20041223Letter to Warren Chapman.pdf

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An IDACORP Company 2flOI; DEC 23 lU'! 8: 5l~
BARTON L. KLINE
Senior Attorney
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December 22, 2004
Jean D. Jewell , Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074
Re:Case No. I PC-04-
Idaho Power Company s 2004 IRP
Dear Ms. Jewell:
Enclosed is a copy of a letter to Warren Chapman. Mr. Chapman has
filed comments in the Company s IRP filing, Case No. IPC-04-18. Could you please
place a copy of this letter in that file and distribute copies to Randy Lobb, Rick Sterling,
and any other Commission Staff members who might be working on this case.
Barton L. Kline
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Enclosure
Telephone [phone] Fax [phone] E-mail BKline(g)idahopower.com
IDAHO IDAHO PDWER COMPANY
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POWER O. BOX 70-.= BOISE, IDAHO 83707
An IDACORP Company
KARL E. BOKENKAMP
GENERAL MANAGER
POWER SUPPLY PLANNING
December 22 , 2004
Warren Chapman, Secretary
Capital Enterprises, Inc.
2356 Beryl Avenue
Twin Falls, Idaho 83301
Re:Proposed Leadore, Idaho Area Wind Project
Dear Mr. Chapman:
I am writing this letter to acknowledge receipt of several packages of
information I have received from you since I wrote to you on September 3, 2004. This
letter is also in response to your November 26 , 2004 letter and your undated letter
which I received on or around December 8, 2004.
First, I want to thank you again for bringing the potential for the
development of wind resources in the Leadore , Idaho area (Leadore Wind Project) to
our attention.
Second, I want to specifically respond in writing to the offer in your
November 26th letter wherein you indicate that your company, Capital Enterprises , Inc.
is willing to sell development rights for the Leadore Wind Project to Idaho Power for
$350 000.1 Please be advised that, in accordance with our prior discussions , Idaho
Power Company has no present interest in developing or owning any wind-generation
project. This is not to say that Idaho Power is disinterested in the possibilities of wind-
generation. To the contrary, as we ve indicated in the IRP which we filed with the IPUC
on August 27 2004, Idaho Power is very interested in wind resources. However, as
ve previously stated , Idaho Power is not interested in expending capital to develop
or own its own wind-generation projects at this time. Rather, while our position in this
regard could change over time , our current plans are to identify, and establish working
relationships with , dedicated wind developers who can provide the most dependable
wind-generation capabilities at the most competitive rates.
In this connection , as I mentioned in my September 3, 2004 letter, we are
happy to report that a number of wind developers have expressed an interest in
responding to Idaho Power s upcoming request for proposals ("RFP"
).
I am also happy
to report, for your information , that this wind RFP is rapidly progressing and we
At this time Idaho Power has no reason to believe that the Leadore Wind Project is
not commercially viable. But we do believe , and we suspect you would agree , that
more detailed wind data needs to be collected before proceeding with development
of the project.
Mr. Warren Chapman
Page #2
December 22 , 2004
anticipate receiving a number of competitive wind-generation proposals. A copy of the
draft RFP has been posted on the Company s website and can be viewed at
www.idahopower.com\aboutus\business\rfQ. Idaho Power is accepting comments on
the draft HFP through January 3 , 2005. I would encourage you to look at the draft RFP
and consider how the Leadore Wind Project could participate either in this RFP or
perhaps in our next wind RFP , which is currently anticipated to be released in 2008 for
150 MW of wind-powered generation to be on-line in 2010.
Idaho Power does not believe it would be fair to other wind project
developers , or be consistent with the Company s upcoming RFP, or be prudent from a
regulatory perspective , for the Company to move toward acquisition of the Leadore
Wind Project outside of the RFP process. If, in fact , the Leadore Wind Project is as
competitive as you believe it is , it would seemingly be in everyone s best interests for
Capital Enterprises , Inc. to participate in the upcoming RFP process (or the one
anticipated in 2008) to allow the Company to compare the merits of the Leadore Wind
Project to other wind resources.
Idaho Power will file reply comments in the IRP process on December 23
2004, and it is our intention to discuss the Leadore Wind Project in those comments.
The Company s comments will be consistent with the contents of this letter.
If ,you have any questions regarding the pending RFP or any of other
Idaho Power s plans for acquiring new resources , please feel free to contact me at any
time.
~~~IY YOu~S,
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Karl E. Bokenkamp
General Manager
Power Supply Planning
KEB:jb
cc:Jean Jewell, Secretary
Idaho Public Utilities Commission