20050718Eckert direct and exhibits.pdf

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Dean J. Miller ISB #1968
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ill 83702
Tel: [phone]
Fax: [phone]
oe mcdevitt-miller.com
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Attorneys for Magic Wind LLC, Cassia
Wind Farm LLC and Cassia Gulch
Wind Park LLC (Magic and Cassia)OR\G\NAL
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
IDAHO POWER COMPANY FOR AN
ORDER TEMPORARILY SUSPENDING
IDAHO POWER'S PURP A OBLIGATION TO
ENTER INTO CONTRACTS TO PURCHASE
ENERGY GENERATED BY WIND-
POWERED SMALL POWER PRODUCTION
FACILITIES.
Case No. IPC-O5-
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
DIRECT TESTIMONY OF ARMAND ECKERT
Please state your name and business address.
My name is Armand Eckert and my business address is 716 - BEast 4900
North, BOOI Idaho, 83316.
What is your association with or relation to Magic Wind LLC, an
intervener in this case?
I am a participating member in Magic Wind LLC.
Please describe your professional and business background.
I worked at Arthur Andersen & Co. for ten years as an auditor and CPA
from 1974 to 1983 in their Boise office. In 1984, I moved back to my
family farm where I was raised and I currently farm about 5 000 acres
with my three brothers. In 2004, I placed my CPA certificate in the
inactive status. Also, I am an active partner in Explorer Technologies
Corporation which is in the security business. It installs and maintains fire
alarms, closed circuit surveillance camera systems, public address systems
and other related security systems such as access control, etc.
Please describe the wind generation project Magic Wind is proposing to
develop.
We are proposing to install nine wind mills on the Magic Water project
about ten miles northwest of Buhl, Idaho. The approximate location of
these wind generators using the Twin Falls County coordinates is about
4610 North 750 East. Geographical survey coordinates would generally
be Township 9S Range 13 E, W Yz SE Y4 and E Yz SW Y4 of Section 2 and
Yz NE Y4 and E Yz NW Y4 of Section 11. Each turbine is to produce
Eckert, Di
Magic Wind, LLC
approximately 2.1 MWofpower. The towers and blades will be similar in
size to those installed on the Bell Rapids project.
What is the intended date for the project to achieve commercial operation?
We intend to have the project operational by year-end 2005.
Is there a benefit to achieving commercial operation by year end 2005?
There is a Federal production tax credit currently available that is
scheduled to expire on December 31 2005. To make this project feasible
the tax credit has to be utilized during the current year.
Please describe the activities Magic Wind has undertaken with a view
toward achieving commercial operation by year end 2005.
Magic Wind has done a substantial amount of work in getting ready for
commercial production of electric power by the end of 2005. Through its
developer, it has done a twenty year financial projection for this project, it
has ordered all of the turbines required for this project and it has identified
private investors to help finance the project. Also , through the same
developer, it has lined up a construction crew, along with a crane to put
the windmills in place. The construction crew is currently waiting for the
green light to proceed. Magic Wind is in the process of getting site
approval with the Twin Falls Planning & Zoning Commission.
connection therewith, Magic Wind has sent numerous letters to various
agencies of its intention to install such windmills. As responses are
received from those agencies, steps have been taken to respond to any
concerns, if any, of those agencies. Magic Wind previously installed one
Eckert, Di
Magic Wind, LLC
twenty meter Anemometer and one fifty meter Anemometer at a cost of
approximately $15 000 and is currently monitoring wind velocity to
ensure the projects viability, and comparison data to regional wind
resource databases at Bell Rapids and at the Idaho National Laboratory.
has also hired a consultant to perform soil tests, to perform a limited
environmental impact study and write a report on its findings and to do a
bird study to see what effect windmills will have on various bird
populations. The studies and the final report are scheduled to be completed
by July 24, 2005. Magic Wind will report its finding to the Planning &
Zoning Commission during early August, 2005 , will seek approval for its
project, and we expect approval. Magic Wind has also completed all other
requirements, as far as it knows, of the Planning & Zoning Commission
including working with the Idaho Fish & Game Department personnel.
Magic Wind has also gathered many personal letters of support from the
surrounding communities of Boo I, Twin Falls, Castleford and Hagerman
for its project. Every community member Magic Wind personnel has
approached has enthusiastically supported wind mills in the area, without
exception. Magic Wind is also in the process of applying for a QF
application from FERC as well.
