20130515Pricing Information.pdf

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JULIA A. HILTON
Corporate Counsel
ihiltonidahoower.com -
May 14, 2013
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. tPt.- E Q(p 35
Bennett Creek 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: [phone]
Facsimile: [phone]
ihiltonidahopower.com
dwalkeridahopower.com
ZQi3tAy!14 PM4,4 7
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 BENNETT CREEK
WINDFARM, LLC.
CASE NO. XpI-O ,-3S
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 Bennett
Creek Windfarm, LLC ("Bennett Creek") whereby Bennett Creek sells and Idaho Power
purchases electric energy generated by the Bennett Creek 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-06-35, 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. 30245.
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 6-8 of the
Agreement filed in Case No. IPC-E-06-35. 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, Bennett Creek 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-06-35.
4.Therefore, on May 3, 2013, Idaho Power provided Bennett Creek 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
ihiItonidahoDower.com
docketsidahopower. corn
Randy Allphin
Energy Contracts Leader
Idaho Power Company
P.O. Box 70
Boise, ID 83707
ralIphinidahpower.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.
4-VI W-~ rltz'v
JU A. HIL ON
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
Bennett Creek 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 kns.sasser(ãuc.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-E0 -3 c
IDAHO POWER COMPANY
ATTACHMENT 1
May 3, 2013
Bennett Creek Wind Farm, LLC
do Exelon Wind, LLC
Attn: Richard Free, Director, Utility & Regulatory Process Support
4601 Westown Parkway, Suite 300
West Des Moines, IA 50266
Sent Via: Email (Richard.Freeexeloncorp.com ), Certified Mail
Subject: Bennett Creek Wind Farm - Project Number —21615101
Dear Richard,
Recently you contacted Idaho Power regarding your discovery that the pricing schedules contained in
Article VII of the Firm 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 VII: 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 I 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 CompanylPower Suppy
[e-mail]
208-388-2265
cc: Donovan Walker (IPC)
Randy Aliphin (IPC)
11 0 Box 70 Boise, Idaho 83707 1221 W Idaho St. Boise, Idaho 83702