F. McDevitt
McDevitt & Miller, LLP
420 W. Bannock St. (83702)
P0 Box 2564
Boise, ID 83701
E-mail: joe(nicdevitt-miI1er.com
[e-mail]
The foregoing was filed via overnight service (original and 7 copies) and e-mailed to the following:
Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise ID 83720-0074
Phone: [phone]
E-mail: [e-mail]
Cathleen N. Uda
Legal Secretary to
Michael J. Uda
ANSWER TO IDAHO POWER COMPANY'S 15
PETITION FOR CLARIFICATION AND/OR
RECONSIDERATION