Has Magic Wind submitted an Interconnection Application to Idaho
Power Company?
Yes. Attached to my testimony as Exhibit No. 600 is a correct copy of our
submitted Interconnection Application.
Eckert, Di
Magic Wind, LLC
Does submission of an Interconnection Application carry with it a
financial commitment?
Yes, according to Idaho Power Company procedures, a feasibility analysis
fee of $10 000 must be paid at the time the Application is submitted.
Did Magic Wind pay the required $10 000 fee?
Yes it did.
Would Magic Wind have submitted the Interconnection Application and
paid the analysis fee if it did not seriously intend to complete the project?
No. Submission of an Interconnection Application is a substantial
milestone in the development process. Aside from turbine delivery and
signing of a energy sales agreement, it is the single most important aspect
of a windmill project. Without Idaho Power performing the feasibility
study, the project could not be done.
Has Magic Wind submitted an executed Firm Energy Sales Agreement to
Idaho Power Company?
Yes. Attached to my testimony as Exhibit No. 601 is Magic Wind'
transmittal letter to Idaho Power Company. An executed Firm Energy
Sales Agreement accompanied the transmittal letter. The executed
Agreement, I am told by our consultant, is identical to the form of
agreement approved by the Commission in its most recent contract
approval cases.
Eckert, Di
Magic Wind, LLC
In undertaking the development activities you have described, did Magic
Wind rely on the Commission s policies and procedures being stable and
predictable?
Yes. It is imperative to follow all of the Commission s policies and
procedures when developing such a project. To perform a twenty year
financial projection, one has to absolutely rely on such policies and
procedures, including, but not limited to, PURP A power rate tables, size
of turbines and how many, turbine order and receive dates, final costs, and
contract length, etc.
If the Commission were to grant Idaho Power s requested "temporary
suspension" could not Magic Wind simply temporarily halt its
development efforts and then resume after the suspension terminated?
No. It is important for the Commission to understand that although the
Company s request is phrased in terms of "temporary suspension" it is, in
effect, a death sentence for our project. Magic Wind's developer has the
turbines available for installation and Magic Wind is awaiting approval of
the Idaho Power Power Purchase Agreement. Magic Wind's developer
also has investors who are ready, willing and able to expend the resources
to put the windmills up in 2005. If Magic Wind cannot proceed with this
project in 2005 , several things will happen. The investors in this project
are interested in this project because of the twenty year financial
projection done by Magic Wind's developer. As with any investment
there has to be a great degree of viability and success to the project and a
Eckert, Di
Magic Wind, LLC
reasonable rate of return to the investor. Otherwise they would not invest.
For this project to have a favorable rate of return to the investor, two
things have to be in place. First, the current PURP A power rate published
by the Commission has to remain in place to generate a reasonable rate of
return for the investor to invest and for the financial projections to show
economic viability. Secondly, the investor also has to be able to utilize
certain Federal production tax credits currently due to expire on December
2005. There is absolutely no guarantee that those Federal production
tax credits will be renewed. Without the Federal production tax credits, it
is an absolute certainty, that the investors the developer has lined up will
not invest in this project. In addition, it is Magic Wind's understanding
that the developer has already paid a five million dollar deposit for the
delivery of the 2.1 megawatt windmills and will deposit another five
million dollars in August. It is Magic Wind's understanding that its
developer will possibly lose a substantial amount of money if it cannot put
the turbines in place during 2005, especially if its investors are not willing
to invest in the project during 2005. Without the Federal production tax
credit, it is doubtful that the investors will invest at all in the future.
Does wind impact the grid?
The wind power generated by our site looks more like "load reduction.
Weare a very small percentage of the total energy mix, and our power is
less expensive than peak power that Idaho Power already pays. The
community and tax benefits largely outweigh any potential impact.
Eckert, Di
Magic Wind, LLC
Turning your attention to the Idaho Power Company filing, have you
reviewed the Company s Petition and Testimony of John R. Gale?
Yes, I have.
Based on your review, what is your general assessment of the Company
filing?
The Company s case for a suspension of its PURPA obligation is based
almost entirely upon speculation and conjecture. It does not establish
anYthing in the nature of an emergency or need for immediate relief.
In its Notice of Petition, the Commission determined that the allegations in
the Petition were insufficient to prove the need for a suspension and
directed the parties to file further additional testimony, so let me direct
your attention to the written pre-filed testimony of testimony John R.
