20060928Application.pdf

IDAHO~POWER~Monica B. Moen
Attorney II
An IDACORP Company
September 26 , 2006
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Jean D. Jewell , Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise , Idaho 83720-0074
Re:Case No. IPC-06-a.3
IN THE MATTER OF THE APPLICATION OF IDAHO POWER
COMPANY FOR APPROVAL OF AN AGREEMENT BETWEEN
AVIMOR, LLC AND ,IDAHO POWER TO PROVIDE
ELECTRIC TRANSMISSION AND SUBSTATION FACILITIES TO
THE AVIMOR MULTI-USE DEVELOPMENT
Dear Ms. Jewell:
Please find enclosed for filing an original and seven (7) copies of Idaho Power
Company s Application for the above-referenced matter.
I would appreciate it if you would return a stamped copy of this transmittal letter in
the enclosed self-addressed , stamped envelope.
Very truly yours
Monica B. Moen
MBM:sh
Enclosures
Telephone [phone] Fax [phone], E-mail mmoenfWidahopower.com
MONICA MOEN , ISB # 5734
BARTON KLINE , ISB # 1526
Idaho Power Company
1221 West Idaho Street
P. O. Box 70
Boise , Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
Attorney for Idaho Power Company
RECEIVED
2006 SEP 27 PM 5: 0 I
IDAHO PUbL
UTILITIES COMtA!SSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF AN AGREEMENT
BETWEEN A VIMOR, LLC AND
IDAHO POWER TO PROVIDE ELECTRIC
TRANSMISSION AND SUBSTATION
FACILITIES TO THE A VIMOR MULTI-USE
DEVELOPMENT
CASE NO. IPC-06-d..3
APPLICATION
COMES NOW Idaho Power Company ("Idaho Power" or the "Company ) and
hereby requests that the Commission issue its Order approving an Agreement between
Idaho Power and Avimor, LLC ("Avimor ), dated August 17, 2006 ("Agreement") that
provides for the construction of certain transmission and substation facilities by Idaho
Power for a multi-use planned residential subdivision proposed by Avimor. A copy of the
Agreement is attached hereto as Exhibit 1 .
APPLICATION -
Avimor is developing a substantial multi-use planned residential subdivision
known as Avimor in Ada County, Idaho (the "Project"). The Project is located in an area in
which Idaho Power does not have existing facilities of adequate capacity and desired
phase and voltage to accommodate the Project. Delivery of power (capacity) to the Project
site will require construction of 3.4 miles of a 138-kV transmission line and a substation
with initial capacity of 10 MV A (the "Requested Facilities ). Provided Avimor satisfies the
terms and conditions of the Agreement and construction conditions are satisfactory, Idaho
Power agrees to use commercially reasonable efforts to complete construction of the
Requested Facilities on or before April 30 2007.
II.
The total cost for the design and construction of the Requested Facilities is
300 000.00. Avimor has agreed to pay Idaho Power the amount of $4 300 000.00 in
three installments as set forth in Paragraph 4 of the Agreement. In accordance with the
Agreement, Avimor has made the Initial Payment of $2 150 000.00 to Idaho Power.
III.
Provided Avimor has timely made all three of the installment payments set
forth in Paragraph 4 of the Agreement, the Agreement establishes in Paragraph 4.2 that
Avimor shall be eligible to receive periodic refunds from Idaho Power for the cost of the
design and construction of the Requested Facilities up to $4 300 000.00.
IV.
Paragraph 4.2 of the Agreement sets out the formula by which Avimorwould
be eligible to receive periodic refunds from Idaho Power. Refunds to Avimor will be
APPLICATION - 2
calculated and paid by Idaho Power on the basis of the number of Schedule
(Residential), 7 (Small General Service), 9 (Large General Service) and 24 (Agricultural
Irrigation) services and loads that are connected to the Requested Facilities by the Project.
The refunds would be available to Avimor for the earlier of (a) a period of ten years, (b)
until 685 permanent residential services within the Project have been connected to the
Requested Facilities or (c) until the metered demand at the Project's Delivery Point, as
defined in the Agreement, meets or exceeds 6 850 kW.
