20060509notice_of_application_order_no_30038.pdf

Office of the Secretary
Service Date
May 9, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY FOR THE EV ANDER ANDREWS POWER PLANT
CASE NO. IPC-06-
NOTICE OF APPLICATION
NOTICE OF INTERVENTION
DEADLINE
ORDER NO. 30038
On April 14, 2006 , Idaho Power Company filed an Application with the Commission
seeking an Order granting the Company a Certificate of Public Convenience and Necessity for
the construction of the Evander Andrews Power Plant. The Application also requests that the
Order note that the Company can expect to rate base the prudent capital costs for the project and
recover prudent fuel costs in the Company s Power Cost Adjustment mechanism. The Company
requests that its Application "be processed expeditiously" by Modified Procedure in order to
purchase certain equipment at competitive prices. With this Order the Commission issues notice
of the Company s Application and sets a deadline for interested parties to petition for
intervention.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company requests it be issued a
Certificate of Public Convenience and Necessity for the construction of the Evander Andrews
Power Plant. According to the Application the plant will be constructed by Siemens Power
Generation, Inc., the same entity that provided labor, materials, equipment, and engineered and
constructed the Company s Bennett Mountain Power Plant. Application at 2. The plant would
consist of a new Siemens-Westinghouse simple cycle, natural gas-fired combustion turbine rated
at 170 MW, along with the typical plant facilities and equipment. Id. at 3. The project would be
located at the existing 40 acre Evander Andrews Power Complex north of Mountain Home. !d.
The Evander Andrews Power Complex is currently the home of two 45 MW gas-fired generators
built by Idaho Power in 2001. !d. The plant is currently scheduled to be available to meet peak
loads in the summer of2008. Id.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30038
YOU ARE FURTHER NOTIFIED that according to the Application the project
would be interconnected with the Company s 230 kV transmission system which is located
approximately seven miles from the Evander Andrews site. Id. The Company states that there is
sufficient capacity in the existing l6-inch lateral gas line running from the Williams Northwest
Pipeline to the site to meet the requirements of the existing and new facility.Id.The
Application also states that substantial water supply capacity and priority water rights exist for
both the existing and new facilities from a deep well on the Evander Andrews premises, and that
the project will comply with all appropriate air and water quality standards. Id.
YOU ARE FURTHER NOTIFIED that the Application, and accompanYIng
testimony of Gregory W. Said, states that construction of this plant is consistent with the
Company s 2004 Integrated Resource Plan (IRP). Application at 3-4. According to the filed
testimony, the Company initiated a Request for Proposals (RFP). Consistent with the
recommendations of the 2004 IRP, the peaking resource RFP requested proposals for an 80 MW
- 200 MW turnkey electric generation resource located within the Company s service territory
that would meet anticipated peak energy demands. Said Direct at 10. The Company received 31
proposals from nine companies that offered generation units ranging in size between 71 MW and
170 MW. !d. The RFP evaluation team selected Siemens as the preferred bidder based upon the
predetermined price and non-price criteria developed for this RFP. Id. at 12.
YOU ARE FURTHER NOTIFIED that the Application and testimony also notes
other strategies the Company has employed for satisfying the incremental resource needs
identified in the 2004 IRP. Application at 4 , Said Direct at 5-8. These efforts include:
additional demand-side measures, an RFP for approximately 100 MW of wind-powered
generation, and an RFP for 100 MW of geothermal energy. Application at 4.
YOU ARE FURTHER NOTIFIED that the Company states it has a "Commitment
Estimate" of $60 million for the project. Application at 5. The Commitment Estimate is a good
faith estimate of the project's total capital cost based upon a negotiated Agreement for
Engineering, Procurement and Construction with Siemens Power Generation, Inc., as well as
certain additional costs the Company knows it will incur but cannot quantify with precision at
this time, such as sales taxes, allowances for funds used during construction (AFUDC), cost of
Idaho Power oversight of the project, and the cost of capitalized start-up fuel. Application at 4-
The Commitment estimate does not include the approximately $22.8 million estimated cost of
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30038
constructing transmission and substation facilities required to interconnect the project with the
Company s transmission system. Application at 5. The Company proposes to procure and
install the project for the Commitment Estimate, subject to adjustment, and to rate base only the
amount actually incurred up to the Commitment Estimate. Id.
YOU ARE FURTHER NOTIFIED that the Application states the Company owns
firm fuel transportation rights sufficient to supply the new plant, and that management of the fuel
supply will be done by Idaho Power personnel possibly in conjunction with a third party such as
IGI Resources, Inc. Application at 6. The Company requests that the Commission allow it to
include the cost of fuel, fuel storage, and fuel transportation for recovery through the existing
Power Cost Adjustment (PCA) mechanism. Id.
YOU ARE FURTHER NOTIFIED that, along with the Application, the Company
filed the direct testimony of Gregory W. Said and a map showing the location of the Evander
Andrews Power Complex.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
testimonies and exhibits, have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices. The Application and
testimonies are also available on the Commission s Website at www.puc.idaho.gov under the
File Room" icon.
NOTICE OF INTERVENTION DEADLINE
YOU ARE HEREBY NOTIFIED that persons desiring to intervene in this matter
must file a Petition to Intervene with the Commission pursuant to the Commission s Rules of
Procedure 72 and 73, IDAPA 31.01.01.072, 31.01.01.073. Any Petition to Intervene must be
filed on or before Thursday, May 18, 2006. Persons seeking intervenor status shall also
provide the Commission Secretary with their electronic mail addresses to facilitate future
communications in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views
without parties' rights of participation are not required to intervene and may present their
comments without prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed. Depending on the number of
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30038
intervenors, the Commission may direct that pleadings and testimony be filed electronically with
the other parties.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held
pursuant to the Commission s authority and jurisdiction under Title 61 of the Idaho Code. All
proceedings in this matter will be conducted pursuant to the Commission s Rules of Procedure
IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that all persons desiring to intervene in this matter must
file a Petition to Intervene with the Commission on or before Thursday, May 18 2006.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this .fA
day of May 2006.
~-6h IL~~
ARSHA H. SMITH, COMMISSIONER
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ATTEST:
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J ~'n D. Jewell
Commission Secretary
O:IPC-06-09 dw
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30038