20050909Application.pdf

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MONICA MOEN , IS8 # 5734
BARTON KLINE , IS8 # 1526
Idaho Power Company
1221 West Idaho Street
O. Box 70
Boise, Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
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Attorney for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR APPROVAL)
OF A SCHEDULE 86, NON FIRM ENERGY
SALES AGREEMENT FOR THE SALE AND
PURCHASE OF NON FIRM ELECTRIC
ENERGY BETWEEN IDAHO POWER
COMPANY AND J.M. MILLER
ENTERPRISES , INC
CASE NO. IPC-05-
APPLICA TION
COMES NOW Idaho Power Company ("Idaho Power" or the "Company ) and
hereby requests that the Commission issues its Order approving a Uniform Agreement
under Schedule 86 between Idaho Power and J. M. Miller Enterprises, Inc. ("Miller") for the
purchase of non-firm energy dated September 7 2005 ("Agreement"
Miller is developing a 500 kW hydroelectric generation project near
Twin Falls, Idaho (the "Project"
).
The Project will be a qualified small power production
facility under the applicable provisions of the Public Utility Regulatory Policies Act of 1978
PURPA"
Idaho Power and Miller have entered into the Agreement pursuant to
Idaho Power s I PUC-approved Schedule 86, Cogeneration Small Power Production Non-
APPLICATION - 1
Firm Energy. The purchase price will be in accordance with Schedule 86. A copy of the
Agreement is attached hereto as Exhibit A.
Section 8 of the Agreement provides that the Agreement shall not
become effective until the Commission approves all terms and provisions thereof without
change or condition and declares that all payments to be made hereunder shall be allowed
as prudently incurred expenses for ratemaking purposes.
The Project has been under construction for the past two years. It's
estimated Operation Date is October 15 , 2005. Idaho Power is currently working with the
Project to complete the necessary documentation and construction of interconnection
equipment in accordance with the terms of the Agreement. As of the date of this
Application , the Project appears to be on schedule to energize the Project, provided water
is available, on the on the estimated Operation Date.
The Agreement, as signed and submitted by the parties, contains non-
firm energy rates in conformance with posted tariffs and applicable Commission orders.
Service List.Service of pleadings, exhibits , orders and other
documents relating to this proceeding should be served on the following:
Monica B. Moen , Attorney II
Barton L. Kline , Senior Attorney
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Randy C. Allphin
Contract Administrator
Idaho Power Company
O. Box 70
Boise, Idaho 83707
NOW , THEREFORE , based on the foregoing, Idaho Power Company hereby
requests that the Commission issue its Order:
(1 )Approving the Schedule 86, Non-Firm Energy Sales Agreement
between Idaho Power Company and J. M. Miller Enterprises , Inc. without change or
condition; and
APPLICATION - 2
(2)Declaring that all payments for purchases of energy under the Non-
Firm Energy Sales Agreement between Idaho Power Company and J. M. Miller
Enterprises, Inc. be allowed as prudently incurred expenses for ratemaking purposes.
Respectfully submitted this 9th day of September 2005.
MONICA B. MOEN
Attorney for Idaho Power Company
APPLICATION - 3
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on the 9th day of September 2005, I served a true
and correct copy of the within and foregoing APPLICATION upon the following named
parties by the method indicated below, and addressed to the following:
James M. Miller
J. M. Miller Enterprises , Inc.
O. Box
Filer, 10 83328
Hand Delivered
S. Mail
Overnight Mail
FAX
MONICA B. MOEN
CERTIFICATE OF SERVICE
BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-O5-:J.c
IDAHO POWER COMPANY
EXHIBIT
IDAHO POWER COMPANY
SCHEDULE 86
UNIFORM AGREEMENT
For the Purchase of Non-Firm Energy From Qualifying Facilities
THIS AGREEMENT made this 7 ij day of 5efJ/~"", tDJ-20 , between
J. M. Miller Enterprises, Inc.whose mailing address is O. Box #1, Filer Idaho 83328 hereinafter called Seller and
IDAHO POWER COMPANY, a corporation with its principal office located at 1221 West Idaho Street, Boise, Idaho hereafter
called "Company
NOW, THEREFORE, The parties agree as follows:
1. Company shall purchase Energy produced by the Seller s Qualifying Facility located at or near Near Twin Falls
, nearest intersection 4400 N, 2100E , County of Twin Falls State of Idaho, located in the NE IA of Section --1l
Township , Range 15E , in the form of three phase 60 Hz and at a nominal phase to phase potential of
46,500 volts, subject to emergency operating conditions of the Company. Purchases under this Agreement are subject to the
Company s applicable Tariff provisions, including but not limited to Schedules 86 and 72 approved by and as may be hereafter
modified by the Idaho Public Utilities Commission ("Commission ) and the provisions of this Agreement.
