Loading...
HomeMy WebLinkAbout20120131Clements Direct_Exhibit 202.pdfRECE D 1m2 J¡\N 31 AM lOr 20 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE COMMISSION'S REVIEW OF PURP A QF CONTRACT PROVISIONS INCLUDING THE SUROGATE AVOIDED RESOURCES (SAR) AND INTEGRATED RESOURCE PLANNING (IRP) METHODOLOGIES FOR CALCULATING PUBLISHED AVOIDED COST RATES ) ) CASE NO. GNR-E-11-03 ) ) Direct Testimony of Paul H. Clements ) ) ) ROCKY MOUNTAIN POWER CASE NO. GNR-E-11-03 January 2012 1 Q. 2 3 A. 4 5 6 7 8 Q. 9 A. 10 Q. 11 A. 12 13 14 15 16 17 Please state your name, business address and present position with PacifiCorp, dba Rocky Mountain Power Company (the "Company"). My name is Paul H. Clements. My business address is 201 S. Main, Suite 2300, Salt Lake City, Utah 84111. My present position is OriginatorlPower Marketer for PacifiCorp Energy. PacifiCorp Energy and Rocky Mountain Power are divisions of PacifiCorp (hereinafter referred to as the "Company" or "Rocky Mountain Power"). How long have you been in your present position? I have been in my present position since December 2004. . Please describe your education and business experience. I have a B.S. in Business Management from Brigham Young University. I have been employed with PacifiCorp since 2004 as an originator/power marketer responsible for negotiating qualifying facility contracts, negotiating interrptible retail special contracts, and managing wholesale or market-based energy and. capacity contracts with other utilties and power marketers. I also worked. in the merchant energy sector for approximately six years in pricing and strctuing, origination, and trading roles for Duke Energy and Ilinova. 18 Purpose and Summary of Testimony 19 Q. 20 A. 21 22 23 What is the purpose of your testimony? I present the Company's recent experience with Non-Standad Qualifying Facility ("QF") contracts. Non-Standard QFs are projects that do not qualify for published rates. In addition, I propose a new taff Schedule 38, provided as Exhibit No. 202, to govern the Non-Standard QF contracting procedures in Idaho going Clements, Di - 1 Rocky Mountain Power 1 forward and I wil explain the provisions of this new tariff. Lastly, I provide 2 comments on Environmental Attbute ownership as it pertains to QFs. 3 Q.Please summarize your testimony. 4 A.The Company has, over the past five years, received five requests for indicative 5 pricing for projects that do not qualify for published rates for qualifying facilties. 6 The Company used the IRP methodology, as established in IPC-E-95-9, to 7 calculate indicative avoided costs in response to the requests. Rocky Mountain 8 Power witness. Ms. Kelcey Brown provides an overview of the methodology and 9 the Company's proposal for continued use of the IRP methodology. The IRP 10 methodology along with the contracting procedures contained in the proposed 11 tariff Schedule 38 wil provide fair pricing and contracting processes for Non- 12 Standard QFs in Idaho and wil render existing retail customers indifferent as to 13 whether energy is purchased from QFs or supplied by Rocky Mountain Power 14 from other sources in the futue. Regarding Environmental Attbute ownership, 15 the Company's position is that the Company owns all Environmental Attibutes 16 generated by QFs. 17 Proposed Tariff Schedule 38 18 Q.Please explain why the Company is proposing tariff Schedule 38. 19 A.Tariff Schedule 38 is a new tariff for Non-Standard QF projects that wil provide 20 the steps and timeframe that both the Company and a proposed Non-Standard QF 21 work through to determine indicative or estimated avoided cost prices for a 22 proposed QF project. . The taff wil facilitate communication between the 23 Company and potential QFs as they work through the negotiation process. The Clements, Di - 2 Rocky Mountain Power 1 2 3 4 5 6 7 8 Q. 9 10 A. 11 12 Q. 13 A. 14 15 16 17 18 19 20 21 22 tariff clearly identifies the information required from the QF and the timeline in which the QF wil receive indicative pricing. The tariff codifies in Idao the process that Rocky Mountain Power formally uses in Utah and Wyoming and has informally been using in Idaho for several years. Though experience in implementing the process in other states, the Company believes the formal process proposed in Schedule 38 is an efficient and productive process for both the Company and potential QFs. Does the Company