HomeMy WebLinkAbout20061227notice_of_application_order_no_30209.pdfOffice of the Secretary
Service Date
December 27 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF A POWER PURCHASE
AGREEMENT WITH TELOCASET WIND
POWER PARTNERS, LLC AND TO
INCLUDE THE ASSOCIATED EXPENSES IN
THE COMPANY'S ANNUAL POWER COSTADJUSTMENT.
CASE NO. IPC-06-
NOTICE OF APPLICATION
NOTICE OF INTERVENTION
DEADLINE
ORDER NO. 30209
On December 15 , 2006, Idaho Power filed an Application seeking approval of a
Power Purchase Agreement (PP A) with Telocaset Wind Power Partners, LLC. Idaho Power asks
that the expenses associated with the purchase of capacity and energy from the PP A be included
in the Company s annual Power Cost Adjustment (PCA). The Company requested that its
Application be processed by Modified Procedure. With this Order the Commission issues Notice
of the Company s Application and sets the deadline for interested parties to petition for
intervention.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that this PPA is the result of Idaho Power
Request for Proposal (RFP) for 200 MW of wind-powered generation that originated with the
Company s 2004 Integrated Resource Plan (IRP). Application at 2. The Company issued an
RFP for 200 MW of wind-powered generation on January 13 , 2005. Id. In September 2005, the
RFP was revised to ask for 100 MW, instead of the 200 MW level, because of the quantity of
wind the Company anticipated receiving from PURPA qualifying facilities (QFs). Id. at 3. In
June 2006, Telocaset Wind Power Partners of Houston, Texas was selected as the preferred
bidder of the 2005 Wind RFP process. Id.
YOU ARE FURTHER NOTIFIED that, according to the Application, Idaho Power
and Telocaset concluded negotiation of this PP A in December 2006. Id. at 4. The PP
guarantees an output of 196 000 MWh (annually) has a planned capacity of 100.65 MW. Id.
The term of the PP A is 20 years, with an option for Idaho Power to extend the term of the
Agreement an additional 10 years. Id. If Telocaset should wish to sell the facility, the PPA
provides Idaho Power with a first right of refusal. Id.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30209
YOU ARE FURTHER NOTIFIED that the project is located in eastern Oregon, and
would deliver its energy to a point on the LaGrande-Brownlee 230 kV transmission line. Id. at 4.
The project is expected to have an output profile with higher output coinciding with the summer
and winter peak demand. Id.
YOU ARE FURTHER NOTIFIED that prices under the PPA adjust seasonally and
start at a base rate of $48.00/MWh with an annual escalation rate of 3%. Id. No payment is
required for energy deliveries in excess of the maximum contract amount and Idaho Power will
retain all green energy tags from the project. Id. The PP A also provides that Telocaset will
deliver detailed forecasting data, including wind velocity and duration, to Idaho Power. Id. The
data will include real time access to the forecasting service used by the project, including
forecasts of energy to be delivered during the next hour, next day, and next week. Id. This is
expected to assist Idaho Power when integrating the wind generation into the Company
resource supply mix. Id. at 5.
YOU ARE FURTHER NOTIFIED that the PPA contains provisions, similar to the
90/110 percent delivery provisions contained in Idaho Power s QF contracts, which would
provide for damages and caps. Id. The PP A also contains penalties should the project fail
deliver the guaranteed annual output of 196 000 MWh. Id. Additionally, the obligations of the
project will be secured by a guaranty issued by Goldman Sachs. Id. Should the credit rating of
Goldman Sachs fall below a predetermined level, Goldman Sachs will be required to post a
liquid form of performance assurance. !d. The obligations of Idaho Power will be secured by
Idaho Power s balance sheet. Id. The PP A also provided for certain "bridge" financing to
Telocaset by Idaho Power to cover Telocaset's cost exposure to acquire certain long lead time
items, such as a transformer and certain engineering and design expenditures, while the
Commission is considering this Application. Id. at 5-6. Idaho Power states it will establish a
reserve account and fund the cost to enable Telocaset to proceed prior to approval of the
Application. !d. at 6.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that the Commission
issue an Order finding that the PP A is prudent and approving inclusion of the prudently incurred
power purchase expenses associated with the PPA in the Company s annual PCA. Id. Idaho
Power requests that its Application be processed by Modified Procedure. Id.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30209
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 no later than two weeks after the service date of this Order. 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
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 no later than two weeks after the service date of
this Order.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30209
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;).7 -r-
day of December 2006.
PAUL KJELL
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~li
Commission Secretary
O:IPC-06-
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30209