20080520Termination Agreement.pdf

4SIDA~POR4b"
An IDACORP Company
May 19,2008
Jean Jewell
Commssion Secretary
Idaho Public Utilities Commssion
PO Box 83720
Boise, il 83720-0074
Randy C. Allphin
Senior Plang Admnistrator
Tel: [phone]
rallphíntfidahooower.com
RE: Idaho Winds LLC, Alali Wind Project, Case No. IPC-E-06-36
Dear Ms. Jewell:
On Februar 26,2007 in Order No. 30253, the Idaho Public Utilties Commssion approved the Fir
Energy Sales Agreement ("AgÍement") between Idaho Power Company and Idaho Winds LLC.
("Idaho Winds") for the sale of energy to Idaho Power Company from the proposed Alkali Wind
Project (the "Project") to be located near Glenns Fer, Idaho. As proposed, the 18 MW Project
would have been considered a Qualified Facilty ("QF") under the Public Utilty Regulatory Policies
Act of 1978. The specified Scheduled Operation Date within this Agreement was December 31,
2007.
Due to various issues, including the process of resolving the QF interconnection issues included in IPUC
case IPC-E-06-21, the Project delayed construction and did not meet the December 31, 2007 Scheduled
Operation Date.
In various e-mails, letters and conversations since December 2007, Idaho Power and Idaho Winds have
been discussing possible revisions to the Scheduled Operation Date. At this time both paries have agreed
that a mutually agreeable revised Scheduled Operation Date is not achievable and therefore termnation of
the Agreement is appropriate.
Attached is a termnation letter executed by both Idao Power and Idaho Winds sumrizing the
termnation of this Agreement.
This termnation agreement specifies that it shall only be effective upon execution by both parties and
acceptance of this termation by the Idaho Public Utilties Commssion.
If the Commssion requires any further informtion or action from Idaho Power Company prior to
providing Idaho Power acceptance of this termnation, please notify me (388-2614) or attorney Bar
Kline (388-2682).
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POBox 70 Boise, Idaho 83707 1221 W Idaho St. Boise, Idaho 83702
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cc: Rick Sterling (IPUC)
Scott Woodbury (lPUC)
Sincerely,
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Randy C Allphi
Idaho Power Company
POBox 70 Boise, Idaho 83707
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1221 W Idaho St. Boise, Idaho 83702
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IDA~PO4b
An IDACORP company
May 6, 2008
Rick Koebbe
Idaho Winds, LLC
5356 N. Cattail Way
Boise, Idaho 83714
Randy C. Allphin
Senior Plang Admnistrator
Tel: [phone]
rallphintfidahopower.com
Re: Idaho Winds i 8 MW Alali Wind Project
Dear Rick:
As you are aware, we have been in discussions the last few months to establish a revised
Scheduled Operation Date for the Firm Energy Sales Agreement between Idaho Winds LLC and Idaho
Power Company dated December 12, 2006 for the Alkali Wind Far (Agreement). The Scheduled
Operation Date within the Agreement was originally established as December 31, 2007.
At this point the paries are unable to agree upon an acceptable revised Scheduled Operation Date.
To sumrize the past discussions
Idaho Winds contends:
./ After the Agreement was a completed, issues regardig transmission upgrades arose in regards to
the interconnection costs and processes required to interconnect this project to the Idaho Power
electrical system. Some of these issues were presented to the Idaho Public Utilities Commssion
for resolution.
./ Considerable time passed in the resolution of the various interconnection issues and durg that
time, the project's construction costs and turbine availabilty status experienced significant
adverse changes. As a result, Idaho Winds contends that the project is no longer viable.
Idaho Power contends:
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POBox 70 Boise, Idaho 83707 1221 W Idaho St. Boise, Idaho 83702
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./ The project has cited that delays are due to the interconnection issues and these interconnection
issues have now been resolved by Commssion Order. Therefore, Idaho Power has suggested that
a revised Scheduled Operation Date can now be established using the current interconnection
process and timeline.
./ Idaho Power believes the project did not perform adequate due diligence regarding the
interconnection process prior to commtting to the original Scheduled Operation Date. However,
Idaho Power (Power Supply) also recognzes that resolution of the interconnection issues did take
a considerable period of time.
Termnation of the Agreement
./ As of the date of this letter, both paries mutually agree that termnation of the Agreement
is acceptable.
./ Upon termnation of this Agreement both paries agree to waive any claims against the
other based on either negligence or breach of contract.
./ Termnation of this Agreement shall be effective upon execution of this document by
both parties and acceptance of this termation by the Idaho Public Utilities Commssion
without requirements for any material chages to this document.
Idaho Power is providing three copies of ths termnation document. Please sign each copy and retur
all three copies to me no later than Friday, May 16, 2008. Idaho Power reserves the right to modify
this document if the signed documents are not received back by the date specified above.
US Mail:Overnght Mailng Address:
Idaho Power Company
Attn: Randy Allphin
POBox 70
Boise, il 83707
Idaho Power Company
Attn: Randy Allphin
1221 WIdaho
Boise, il 83702
Upon receipt of the three signed copies I wil arange for and present the termation
documentation to Idaho Power Company maagement for their signatues.
After Idaho Power Company signs these documents, I wil retur one complete signed original
to you for your records, prepare and file one original with the Idaho Public Utilties Commssion
(IPUC) requesting their acceptance of this ternation documentation and keep the third original for
our records.
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POBox 70 Boise, Idaho 83707 1221 W Idaho St. Boise, Idaho 83702
UNERSTOOD, AGREED AN ACCEPTED:
Signature
Idaho Winds, LLCM=
Name Rick Koebbe
Idaho Power Company.--~5~\
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Title President 11 AJJfG£? ~i?5 vf:p¿'''HJl0)-J).a.i
S/7/¿~8r tDate~ ~ '2lJ?
CC: Bar Kline (IPCo)
Donovan Walker (IPCo)
Mark Stokes (IPCo)
Sincerely,~e~'
Randy C. Allphi
POBox 70 Boise, Idaho 83707
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1221 W Idaho St. Boise, Idaho 83702