have a formal Non-Standard QF negotiation procedure in other jurisdictions? Yes. The Company's Schedule 38 Non-Standard QF contract negotiation process is in place in Utah, 1 Oregon and Wyoming. Please explain the proposed tariff Schedule 38. Schedule 38 - Avoided Cost Purchases from Non-Standad Qualifying Facilities, is based on the output of a work-group that was established in 2002 in Uta Docket 02-035- TIl addressing issues similar to those being addressed in Case No. GNR-E-ll-03 in Idaho. The work group included many parties with similar interests to those in this Case, who participated in the ,development and negotiation of the procedures in this tarff. The general purose of Schedule 38 is to provide the steps and timeframe that both the Company and a proposed QF work though to determine indicative avoided cost pricing for a proposed QF project. The tariff clearly lays out the information the Company requires be provided by the developer in order for the Company to prepare indicative prices i As an example the Utah tarff can be found at the following internet address: htt://ww.rockyountainpower.net/content/dam/rocky _mountain -power/doc/ About_ Us/Rates _and _ Regu lation/tah! Approved _ Tarffs/Rate _ Schedules/Avoided _ Cost_Purchases _from _ Qualifying_Facilities.pdf. Clements, Di - 3 Rocky Mountain Power 1 for a proposed QF project. 2 Even a developer of a QF project in the conceptual stage should have most 3 of the information collected and available to provide to the Company because the 4 information required in Schedule 38 is necessary for the design, development, 5 financing, and constrction of the QF project. As outlined by the procedure, QF 6 projects that provide the required details regarding their projects up front have a 7 much lower probability of experiencing a delay in the development of indicative 8 prices. The Company works very closely with the QF in this initial step by 9 completing due diligence and feedback on the information. Once the information lOis agreed to by both paries, the Company completes its pricing step. As outlned 11 by the tarff, the parties then follow the timelines and process for completing 12 negotiation of a Power Purchase Agreement ("PP A"). The timeline for the varous 13 steps in the process is as follows: 14 1. Indicative pricing is provided within 30 days following receipt of all 15 required information. 16 2. A draft PP A is provided within 45 days following receipt of all 17 required additional information after indicative pricing has been 18 provided. 19 3. A final PPA is provided within 45 days of agreement by both parties 20 on all material terms in the PP A. 21 4. Counterparties must wait 60 days after one part gives notice that the 22 parties are unable to reach agreement on a final PP A before fiing a Clements, Di - 4 Rocky Mountain Power 1 2 3 Q. 4 5 A. 6 7 8 9 Q. 10 11 A. 12 13 14 15 16 17 18 19 20 21 22 23 complaint with the Commission on any specific contract terms not agreed upon. What contract terms and conditions will be included by the Company in a PP A that is provided as part of the Schedule 38 process? The terms and conditions of the QF PP A wil be similar to those terms and conditions obtained from recent similarly-sized QFs and third part PPAs and wil also take into account the terms and conditions established by the Commission in Case No. GNR-E-11-0L. How does the proposed Idaho Schedule 38 compare to the current Wyoming and Utah Schedules 38? The proposed Idaho Schedule 38 is similar to the Wyoming Schedule 38. Rocky Mountain Power established the Wyoming Schedule 38 in late 2011 and it reflects the most up-to-date process that has been refined through experience to provide the most effcient process for communication between the QF and the Company. The Utah Schedule 38 has been in place for several years and is slightly different than the Wyoming Schedule 38 and the proposed Idaho Schedule 38. The proposed Idaho Schedule 38 provides 45 days for delivery of the draft PPA, the Utah Schedule 38 provides 30 days. The proposed Idaho Schedule 38 also establishes a 45 day timeline for delivery of a final PP A, the Utah Schedule 38 does not provide a timeline for delivery of a final PP A. Finally, the proposed Idaho Schedule 38 establishes a 60 day waiting period before a complaint with the Commission on contract terms can be filed, the Utah Schedule 38 does not address Commission complaint filings. Clements, Di - 5 Rocky Mountain Power 1 Q.Has Schedule 38 worked as it was intended in the other states where it has 2 been implemented? 