2. Seller shall pay Company for all costs of Interconnection Facilities as provided for in Exhibit A of this Agreement
and Schedule 72.
3. In addition to the charges provided under Paragraph 2, Seller shall pay to the Company the monthly Operations
and Maintenance Charge specified in Schedule 72 on the Investment by the Company in Interconnection Facilities which
investment is set forth in Exhibit A, attached hereto and made a part hereof. As such investment changes, in order to provide
facilities to serve Seller s requirements, Company shall notify Seller in writing of additions or deletions of facilities by
forwarding a dated revised Exhibit A, which shall become part of this Agreement. The monthly Operation & Maintenance
Charge will be adjusted to correspond to the Revised Exhibit A.
4. The initial date of acceptance of Energy under this Agreement is subject to the Company s ability to obtain
required labor, materials, equipment, satisfactory rights of way, and comply with governmental regulations.
5. The term of this Agreement shall become effective on the date fITst above written, and shall continue to full force
and effect until canceled by Seller upon sixty (60) days prior written notice.
6. This Agreement and the rates, terms, and conditions of service set forth or incorporated herein, and the respective
rights and obligations of the parties hereunder, shall be subject to valid laws and to the regulatory authority and orders, rules,
and regulations of the Commission and such other administrative bodies having jurisdiction.
7. Nothing herein shall be construed as limiting the Commission from changing any rates, charges, classification or
service, or any rules, regulation or conditions relating to service under this Agreement, or construed as affecting the right of the
Company or the Seller to unilaterally make application to the commission for any such change.
8. This Agreement shall not become effective until the Commission approves all terms and provisions hereof without
change or condition and declares that all payments to be made hereunder shall be allowed as prudently incurred expenses for
ratemaking purposes.
J .M. MILLER ENTERPRISES, INC
(se"
DATED ~(hJfj"
C. Miller, Sr. Vice President, Power Supply
DATED I '2-00
EXHilllT A
SPECIAL FACILITIES , POINT OF DELIVERY AND METERING
PROJECT NUMBER - 31617100
SAHKO SMALL HYDROELECTRIC PROJECT
DESCRIPTION OF FACILITY
The Facility will consist of a single 500 kW, Westinghouse synchronous generator.
LOCATION OF FACILITY
Near: Twin Falls, Idaho - NE % of Section 13, Township 9S , Range ISE, Boise Meridian, Twin
Falls County.
SCHEDULED FIRST ENERGY AND OPERATION DATE
Seller has selected as the estimated Scheduled Operation Date.October IS, 200S
Idaho Power, based on the information supplied by the Seller, will schedule its construction in
accordance with Schedule 72 and the Generation Interconnection Process.
MAXIMUM CAPACITY AMOUNT: This value will be SOO kW which is consistent with the
value provided by the Seller to Idaho Power in the Generation Interconnection process. This
value is the maximum energy (MW) that potentially could be delivered by the Seller s Facility to
the Idaho Power electrical system at any moment in time.
POINT OF DELIVERY
Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers
Facility s energy is delivered to the Idaho Power electrical system. The Idaho Power Generation
Interconnection process will determine the specific Point of Delivery for this Facility. Upon
completion of the Generation Interconnection process the Point of Deli very identified by this
process will become an integral part of this Agreement.
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LOSSES
If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the
Seller to the Idaho Power electrical system at the Point of Deli very, no Losses will be calculated
for this Facility. If the Idaho Power Metering is unable to measure the exact energy deliveries by
the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will
be established to measure the energy losses (kWh) between the Seller s Facility and the Idaho
Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy
production recorded on the Facility generation metering equipment. At such time as Seller
provides Idaho Power with the electrical equipment specifications (transformer loss
specifications, conductor sizes, etc) of all of the electrical equipment between the Facility and the
Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to
be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the
Agreement. If at anytime during the term of this Agreement, Idaho Power determines that the
loss calculation does not correctly reflect the actual kWh losses attributed to the electrical
equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust
the calculation and retroactively adjust the previous months kWh loss calculations.
METERING
The Idaho Power Generation Interconnection process will determine the specific metering
requirements for this Facility. At the minimum the Metering Equipment must be able to provide
and record energy deliveries to the Point of Delivery in a manner that provided adequate energy
delivery data to administer this Agreement. These specifications will include but not be limited
to equipment specifications, equipment location, Idaho Power provided equipment, Seller
provided equipment, and all costs associated with the equipment, design and installation of the
Idaho Power provided equipment. The entire Generation Interconnection process, including but
not limited to the equipment specifications and requirements will become an integral part of this
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Agreement. Idaho Power provided equipment will be owned and maintained by Idaho Power
with total cost of purchase, installation, operation, and maintenance, including administrative cost
to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with
Schedule 72 and the total metering cost will be included in the calculation of the Monthly
Operation and Maintenance Charges specified in Schedule 72.
