20130408Reconsideration Reply Comments.1.pdf

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ATTORNEYS AT LAW
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April 8, 2013
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702
Re: GNR-E-11-03
Dear Ms. Jewell:
Please find enclosed an original and seven copies of Reconsideration Reply Comments
of the Renewable Energy Coalition for filing in the above referenced case.
Thank you for your assistance in this matter. Please feel free to give me a call should
you have any questions.
Sincerely,
Ronald L. Williams
RLWIjr
Enclosures
1015W. Hays Street - Boise, ID 83702
Phone: [phone] - Fax: [phone] - www.williamsbradbury.com
. .
Ronald L. Williams, ISB No. 3034
Williams Bradbury, P.C.
1015 W. Hays St.
Boise ID, 83702
Telephone: [phone]
Fax: [phone]
[e-mail]
Attorneys for Renewable Energy Coalition
BEFORE THE IDAHO PUBLIC UTILITES 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 AVOIDED COST RATES
Case No. GNR-E-1 1-03
RECONSIDERATION REPLY
COMMENTS OF THE RENEWABLE
ENERGY COALITION
COMES NOW the Renewable Energy Coalition ("REC"), by and through its counsel of
record, Ronald L. Williams of Williams Bradbury, P.C., and provides these Reconsideration
Reply Comments, as follows.
REC currently has 13 members which own, operate or have interest in 24 small
hydroelectric projects located within Idaho and selling to either Idaho Power Company ("Idaho
Power") or PacifiCorp, dba Rocky Mountain Power ("PacifiCorp"). Nine REC member projects
sell to PacifiCorp, the remainder to Idaho Power. In addition, there are at least five other small
hydro projects not represented by REC that sell to PacifiCorp.
The "Note" to the price schedules in the Commission's December 18, 2012 Order No.
32697 established the initial definition of Canal Drop Hydro. Consequently, REC expressed its
concern regarding the definition of Canal Drop Hydro in its Petition for Clarification of January
8, 2013. REC's concern regarding this definition was not related to the use of the term
Reconsideration Reply Comments Of The Renewable Energy Coalition, Page 1
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"majority" of generation during the irrigation season, but rather, possible unintended restrictions
associated with "man-made" waterway criteria, as well as the possibility that the title "Canal
Drop Hydro" could lead to further confusion about the intended application of this particular rate
schedule.
Staff proposes the definition of a seasonal hydro project as one that has, "over the last
ten years, generated at least 90 percent of its average annual generation during the months of
April through October." Staff also proposed that for new projects, they be required to
demonstrate compliance with this definition during the first year or operation.
REC objects to the first part of this definition and instead believes that existing hydro
projects should be able to change their operating regime to meet the same definition of
seasonality that applies to new hydro projects. In other words, an existing hydro project with a
new contract from Idaho Power or PacifiCorp should be allowed to curtail what would otherwise
be marginal out-of-season generation, in order to qualify for seasonal generation avoided cost
rates, without being 'trapped' by 10 years of historical generation related to an old contract that
treated all types of QF generation the same. To hold existing hydro projects to a different
standard than new hydro projects is otherwise unduly discriminatory.
Please see Attachment A regarding more detailed comments of REC related to seasonal
hydro rates and threshold requirements.
RESPECTFULLY SUBMITTED this 8th day of April, 2013.
WILLIAMS BRADBURY., P.C.
Ronald L. Williams
Attorney for the Renewable Energy Coalition
Reconsideration Reply Comments Of The Renewable Energy Coalition, Page 2
L

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ATTACHMENT A
TO REPLY COMMENTS OF RENEWABLE ENERGY COALITION
The Renewable Energy Coalition ("Coalition") in accordance with the Idaho Public
Utility Commission's ("Commission") Order No. 32737 dated February 5, 2013
submits the following reply comments regarding the definition of Canal Drop
Hydro Projects ("Canal Drop Hydro") and other closely related issues.
A. Background and Analysis of Proiect Data
Staff's initial definition of Canal Drop Hydro as stated in the price schedule "Note"
referenced above is the following: A "canal drop hydro project" is defined as a
generation facility which produces the majority of its generation during the
irrigation season and is located on a man-made waterway that conveys water
primarily intended for irrigation or that primarily conveys irrigation return flows.
