20050510Comments.pdf

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DEPARTMENT OF NAru~L RESOURCES
AND CONSERVATION
BRIAN SCHWEITZER
GOVERNOR
DIRECTOR'S OFFICE [phone]
TELEFAX NUMBER [phone]
STATE OF MONTANA
WATER RESOURCES DIVISION [phone]
TELEFAX NUMBERS [phone] / [phone]
http://www.dnrc.mt.gov
1424 9TH AVENUE
PO BOX 201601
HELENA, MONTANA 59620-1601
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May 6, 2005
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Idaho Public Utilities Commission
Attn: Commission Secretary
472 W. Washington Street
Boise, ID 83707
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Case No. IPC-05-
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The Idaho Public Utilities Commission (IPUC) solicited public comment on a
contract between Idaho Power Co. and Dry Creek, L.C. for power purportedly from a
Montana hydro project" near Toston, Montana. The Montana Department of Natural
Resources and Conservation (MDNRC), as owner and operator of the Broadwater
Hydroelectric Project (the Facility) nearToston, Montana, is concerned about certain
statements in the IPUC'snotice and Idaho Power Coo's application that do not comport
with the MDNRC's ownership and control of the Facility. The MDNRC is filing these
comments only to apprize the IPUC of facts about the Facility, which the MDNRC owns
operates, maintains and manages and not to otherwise participate in the decision making
process or contest any approval by the IPUC of any transaction between Dry Creek
C. and Idaho Power Co. or Dry Creek and NorthWestern. The MDNRC is not party
to and makes no representations and expresses no opinion, legal or factual, about the
Firm Energy Sales Agreement between Idaho Power and Dry Creek, L." or the
Delivery Agreement Between Dry Creek, L.C. and NorthWestern Energy . The
MDNRC is not, by filing these comments, submitting itself, or the Facility, to the IPUC'
jurisdiction. The comments are based upon the MDNRC's legal and factual
interpretations of its own contractual relations only and are not to be applied to any other
contracts or relied upon by any other parties.
The MDNRC hereby notifies the IPUC and all parties to the proceedings in Case
No. IPC-05-13 as follows:
1. The MDNRC owns, operates, maintains, and manages the Facility.
2. The MDNRC has no contractual relationship with Dry Creek, L.C. and does
not lease the Facility or sell electricity to Dry Creek, L.C.
ST ATE WATER PROJECTS
BUREAU
[phone]
WATER MANAGEMENT
BUREAU
[phone]
WATER OPERA nONS
BUREAU
[phone]
WATER RIGHTS
BUREAU
[phone]
3. The MDNRC sells electricity generated at the Facility to NorthWestern
Corporation via a "Cogeneration and Small Power Production Long-Term Power
Purchase Agreement between the State of Montana and the Montana Power
Company (PP A), and under rates approved by the Montana Public Service Commission.
The MDNRC has no contractual obligations to NorthWestern Corporation outside the
confines of the PP A.
4. The MDNRC delivers Facility power to NorthWestern at the point
interconnection as described in the PP A. At the point of interconnection title to the
electricity passes to NorthWestern, and the MDNRC is not party to, nor obligated under
any transactions that NorthWestern may have entered to dispose of the power after the
power is delivered to NorthWestern.
5. The PPA has not been assigned to Dry Creek, L.
Beyond the filing of the above comments, the MDNRC has no interest in further
participating in this matter. The MDNRC is only providing information and has no, nor
desires any, involvement with the agreement between Idaho Power Co. and Dry Creek
C. that is subject of this inquiry, or any agreements between Dry Creek L.C. and
North Western Corporation.
The MDNRC thanks the IPUC for the opportunity to present these comments.
~~e1Y,
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C..
ack Stults, Division Administrator
Water Resources Division
MDNRC
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120852282231 ; May - 9- 05 9: 55AM;
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Page 1/1Sent By: n;
Dry Creek LLC
5203 South 11 th East
Idaho Falls, Idaho
83404
May 9~ 2005
Idaho Public lJtilities Commission
A ttn: Commission Secretary
472 W. Washington Street
Boise, ID 83707
[phone]
Re:tWeen I~~ ~
Dear Commission:
We appreciate the opportunity to further our standing relationship with Idaho ~ower thro~gh th~
Dry Creek Agreement. In lif:ht of the Idaho Public Utilities Commission (IPUC) summary '
notice, dated April 26, 2005, Dry Creek would appreciate the opportunity to cl~fy the
ownership and operational responsibility for the Broadwater Hydroelectric ProJect.
The Broadwater Hydroelectric Project is owned~ operated and licensed under FERC License
#2853 by the State of Montana s Department of Natural Resources ("DNRC"The DNRC will\'
deHver all of the output to NorthWestern Energy through a long-tenD agreement and
NonhWestem shall deliver all of the rights to the entire electrical energy output of the Facility to
Dry Creek. NorthWestern will also provide for shaping and 11.nn transmissionjntegration
services to Dry Creek, at Dry Creek's sole cost, which will allow for the specified firm energy
schedule to be delivered to the Point of Delivery on the Idaho Power system. Please note that
Dry Creek has no direct relationship with the DNRC.
Dry Creek. concurs with the remainder of the IPUC notice and remains satisfi~ with the tenns
and conditions of the Dry Creek Agreement. Thank you for your assistance arid ability to
provide Idaho Power with firm energy.
:L1
Ted S. Sorenson
Cc:Idaho Power