Avimor has agreed that Idaho Power will own , operate and maintain the
Requested Facilities that are constructed pursuant to the Agreement. Avimor further
agrees that the Company will be able to use the Requested Facilities to provide service to
other Idaho Power customers and that the improvements constructed to provide service
Avimor will be a part of the Company s electrical transmission and distribution system.
VI.
The Company believes that consideration of this Application by the
Commission will not require an evidentiary proceeding and, therefore, respectfully requests
that the Application be processed under RP 201 allowing for consideration of issues under
modified procedure, that is, by written submissions rather than by an evidentiary hearing.
VII.
Paragraph 7.5 of the Agreement provides that the Agreement is subject to
valid laws and to the regulatory authority and orders , rules and regulations of the
Commission.
APPLICATION - 3
VIII.
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
Layne Dodson
Community Relations Representative
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 approving, without change or condition , the
Agreement between Idaho Power Company and Avimor to Provide Electric Transmission
and Substation Facilities.
Respectfully submitted this 5/'lJ:II...day of September 2006.
(p~
MONICA B. MOEN
Attorney for Idaho Power Company
APPLICATION - 4
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on the ..27~day of September 2006, 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:
Duane Black
Executive Senior VP & C.
SunCor Development Company
80 E. Rio Salado Parkway, Suite 410
Tempe , AZ 85281
(X) U.S. Mail , Postage Prepaid
) Hand Delivered
) Overnight Mail
) Facsimile
) Email
MONICA B. MOEN
CERTIFICATE OF SERVICE
BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-O6-;;(3
IDAHO POWER COMPANY
EXHIBIT
AGREEMENT TO PRO~DE
ELECTRIC TRANSMISSION AND SUBSTATION FACILITIES
THIS AGREEMENT, dated ~~tL~, 2006, is by and
between AVIMOR, LlC ("Avimor"), an Idaho Limited Liability Company, with its
principal offices at 485 East Riverside Drive, Eagle, Idaho, and IDAHO POWER
COMPANY ("Idaho Power" or the "Company") , an Idaho corporation, with its
principal offices at 1221 West Idaho Street, Boise, Idaho. Avimor and Idaho
Power may also be referred to individually as "Party" or collectively as "Parties.
RECITALS
Avimor is developing a substantial multi-use project known
as Avimor in Ada County, Idaho ("Project"). Avimor has indicated that, at its
initial phase, the Project will be a complex featuring an approximate 830-acre
685-home community with approximately 44 000 square feet of commercial
space (Exhibit 2). Additional phases of the Project will follow as demand
presents. Avimor has requested that Idaho Power make 10 MVA of electrical
capacity available to the Project by April 30, 2006.
Because the Project will be located in ~n area where Idaho
Power does not have existing facilities of adequate capacity and desired phase
and voltage, delivery of power (capacity) to the Project's site will require the
construction of (1) 3.4 miles of a 138-kV transmission line (the "Transmission
Facilities ) and (2) a substation with initial capacity of 10 MVA (the "Spring Valley
Substation Facilities ). The Transmission Facilities and the Spring Valley
Substation F aGilities are sometimes hereinafter collectively referred to as the
AGREEMENT - Page 1 of June 23, 2006
Requested Facilities.Installation of distribution facilities within the boundaries
of the Project will be made in accordance with Rule H , Idaho Power s tariff
governing line installations, including any revisions to that rule , or any successor
rules or schedules.
Idaho Power will construct the Requested Facilities in
accordance with the terms and provisions of this Agreement.
NOW , THEREFORE , in consideration of the mutual obligations
and undertakings set forth herein and other good and valuable consideration , the
sufficiency of which is hereby acknowledged , Avimor and Idaho Power agree as
follows:
AGREEMENTS
Construction of Requested Facilities
The Requested Facilities will be constructed as follows:
The Transmission Facilities will provide capacity sufficient
to serve 10 MVA of three-phase power at the Spring Valley Su~station Facilities.