3 A.Yes. Schedule 38 has provided a framework under which the QF developer knows r 4 what is required in order to obtain indicative pricing. Even in other states where 5 there is no formal Schedule 38, the Company uses this schedule as a general road 6 map with the developer who is proposing a Non-Standard QF. It provides the QF 7 developer a clear understanding on what is needed to secure indicative prices 8 from the Company. If they wish to proceed with the project or renew their 9 contract, the tarff establishes a procedure that both parties follow throughout the 10 contract negotiations. To work effectively, Schedule 38 requires specific and 11 detailed information from the QF regarding their proposed project. A QF 12 developer that comes to the Company with vague requests or insuffcient details 13 wil go through a series of due diligence meetings until all data is agreed to by 14 both parties. The Company is not in a position to provide indicative pricing 15 without sufficient and clear project details. Once the prices are prepared and 16 accepted by the QF, there is a set time frame for the Company to provide an initial 17 draft PPA for contract negotiations. The QF knows and understands the steps and 18 timeframe to complete a power purchase agreement. 19 Q.Have you provided as an exhibit a proposed Schedule 38 for Idaho? 20 A.Yes. Exhibit No. 202 is the Company's proposed Schedule 38 for Idaho. 21 Environmental Attribute Ownership 22 Q.What is an Environmental Attribute? 23 A.The "Environmental Attbute" of electrcity generation is a collection of the Clements, Di - 6 Rocky Mountain Power 1 2 3 4 5 6 7 8 9 10 11 12 Q. 13 14 A. 15 16 Q. 17 18 19 A. 20 21 22 Q. 23 A. environmental and other positive, non-energy attbutes of renewable generation. Environmental Attbutes include not only the avoided emissions characteristics and the proof of generation of renewable energy, but also the right to make a claim with respect to that energy; specifically, the exclusive right to claim to have pedormed the social and environmental good of generating renewable, as opposed to fossil fuel, energy. A key value of energy from renewable resources being purchased is the "renewableness" of the energy. The Environmental Attributes of the energy that give it the unique characteristic of being "renewable" can be separated from the energy itself and traded by defining what is called a "green tag," "renewable energy certificate," "renewable energy credit," "green attibute," or "tradable renewable energy credits." Why are you providing testimony on the issue of Environmental Attribute ownership as it pertains to QFs? The Company understands that the Commission may elect to address environmental attibute ownership in conjunction with this Case. What is Rocky Mountain Power's recommendation on Environment Attribute ownership as it pertains to Environmental Attributes generated by QFs? Environmental Attbutes generated by a QF project should go to the utilty whenever that QF sells energy to the utility and receives compensation for that energy at approved avoided cost rates. How is the Company's recommendation supported by the intent ofPURPA? Section 210 of PURP A requires utilities to buy power from generation fueled by Clements, Di - 7 Rocky Mountain Power 1 2 3 4 5 6 Q. 7 8 9 A. 10 11 12 13 Q. 14 A. 15 16 17 18 19 20 21 22 23 specific resources (biomass, solar, wind, waste, and geothermal) or in specific configuations (e.g., cogeneration). If those generators were not powered by those specific resources, the utilities would not be required to purchase that energy under PUR A. Furthermore, the meters between the QF and the utilty's system have always shown the energy from that renewable resource flowing to the utility. Does Rocky Mountain contend it could be paying above avoided cost for Environmental Attributes if it were required to pay a QF separately for such Environmental Attributes? Yes. It is the Company's position that if Rocky Mountain Power were to pay a QF separately for the Environmental Attribute, Rocky Mountain Power and its customers would in effect be paying twice for that attbute and thus pay above avoided cost. Please further explain your position. PURP