20120821Application for Intervenor Funding.pdf

C pitol
Law
C. Tom Arkoosh
PLLC www.capitollawgroup.com I ctarkooshcapitollawgroup.com
2012AUG21 AM 8:E2
DAHC
UTILI TIES '14M!S0 i
August 20, 2012
Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Our Client: Twin Falls Canal Company, North Side Canal Company, Big Wood
Canal Company, and American Falls Reservoir District No. 2
Case No. GNR-E- 11-03
CLG File No. 64 17.000
Dear Commissioners:
Enclosed please find an original and nine copies of an Application for Intervenor
Funding filed on behalf of Twin Falls Canal Company, North Side Canal Company, Big Wood
Canal Company, American Falls Reservoir District No. 2, and The Renewable Energy Coalition
If you have any questions or comments, please do not hesitate to contact me.
Sincerely,
Capitol Law Group, PLLC
'~6pErin ecil
Legal Assistant to C. Tom Arkoosh
CTA/emc
Enclosures
205 North 10th Street, 4th Floor, P0 Box 2598, Boise, ID 83701-2598 • Tel: [phone] Fax: [phone]
C. Thomas Arkoosh, ISB No. 2253 RECEtvE
CAPITOL LAW GROUP, PLLC , Auf 205 N. 10th St., 4th Floor ' u 2 A IN 8 t2
P.O. Box 2598 fT
Boise, Idaho 83701-2598 UTILLI .,
Telephone: [phone]
Facsimile: [phone]
E-mail: tarkoosh(2icapitollawgroup.com
Attorneys for Twin Falls Canal Company, North
Side Canal Company, Big Wood Canal Company
and American Falls Reservoir District No. 2
Ronald L. Williams, ISB No. 3034
Williams Bradbury, P.C.
1015 W. Hays St.
Boise, ID 83702
Telephone: [phone]
Fax: [phone]
E-mail: [e-mail]
Attorneys for Renewable Energy Coalition and
Dynamis Energy LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE COMMIS-
SION'S REVIEW OF PURPA QF
CONTRACT PROVISION INCLUDING
THE SUBROGATE AVOIDED
RESOURCE (SAR) AND INTEGRAT-
ED RESOURCE PLANNING (IRP)
METHODOLOGIES FOR CALCU-
LATING PUBLISHED AVOIDED
COST RATES.
Case No. GNR-E- 11-03
APPLICATION FOR INTERVENOR
FUNDING
COME NOW Twin Falls Canal Company, North Side Canal Company, The Renewable
Energy Coalition, Big Wood Canal Company, and American Falls Reservoir District #2
(collectively, "Companies"), pursuant to Idaho Code § 61-617A and IDAPA 31.01.01.161-165
with the following application for intervenor funding. The Twin Falls Canal Company, the North
APPLICATION FOR INTERVENOR FUNDING - 1
Side Canal Company and the Renewable Energy Coalition are intervenors in this case pursuant to
Order No. 32352 wherein the Commission automatically included all parties from the prior case
GNR-E- 11-01. Big Wood Canal Company and American Falls Reservoir District #2 are
intervenors in this case pursuant to Order No. 32603 wherein the Commission granted their
Petition to Intervene. This application is timely under IDAPA 31.01.01.164, which establishes a
deadline "no later than fourteen (14) days after the last evidentiary hearing in a proceeding[.]"
I. Idaho Code § 61-617A and IDAPA Rule 31.01.01.161 Revenue Requirement
Idaho Power Corporation, Rocky Mountain Power and Avista Corporation are regulated
public utilities with gross Idaho intrastate annual revenue exceeding three million, five hundred
thousand dollars ($3,500,000.00).
II. IDAPA Rule 31.01.01.162 Requirements
1. Itemized List of Expenses
The attached Exhibit A is an itemized list of partial expenses incurred by the Companies in
this proceeding, which are the fees associated with retaining the expert consulting services of Mr.
Don Schoenbeck. The Companies are not requesting recovery of the attorney fees of counsel, Mr.