A general description of the Transmission Facilities is attached hereto as Exhibit
Construction of the Spring Valley Substation Facilities (the
Delivery Point") will include a 10 MVA transformer capable of providing 10 MW
of capacity to subsequently-built distribution facilities. A general description of
the Spring Valley Substation Facilities is attached hereto as Exhibit 1.
Idaho Power will use commercially reasonable efforts to
complete construction of the Requested Facilities on or before April 30, 2007.
AGREEMENT - Page 2 of 15 June 23, 2006
However, Avimor recognizes that Idaho Power ability to complete the
Requested Facilities on or before that date is subject to the receipt of the
payments from Avimor as described herein , Idaho Power ability to obtain
required labor, materials and equipment, timely receipt of satisfactory easements
and rights-of-way, suitable weather conditions , adequate access to the sites of
the Requested Facilities for construction equipment and personnel and timely
receipt of governmental regulatory authorizations, including, but not limited to
approval of this Agreement by the Idaho Public Utilities Commission
Commission
1.4 If Idaho Power fails to meet the completion deadline
described above and such failure is not excused as provided in Section 1., the
Parties agree that Avimor may submit the matter to the Commission for
appropriate relief and, pending final resolution , Avimor obligation to make
further payments pursuant to the terms of this Agreement shall be suspended.
Project Cost
The total cost for the design and construction of the
Requested Facilities is Four Million Three Hundred Thousand and no/100 Dollars
($4 300 000.00).
Avimor shall pay Idaho Power Four Million Three Hundred
Thousand and no/100 Dollars ($4 300 000.00) for design and construction of the
Requested Facilities as provided in Section 4.
Capacity Entitlement
AGREEMENT - Page 3 of 15 June 23, 2006
At the completion of construction of the Requested
Facilities, Idaho Power will make available to Avimor 10 MW of electrical capacity
measured at the Delivery Point to serve loads within the Project boundaries for a
period of 10 years from the date of completion of construction of the Requested
Facilities or until the metered demand at the Delivery Point meets or exceeds 10
, whichever occurs first. The Parties agree that if, at the conclusion of the
10-year period following completion of construction of the Requested Facilities
total loads within the Project boundaries are less than 10 MW, Avimor
entitlement to the difference between 10 MW of capacity at the Delivery Point
and the total loads within the Project will be automatically terminated. Idaho
Power will provide written certification to Avimor specifying the date when
construction of the Requested Facilities has been completed and notifying
Avimor that the 1 O-year time period described above has commenced.
Payment Provisions
Payments by Avimor. Avimor will pay Idaho Power Four
Million Three Hundred Thousand and no/100 Dollars ($4 300 000.00) for the
Requested Facilities in three installments as follows:
1 (a)At the time of execution of this Agreement
Avimor will pay Idaho Power Two Million One Hundred Fifty Thousand and
no/100 Dollars ($2 150 000.00) for the Requested Facilities as an initial
installment payment ("Initial Payment"
1 (b)On or before the start of construction of the
Requested Facilities, Avimor will make a second installment payment to Idaho
AGREEMENT - Page 4 of 15 June 23, 2006
Power for the Requested Facilities in the amount of One Million Seventy-five
Thousand and no/100 Dollars ($1 075 000.00) ("Second Payment"
1 (c)Within ten (10) calendar days of written
certification from Idaho Power that construction of the Requested Facilities is
completed , Avimor will make the final installment payment to Idaho Power for the
Requested Facilities in the amount of One Million Seventy-five Thousand and
no/100 Dollars ($1 075 000.00) ("Final Payment"
1 (d)If Avimor fails to make the Second Payment on
or before the start of construction , (1) any obligation of Idaho Power to further
perform under this Agreement and to credit Avimor the amounts described in
Section 4.2 herein , if any, will be terminated and (2) any portion of Avimor s Initial
Payment of Two Million One Hundred Fifty Thousand and no/100 Dollars
($2 150 000.00) that Idaho Power has not encumbered for work orders for
design , labor, materials and supplies, permitting costs and other expenditures for
the Requested Facilities , as determined by Idaho Power in its reasonable
discretion , shall be refunded to Avimor by Idaho Power. Upon termination of this
Agreement, all rights and obligations of the Parties shall cease.