Gale, filed in response to the Notice of Petition. What is your general
assessment of that testimony?
It does not add anYthing new in terms of factual detail. It, for the most
part, converts the text of the Petition into a question and answer format.
At Page 5 of his testimony, Mr. Gale discusses the Company
implementation efforts with respect to the 2004 IRP. What is your
reaction to this testimony?
Mr. Gale does not explain in any detail how many bids were actually
received and what the bid rates were. Mr. Gale says IPCo received offers
in response on March 10, 2005 and that significant amounts of wind
generation began to materialize under PURP A at prices above levels
Eckert, Di
Magic Wind, LLC
contemplated in the IRP. It sounds simply like the IRP was wrong, given
the steep rise in turbine steel and petroleum costs since the IRP was
prepared. It also sounds like bids received for large wind projects were
much closer to the PURP A rate, and therefore, the rates have to be higher
to show some economic viability.
Mr. Gale also asserts that unsuccessful RFP bidders could repackage the
projects under PURPA guidelines. What is your reaction to that assertion?
IPCo offers no proof this actually occurred, or is likely to occur. Mr. Gale
does not identify any unsuccessful bidders that have, or in the process of
repackaging proposals. Mr. Gale also states that they had to "address the
potential of much more wind coming on-line sooner and more expensively
then contemplated in the IRP." Again, this is just speculative in relation to
the word "potential"They simply don t have any proof.
At page 7 of his testimony, Mr. Gale complains about the increase in
avoided cost rates from $48.61 per MWh to $60.99 per MWh, in
connection with his believe that the current rates are producing wind
projects "too soon, too fast and too much." Your reaction?
Mr. Gale also admits that at the $48.61 rate, Idaho Power had 1 MWof
QF wind-powered generation in 2003. This is pretty much proof the rate
that was being offered previously was not economically viable. With the
25% increase in PURPA rates, along with the Federal power production
credit, it becomes economically feasible. It is doubtful, however, that it
would still be feasible at the new higher rate, without the Federal power
Eckert, Di
Magic Wind, LLC
production credit. Mr. Gale seems to be saying that a rate that makes wind
generation impossible is good, but a rate that makes it feasible is bad.
At page 8, of his testimony Mr. Gale indicates the Company has received
inquires representing 193 MW of wind-powered generation, implying that
the Company is about to be overcome by an un manageable amount of
wind generation. Does this make sense?
No. Even if 193 MW is an accurate number of likely generation (which it
is not), it is a very small percentage of IPCo' s total name plate generation
identified in its 2004 IRP of almost 3 000 MW. Additionally, Mr. Gale
does not identify who they are, how large are the projects and are they
large wind projects or PURP A projects and how serious they are about
development and how soon the projects would come on. There really is
no basis for an estimate of an additional 193 MW of wind powered
projects.
At pages 8-9 of his testimony, Mr. Gale discusses the effects of tax
incentives, implying these create, somehow, an artificial and unexpected
incentive for wind or renewable projects. Do you agree?
No. The tax benefits existed before the issuance of Order 29646. They are
not new. I can only assume that the Commission has considered the tax
credits already in their analysis. Also, with the recent enactment of the
Idaho sales tax exemption, this would indicate that there is a large amount
of public support for wind generation. Again, IPCo seems, illogically, to
be saying that because tax policy is apparently finally working to produce
Eckert, Di
Magic Wind, LLC
its intended result-actual development of renewable resources-the
Commission should react against the public will by stopping development
of wind and renewable resources.
Does this conclude your testimony?
Yes it does.
Eckert, Di 1 0
Magic Wind, LLC
CERTIFICATE OF SERVICE
I hereby certify that on the J~ay of July, 2005, I caused to be served, via themethodes) indicated below, true and correct copies of the foregoing document, upon:
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
O. Box 83720
Boise, ID 83720-0074
iiewell~puc.state.id. us
Hand Delivered
S. Mail
Fax
Fed. Express
Email
Barton L. Kline
Monica B. Moen
Idaho Power Company
1221 West Idaho Street
O. Box 70
Boise, ID 83707
BKline~idahopower.com
MMoen~idahopower. com
Hand Delivered
S. Mail
Fax
Fed. Express
Email
Linda Nordstrom
PacifiCorp
825 NE Multnomah, Suite 1800
Portland, OR 97232
lisa.nordstrom~pacificorp. com
Fax: [phone]
Hand Delivered
S. Mail
Fax
Fed. Express
Email
Bob Lively
Pacificorp
One Utah Center, 23rd Floor
201 S. Main Street
Salt Lake City, UT 84140
bo b.Ii vel y~pacificorp. com
Fax: [phone]
Hand Delivered
S. Mail
Fax
Fed. Express
Email
William J. Batt
John R. Hammond, Jr.