A contains no requirement that a purchasing utility pay twice for what it has already bought. PURP A requires that utilities purchase from QFs, and QFs are afforded that designation because of fuel use or effciency criteria. A utility must purchase from a QF that is also an eligible renewable energy resource because of the generation's Environmental Attributes. Without these characteristics, the generator would not be able to require the utilty to purchase its energy at alL. In other words, it is only by virte of the existence of the Environmental Attbutes that facilities are deemed QFs and utilities become obligated to purchase their power. In the case of eligible renewable energy resource QFs, these Environmental Attbutes are the essence of the requirements to purchase the Clements, Di - 8 Rocky Mountain Power 1 2 3 4 5 6 Q. 7 8 9 A. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 output, and is therefore part of what the utility is buying with the payment of avoided costs. If Rocky Mountain Power does not get the QF Environmental Attbute, it is not receiving the very characteristic that enabled the facilty to achieve its QF status, and which thereby trggered the utility's obligation to purchase the output from the facilty. If the utilty is in fact buying energy from a differentiated renewable resource, can that resource truly sell its Environmental Attributes to third parties? Although some QFs do purort to sell Environmental Attbutes to third parties, any such sale is defective for the following reasons: (1) a core aspect of the Environmental Attbutes is the exclusive right to claim to have purchased generation from a particular renewable resource gènerating facility; (2) pursuant to a QF contract, the utilty agrees to buy energy from a particular renewable resource generating facility (as opposed to undifferentiated energy in bulk at a market delivery point); and (3) since the utilty is buying the energy from that particular facilty, no one else can trthfully claim to be doing so. Irrespective of PUR A, double-counting of renewable generation is false advertising at best and fraud at worst. Simply because one attibute of what has always been sold pursuant to PURP A contracts subsequently acquires a separate market value does not mean that particular attbute now warants separate compensation, just as it does not mean that the attibute has been, or is being, Clements, Di-9 Rocky Mountain Power 1 2 3 4 5 6 7 8 Q. 9 10 11 A. 12 13 14 Q. 15 A. transferred without consideration. A purchasing utilty under a QF contract is not buying undifferentiated energy from the grid; it is buying energy that is very paricularly differentiated to such an extent that the utilty is required by law to buy it at the special price known as "avoided cost". Under PURA, the utility has the obligation of purchasing energy from a differentiated resource at the utilty's avoided cost. Absent utilty ownership of all the differentiated resource's attibutes, the utility is paying higher than its tre avoided cost. What conclusion can you draw from your analysis of the intent of PURPA and how it applies to the issue of Environmental Attribute ownership in QF contracts? In terms of PURP A, any power purchase agreement securng power from an eligible renewable energy resource should therefore credit the associated Environmental Attibutes to the purchasing utility. Does this conclude your direct testimony? Yes. Clements, Di - 10 Rocky Mountain Power Case No. GNR-E-11-03 Exhibit No. 202 Witness: Paul H. Clements BEFORE THE IDAHO PUBLIC UTILITIES COMMSSION ROCKY MOUNTAI POWER Exhibit Accompanying Direct Testimony of Paul H. Clements January 2012 ~~OUNTAIN Rocky Mountain Power Exhibit 202 Page 1 of 7 Case No. GNR-E-11-03 Witness: Paul H. Clements I.P.U.C. No.1 Original Sheet No. 38.1 ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 38 STATE OF IDAHO Avoided Cost Purchases from Non-Standard Qualifying Facilties Available To owners of Qulifying Facilties ("QF") in all terrtoiy served by the Company in the State ofIdao. Applicable To owners of existing or proposed QFs who desire to make sales to the Company and who: (I) have a design capacity greater than 1,000 kW and a historic or projected annual capacity factor of seventy percent or below, or (2) have an average monthly capacity and associated energy of greater than 10,000 kW and a historic or