Tom Arkoosh or Mr. Ronald L. Williams.
2. Statement of Proposed Findings
The Companies have materially participated in the case, and will have materially contrib-
uted to the decision to be rendered by the Commission in the case Through presentation of their
direct case, in cross examination of utility witnesses, and in closing arguments, the Companies
advocated for twenty-year PURPA power purchase agreements ("PPAs"), instead of five-year
PPAs, presented compelling arguments why the eligibility cap for published rates be set at 10 MW
(nameplate), not 100 kW (Idaho Power's proposal), or 10 average MW for non-wind and solar
(Staff, RMP and Avista), and advocated for requiring that avoided costs established by a
APPLICATION FOR INTERVENOR FUNDING -2
third-party production simulation model, such as AURORA, requiring two computer simulations.
The Companies also proposed, for Idaho Power, that a SCCT be used to determine Quali-
fied Facility ("QF") capacity costs, but that a CCCT be used for Rocky Mountain Power, that
capacity payments not be made in early years of capacity sufficiency, but that the capacity prices
could be paid (levelized) over the life of a power purchase agreement; and that a reasonable
security deposit be obtained by utilities at the outset of each QF contract, but that actual damages
for breach of contract caused by the QF be a "mark to market" determination.
Finally, the Companies opposed Idaho Power's proposed Schedule 74 curtailment of their
QF deliveries to Idaho Power during low-load operating conditions for economic reasons, and
advocated for ownership retention by the Companies of renewable energy credits ("RECs") for the
energy they produce.
3. Statement Showing Costs
The Companies request $55,445 in intervenor funding, as shown in Exhibit A. Both the
hourly rate and hours expended by Mr. Schoenbeck are reasonable in light of the complexity of the
issues involved, as well as the multiple parties participating in the case.
4. Explanation of Cost Statement
The members/owners of the Twin Falls Canal Company, North Side Canal Company, Big
Wood Canal Company, and American Falls Reservoir District #2 are ratepayers of Idaho Power.
They are finding their participation in this case through a membership assessment fee. The
Renewable Energy Coalition Idaho members, who are customers of and have PPAs with both
Idaho Power and Rocky Mountain Power, also have imposed a special assessment upon
themselves to support the coalition's involvement in this case, and include Ted Sorenson (Birch
Creek Power), Rob Fackrell, Jack Straubhar, Bill Arkoosh, Allan Ravenscroft, Alan Koyle, David
Snedigar, the Farmer's Irrigation District, and the Middle Fork Irrigation District. Collectively,
APPLICATION FOR INTERVENOR FUNDING -3
these companies and individuals have retained the services of an experienced, well-trained expert
who is familiar with the environments and variations with which utilities work in setting rates and
establishing PURPA contracts with QFs.
5. Statement of Difference
The Companies' proposed findings are materially different than the Commission staff
("Staff'). For example, Staff advocates five-year contracts, while the Companies argue for
twenty-year agreements. Staff argues for a 100 kW cap for wind and solar, and a 10 MW cap for
all others, while the Companies advocate a 10 MW cap for all QFs. Staff argues in favor of Idaho
Power's proposed Schedule 74, while the Companies oppose the schedule. Staff recommends
that, for QFs above the eligibility cap, that the renewable energy credits transfer to the utility,
while the Companies believe that the RECs are the private property of the QF developers. The
Companies advocate for inclusion of capacity each year, alteration of the Integrated Resource Plan
only for gas price changes, inclusion of the cost of carbon credits in avoided costs, and exclusion
of "merely mentioned" possible future QFs. Staff does not concur with these proposals. The
Companies propose as a reasonable security deposit a rolling average "mark to market" calculation
of delay damages, while Staff proposes continuation of the current ad hoc calculation without
change.