SPECIAL FACILITIES
The Idaho Power Generation Interconnection process will determine the Special Facility
requirements for this Facility. These specifications will include but not be limited to equipment
specifications, equipment location, Idaho Power provided equipment, Seller provided equipment
and all costs associated with the equipment, design and installation of the Idaho Power provided
equipment.The entire Generation Interconnection process, including but not limited to the
equipment specifications and requirements will become an integral part of this Agreement. Idaho
Power owned equipment will be maintained by Idaho Power, with total cost of purchase
installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho
Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total
Special Facility cost will be included in the calculation of the Monthly Operation and
Maintenance Charges specified in Schedule 72.
REACTIVE POWER
The Idaho Power Generation Interconnection process will determine the reactive power required
to be supplied by Idaho Power to the Seller, based upon information provided by the Seller. The
Generation Interconnection process will specify the equipment required on the Idaho Power
system to meet the Facility s reactive power requirements. These specifications will include but
not be limited to equipment specifications, equipment location, Idaho Power provided equipment
Seller provided equipment, and all costs associated with the equipment, design and installation of
the Idaho Power provided equipment. The entire Generation Interconnection process, including
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but not limited to the equipment specifications and requirements will become an integral part of
this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total
cost of purchase, installation, operation, and maintenance, including administrative cost to be
reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with
Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly
Operation and Maintenance Charges specified in Schedule 72.
DISCONNECTION EQUIPMENT
Disconnection Equipment is required to insure that the Seller s Facility will be disconnected from
Idaho Power s system in the event of (1) the Sellers delivery of energy exceeds the Maximum
Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy
deliveries to Idaho Power or (3) a disturbance on either Idaho Power s system or the Seller
Facility. The Idaho Power Generation Interconnection process will determine the Disconnection
Equipment specifications and requirements for this Facility, this equipment is for protection of
the Idaho Power system and equipment only. These specifications will include but not be limited
to equipment specifications, equipment location, Idaho Power provided equipment, Seller
provided equipment, and all costs associated with the equipment, design and installation of the
Idaho Power provided equipment. Seller will install all Seller provided equipment, control wire
and conduit necessary for the operation of the Disconnection Equipment.Through the
Generation Interconnection process, Idaho Power will supply details for the disconnection panel
and will test the equipment prior to any operations of the Facility, Seller will provide drawings of
their interconnection wiring for engineering approval prior to installation. The entire Generation
Interconnection process, including but not limited to the equipment specifications and
requirements will become an integral part of this Agreement. Idaho Power owned equipment will
be maintained by Idaho Power, with total cost of purchase, installation, operation, and
maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller.
Payment of these costs will be in accordance with Schedule 72 and the total Disconnection
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Equipment cost will be included in the calculation of the Monthly Operation and Maintenance
Charges specified in Schedule 72.
COSTS
The Idaho Power Generation Interconnection process and this Agreement will identify all cost for
this Facility to interconnect to the Idaho Power system, including but not limited to the cost of
Metering equipment, Special Facilities, Reactive Power, Disconnection equipment, Protection
equipment and Interconnection Equipment.As specified in the Generation Interconnection
process and in accordance with Schedule 72 and this Agreement the Seller will reimburse Idaho
Power for all costs associated with this equipment. In addition to the equipment, installation and
construction charges as specified above, during the term of this Agreement, Seller will pay Idaho
Power the monthly operation and maintenance charge specified in Schedule 72 or its successor
schedules(s). The monthly operations and maintenance charge will begin on the first day of the
month following the date which Idaho Power has completed installation of the Idaho Power
provided equipment and the interconnection equipment is available for use by the Facility. The
monthly operations and maintenance charge will be based upon the initial cost paid by the Seller
in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance with
Schedule 72 the monthly operations and maintenance charge will be adjusted to reflect the actual
cost incurred by Idaho Power and previously charged monthly operation and maintenance
expense will be revised to reflect the actual cost incurred by Idaho Power. Idaho Power will
refund or Seller will remit any underpayment of the adjusted monthly operations and maintenance
charge within sixty (60) days of the determination of this amount.
SALVAGE
No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power
will prepare and forward to Seller an estimate of the remaining value of those Idaho Power
furnished Interconnection Facilities as required under Schedule 72, the Generation
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Interconnection Process and/or described in this Agreement, less the cost of removal and transfer
to Idaho Power s nearest warehouse, if the Interconnection Facilities will be removed. If Seller
elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho
Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net
salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller
within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice
amount against any present or future payments due Idaho Power.
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