projected annual capacity factor of greater than seventy percent. Such owners shall be required to enter into wrtten power purchase and interconnection agreements with the Company pursuant to the procedures set forth below. Additional or different requirements may apply to Idaho QFs seeking to make sales to third-parties or out-of-system QFs seeking to wheel power to Idaho for sale to the Company. I. Process For Negotiating Power Purchase Agreements A. Communications, Unless otherwse directed by the Company, all communications to the Company regarding QF power purchase agreements shall be directed in wrting, by mail, as follows: Rocky Mountain Power Manager - QF Contracts 825 NE Multnomah St, Suite 600 Portland, Oregon 97232 Any requirement for wrtten notice in this tariff shall be via mail unless the parties agree by mutual consent to an alternative form. The Company shall respond to all such communications in a timely manner as more fully described below. (Continued) Submitted Under Case No. GNR-E-II-03 ISSUED: Januaiy 31, 2012 EFFECTIVE: ~~~OUNTAIN Rocky Mountain Power Exhibit 202 Page 2 of 7 Case No. GNR-E-11-03 Witness: Paul H. Clements I.P.U.C. No.1 Original Sheet No. 38.2 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued I.A.Communications (continued) If the Company is unable to respond on the basis of incomplete or missing information from the QF owner, the Company shall indicate what additional information is required. Thereafter, the Company shall respond in a timely manner following receipt of all required information as more fully described below. B. Procedures 1. Examples of the Company's tyical generic power purchase agreement may be obtained from the Company's website at \v"\vw.pacificorp.com, or if the owner is unable to obtain it from the website, the Company shall send a copy via mail within seven calenda days of a written request directed to the address in Par 1. A. 2. To obtain an indicative pricing proposal with respect to a proposed Project, the owner shall provide in wrting to the Company, general project information reasonably required for the development of indicative pricing. A Project is defined as an existing or proposed QF that desires to make sales to the Company and that can satisfy the requirements of Schedule 38. General project information shall include, but not be limted to: a) generation technology and other related technology applicable to the site; b) design capacity (MW), station service requirements, and net amount of power to be delivered to the Company's electrc system; c) quantity and timg of monthly power deliveries (including Project abilty to respond to dispatch orders from the Company); d) proposed site location and electrcal interconnection point; e) proposed on-line date (date on which deliveries of energy wil commence) and outstanding permtting requirements; f) demonstration of abilty to obtain QF status; g) fuel tye(s) and source(s); h) plans for fuel and transportation agreements, includig plans for what part or paries wil pay transmission costs; i) proposed contract term and pricing provisions (i.e., fixed, escalating, indexed); and, j) status of interconnection arangements. (Continued) Submitted Under Case No. GNR-E-ll-03 ISSUED: January 31, 2012 EFFECTIVE: .,~. ..R..OCKY MOUNTAIN POWER A DIVSION Of PACFICP Rocky Mountain Power Exhibit 202 Page 3 of 7 Case No. GNR-E-11-03 Witness: Paul H. Clements I.P.V.C. No.1 Original Sheet No. 38.3 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued I.B.Procedures (continued) 3. The Company shall not be obligated to provide an indicative pricing proposal until all information described in Paragrph 2 has been received in wrting from the QF owner. Within 30 calenda days following receipt of all information required in Paragraph 2, the Company shall provide the owner with an indicative pricing proposal, which may include other indicative terms and conditions, tailored to the individual characteristics of the proposed Project. Such proposal maybe used by the owner to make determnations regarding Project planning, financing and feasibility. However, such prices are rnere1y indicative and are not filial and binding. Prices and other terms and conditions are only fmal and binding to the extent contained in a power purchase agreement executed by both parties and accepted for fiing by the Idaho Public Utilties Commssion. Upon request, the Company shall provide with the indicative prices a description of the methodology used to develop the prices. 