20060913Complaint.pdf

[phone]
[phone] (Fax)
Via Hand Delivery
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, Idaho 83720
Chas. F. McDevitt
D~J. (Joe) Miller
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McDevitt & Miller LLP
Lawyers
420 W. Bannock Street
O. Box 2564-83701
Boise, Idaho 83702
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September 13 , 2006
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Re: Cassia Gulch Wind Park LLC and Cassia Wind Farm LLC v. Idaho Power Co.
Dear Ms. Jewell:
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Enclosed for filing in the above matter please find the original and seven (7) copies of a
Complaint, Memorandum in Support of Complaint, and the Affidavit of Jared Grover regarding
the above referenced matter.
An additional copy of the documents and this letter is included for return to me with your
file stamp thereon.
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Attach.
Very Truly Yours
(\TWC LLP
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Miller
ORIGINAL
Dean J. Miller ISB #1968
McDEVm & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ill 83702
Tel: [phone]
Fax: [phone]
i oe~mcdevitt -miller. com
RECEIVED
200& SEP I 3 PM 2: S3
IDAHO iJUULlC
UTILITIES COM~iA!SSION
Attorneys Cassia Wind Gulch Park LLC and
Cassia Wind LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASSIA GULCH WIND PARK LLC AND
CASSIA WIND FARM LLC
Case No. ::r:PC- ~ - 0" - ~
Complainants
COMPLAINT
IDAHO POWER COMPANY
Respondent
COMES NOW Cassia Gulch Wind Park LLC and Cassia Wind Farm LLC, and for their
Complaint against Idaho Power Company ("Idaho Power ) complains and alleges as follows:
The Parties
Cassia Gulch Wind Park LLC and Cassia Wind Farm LLC are special purpose entities
under common ownership and are authorized to do business in the State of Idaho. They are
collectively referred to herein as "Cassia" or the "Projects." Each of the Projects are Qualifying
Facilities ("QFs ) within the meaning of the Public Utility Policy Regulatory Act ("PURP A"
The Projects also constitute "small power production" facilities under PURP A, and will generate
renewable power from wind. Each of the Projects have signed Firm Energy Sales Agreements
COMPLAlNT- 1
with Idaho Power, which agreements have been approved by the Commission. See Case No.
IPC-06-, Order No. 30086; Case No. IPC-06-, Order No. 30086. The Projects will sell
their entire output to Idaho Power.
II.
Idaho Power is an electric utility within the meaning of the Idaho Public Utility Law
authorized to do business in the State of Idaho and is subject to the jurisdiction of the Idaho
Public Utilities Commission (the "Commission
Jurisdiction
III.
As more fully set forth below, this Complaint involves a dispute concerning the terms
and conditions of interconnection by Qualifying Facilities to the Idaho Power high-voltage
transmission system. While the Federal Energy Regulatory Commission ("FERC") has
jurisdiction with respect to interconnection for non-QF generators, state commissions, including
the Idaho Commission, have jurisdiction with respect to interconnection terms for Qualifying
Facilities when the facilities sell their entire output to the regulated utility. See, e.
g.,
FERC
Docket No. RM02-12-000, Order No. 2006 Standardization oiSmal! Generator Interconnection
Agreements and Procedures, May 12, 2005 , para. 517 ("States continue to exercise authority
over QF interconnections when the owner of the QF sells the output of the QF only to the
interconnected utility or to on-site customers
Background
IV.
As part of its integrated backbone electric transmission system, Idaho Power owns and
operates a 138 kV transmission system in the Twin Falls, Idaho, area. Idaho Power has received
COMPLAINT - 2
requests for the integration of up to 200 MW of new generation to be connected to the 138 kV
system.! Under normal operating conditions ("N -) the existing Idaho Power transmission has
capacity sufficient to absorb the potential new generation in the Twin Falls area. It, however, is
common utility practice to model or evaluate the operation of a backbone transmission assuming
that one line of the system is out of service ("N -1 contingency"). Idaho Power believes that
under N-I contingency conditions the addition of200 MW of generation at the Twin Falls 138
kV system could create thermal overloads within its integrated system. To prevent the possible
occurrence of thermal overloads under N-l contingency conditions Idaho Power proposes to
construct a series of transmission system upgrades in four phases? The estimated total cost of
the transmission system upgrades is approximately sixty million dollars ($60 million).
With the exception of a relatively small portion of these system upgrade costs to be born
by Idaho Power, Idaho Power claims and asserts that the $60 million cost of its transmission
system upgrades should be borne, in the first instance, by the Qualifying Facilities proposing to
connect to the Idaho Power transmission system. This is in addition to the several million dollars
in interconnection costs normally borne by a QF to interconnect a new wind farm to a 138 kV
utility system, such as the radial connection line and step-up transformer equipment.
