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Home My WebLink About20130515Pricing Information.pdfIDAHO PNER® - AnIDACORPC0mPanV ZOMY.:..i4 57 JULIA A. HILTON Corporate Counsel ihiIton(äidahoower.com I - ' May 14, 2013 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83702 Re: Case No. VC- O / Hot Springs Windfarm, LLC -Application Dear Ms. Jewell: Enclosed for filing in the above matter are an original and seven (7) copies of Idaho Power Company's Application. Very truly yours, Julia A. Hilton JAH :csb Enclosures 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 JULIA A. HILTON (ISB No. 7740) DONOVAN E. WALKER (ISB No. 5921) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-6117 Facsimile: (208) 388-6936 jhiltonidahopower.com dwaIkeridahopower.com 2013HY PI P1 t:57 i-n - - - I - - Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR INCLUSION OF OMITTED PRICING INFORMATION IN THE FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND HOT SPRINGS WINDFARM, LLC. CASE NO.E'O/ 3L/ APPLICATION In accordance with Idaho Code § 61-503 and RP 052 and RP 201, Idaho Power Company ("Idaho Power" or "Company") hereby respectfully applies to the Idaho Public Utilities Commission ("Commission") for an order including additional pricing information in the Firm Energy Sales Agreement ("Agreement") between Idaho Power and Hot Springs Windfarm, LLC ("Hot Springs") whereby Hot Springs sells and Idaho Power purchases electric energy generated by the Hot Springs project. Idaho Power initially sought to provide this information to the Commission via a letter. However, Commission Staff requested that the Company submit this information via an application. APPLICATION -1 In support of this Application, Idaho Power represents as follows: I. INTRODUCTION 1.On December 26, 2006, in Case No. IPC-E-06-34, Idaho Power filed an application with the Commission for approval of the Agreement. The Commission approved the Agreement on February 20, 2007, in Order No. 30246. 2.The terms of the Agreement state that the Agreement will be in effect for 20 years, beginning upon the project's Operation Date. See pages 6-7 of the Agreement filed in Case No. IPC-E-06-34. Due to delays, the Operation Date did not occur, and therefore the term of the Agreement did not begin, until 12 months after the anticipated Operation Date. The Agreement contains pricing information for the 20 years following the Operation Date. However, because that Operation Date was delayed, the 20-year pricing schedule within the Agreement does not extend through the full term of the Agreement. 3.In April 2013, Hot Springs notified Idaho Power that the 20-year pricing schedule did not extend for the full term of the Agreement. The pricing contained in the Agreement is based upon the standard published avoided cost rates in effect at the time the Agreement was executed and in accordance with Order No. 29646. See page 11 of the Agreement filed in Case No. IPC-E-06-34. 4.Therefore, on May 3, 2013, Idaho Power provided Hot Springs with a letter setting forth the pricing to be applied to the last 12 months of the term of the Agreement based upon the standard published avoided cost rates in effect at the time. Attachment 1. As described in the letter and as set forth in Order No. 29646, standard published avoided cost pricing for the final 12 months is: APPLICATION -2 Year Season 1- (73.50 %) Season 2- (120.00 Season 3- (100.00 Mills/kWh %) Mills/kWh %) Mills/kWh 2028 62.50 102.04 85.04 5.Idaho Power requests that the Commission approve the inclusion of these additional prices into the terms of the Agreement in order to clarify the rates in effect for the final 12 months of the Agreement. II. MODIFIED PROCEDURE 6.Idaho Power believes that a technical hearing is not necessary to consider the issues presented herein and respectfully requests that this Application be processed under Modified Procedure; i.e., by written submissions rather than by hearing. RP 201, et seq. The Company stands ready to present the testimony in support of this Application in a technical hearing if the Commission determines such a hearing is required. III. COMMUNICATIONS AND SERVICE OF PLEADINGS 7.Communications and service of pleadings with reference to this Application should be sent to the following: Julia A. Hilton Regulatory Dockets Idaho Power Company P.O. Box 70 Boise, ID 83707 ihiltoncidahopower.com docketscidahopower.com Randy Allphin Energy Contracts Leader Idaho Power Company P.O. Box 70 Boise, ID 83707' rallphinidahpower.com IV. REQUEST FOR RELIEF 8.As described in greater detail above, Idaho Power respectfully requests that the Commission issue an order approving the inclusion of the above-described pricing terms for the last year of the Agreement and finding it reasonable to allow these APPLICATION -3 payments made under the Agreement as prudently incurred expenses for ratemaking purposes. DATED at Boise, Idaho, this 14th day of May 2013. /Jz~? - J A. HILTON Attorney for Idaho Power Company APPLICATION -4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 14th day of May 2013 I served a true and correct copy of the foregoing APPLICATION upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Kristine Sasser Deputy Attorney General Idaho Public Utilities Commission 472 West Washington (83702) P.O. Box 83720 Boise, Idaho 83720-0074 Hot Springs Windfarm, LLC Richard Free Director, Utility & Regulatory Process Support Bennett Creek Windfarm, LLC do Exelon Wind, LLC 4601 Westown Parkway, Suite 300 West Des Moines, Iowa 50266 X Hand Delivered U.S. Mail Overnight Mail FAX X Email kris.sasserpuc. idaho.gov Hand Delivered X U.S. Mail Overnight Mail FAX X Email Richard.FreecexeIoncorp.com APPLICATION -5 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E- O-4' IDAHO POWER COMPANY ATTACHMENT I IDAHO PNER. An IDACORP Company May 3, 2013 Hot Springs Wind Farm, LLC do Exelon Wind, LLC Attn: Richard Free, Director, Utility and Regulatory Process Support 4601 Westown Parkway, Suite 300 West Des Moines, IA 50266 Sent Via: Email (Richard.FreeexeIoncorp.com ), Certified Mail Subject: Hot Springs Wind Farm - Project Number— 21615105 Dear Richard, Recently you contacted Idaho Power regarding your discovery that the pricing schedules contained in Article VII of the Finn Energy Sales Agreements (Agreement) between Bennett Creek Wind Farm, LLC and Idaho Power Company dated 12/20/2006 do not extend through the full 20 year term of the Agreement. The pricing within this Agreement contains the standard published avoided cost rates in accordance with Idaho Public Utilities Commission (IPUC) order 29646 which was in effect at the time this Agreement was executed. The Agreement does contain 20 years of pricing, however due to the actual Operation Date of 12/15/2008, the full 20 year term of the Agreement extends to December 2028. Review of IPUC Order 29646 provides pricing for 2028 as follows: Article VU: PURCHASE PRICE AND METHOD OF PAYMENT 7.1 Base Energy Purchase Price: Season 1 - (73.50 %) Season 2 - (120.00 %) Season 3 - (100.00 %) Year Mills/kWh Mills/kWh Mills/kWh 2028 62.50 102.04 85.04 Page 1 of 2 Idaho Power will file this information with the IPUC and ask that it be included with the original agreement. However, if the IPUC determines that additional information or specific IPUC approval of this information is required such prices shall not be effective until such Commission approval is obtained. If you have any questions please do not hesitate to contact me. Sincerely, Jill Glenn Energy Contract Coordinator, Sr. Idaho Power CompanyPower Suppy J2Iennildah000wer.com 208-388-2265 cc: Donovan Walker (IPC) Randy Aliphin (IPC) Page 2. of P 0 Box 70 Boise, Idaho 83707 1 221 W Idaho St. Boise, Idaho 83702