4. If the owner desires to proceed with the Project after reviewing the Company's indicative proposal, it shall request in writing that the Company prepare a draft power purchase agreement to serve as the basis for negotiations between the partes. In connection with such request, the owner shall provide the Company with any additional Project information that the Company reasonably determnes to be necessary for the preparation of a draft power purchase agreement, which may include, but shall not be limted to: a) updated information of the categories described in Paragraph B.2; b) evidence of adequate control of proposed site; c) identification of, and timelines for obtaining any necessar governental permts, approvals or authoriations; d) assurance of fuel supply or motive force; e) anticipated timelines for completion of key Project milestones; and, f) evidence that any necessary interconnection studies have been completed and assurance that the necessary interconnection arrangements are being made in accordance with Part II. (Continued) Submitted Under Case No. GNR-E-l 1-03 ISSUED: January 31, 2012 EFFECTIVE: ROCKY MOUNTAIN POWER A OlVSION Of PACIFICRP Rocky Mountain Power Exhibit 202 Page 4 of 7 Case No. GNR-E-11-03 Witness: Paul H. Clements I.P.U.C. No.1 Original Sheet No. 38.4 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued I.B.Procedures (continued) 5. The Company shall not be obligated to provide the owner wíth a draft power purchase agreement untí1 all ínformatíon requíred pursuant to Paragraph 4 has been receíved by the Company in wrting. Wíthin 45 calenda days followíng receípt of all informatíon required pursuant to Paragraph 4, the Company shall províde the owner wíth a draft power purchase agreement containíng a comprehensíve set of proposed terms and condítíons, includig a specífic pricing proposal for purchases from the Project. Such draft shall serve as the basís for subsequent negotíatíons between the paríes and, unless clearly índícated, shall not be constred as a binding proposal by the Company. 6. After revíewing the draft power purchase agreement, the owner shall prepare an initíal set of wrítten comments and proposals regarding the draft power purchase agreernent and shall províde such comments and proposals, or notíce that ít has none, to the Company. The Company shall not be oblígated to commence negotíatíons wíth a QF owner untí1 the Company has receíved an inítíal set of wrítten comments and proposals from the QF owner. Followíng the Company's receípt of such comments and proposals, the owner shall contact the Company to schedule contract negotíatíons at such times and places as are mutully agreeable to the parties. Inconnectíon wíth such negotiatíons, the Company: a) shall not unreasonably delay negotiatíons and shall respond ín good faíth to any addítíons, deletíons or rnodíficatíons to the draft power purchase agreement that are proposed by the owner; b) rnay request to vísít the síte of the proposed Project íf such a vísít has not prevíously occured; c) shall update its pricing proposals at appropriate intervals to accommodate any changes to the Company's avoíded-cost calculatíons, the proposed Project or proposed terms of the draft power purchase agreement; d) may request any additional informatíon from the owner. necessar to finalíze the terms of the power purchase agreement and satísfy the Company's due diligence wíth respect to the Project; and, e) shall resolve disputes related to power purchase agreement terms consístent wíth Part II of thís tarff. (Continued) Submítted Under Case No. GNR-E-I 1-03 ISSUED: January 31, 2012 EFFECTIVE: ~~:OUNTAIN Rocky Mountain Power Exhibit 202 Page 5 of 7 Case No. GNR-E-11-03 Witness: Paul H. Clements I.P.U.C. No.1 Original Sheet No. 38.5 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued I.B.Procedures (continued) 7. When both parties are in full agreement as to all terms and conditions of the draft power purchase agreement, the Company shall prepare and forward to the owner within 45 calendar days a final, executable version of the agreement. The Company reserves the right to condition execution of the power purchase agreement upon simultaeous execution of an interconnection agreement between the owner and the Company's power