Batt & Fisher, LLP
U S Bank Plaza, 5th Floor
101 South Capital Boulevard
O. Box 1308
Boise, ID 83701
Fax: [phone]
Hand Delivered
S. Mail
Fax
Fed. Express
Email
Eckert, Di
Magic Wind, LLC
Michael Heckler Hand Delivered
Director of Marketing & Development S. Mail
Windland Incorporated Fax
7669 West Riverside Drive, Suite 102 Fed. Express
Boise, ID 83714 Email
mheckler~windland. com
Fax: [phone]
Peter J. Richardson Hand Delivered
James T. Carkulis S. Mail
Richardson & O'Leary PLLC Fax
99 East State Street Fed. Express
O. Box 1849 Email
Eagle, ID 83616
peter~richardsonandoleary .com
Fax: [phone]
Glenn Ikemoto Hand Delivered
Principal S. Mail
Energy Vision, LLC Fax
672 Blair Avenue Fed. Express
Piedmont, CA 94611 Email
lenni acbell.net
Fax: [phone]
Richard L. Storro Hand Delivered
Director, Power Supply S. Mail
1411 E. Mission Ave.Fax
O. Box 3727, MSC-Fed. Express
Spokane, WA 99220-3727 Email
dick. storro~a vistacorp. com
Fax: [phone]
R. Blair Strong Hand Delivered
Paine, Hamblen, Coffin, Brooke &S. Mail
Miller LLP Fax
717 West Sprague Ave., Suite 1200 Fed. Express
Spokane, W A 99201-3505 Email
r. blair .stron
g~p
ainehamblen.com
Fax: [phone]
Eckert, Di
Magic Wind, LLC
JUL -11-05 MaN 4: 53 ECKERT & SONS F AX NO.12085434993 P. 5_--
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:'Iulhpl~"! uni1 installations. if all generators are not of the same type. capacity, etc., list each unilseparately.
-... -..- -- ..----- ... ....- ,-- '. ..-.---...-..., , . ..
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Model
Output Raling
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kVA
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~I!,~ ~:P rral1~rOfnle:-s: Idaho Power will specify the connoction and h~!J.~:~i~e ,yoltage.
.t,) ,!it1() f'ower SUI""Y. own, nnd maintain the step up transformers?
~~
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Voltage
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$, Sfngio Lino Diagram
""-"'" ...-- -.--
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. I:'(i'l,~ i' generation facility single-line diagram showIng all unit protection and control equipment wil,this application.
... ""
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$, t:t~'rar ~')ottl"ont data (Please list and attach additional pages)J "
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TECHNICAL SPECI FICA TIONS S8eS88 (80 m HH) Revision ~ ~Date. .
No,291JOIO;1
FOR tUfWFNC'i()NI.Y" ,. .....0 M"
-----,~_.~----_.~.,~-
-'---'.-NSr. No. DESCRIPTION- - .n.
"'"
J. Gencral Data:
.," ..~ -- ---~-
1, Make of WEG
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c:~ ~-_.
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~cd ut of WEG .......
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5. Rotor diameter
r~o -
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~. Nlnn:l!~.r:.of blades
-- ,,
~. .w".
: . _..
~J!.~~~t
~rientatio1\ p-w"~~~.!~ownwind)
.. _--_._.~:
Power re.gt,~l~~ion
- .,....: ...'--
9. .~~~t in Wind S
--......:..-
L--.. 0 J.9. Wind a!.!~tcd out
-.
.. 11. C~~t ~ut wind s eed
_.-
~W.. 1~:.. Tir~ccd
...-..
1~. Survival Wind speed (n1/s)a) 10 n1inute average at Hub height
: . -. ....._
2 second~,g1:t.~t at Hub hei
~ . ...-,
1_..__- .1.4. Rated ro!~!~eed M..
!..,- _._
...J~: ..MAX D(!si nc~ .~9tor s eed.
16. a) Nacel1e lilt angle
i 0 . - ~_~.le of cone
,.,..--
!~'M~...._
,..
"Y~Ha
18. Volta~c variation
.------ ..
i-. ,.~ 19. Frt!.q~
~q:..