6. Statement of Recommendation
The Companies recommend the Commission adopt their proposed findings, which include:
1.Establishing an eligibility cap of 10 MW for all PURPA projects;
2.Maintaining a maximum contract term of twenty years;
3.Allowing avoided costs to be determined by a third-party simulation model,
such as AURORA, if two computer simulations are run;
APPLICATION FOR INTERVENOR FUNDING -4
4.Allowing avoided cost energy updates between IRP publications, only for gas
price updates, and signed QF contracts, but only once per year;
5.Including carbon costs in the calculation of avoided costs;
6 Determining avoided capacity costs for each utility, based on that utility's need
for capacity;
7.Not including capacity payments when capacity is not needed, but include
capacity payments in the first year of need;
8.Paying for avoided capacity only for the peak months (not single month) and
on-peak hours of each utility;
9.Rejecting Idaho Power's proposed schedule 74; and
10.Allowing the QF developers to own the RECs associated with their renewable
energy project.
The Companies' proposed findings address issues of concern for customers of IPC, as well
as the public interest. All customers, regardless of class, share a strong interest in ensuring Idaho
utilities acquire power pursuant to rules that are fair, are accurate, and conform to applicable laws.
The proposals listed above allow for the appropriate price changes to avoided cost rates, while also
ensuring that when Idaho's investor-owned utilities need additional energy and capacity, there is a
viable small-hydro industry ready to be the "but-for" provider to those utilities.
In addition, the involvement of Idaho's canal system in the production of inexpensive re-
newable energy provides a multiplier effect into the local economy in various ways: the power
payment goes into the local economy by relieving assessments against shareholders and members,
which strengthens local economies and enhances local agriculture while simultaneously leaving
ratepayers indifferent to energy payments that would have otherwise not have been so locally
beneficial.
APPLICATION FOR INTERVENOR FUNDING -5
The Companies' recommendation regarding RECs ensures the answer to this question
conforms to applicable law, and thus, if adopted, will reduce the likelihood of further legal
challenges and increased costs to Idaho ratepayers.
Finally, while not directly related to utility customers, the Companies' recommendation
addresses an issue of concern for all Idahoans interested in fostering renewable energy develop-
ment in this state. All customers share a strong interest in ensuring Idaho investor-owned utilities
operate their existing resources so as to find the least cost, most reliable solution to meet their legal
obligations to serve Idaho consumers.
7. Statement Showing Class of Customer
The Companies' members are residential and small commercial customers of Idaho Power
and Rocky Mountain Power, as well as QFs falling within the purview of Section 210 of PURPA
allowing for sale and purchase of energy from investor-owned utilities.
WHEREFORE, the Companies respectfully request the Commission grant this application.
DATED this 2.0 day of August, 2012.
CAPITOL LAW GROUP, PLLC
Attorneys for Twin Falls Canal Company, North Side Canal
Company, Big Wood Canal Company and American Falls
Reservoir District No. 2
APPLICATION FOR INTERVENOR FUNDING -6
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this ____ day of August, 2012, I served a true and correct
copy of the foregoing upon each of the following individuals by causing the same to be delivered
by the method and to the addresses indicated below:
Jean Jewell, Commission Secretary
Idaho Public Utilities Commission
427 W. Washington St.
Boise, Idaho 83702
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
_X_ Via E-Mail jean.jewel1(12uc.idaho.gov
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
X Via E-Mail [e-mail]
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
X Via E-Mail [e-mail]