Staff's new proposed definition is materially different in two very important ways:
1) the generation facility must produces at least 90% of its annual total annual
generation during the irrigation season, and 2) in order to qualify for seasonal
prices existing projects must demonstrate through ten years of historical
production that 90% of production occurred during the irrigation season. In
addition, Staff makes the following observation in its March 25th comments,
"What is important, Staff believes, is not whether a hydro project is located on a
canal or whether it is somehow associated with irrigation, but instead whether it
reliably generates during the season of the year when capacity is most valuable to
the utility, i.e. summer for Idaho Power and PacifiCorp".
The Coalition brings attention to the following issues with the Staff's proposed
new definition: 1) Under Staff's original definition of Canal Drop or Seasonal
projects using just the majority criteria nineteen of the twenty-two Coalition
projects would have been eligible for the higher prices, 2) Under Staff's current
proposed definition for Seasonal projects only two of the Coalition projects may
be eligible, a 89% reduction in eligibility, 3) fifteen (70%) of the projects have a
.
July Capacity factor greater or equal to 75%, however none of these projects
qualify for the Seasonal prices under the staff proposal.
B. Definition of Seasonal Prolects
A.90% of annual production during the irrigation season:
While Idaho Power may be more technically correct in proposing a
restricted summer season for determining seasonal hydro price eligibility,
Staff's approach using the irrigation season as a reasonable criterium for
seasonal prices is superior, all things considered.
B.Ten —year demonstration of 90% for existing projects:
In its recommendations Staff defines a seasonal project "as one that
generates 90 percent of its annual generation during the months of April
through October". However, Staff analysis on page 3 provided a different
and more restrictive definition of a Seasonal Project, as follows: "A
Seasonal project is defined as one that, over the last ten years, generated
90 percent of its annual generation during the months of April through
October". Further on page 3 Staff states that "This definition would apply
to any new hydro project seeking a contract and to any existing projects
seeking to replace an expiring contract. For new contracts, Staff proposes
that projects be required to demonstrate compliance with this definition in
the first year of operation, with retroactive adjustment of rates if the
project fails to comply".
The requirement to have 90% of the annual generation during the irrigation
season each year during the prior ten years in order to qualify for seasonal
prices would unduly discriminate against existing hydro projects seeking
new PPAs, and in favor of new hydro projects that have no operating
history. With the Staff proposed retroactive adjustment, it appears that a
project meeting the 90% based threshold for nine years but missing it
slightly the tenth year could be subject to retroactive price adjustments
over the entire ten year period. Instead of ten years, an annual
2
requirement with an annual retroactive price adjustment would be fair to
qualify or disqualify the project if Commission adopts the definition of
seasonal project as being required to provide a certain percentage of
generation during the established season.
The Coalition believes that it is fair that the seasonal project definition be
applied equally to a new project and to the renewal of an existing project
under a new contract. If a new or proposed project has the ability to be
designed to maximize its economics and utilize either non-seasonal or
seasonal prices, then it should be reasonable that an existing project have
the same flexibility to be re-configured under a new contract to maximize
its economics to the extent practical and provide the highest value to the
purchasing utility. Therefore, the prior ten years of historical production
should not be considered for an existing project seeking a new contract.
Instead, only the first year of new operation should apply to an existing
project, as for a new project.
C. Summary
The Coalition appreciates this opportunity to submit these additional
comments. First, the Coalition suggests that if the Commission is inclined
to abandon the definition of seasonal hydro as contained in Order 32697
(that a majority of production occurring during the irrigation season), that
the Commission move to Staff's recommended 90% threshold and not the
96% recommendation of Idaho Power.
Second, the Coalition recommends that no distinction be drawn between
new and existing hydro projects regarding qualification for the seasonal
hydro schedule. Existing projects entering into new contracts should be
allowed to qualify for seasonal prices, subject to a demonstration of
compliance during the first contract year with annual retroactive
adjustments if the project fails to comply in later years. The annual
retroactive adjustment should be limited to an adjustment of the prior year
instead of being cumulative over the prior ten years.
3
. .