Frcqu('n~y' variation
I-"21. Current
I .. -
.. .._,~, - - -- .-...--.--
22. Asymmetry variation
~~~~.
D(!si&!!Cl~!l..!ax. ten1p'era t~~re
L. _.~,..1!..
'p~g
ncd 1if~
-..-.
25. ..'pesigncd !.U.~bulencc inte!~sity
.,.!~:_-
ht
'I. RotorI...
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Tower
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F AX NO.P. 812085434993-- ----- . -
OoQJment P(tqE'.:
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D_._~HNICAL PAnilcijLAR~
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--__.....n_---
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: Suzlon
-.-
: Active itch rc ulated u
200~~~L2~~
: 80ln
: 88
-..,' ... .,...--. -.---.
: 3
: CW, U -wind
Pitc~~~~~~
: 40'/5
: .E m./s
25 nl/s
72.~~\f.~--
42 m/s
: 60 I:n/s
..:.
?79 re
: . ~~:.
IE-~
: 4deg
: Ode
: 690V_w....,-
: +-
20%
: 50 JIz
--
: +2.5HzL:31
: 1820A I (1895 fOf
MW)
-.------ ..... ..
: +1..5~.non!inal power -, --._____0'. -.-
: ..?~
De,g C ... 0
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: 20Yearsw...
: A~c. To IEC, Class
-wind
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: 67 tons
: 165 tons
: 265 tons
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! Doc. Typo:
! TechnlcallipeclflcallOr~
F AX NO.12085434993 P. 9-;.~~~:~~.
TECHNICAL SPECIFICATIONS
888 (80 m HH)
: Winel"
y-- -_..__._=~~~~,-,~. .' ,
: Planetary helical gearbox
PF.A 4456 --oo
.. ...
98.828 /118,05 (~~~,u,
. '...
= 3
: 2200
.,.-
C~n1bined sQ!!sh and pressuriz
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: Synthetic Mobil gear Sf IC XMP 320
20:f..to50o c.J_
-~.._.....
: 415 litres
., . ...,
: Forced air cooled_M .
- .--
: 19800 ~g
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2- Type / Model
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C(.)ar Ratio
~=~~~
No~8es .n
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5. Max. Power transmission
f _oo. - ._~r,~" J~ub;'ication s
..-
7. Type of oil
. ... ,. ,
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~--_. K Qua~,~J~ty'_oil
f..
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9. T e ot~i1 ~~~li!!8
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Weight wiLhout o~l
I IV. Genc.."tot
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~- no'
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l~~t~~1 Power Out:~. T
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'1. Volta
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p~~~__.
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~~.~y.
n~l~ronous speed
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?:.
Frequency8. Current
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No. of poles
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. -:
i:f- "J'\c)~~~ti~.e'e
12. Type of cooling
.-. ----.-.,,--.... .. ....
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,-.. d~:"'" w~ ~e
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!),..E~4. MatPrial
L..-
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5. . 'No. of sections
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S88 Ii'.
. Revision-M .
te: -... . ;
No.29'1 O/()4
.:()R REf1:RENff. ON!.' - .
--~'-----'. . - . ,-. ........-.. ,-.----.,
: ELIN or similar
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~OO kW 121 9Q~W
Slip-ring async1~ronous gener~!?T-
: 690 V / 600 V for 60Hz
--'-'. - ..
: 3
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: 1500 /1800 for 6Otlz
.-. .... . '
: SOHz/60Hz
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: 1820 A / 1895 A for 2.1 MW - 50H,
2070A for 60H
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: 4
~ss F / Used
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IC 616 for SOI-Iz / IC6A1A6 fo:".
60Hz
: -
P.O..1g
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-....... -----..---, ..
Suzlon
: 77.
: Tubular
--'---""',--..' -
M" . M
: For shell: 5235 J2G3
For Fl~ge:
~~~
5 J2G3-Z25
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: 4
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: By cr!,~e
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JUL-11-05 MaN 4:56 ECKERT & SONS F AX NO.12085434993 P. 10
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Doc, Type:
------.., ,-..
i l'ec;hfllcal 'pcr.ificaUan
1.-
----'---'--
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i-- ,-_. 9. No and e ~f landing pla~f~Tm
10. Type of reptile protection
.. -- .,...._,
: Active Elcclrical
'...
: 1 :2169.
...
3kW
: 3
-.- '...