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
X Via E-Mail robertaDaul08c,gmail.com
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
_X_ Via E-Mail greg(iimimuralaw.com
Daniel Solander
Rocky Mountain Power
201 S. Main St., Ste. 300
Salt Lake City, UT 84111
Ronald L. Williams
Williams Bradbury PC
1015 W. Hays St.
Boise, Idaho 83702
Robert A. Paul
Grand View Solar II
15690 Vista circle
Desert Hot Springs, CA 92241
R. Greg Femey
Mimura Law Offices, PLLC
2176 E. Franklin Rd., Ste. 120
Meridian, Idaho 83642
Bill Piske, Manager U.S. Mail, postage prepaid
Interconnect Solar Development, LLC Hand-Delivered
1303 E. Carter Overnight Mail
Boise, Idaho 83706 Facsimile
X Via E-Mail [e-mail]
Robert D. Kahn, Executive Director U.S. Mail, postage prepaid
Northwest and Intermountain Power Hand-Delivered
Producers Coalition Overnight Mail
1117 Minor Ave., Ste. 300 Facsimile
Seattle, WA 98101 _X_ Via E-Mail rkahnnippc.org
APPLICATION FOR INTERVENOR FUNDING -7
Michael G. Andrea U.S. Mail, postage prepaid
Avista Corporation Hand-Delivered
1411 East Mission Ave Overnight Mail
Spokane, WA 99202 Facsimile
X Via E-Mail [e-mail]
Dean J Miller U S Mail, postage prepaid
McDevitt & Miller, LLP Hand-Delivered
P.0. Box 2564 Overnight Mail
Boise, Idaho 83701 Facsimile
_X_ Via E-Mail ioe(mcdevrn-miller corn
Don Sturtevant, Energy Director U.S. Mail, postage prepaid
J.R. Simplot Company Hand-Delivered
P.O. Box 27 Overnight Mail
Boise, Idaho 83707 Facsimile
_X_ Via E-Mail [e-mail]
James Carkulis, Managing Member U.S. Mail, postage prepaid
Exergy Development Group of ID, LLC Hand-Delivered
802 W. Bannock St., Ste. 1200 Overnight Mail
Boise, Idaho 83702 Facsimile
_X Via E-Mail
[e-mail]
M J Humphries U S Mail, postage prepaid
Blue Ribbon Energy LLC Hand-Delivered
4515 S. Ammon Rd. Overnight Mail
Ammon, Idaho 83406 Facsimile
X Via E-Mail blueribbonenergy(ligmail.com
Brian Olmstead, General Manager U.S. Mail, postage prepaid
Twin Falls Canal Company Hand-Delivered
P.O. Box 326 Overnight Mail
Twin Falls, Idaho 83303 Facsimile
_X_ Via E-Mail olmsteadtfcanal com
John R. Lowe U.S. Mail, postage prepaid
Consultant to Renewable Energy Hand-Delivered
Coalition Overnight Mail
12050 SW Tremont St Facsimile
Portland, OR 97225 _X Via E-Mail jravenesanmarcos(yahoo.com
Donovan E Walker U S Mail, postage prepaid
Jason B. Williams Hand-Delivered
Idaho Power Company Overnight Mail
P.O. Box 70 Facsimile
Boise, Idaho 83707-0700 _X_ Via E-Mail [e-mail]
[e-mail]
APPLICATION FOR INTERVENOR FUNDING -8
Ted Sorensen PE U.S. Mail, postage prepaid
Birch Power Company Hand-Delivered
5203 South 11th East Overnight Mail
Idaho Falls, Idaho 83404 Facsimile
_X_ Via E-Mail [e-mail]
Bill Brown, Chair U.S. Mail, postage prepaid
Board of Commissioners of Adams Hand-Delivered
County, ID Overnight Mail
P.O. Box 48 Facsimile
Council, Idaho 83612 _X_ Via E-Mail [e-mail]
Donald L. Howell, II U.S. Mail, postage prepaid
Kristine A. Sasser Hand-Delivered
Deputy Attorneys General Overnight Mail
Idaho Public Utilities Commission Facsimile
472 W. Washington St. _X Via E-Mail don.howel1(2ipuc.idaho.gov
Boise, Idaho 83702
kris.sasser(puc.idaho.gov
Anon F. Jepsen U.S. Mail, postage prepaid
Blue Ribbon Energy, LLC Hand-Delivered
10660 South 540 East Overnight Mail
Sandy, UT 84070 Facsimile