delivery fuction, as discussed in Part II. Prices and other terms and conditions in the power purchase agreement shall not be fial and binding until the power purchase agreement has been executed by both paries and the Idaho Public Utilties Commssion accepts the agreement for fiing. II. Process for Negotiating Interconnection Agreements In addition to negotiating a power purchase agreement, QFs intending to make sales to the Company are also required to enter into an interconnection agreement that governs the physical interconnection of the Project to the Company's transmission or distrbution system. The Company's obligation to make purchases from a QF is conditioned upon the consumation of all necessar interconnection arrangements. It is recommended that the owner initiate its request for interconnection as early in the planning process as possible, to ensure that necessar interconnection arrangements proceed in a timely manner on a parallel track with negotiation of the power purchase agreement. Because of fuctional separation requirements mandated by the Federal Energy Regulatory Commssion, interconnection and power purchase agreements are handled by different fuctions within the Company. Interconnection agreements (both transmission and distribution level voltages) are handled by the Company's power delivery fuction. (Continued) Submitted Under Case No. GNR-E-II-03 ISSUED: January 31, 2012 EFFECTIVE: ~~~OUNTAIN Rocky Mountain Power Exhibit 202 Page 6 of 7 Case No. GNR-E-11-03 Witness: Paul H. Clements I.P.U.C. No.1 Original Sheet No. 38.6 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued II.A.Communications Initial communications regarding interconnection agreements should be directed to the Company in writing as follows: PacifiCorp Transmission Transmission Account Management 825 NE Multnomah St, Suite 1600 Portland, Oregon 97232 Based on the Project size and other characteristics, the Company shall direct the QF owner to the appropriate individual within the Company's power delivery fuction responsible for negotiating the interconnection agreement with the QF owner. Thereafter, the QF owner should direct all communications regardig interconnection agreements to the desigiated individual, with a copy of any written communications to the address set fort above. B. Procedures Generally, the interconnection process involves (1) intiating a request for interconnection, (2) completion of studies to determe the system impacts associated with the interconnection and the design, cost, and schedules for constrcting any necessar interconnection facilities, (3) execution of an Interconnection Facilities Agreernent to address facility constrction, testing and acceptance, and (4) execution of an Interconnection Operation and Maintenance Agreement to address ownership and operation and maintenance issues. For interconnections impacting the Company's Transmission System, the Company shall process the interconnection application through PacifiCorp Transmission Services following the procedures for studying the generation interconnection described in the latest version of the Company's Open Access Transmission Tariff, PacifiCorp FERC Electric Tariff, Volume No. 11 Pro Forma Open Access Transmission Tariff (OATT) on file with the Federal Energy Regulatory Commssion. A copy of the OATT is available on-line at: htt//ww.oasis.pacificorp.com For interconnections impacting the Company's Distrbution System only, the Company wil process the interconnection application through the Manager - QF Contracts at the address shown in Part i. A. (Continued) Submitted Under Case No. GNR-E-II-03 ISSUED: January 31, 2012 EFFECTIVE: ROCKY MOUNTAIN .POWER Rocky Mountain Power Exhibit 202 Page 7 of 7 Case No. GNR-E-11-03 Witness: Paul H. Clements A DiVSION OF f'ACIFICORf' I.P.U.C. No.1 Original Sheet No. 38.7 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued III. Process for Filng a Complaint with the Commission on Contract Terms Before filing a complaint with the Idaho Public Utilties Commssion on any specific power purchase agreement term not agreed upon between the counterpar and the Company, a counterpart must wait 60 calendar days from the date it notifies the Company in wrting that it canot reach agreement on a specific term. This includes but is not limted to any disputes that are not resolved through the procedures set fort in Part