TIJcctr~n\ag11(!tic t('
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: 3
. .-- ---.----, '' ., ,-
Oocumoot I :"a~~~No
888 i 1'
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evision Dii~'
No.: 01 12WH!/O1
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~nkey laddt:':~
5 & Ch(!q red pla~e '
osed tower ith door
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TECHNICAL SPECIFICA"fIONS
S88 (80 m HH)
-'--"-".'-'._'~-_._,- -~
LL
.........
VI...- or
",
Yawjn~stem:
.....'-'
2-=
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~~DoxRalio -
,.,.._,.---.
Rated -~~J)of Yaw mot~~,
No, of Yaw motors
.. .,.- . ~-.. ..
i~~~~~::i
~~.- ---. ,. ...
ake ~ste1n:1. Aerodynamic
Type
Control
._~._....
Mechanical or aLIter type
Make and type
Position
No. of caHpers
.----.--, -.. ... . . - .. - - . - .
_0.
: 3 independent sys~em with bli:.de
-=.. .
l'Ch;ng
--- , '
..'.....v....""--
: llydraulic active disc btl:lke sY'fi(~m
: Behind Gearbox: 1
..'
'rJ'.. r
-.......,,~--------_..,
n' '.'VIII. Rotor:
'.. ..,.,..--.. ......................~ ~...
L~ ~~:ii:es -'."4, Swe tarea
r - -5:-- T .co lh of blade -
-" .----~
I--~' l~~!'p'rofile (fUD profile)_
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7. Wei ht of each bladaI IX. Ilub
,...,~~. ~.._~
I, Make and T
~. --.-----?.
Material
-.........-,
: FRP
: 3
h__'_'.-.",'r',
, . ---- --- -..... -.,
: 8801-M-
: 6084 11'\2
: 425
TUD
- -
: 6200 k
-. ,-- - . - - - "--".. ~~:, _: " _..
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AX NO,12085434993 P. 11
TECHNICAL SPECIFICA IONS
S88 (80 m HH)
- ()J~
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S88
~~'ion-"
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Main B a!!!,g_I. Ma ke
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2. Type & specificationI XII Coul,Ung
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Make
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Mat2, FadI.--
1.--_- 4.
: SKP IF AG (Gcrma~
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Spherical roller bearing
- -..
D~er ,.
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!pHngl A
~~,,, ~!~..~?(~~~'........ ',...
erial FRP
.....
lv of loading and un!~dinlt tilling lug~~iU1 frame
c of nacelle bed fabricated
tnin ro tee tion Yes
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JUL-l1-05 MaN 4:52 ECKERT & SONS FAX ~Q,
. ......
J2.Q..e5,~J.1'~~~"""'__H"." ""'""'- "'~.L.r~~~.L;c,~,
....,...
Arn1and f:ckert
Magic Wind LLC
716...(3 East 4900 North
Buhl, Idaho 83316
June 14, 2005
HAND DELIVERY
nandy Alphin
Idaho Power Coolpany
1221 Wast Idaho Street
Boise, Idaho
Dear Mr. Alphin:
Enclosed please find an executed power purchase agreement on behalf of the Magic
Wind LLC. Magic Wind proposes to construct a 21 MW nameplate facility in Twin FaH~County! Idaho. It will have an average monthly production of less than ten megawat(~and is therefore entitled to the published non~levelized and non-fueled avoided costrates. We have secured a delivery date for our turbines and expect to achiove first
e"ergy date before tho end of the year in order to capture the Federal tax benefits th\:J~are scheduled to expire at that timc. Therefore time is of the essence in securing our
power purchase agreement.
The terms and condilions of this agreement are identical to the tcrrns and conditions
with the exception of the unique project description... found in your most recently
approved power purchase agreement. We therefore anticipate that you will be able to
execute the sarno and initiate lhe Commission approval process as 500n as possible.
An interconnection request will be made shortly with your Transmission Dusiness Line.
However, we anticipate no difficulties in interconnecting as our prerinlinary engineming
r3natysis indicates that interconnection will be a relatively trouble-free process.
We believe that our project will be a valuable addition to Idaho Power's portfolio and
appreciate Idaho Power s commitment to the renewable energy industry. I anllookinH
forvJard to working with you. Please do not hesitate to give me a call if you have any
questions or would like our assistance in putting together the application for
Con1rn1ssion approval.
Arn1and M. Eckert
Menlber,
Magic Wind LLC
SIncerely yours
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