_X_ Via E-Mail arronesg(aol.com
Wade Thomas, General Counsel U.S. Mail, postage prepaid
Dynamis Energy, LLC Hand-Delivered
776 W. Riverside Dr., Ste. 15 Overnight Mail
Eagle, Idaho 83616 Facsimile
_X_ Via E-Mail [e-mail]
Glenn Ikemoto U.S. Mail, postage prepaid
Margaret Rueger Hand-Delivered
Idaho Windfarms, LLC Overnight Mail
672 Blair Ave. Facsimile
Piedmont, CA 94611 _X_ Via E-Mail glenni(envisionwind.com
margaret(envisionwind.com
Ted Diehl, General Manager U.S. Mail, postage prepaid
North Side Canal Company Hand-Delivered
921 N. Lincoln St. Overnight Mail
Jerome, Idaho 83338 Facsimile
X Via E-Mail [e-mail]
Megan Walseth Decker U.S. Mail, postage prepaid
Senior Staff Counsel Hand-Delivered
Renewable Northwest Project Overnight Mail
917 SW Oak St., Ste. 303 Facsimile
Portland, OR 97205 _X_ Via E-Mail megan(rnD.org
APPLICATION FOR INTERVENOR FUNDING -9
Benjamin J. Otto
Idaho Conservation League
P.O. Box 844
Boise, Idaho 83701
Don Schoenbeck
RCS
900 Washington St., Ste. 78
Vancouver, WA 98660
Liz Woodruff
Ken Miller
Snake River Alliance
P.O. Box 1731
Boise, Idaho 83701
Deborah E. Nelson
Kelsey J. Nunez
Givens Pursley LLP
P.O. Box 2720
Boise, Idaho 83701-2720
Dr. Don Reading
6070 Hill Rd.
Boise, Idaho 83703
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
_X_ Via E-Mail [e-mail]
[e-mail]
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
X Via E-Mail
[e-mail]
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
Via E-Mail botto(idahoconservation.org
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
X_ Via E-Mail [e-mail]
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
X Via E-Mail lwoornff(snakeriveralliance.org
kmi1ler(snakerivera1liance.org
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
_X_ Via E-Mail dengivenspursley.com
[e-mail]
U.S. Mail, postage prepaid
Hand-Delivered
Overnight Mail
Facsimile
_X_ Via E-Mail dreading(2lmindspring.com
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P.O. Box 7218
Boise, Idaho 83702
Mary Lewallen
Clearwater Paper Corporation
601 W. Riverside Ave., Ste. 1100
Spokane, WA 99201
APPLICATION FOR INTERVENOR FUNDING - 10
Tauna Christensen U.S. Mail, postage prepaid
Energy Integrity Project Hand-Delivered
769N. 1100E. Overnight Mail
Shelley, Idaho 83274 Facsimile
_X_ Via E-Mail tauna(energyintegrityproject.org
Lynn Harmon U.S. Mail, postage prepaid
AFRD #2 Hand-Delivered
409 N. Apple St. Overnight Mail
Shoshone, Idaho 83352 Facsimile
_X_ Via E-Mail [e-mail]
Michael J Uda U S Mail, postage prepaid
Uda Law Firm, P.C. Hand-Delivered ____
th . ____ 7 W. 6 Avenue, Suite 4E Overnight Mail Facsimile Helena, MT 59601
Attorneys for Mountain Air Projects, LLC _X_ Via E-Mail [e-mail]
J. Kahle Becker, Idaho U.S. Mail, postage prepaid
The Alaska Center ____ Hand-Delivered
1020 W. Main St. Suite 400 Overnight Mail
Boise, ID 83702 Facsimile
Attorneys for Mountain Air Projects, LLC _X_ Via E-Mail [e-mail]
C. Thomas Ark sh
APPLICATION FOR INTERVENOR FUNDING -11
Exhibit A
Task: Prepare direct testimony and rebuttal; respond to counsel questions and discovery;
propound discovery; advise counsel; present self for cross-examination.
Fees: Hours Rate Amount
Donald Schoenbeck 269 $205 $55,145
Robynn L. Woodbury 2 150 300
Total: $ 55,445
APPLICATION FOR INTERVENOR FUNDING -12