Idaho Power will have the sole and absolute discretion to determine
whether any subsequent payment by Avimor after the due date of the Second
Payment will permit the continuation of this Agreement or whether the Agreement
should be terminated. In the event Idaho Power determines that the Agreement
should be terminated due to the failure of Avimor to timely make the Second
Payment, Idaho Power shall return any such subsequent payment to Avimor.
AGREEMENT - Page 5 of 15 June 23, 2006
1(e)If Avimor fails to make the Final Payment as
required in Section 4.1(c), the Parties agree that Idaho Power's obligations to
refund any payments as required in Section 4.2 shall be terminated.
Credits bv Idaho Power.Provided Avimor has timely
made the Initial , Second and Final Payments as provided herein and has
otherwise performed its obligations under this Agreement, Avimor shall be
eligible to receive periodic refunds from Idaho Power for either (a) a period of ten
(10) years or (b) until 685 permanent residential services have been connected
by Idaho Power or (c) until the metered demand at the Delivery Point meets or
exceeds 6, 850kW, whichever occurs first. The total refund, if any, shall not
exceed the amount identified in Paragraph 4.1 above and shall be calculated as
follows:
2(a)Maximum Refundable Project Cost:
300 000.00; Cost Per kW: $4,300 000.00 /10 000kW= $430.00IkW
2(b)Avimor will pay Idaho Power Co.
300 000.00 for the installation of the Requested Facilities as provided herein.
Idaho Power Co. will refund Avimor $430.00 per kW of estimated demand for
electrical facilities installed within the Project that take permanent service under
the Idaho Power's Idaho Public Utility Commission-approved tariff, Rate
Schedule 01 , Residential Service , including any revisions to that schedule or any
successor schedules.For purposes of this Agreement, the estimated
demand for each permanent residential service will be 10kW per service for
refund amount of $4,300.00 per permanent residential electrical service.
AGREEMENT - Page 6 of 15 June 23, 2006
Refunds for non-residential loads taking service under Idaho
Power s Idaho Public Utility Commission-approved tariffs , Schedules 7 (Small
General Service), 9 (Large General Service) and 24 (Agricultural Irrigation),
including any revisions to those schedules or any successor schedules, will be
calculated by multiplying $430.00 times the kva rating of the distribution
transformers serving each such non-residential account.
Refunds to Avimor will be calculated in accordance with this
Agreement and will be paid whenever a residential customer within the Project
taking service under Schedule 1 permanently connects service or when a non-
residential account within the Project taking service under Schedules 7 , 9 or 24
has both permanent electrical service installed and the meter for said account is
energized.
, prior to the end of the ten year period specified in
Paragraph 3 of this Agreement, Avimor has otherwise performed its obligations
under this Agreement and Idaho Power has either (1) connected 685 permanent
residential electrical services or (2) the metered demand at the Delivery Point
meets or exceeds 6 850 kW, whichever occurs first, the Company will refund the
remaining refundable balance described within this Agreement. These payments
will be made without interest with a maximum payout to be calculated as
described herein but not to exceed $4 300 000.00.
, at the conclusion of the 10-year period specified in
Paragraph 4.2 of this Agreement, either (a) the metered demand at the Delivery
Point is less than 6 850 kW or (b) fewer than 685 permanent residential electrical
AGREEMENT - Page 7 of 15 June 23, 2006
services have been connected within the Project, the Parties agree that Idaho
Power has no further obligation to refund Avimor for any payments made by
Avimor and Avimor shall forfeit any claims for further refunds.
Ownership Operation and Maintenance
Idaho Power will own , operate and maintain the
Requested Facilities constructed pursuant to this Agreement. Avimor recognizes
that it is paying a proportionate share of the total costs of improving a portion of
Idaho Power utility system and recognizes that Idaho Power will utilize the
improvements to the system to provide service to other customers and that the
improvements will be part of Idaho Power electrical transmission and
distribution system.