CERTIFICATE OF DELIVERY
I HEREBY CERTIFY that on this 8th day of April, 2013, I caused to be served a true and
correct copy of the Reconsideration Reply Comments of the Renewable Energy Coalition upon the
following individuals in the manner indicated below:
Donovan E. Walker
Jason B. Williams
Idaho Power Company
P0 Box 70
Boise, ID 83707-0070
[e-mail]
[e-mail]
Michael G. Andrea
Avista Corporation
1411 E. Mission Avenue - MSC-23
Spokane, WA 99202
[e-mail]
Daniel E. Solander
PacifiCorp dba Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, UT 84111
[e-mail]
Hand Delivery
D US Mail (postage prepaid)
Facsimile Transmission
Federal Express
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D Hand Delivery
US Mail (postage prepaid)
Facsimile Transmission
Federal Express
Electronic Transmission
O Hand Delivery
O US Mail (postage prepaid)
D Facsimile Transmission
Federal Express
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Kristine A. Sasser 0 Hand Delivery Idaho Public Utilities Commission 0 US Mail (postage prepaid) 472 W. Washington (zip: 83702) 0 Facsimile Transmission P0 Box 83720 Federal Express Boise, ID 83720-0074 Electronic Transmission [e-mail]
Peter J. Richardson
Gregory M. Adams
Richardson & O'Leary, PLLC
P0 Box 7218
Boise, ID 83702
[e-mail]
gregrichardsonandoleary.com
Attorneys for NIPPC, J.R. Simplot Co.,
Grand View, Exergy Development Group,
Board of County Commissioners of
Adams County, Idaho and Clearwater
Paper Corporation
o Hand Delivery
O US Mail (postage prepaid)
0 Facsimile Transmission
O Federal Express
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Reconsideration Reply Comments Of The Renewable Energy Coalition, Page 3
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Robert D. Kahn LI Hand Delivery NIPPC, Executive Director US Mail (postage prepaid) 1117 Minor Ave., Suite 300 LI Facsimile Transmission Seattle, WA 98101 LI Federal Express [e-mail] Electronic Transmission
Don Sturtevant LI Hand Delivery Energy Director LI US Mail (postage prepaid) J.R. Simplot Company LI Facsimile Transmission P.O. Box 27 LI Federal Express Boise, ID 83707-0027 Electronic Transmission [e-mail]
Robert A. Paul LI Hand Delivery Grand View Solar H LI US Mail (postage prepaid) 15690 Vista Circle LI Facsimile Transmission Desert Hot Springs, CA 92241 LI Federal Express robertapau108gmail.com Electronic Transmission
James Carkulis LI Hand Delivery Managing Member LI US Mail (postage prepaid) Exergy Development Group of Idaho, LLC LI Facsimile Transmission 802 West Bannock Street, Suite 1200 LI Federal Express Boise, ID 83702 Electronic Transmission jcarkulisexergydevelopment.com
Dr. Don Reading LI Hand Delivery Exergy Development Group of Idaho, LLC LI US Mail (postage prepaid) 6070 Hill Road LI Facsimile Transmission Boise, ID 83703 LI Federal Express dreadingmindspring.com Electronic Transmission
Bill Brown, Chair LI Hand Delivery Board of Commissioners of Adams County LI US Mail (postage prepaid) P0 Box 48 LI Facsimile Transmission Council, ID 83612 LI Federal Express [e-mail] Electronic Transmission
Mary Lewallen LI Hand Delivery Clearwater Paper Corporation LI US Mail (postage prepaid) 601 W. Riverside Ave., Suite 1100 LI Facsimile Transmission Spokane, WA 99201 LI Federal Express Marv.lewallenclearwaterpaper.com Electronic Transmission
Reconsideration Reply Comments Of The Renewable Energy Coalition, Page 4
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John R. Lowe El Hand Delivery Consultant to El US Mail (postage prepaid) Renewable Energy Coalition El Facsimile Transmission 12050 SW Tremont Street El Federal Express Portland, OR 97225 Electronic Transmission [e-mail]
R. Greg Femey El Hand Delivery Mimura Law Offices, PLLC El US Mail (postage prepaid) 2176 E. Franklin Road, Suite 120 0 Facsimile Transmission Meridian, ID 83642 El Federal Express [e-mail] Electronic Transmission Attorneys for Interconnect Solar
Bill Piske, Manager El Hand Delivery Interconnect Solar Development, LLC El US Mail (postage prepaid) 1303 E. Carter El Facsimile Transmission Boise, ID 83706 El Federal Express [e-mail] Electronic Transmission
