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HomeMy WebLinkAbout20130514Letter of Termination.pdfPNER® An IDACORP Company JULIA A HILTON 11M t3 Pt ' Corporate Counsel IhultoncaHdahoDower corn - May 13, 2013 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83702 Re: Case No. IPC-E-00-16 Rim View Trout Company Hydro Project Schedule 86 Energy Sales Agreement Termination Dear Ms. Jewell: On October 25, 2000, Idaho Power Company ("Idaho Power") filed a letter with the Idaho Public Utilities Commission ("Commission") for approval of the Public Utility Regulatory Policies Act of 1978 Schedule 86 Non-Firm Energy Sales Agreement ("Agreement") with Rim View Trout Company ("Rim View") dated October 3, 2000, under which Idaho Power would purchase energy generated by Rim View's small hydro project. The Commission approved the Agreement in Case No. IPC-E-00-16 on November 1, 2000, in Order No. 28560. The Agreement allows for cancelation by Rim View with 60 days prior written notice. On April 17, 2013, Idaho Power received a notice from Rim View requesting that Idaho Power terminate the Agreement. Idaho Power responded on April 24, 2013, formally accepting Rim View's termination request and stating the termination date of June 16, 2013. To keep the Commission apprised of this termination, Idaho Power has enclosed an original and seven (7) copies of this letter and its letter to Rim View. Please contact me if you have any comments, questions, or concerns. Sincerely, Julia A. Hilton JAH :csb Enclosure cc: Randall Budge, Rim View's General Counsel (w/encl.) 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 IDAHO An IDACORP COrnPnV April 24, 2013 Ground Water Districts %IGWA Attn: Randall Budge, General Counsel P0 Box 1391 Pocatello, ID 83204-1391 RE: Rim View Hydro Energy Sales Agreement Project: 31216020 Certified and Electronic Mail Dear Mr. Budge Idaho Power received your letter dated April 17, 2013 requesting the termination of the Schedule 86 Uniform Agreement for the Rim View hydro project on behalf of North Snake, Magic Valley, American Falls-Aberdeen and Bingham Ground Water Districts and Southwest Irrigation District (collectively "Districts"). Item 5 of the Schedule 86 Uniform Agreement ("Agreement") states "The term of this Agreement shall become effective on the date first above written, and shall continue to full force and effect until canceled by Seller upon sixty (60) days prior written notice". Per item 5, this Agreement shall be cancelled on June 16, 2013. In your letter, you had also requested that Idaho Power shut down and remove the interconnection equipment to the Rim View hydro plant. As specified in Schedule 72 (Exhibit A), Idaho Power shall inventory the Idaho Power supplied Special Facilities and notify you of the salvage value and the cost to remove these facilities. If the salvage value exceeds the removal cost, a payment will be made to you in the amount that the salvage value exceeds the removal cost of this equipment. In accordance with your request, Idaho Power will immediately disconnect the Rim View facility from the Idaho Power grid and begin the process to remove the interconnection equipment. Rim View is no longer required to pay the monthly O&M charges for the interconnection equipment effective on the date of this letter. Exhibit A of the Agreement identifies that the project owns and is responsible for the three phase transformer bank and the pole on which they are mounted. Therefore, Idaho Power has no responsibility for these transformers, the pole on which they are mounted or any of the other project owned equipment. It is your responsibility to dispose of and/or secure the entire project owned equipment to ensure both a physical and environmentally safe site. If you or another party would like to reconnect this generation project, a new generation interconnection agreement and energy service agreement is required. P.O. Box 70 (83707) 1221 W. Idaho St, Boise, ID 83702 Page 2 Please contact me if you should have any questions concerning the Rim View hydro project. ME Contracts Coordinator (208) 388-6118 E-mail: jjardine4@idahovower.com Electronic Copies to: Randy Aliphin (IPC) Kent Christensen (IPC) Josh Harris (TPC) Donovan Walker (JPC) Randall Budge - rcb@racinelaw.net (Rim View General Counsel) Robin Roebuck - rlr@racinelaw.net (Rim View Assistant to General Counsel)