i. B. 6. Submitted Under Case No. GNR-E-l 1-03 ISSUED: January 31, 2012 EFFECTIVE: Idaho Public Utilties Commssion Janua 31, 2012 Page 2 Informal inquires may be directed to Ted Weston, Idaho Reguatory Manager at (801) 220- 2963. Sincerely,~f(~/~ Jeffrey K. Larsen Vice President, Reguation Cc: GNR-E-11-03 Service List CERTIFICATE OF SERVICE I hereby certify that on ths 31 st day of Janua, 2012, I caused to be served, via E-mail, a tre and correct copy of Rocky Mountan Power's Testimony & Exhbits in Case No. GNR - E-11-03 to the followig: Donovan E. Waler Lisa D. Nordstrom Idaho Power Company POBox 70 Boise, ID 83707-0070 E-mail: dwalker(ßidahopower.com lnordstrom(ßidahopower .com Danel Solander PacifiCorp dba Rocky Mounta Power 201 S. Main St., Suite 2300 Salt Lake City, UT 84111 E-mail: daneL.solander(ßpacificorp.com Donald L. Howell, II Krstine A. Sasser Deputy Attorneys General IdahQ Public Utilities Commssion 472 W. Washington PO Box 83720 Boise, ID 83720-0074 E-mail: don.howell(ßuc.idaho.gov kris.sasser(ßpuc.idaho.gov Robert D. Kah Nortwest and Intermounta Power Producers Coalition 1117 Minor Ave., Suite 300 Seattle, W A 9810 1 E-mail: rkah(ßnippc.org Robert A. Paul Grand View Solar II 15690 Vista Circle Desert Hot Sprigs, CA 92241 E-mail: robertpau108(ßgmail.com Michael G. Andrea A vista Corpration 1411 E. Mission Ave. Spokae, W A 99202 E-mail: michael.andrea(ßavistacorp.com Ken Kaufman (E-mail Only) Lovinger Kaufan, LLP 825 NE Multnomah, Suite 925 Portland, OR 97232 E-mail: Kaufman(ßlk1aw.com Peter J. Richardson Gregory M. Adams Richardson & 0' Lear, PLLC PO Box 7218 Boise, ID 83702 E-mail: peter(ßrichardsonandolear.com gregaYrichardsonandoleary.com Don Stuvant Energy Dirctor J.R. Simplot Company PO Box 27 Boise, ID 83707-0027 E-mail: don.stuevant(ßsimplot.com James Carkuis Managig Member Exergy Development Group of Idao, LLC 802 W. Banock St., Suite 120Ò Boise, ID 83702 E-mail: jcarkulis(ßexergydevelopment.com Ronald L. Willams Wiliams Bradbur, P.C. 1015 W. Hays St. Boise il, 83702 E-mail: ron(iwiliamsbradbur.com JohnR. Lowe Consultat to Renewable Energy Coalition 12050 SW Tremont St. Portland, OR 97225 E-mail: jravenesanmarcos(iyahoo.com Bil Piske, Manager Interconnect Solar Development, LLC 1303 E. Carer Boise, ID 83706 E-mail: bilpiske(icableone.net Benjamin J. Oto Idao Conservation League 710 N. Sixth Street (83702) POBox 844 Boise, ID 83701 E-mail: botto(iidahoconservation.org Shelley M. Davis Barker Rosholt & Simpson, LLP 1010 W. Jefferson St. (83702) PO Box 2139 Boise, il 83701 E-mail: smd(iidahowaters.com Ted Diehl General Manager Nort Side Canal Company 921 N. Lincoln St. Jerome, il 83338 E-mail: nscanal(icableone.net Ted S. Sorenson, P.E. Birch Power Company 5203 South 11 tl East Idaho Falls, ID 83404 E-mail: ted(itsorenson.net Thomas H. Nelson Attorney PO Box 1211 Welches, OR 97067- 1211 E-mail: nelson(ithnelson.com R. Greg Ferney Mimur Law Offices, PLLC 2176 E. Frain Rd., Suite 120 Meridian, ID 83642 E-mail: greg(imimuralaw.com Dean J. Miler McDevitt & Miler, LLP PO Box 2564 Boise, ID 83701 E-mail: joe(imcdevitt-miler.com Wade Thomas General Counsel Dynams Energy, LLC 776 W. Riverside Dr., Suite 15 Eagle, ID 83616 E-mail: wtomas(idynamisenergy.com Brian Olmstead General Manager Twi Falls Can Company PO Box 326 Twin Falls, ID 83303 E-mail: olmstead(itfcanaL.com Bil Brown, Chair Board of Commissioners of Adams County, il PO Box 48 Council, il 83612 E-mail: bdbrown(ifrontiernet.net Glenn Ikemoto Margaret Rueger Idaho Windfars, LLC 672 Blai Avenue Piedmont, CA 94611 E-mail: glenn(ienvisionwind.com Margaret(ienvisionwind.com M.J. Humphres Blue Ribbon Energy LLC 4515 S. Amon Road Amon, ID 83406 E-mail: blueribbonenergy(ßgmail.com Gar Seifert Kur Myers Idaho National Laboratory Conventional Renewable Energy Group 2525 Fremont Ave Idaho Falls, ID 83415-3810 E-mail: gary.seifert(ßinl.gov Kur.myers(ßinl.gov Megan Walseth Decker Senior Sta Counsel Renewable Nortwest Project 917 SW Oak Street, Suite 303 Portland, OR 97205 E-mail: megan(ßmp.org Aron F. Jepson Blue Ribbon Energy LLC 10660 South 540 Eat Sandy, UT 84070 E-mail: arronesq(ßaol.com Ken Miler Snake River Alliance PO Box 1731 Boise, ID 83701 E-mail: kmiler(ßsnakeriveralliance.org Mar Lewallen Clearater Paper Corporation 601 W. Riverside Ave., Suite 1100 Spokane, W A 99201 Mar .lewallen(ßclearaterpaper .com Gw~.i~Care Meyer~ Coordinator, Admstrative Services