RiQhts-of-Wav and/or Easements
At no cost to Idaho Power or any other utility, Avimor will
convey and/or grant to Idaho Power or any other utility such easements or rights-
of-way on Avimor s land that Idaho Power or other utilities may determine are
reasonably required for locating, constructing, operating, accessing and
maintaining the Requested Facilities that are acceptable to Idaho Power and
other utilities requiring easements for the Requested Facilities. Idaho Power will
be responsible for obtaining any and all permits , rights-of-way and/or regulatory
approvals required by public agencies for performance of this Agreement and for
payment of any and all permit fees and/or taxes required for or associated with
such permits , rights-of-way and/or regulatory approvals.
AGREEMENT - Page 8 of 15 June 23, 2006
In addition , at no cost to Idaho Power, Avimor will convey
and/or grant to Idaho Power a 25-foot wide expansion to an existing transmission
easement that traverses the Project and which is more particularly described in
Exhibit 3 attached hereto.
Additional Provisions
Liabilitv. Each Party will indemnify and hold harmless the
other Party and its officers , directors, employees, agents , representatives , parent
company, affiliates and subsidiaries from and against loss , damage or liability,
exclusive of costs and attorney s fees, resulting from claims asserted by third
persons against either or both Parties to this Agreement on account of injury or
death to persons or damage or destruction of property occurring on such
indemnifying Party s side of the aforesaid Delivery Point, unless such injury or
damage shall have resulted from the sole negligence of the other Party or its
employees, agents or contractors.
Limitation on Liabilitv NEITHER PARTY, ITS OFFICERS
DIRECTORS EMPLOYEES AGENTS REPRESENTATIVES PARENT
COMPANY, AFFILIATES AND SUBSIDIARIES SHALL , IN ANY EVENT, BE
LIABLE TO THE OTHER FOR ANY SPECIAL , INCIDENTAL , EXEMPLARY
PUNITIVE OR CONSEQUENTIAL DAMAGES SUCH AS , BUT NOT LIMITED
, LOST PROFITS , REVENUE OR GOOD WILL, OR INTEREST , WHETHER
SUCH LOSS IS BASED ON CONTRACT, WARRANTY, NEGLIGENCE , STRICT
LIABILITY OR OTHERWISE.
AGREEMENT - Page 9 of 15 June 23, 2006
Waivers . Any waiver at any time by either Party of any right
with respect to any matter arising under this Agreement, or any failure to give
notice provided hereunder, shall not be deemed to be a waiver with respect to
any subsequent matter, nor as the establishment of or consent to any practice
under this Agreement or an interpretation of any term or provision hereof.
7.4 Successors and AssiQns . Neither Party shall assign this
Agreement or any portion thereof without the prior written consent of the other
Party, which consent of such other Party shall not be unreasonably withheld.
Upon proper assignment, this Agreement shall inure to the benefit of and be
binding upon the successors in interest, assigns and legal representatives of
Avimor and Idaho Power.
ReQulatorv Authoritv. This Agreement is subject to valid
laws and to the regulatory authority and orders , rules and regulations of the
Idaho Public Utilities Commission (Commission) and such other administrative
bodies having jurisdiction , as well as Idaho Power Company s Rules and
Regulations as now or may be hereafter modified and approved by the
Commission.
Choice of Law and Venue . This Agreement shall be
governed by and construed in accordance with the laws of the State of Idaho
without reference to its choice of law provisions and venue for any court
proceeding arising out of this Agreement shall be in Boise, Idaho.
Modifications and Counterparts. This Agreement may only
be amended or modified by a writing signed by the duly authorized
AGREEMENT - Page 10 of June 23, 2006
representatives of both parties.This Agreement may be executed
counterparts, each of which , taken together, shall constitute one and the same
Agreement.
Commission Approval.This Agreement shall be subject to the
approval of the Commission and the respective rights and obligations of the
Parties hereunder shall be subject to the continuing jurisdiction and regulatory
authority of said Commission.
Attornevs' Fees In the event it becomes necessary for either
Party to employ legal counselor to bring an action at law or other proceeding to
enforce any of the terms , covenants or conditions of this Agreement , the
prevailing Party in any such action or proceeding shall be entitled to recover its
costs and expenses incurred in such action from the other Party, including,
without limitation , the cost of reasonable attorneys' fees.
