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Home My WebLink About20050627Sorenson.pdfECEIVED fLED ..A.rro~ R.ock ~i.:D.d!ji I:n..c... 1"""'n~ "', ..f.~UUV V . '- 'of 1'1;4: 5203 South 11 th East Idaho F aHs; Idaho 83404 rei 2ii8-522-!W69 " " ".110 i\?'? (:' ?"),.? jlLY. ,.;;.1/0- .-__ -0_.4. iD,ilJ!O PUBLiC "j- ILfTfES CO~1r1fSSJnN June 24, 2005 IPc-O~-;)d- Idaho Pubic Utilities Commission o. Box 83720 . ' o"")-c. 0. 10Ise,.(Uk' \/- 0/ J '-t f(". \/;'~\j ~c'' 'n '~' ;f )::~ 17f;; ,.. ," !i..,.;~U ,,_. I "",a. '..-. JO ,.. .., ./"'" Subject: ,Arrow Rock Wind ...... QF Contract with Idaho Pm-vel' Dear Commissioners: This letter is written pursuant to a firrn energy sales agreement, \ivhich we have negotiated with Idaho Power. This contract was negotiated over the past several rnonths with Idal1oPowCr. In the normal course of business Idah() P()\ver fof\varded a contract fbr our sle:nature on June 16. 2005. I signedv , this contract on June 18. 2005 and returned it to Idaho Power via overnight mail. Dursuant to Idaho . . Contract Povver Administrator Randy .Anphin s letter of June Hi 2005~ a copy of\vhich is attached. 110 fdaho Power letter states that Idaho Power would sign the contract and fOf'Nard to rue for approval. On Thursday, June 23, 2005, i\xrmA; Rock \vas infbrmed 13y Randy Allphin that Idaho Pen,ver had filed a petition to suspend Idaho Power s requirement to sign PURPA wind contracts on June 17 2005 and until such time as Idaho P'ower received direction. frorn the rue on this petition, Idaho Power would not be signimr anvwind PURP A contracts. ... '-' . Generation projects require substantial planning periods and the resulting good faith negotiation for the contract supporting: the prc:ject was fully concJuded and agreed upon on June 14" 2005. Idaho Power negotiated the QF Agreenlent \vito AJTO\-V Rock \Vind in the normal course of business, which included a unique arrangement in -which Arro\v R.ock" rather than Idaho Power would be responsible for f1rming and shaping the intermittent nature of the wind rCSOUl\.:C. The documentation dearly' denlonstrates that the Arrow Rock project ,;vas funy negotiated prior to the June ih Petition fwrn. Idaho PoweL The "'mandatory contracting fhrpurdlLtSeS of'wind QF resources'" was completed priorto Idaho PO\,ver~ s Petition. The Arrow Rock 'Vind struciuredernonstrates that fm111ng of intermittent resource does not necessarily need to be the sole rcsnonsihHitv of host utility, Thercfc\re the/\.rro\vRock resource ~ ..,. does not maintain the reliability. anciHar:v service and integration characteristics that are the basis of idaho Power s Petition. The finn, 11at energy delivery to kblho Power can easily be integrated into their system and provides substantial value. in fact, Idaho Power recognized that the June 17 Petition would he linlited to "'new contracts for purchases of energy from (intermittent) \"/111d- powered QFs. "fhe suspension (request) would nm affe,ct HCyV' contract with QFs utilizing other generating technologies,;' The firnt , flat energy structure places the cost of integration upon Arrow Rock and as such mitigates the basis of concerns identifIed by Idaho Power. In OUT opinion the firm flat Arrow Rock project is actual Iv a suDcrior resource loother generation technologics. .. ., .,.~. '-' ellr-, L~" it" b,, ')". Specifically, the Arrow Rock Wind project has a very unique arrangement that elevates its energy deliveries to Idaho Power to a si~nlifJcantiv .more favorable eHen::v DfOduct than the tvDicai ,-,..", ." ~ intermittent energy frOll1 a wind faciHty. As a value-added and innovative solution to the complex nature of intermittent resources, Arro\.