Wade Thomas El Hand Delivery General Counsel El US Mail (postage prepaid) Dynamis Energy, LLC 0 Facsimile Transmission 776 E. Riverside Drive, Suite 150 El Federal Express Eagle, ID 83616 Electronic Transmission wthomasdynamisenergy.com
C. Thomas Arkoosh El Hand Delivery Capitol Law Group, PLLC El US Mail (postage prepaid) 205 N. 10th St., 4" Floor El Facsimile Transmission P0 Box 2598 0 Federal Express Boise, ID 83701 Electronic Transmission tarkooshcapitollawgroup.com
Attorneys for Twin Falls Canal Company,
North Side Canal Company, Big Wood
Canal Company and American Falls
Reservoir District No. 2
Brian Olmstead ELECTRONIC SERVICE ONLY: General Manager Electronic Transmission Twin Falls Canal Company
[e-mail]
Reconsideration Reply Comments Of The Renewable Energy Coalition, Page 5
Ted Diehl
General Manager
North Side Canal Company
[e-mail]
ELECTRONIC SERVICE ONLY:
Electronic Transmission
Don Schoenbeck
RCS
[e-mail]
ELECTRONIC SERVICE ONLY:
Electronic Transmission
Lori Thomas
Capitol Law Group, PLLC
[e-mail]
ELECTRONIC SERVICE ONLY:
Electronic Transmission
E
Ted S. Sorenson
Birch Power Company 0 Hand Deliver'
5203 South 1 1th East 0 US Mail (postage prepaid)
Idaho Falls, ID 83404 0 Facsimile Transmission
[e-mail] Federal Express
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Dean J. Miller
Chas. F. McDevitt Hand Delivery
McDevitt & Miller, LLP 0
US Mail (postage prepaid)
Facsimile Transmission 420 W. Bannock Street (zip: 83702)
P0 Box 2564 Federal Express
Electronic Transmission Boise, ID 83701
[e-mail]
[e-mail]
Attorneys for Idaho Windfarms, LLC,
Renewable Northwest Project and
Ridgeline Energy LLC
Glenn Ikemoto J Hand Delivery Margaret Rueger
Idaho Windfarms, LLC 0 US Mail (postage prepaid)
672 Blair Avenue 0 Facsimile Transmission
Piedmont, CA 94611 Federal Express
Electronic Transmission glennienvisionwind.com
[e-mail]
Megan Walseth Decker EJ Hand Delivery Senior Staff Counsel
Renewable Northwest Project 0 US Mail (postage prepaid)
421 SW 6 h Suite 1125 0
0
Facsimile Transmission
Portland, OR 97204 Federal Express
Electronic Transmission meganmp.org
Reconsideration Reply Comments Of The Renewable Energy Coalition, Page 6
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M. J. Humphries LI Hand Deliver)' Blue Ribbon Energy LLC
4515 S. Ammon Road LI US Mail (postage prepaid)
Ammon, ID 83406 LI Facsimile Transmission
[e-mail] LI Federal Express
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Arron F. Jepson LI Hand Deliver)' Blue Ribbon Energy LLC
10660 South 540 East LI US Mail (postage prepaid)
Sandy, UT 84070 LI Facsimile Transmission
arronesqaol.com LI Federal Express
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Benjamin J. Otto F-1 Hand Deliver)' Idaho Conservation League
710 N. Sixth Street (zip: 83702) LI US Mail (postage prepaid)
P0 Box 844
F-1 FacsimileTransmission
Boise, ID 83701 LI Federal Express
Electronic Transmission [e-mail]
Liz Woodruff LI Hand Delivery Ken Miller
Snake River Alliance E] US Mail (postage prepaid)
P0 Box 1731 LI Facsimile Transmission
Boise, ID 83701 LI Federal Express
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[e-mail]
Tauna Christensen LI Hand Delivery Energy Integrity Project LI US Mail (postage prepaid) 769 N. 1100 E. LI Facsimile Transmission Shelley, ID 83274 LI Federal Express [e-mail] Electronic Transmission
Deborah E. Nelson
Kelsey J. Nunez
Givens Pursley LLP
601 W. Bannock Street (83702)
P0 Box 2720
Boise, ID 83701-2720
dengivenspursley.com
[e-mail]
Attorneys for Idaho Wind Partners I, LLC
LI Hand Delivery
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LI Facsimile Transmission
LI Federal Express
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Reconsideration Reply Comments Of The Renewable Energy Coalition, Page 7
it
J. Kahle Becker
The Alaska Center
1020 W. Main St., Suite 400
Boise, ID 83702
[e-mail]
Attorney for Mountain Air Projects, LLC
Michael J. Uda
Uda Law Firm, P.C.
7 W. 6th Avenue, Suite 4E
Helena, MT 59601
[e-mail]
Attorney for Mountain Air Projects, LLC
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US Mail (postage prepaid)
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Ronald L. Williams
Reconsideration Reply Comments Of The Renewable Energy Coalition, Page 8