IN WITNESS WHEREOF , the Parties have entered into this Agreement
effective as of the day and year first above written.
IDAHO POWER COMPANY AVIMOR, LLC , an Idaho limited liability
company
By: ~~V.- a By:SunCor Idaho , Inc., an Idaho
Corporation
Sole MemberIts:
Title:By:
Name:. e 4rJL---
J6JfTitle:
AGREEMENT - Page 11 of June 23, 2006
EXHIBIT 1
The Avimor Project Description
Project includes building a 3.5 mile, 138kV transmission line that will tap off of the
BOBN-EMET Line 412 and serve a new substation located in Avimor. The substation
will be 138kV to 12.5kV and feed new underground feeders from an open l2.5kV bus.
Transmission Facilities:
This project will require 3.5 miles of new 138kV line that will tap off of the BOBN-
EMET Line 412 just south of Shadow Valley Golf Course, run east along the ridge-top
until it hits the 230kV line, follow that 230kV corridor north, cross under the 230kV line
and feed the new substation located in Spring Valley Ranch. Poles will typically be
wood and designed to handle single-circuit 397 ACSR Ibis and DNO 5484 OPGW shield
wire. There will need to be two 138kV air-breaks added to the BOBN-EMET line, one
on either side ofthe new SPVY tap. Typical spans will be 500' and there is one highway
crossing that will require a permit. The line will not accommodate distribution or joint
use. There will be a wavetrap installed on the new SPVY tap.
Substation Facilities:
The substation will initially be designed for a 138-l2.47kV, 7.5/l0.5MV A transformer
with regulator, and two l2.47kV distribution feeders served from open bus and leaving
the substation with underground getaways. One of the two distribution feeders will be a
future install. There will be connections on the 138kV and l2.5kV bus for a mobile
connection.
One l38kV dead-end structure (H-frame) will be installed for the incoming transmission
line, with provisions for a future line breaker underneath the dead-end and two future sets
of l38kV side-break "V" breaker disconnect switches to be mounted on the dead-end.
Two hand-operated 138kV RDA type air-break disconnects and a 138kV circuit-switcher
will be installed initially.
The l2.5kV bus will be standard IPCO ALP type.
Two l2.5kV feeder bays will be installed now with plans for two future bays. Only one
feeder will be installed now, SPVY-Oll. It will leave the station, cross the highway, and
feed the development on the east side of highway 55.
There will be a control building to house all of the protection, communication, and
battery equipment, as well as the AC and DC load centers.
AGREEMENT - Page 12 of June 23, 2006
Grading of the site will provide for sheet flow drainage across the site from north to south
with an elevation change of 1.. Drainage ditches on the north and west sides of the
station will permit excess water flow around the station and back to natural drainage
features. Culverts may be necessary underneath station access road to facilitate drainage
back to natural drainage features.
Access roads will be designed and constructed by Idaho Power.
AGREEMENT - Page 13 of June 23, 2006
EXHIBIT 2
(ILLUSTRATE THE AVIMOR PROJECT BOUNDARIES)
AGREEMENT - Page 14 of June 23, 2006
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A SunCor Planned Community
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Figure 2
Vicinity Map
Legend
LANDS IN TRUST
EXCLUDED LANDS
A V I M 0 R'.
A SunCor Planned Community
Not To Scale
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Location Map
Legend
BUREAU OF LAND MANAGEMENT
PRIVATE LANDS
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SPRING VALLEY RANCH
PLANNED COMMUNITY
POTENTIAL DEVELOPMENT AREA
VILLAGE CENTER
SPRING VALLEY RANCH
IDAHO STATE LANDS
Avimor Planned Community Sun Cor Idaho, LLC.Conceptual Development Plan.
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EXH I BIT
(DESCRIPTION OF THE EXISTING TRANSMISSION EASEMENT PLUS THE
ADDITIONAL 25 FOOT WIDTH)
AGREEMENT - Page 15 of June 23, 2006
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