-vRock Wind has, at its sole cost, secured firming and shaping services to provide a firm, nat delivery, as negotiated. to Idaho Power of 9 rvrvv September through February and 7 Iv1vV June through August 'f'herefore. Idaho Power is not required to provide anciHa.rv services.inteitration and rciiability !ncasures. .... By this same letter, I request that Idaho Po\ver sign this contract within the next seven to ten days and submit to the PUC for approval. Your assistance and insight at the PUC is sincerely appreciated. ~)C '! I\. n~...h() .nvIP'" ,-" . ", Iii-A. '...; ---- __".... "'P'--' An IDA CORP CCHfHJany '-""---"""""""'..""""""""""""".-.---....- Randy C. Allphin Contract Administrator JW1C 16 2005 Ted S Sorcnson Manager, Anow Rock \Vind -'j'")'" 1h . "--. OUtIl. ast Idaho .Falls, ID 83404 Dear 1\ttr. Sorenson, Enclosed are three )ies of the Arrow Rock\Vind Pro eet PlJRP A Firm Energv Sales '-'~ Agreement Please sign each copy and return an tlm:e copies to me no later than Thursday, June 23 - 2005. Idaho Power reserves the right to modify this a!!reement if it is not received , ........ .....' back by the close of business of the before stated date. US Tvlail:Overnight T\1ailing/\p.ress: Idaho Power Company Attn: Randy Allphin 1) '" ) . J C . ::lOX! Boise~ 10 83707 Idaho Pm;ver Company A11n: I~andy Allphin 1221 \\/ Idaho Boise, ID 83702 Also enclosed hJr your signature is a Consent to Disclosure that is required to be posted as public in:!~)rnlat10n to enable Idaho Po\:ver Company to execute this agreelnent Upon receipt of the three signed copies, and the Consent to Disclosure, Idaho Povver will post the Consent to Disclosure in the appropriate public notifications and then obtain the Idaho Po\ver Con1pany signatures, I wiH return one cO1nplete signed copy to you fell' your records , prepare and file one copy with the Idaho Puhl1c Utilities Conunission (IPUC) requesting approval of the agreement and keep the third copy for our records. As we have discussed, this agreement requires Idaho Power revic\v and accept the transmission agreement you \viH be obtaining for this project fi'om North\vestern and the ~_uUU". _.~".. ..m'u"'U~u'u..~uu.. .... Uu..... """ ..u. _"..._...__. ~mm'~u ~'~-"' m.=""'""""",_,~-- T;:kphone 1208) :~8i1.2('14 Fox: 12081433-5 j 63 RaJiplurriDldahopowcr C0111 Lease Agreement for these \-vind turbines. It would he prudent to include a copy of the signed TranS111ission agreement and the Lease agreement with the 'Firm Energy Sales Agreement that is filed with the TPUe f~)r approval. The application and all attached docunlents (Finn Energy Sales Agreement Transmission Agreement, Lease Agreement ete) that are subn1itted to the TPue in the approval process are posted to the IPU C web page and become public documents. If you desire any of the documents to not be fiJcd as public documents please clearly mark the documents as confidential and notify .rne of your desire at the time you provide the documents to nle. If you have any questions please do not hesitate to contact me. Sincerely. ,( ! flc (?:;2:' /:_ J;;)~A~ Randy C Allphin Idaho Power Company .,--,-""~._~--_w _---~,~~"._"'"""".,..... .......""..."_."..~.""-""",~"-""",,,,,,,,"..."................................................""""-"'-"- "'~'_'_N_'_N"'",.. ..........................._-", Te!ephnn;::. i20Sj 388.26;4 Fa\ ,::(,\1) 43?.;;jC'Rnliph1Jl'rlldahopmver .tom 1(p