1 Whether the full 200 MW of possible new generation will actually be constructed is unknown.
2 The engineering and planning assumptions underlying Idaho Power s claim that system upgrades are necessary are
not an issue in this case, which is intended to resolve only the threshold question of whether the cost of transmission
upgrades should be assigned to Qualifying Facilities. Cassia, however, does not concede that Idaho Power
engineering and planning assumptions are correct. For example, the thermal overload claimed by Idaho Power
occurs at the rated load of the integrated system. Cassia is informed that this is a very conservative planning
assumption and that a more common industry practice is to determine overload at an elevated level of between
110% and 115% of rated load. Under that assumption there would be no thermal overload in an N-l contingency
case and none of the proposed improvement would be necessary. This is one of the reasons Cassia suggests that the
cost of upgrades be borne by Idaho Power and thus subject to prudence review in a general rate proceeding. See
Memorandum in Support of Complaint, pg. 13.
COMPLAINT - 3
As established by the Affidavit of Jared Grover, filed herewith and incorporated herein
by reference, the magnitude of these additional transmission system upgrade costs is such that, if
assigned to Cassia, the economic viability of the Projects would be seriously compromised, if not
destroyed all together. This not only would adversely affect Cassia, it would also adversely
affect the utility ratepayers and citizens of the State of Idaho, because the environmental and
price-stabilizing benefits of renewable resources like wind are wasted unless they are exploited.
Claim for Relief
Cassia requests that the Commission declare and determine that, as a matter of law and
policy, the cost responsibility for Idaho Power s system upgrades to meet N-l contingency
planning conditions should not be assigned to Qualifying Facilities connecting to the system, but
rather, should be rolled into Idaho Power s plant-in-service rate base and recovered from rates
and charges for Idaho Power s service of native load and other transmission customers. The law
and policy supporting such a determination is more fully set forth in the Memorandum in
Support of Complaint filed herewith and incorporated herein by reference.
Request for Expedited Consideration
VII.
Cassia believes that an evidentiary hearing is not required to consider the question
presented and that the Commission may resolve the issue based on written briefs. As established
by the Affidavit of Jared Grover, filed herewith, time is ofthe essence for the Projects in
obtaining a determination of the question. Cassia respectfully requests that the Commission
establish a procedural schedule that will permit an expedited resolution of the question. More
specifically, Cassia recommends that Idaho Power be required to file a responsive pleading,
COMPLAINT - 4
including a complete statement of its argument and legal authorities, within thirty (30) days of
the filing of this Complaint and that Cassia be required to file a reply brief or memorandum
within fourteen (14) days after the filing of the Idaho Power pleadings. This is generally
consistent with the usual time frames for a response and a reply, with an extra week provided to
Idaho Power, so that no further briefing is required other than that which is comprised of the
memorandum in support of this Complaint, the Idaho Power response, and the Cassia reply.
Thereafter, the matter should be set for oral argument, after which the matter would be fully
submitted to the Commission for decision. The Commission should specify that any service dates
are "in-hand" dates, with service to be accomplished by personal delivery or electronic mail.
that end, Cassia is serving Idaho Power with this Complaint and the supporting memorandum
and affidavit by delivery the same day as the date of this filing with the Commission.
Notices
VIII.
All pleadings, papers, orders and notices herein should be served upon:
Dean J. Miller ISB #1968
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ID 83702
Tel: [phone]
Fax: [phone]
oe~mcdevitt -miller. com
and
Ronald K. Arrington
Associate Chief Counsel
John Deere Credit
6400 NW 86th Street
Johnston, Iowa 50131
ArringtonRonaldK~J ohnDeere.com
cOMPLAlNT- 5
WHEREFORE, Cassia respectfully requests of the Commission:
That the Commission establish an expedited procedural schedule such as that set forth
above for prompt resolution of the issue presented by this Complaint;
That, thereafter, the Commission declare and determine that the cost of Idaho Power
138 kV transmission system upgrades to meet N-l contingency planning conditions
should not be allocated to Qualifying Facilities connecting to the system; and
That the Commission grant all other relief to which Cassia may be entitled.
DATED this day of September, 2006.
Respectfully submitted
McDEVITT & MILLER LLP
~111er
McDevitt & Miller LLP
420 W. Bannock
Boise, ID 83702
Phone: [phone]Fax: [phone]
Counsel for
Cassia Wind Gulch Park LLC
and Cassia Wind LLC
COMPLAINT - 6
CERTIFICATE OF SERVICE
I hereby certify that on the day of September, 2006, I caused to be served, via the
methodes) indicated below, true and correct copies ofthe foregoing document, upon:
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
O. Box 83720
Boise, ID 83720-0074
i i ewell(i:V,puc.state.id. us
Hand Delivered
S. Mail
Fax
Fed. Express
Email
Barton L. Kline
Idaho Power Company
1221 West Idaho Street
O. Box 70
Boise, ID 83707
B Kline(i:V,idahopower. com
Hand Delivered
S. Mail
Fax
Fed. Express
Email
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By:ArM'mr ~I~I \k-t
COMPLAINT - 7