20051028Affidavit Jared Grover.pdf

i~CEIVED
Dean J. Miller ISB #1968
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ill 83702
Tel: [phone]
Fax: [phone]
i oe~mcdevitt-miller.com
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Attorneys for Cassia Wind Park LLC
And Cassia Wind LLC
ORIGINAL
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
CASSIA WIND TO DETERMINE
EXEMPTION STATUS
Case No. IPC-O5-
AFFIDAVIT OF JARED GROVER
Jared Grover, being first duly sworn upon an oath, deposes and says:
I am a principle member of Cassia Gulch Wind Park LLC and Cassia Wind Farm LLC
LLC ("collectively, Cassia Wind") and make this Affidavit in support of Cassia Wind's Motion
to Determine Exemption Status, filed herewith. I am over the age of21 years, and make this
Affidavit of my own knowledge.
Cassia Wind meets the exemption criteria specified in Commission Order No. 29839 for
the following reasons:
Threshold Criteria
Power Purchase Agreement
I followed in the instructions provided for me by Idaho Power Company for my
interconnection study, and according to the instructions, Idaho Power Company would prepare
AFFIDAVIT OF JARED GROVER - 1
and forward a power purchase agreement to me. I have never received one (even though one
application was submitted in May). Since these are the first PURP A projects I have been
involved in, I didn t have a draft of the previous agreement, nor did I have legal counsel at the
time who could prepare one op my behalf. I have been relYing on Idaho Power Company to
provide me one as described in the instructions, and did not have a chance to sign one. But for
the inaction of Idaho Power Company a Purchase Power Agreement would have been signed
prior to July 1 , 2005.
Interconnection Request
I submitted a completed Application for Interconnection Study and payment of fees for
each of my projects. One was dated May 26 2005 , and the other dated June 16 2005. I also
paid the Fees by check at the time of submittal, May 24 2005 and June 15 2005 respectively.
Copies of my applications were submitted with my Direct Pre-Filed Testimony.
I believe that for these reasons that both projects meet the "primary criteria" for
grandfathered status.
Secondary Criteria
Wind Study
I have collected a substantial amount of data, and have completed a wind study. I have a
percentage ownership in four anemometer towers used for collecting data, and also have
complete ownership of an additional 50 meter tower at my site. Usually at least six months to
one year of data from one or more anemometers is required to complete a wind study. Data was
collected from the oldest anemometer that I have ownership in back 2002. The projects I am
involved with have much more data than minimally required.
AFFIDAVIT OF JARED GROVER - 2
I have used tools developed by the Idaho National Lab to evaluate my data. The nearby
operational Fossil Gulch wind project also validates the viability of my projects wind resources.
Based on this I believe the projects are viable. The investors I have worked with hired
independent consultants to verify my wind study. Based on the results of my wind study, if I am
able to get a power purchase agreement, the investors feel confident that my project will be a
success.
The data and the results of the analysis are highly confidential. They will be made
available upon execution of an appropriate Protective Agreement.
I believe that for these reasons, the both projects meet the "secondary criteria" for
grandfathered status.
Project Financing
I have been working with several different investors which have been interested in
financing the projects. None of the investors I have met with have been willing to commit to
financing without a signed Power Purchase Agreement. However, anticipating a power purchase
agreement, the investors have performed due diligence on the projects and are very interested to
provide financing as well as turbines for the projects.
The potential investors have requested that they remain anonymous to the public and to
my competitors. Upon execution of a confidentiality agreement, and if either project does not
already meet the secondary criteria the two-prong grandfathering test with the wind study,
documentation can be provided to Commissioners or Staff regarding Project Financing.
Wind Turbines
Wind turbines are available for my wind projects. The investors interested in my project
have allotted turbines for my project. (See Exhibit A) The investors have contracts in place for
AFFIDA VIT OF JARED GROVER - 3
supply of wind turbines. I have selected one investor out of several investors having access to
turbines, but obviously a power purchase agreement needs to be signed before they make a multi
million dollar commitment of turbines to my specific project.
Permitting and Licensing and Other Progress
Although one would typically wait for a power purchase agreement and interconnection
study before investing a substantial amount of time and money in obtaining permits, access
rights, and licenses for the potential project, I have chosen to continue to move ahead anyway.
Much progress has been made on the permitting and licensing path for the Cassia Wind
projects. Since land where these projects will be constructed is owned by members of the wind
projects, and because country roads and utilities border the properties, access controls (easements
etc) to land for roads, utilities etc are not an issue. I own the land for one of the projects, and
another member of the Cassia Wind Farm LLC owns the other property. Exhibit B is a letter
providing Cassia Wind Farm LLC with the option of arranging a wind farm on that property.
In addition to owning the land, extraordinary efforts are being taken to ensure a smooth
completion of the permitting process. One such effort is arranging a land swap for a neighboring
land owner. I am under obligation to fmalize the purchase of approximately 700 additional acres
of land (See Exhibit C) that may be used for the land swap as well as to provide alternative sites
for access to the projects. The additional land can also provide alternative turbine placement
options if necessary based on the geothermal studies, planning and zoning, or interconnection
studies are finished. With the price of land being sold for over 300 dollars an acre, the obligation
to purchase this much additional land for my wind project comes at a significant cost. Based on
a $300 per acre price, the cost is over $200 000. I will be liable to purchase this land even if I
fail to get a Power Purchase Agreement from Idaho Power Inc.
AFFIDA VIT OF JARED GROVER - 4
LVI ~UI ~UU~ lti: 12 FAX [phone] MARR I OTI 141 002 . .."..,
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Both projects have filed as Qualifying Facilities under FERC and were issued QF
numbers before the August 4th 2005. Since that time FAA filings have also been submitted.
I have been in contact with Bureau of Land Management, Idaho Fish and Game, the Twin
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F aIls Planning and Zoning Administration as well as the Idaho Transportation Department for
applicable pennits and licenses. The Interconnection Feasibility study for one of the projects
has been completed. Completion of other studies such as System Impact Study, and Facility
Study, and Interconnection Agreement may be required before fmalizing easements and
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collecting details for final pennits.
Based on the above infonnation, I believe that Cassia Wind Farm LLC and the Cassia
Gulch Wind Park LLC meet both the "primary" and "secondary" requirements for
grandfathering.
Dated this '1~day of October, 2005.
State of New York
:ss
County of
On this day of October, 2005, before me C~ , a notary public
personally appeared J axed Grover known or identified to me to be the perso hose name is
subscribed to the within instrument, and aclmowledged to me that he executed the same.
----.......'
AFFIDAVIT OF JARED GROVER - 5
Notary Public for New ode
Residing at:
Commission RJS W SHUNG
NOTARY PUBLIC, STATE OF NEW YORK
No. 01SH6095141
QUALIFIED IN NEW YORK COUNTY
MY COMMISSION EXPIRES ~"Q
CERTIFICATE OF SERVICE
I hereby certify that on the ~day of October, 2005, I caused to be served, via the method(s)
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
i i ewell~puc. state.id.
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
AFFIDAVIT OF JARED GROVER - 6
RENAISSANCE ENGINEERING DESIGN PLLC
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August 19, 2005
CASSIA WIND PROJECTS
Jared Grover
4219 N Creswell Way
Boise ID 83713
Cassia Wind Farm
Cassia Gulch Wind Farm
Wind Analysis Summary Memo
Dear Jared
This memo is intended to summarize a portion of the data analysis work which has been
done to date on your project in support of your letter to Idaho Power indicating
substantial progress" and "project maturity" per the Commission s language.
I have spent two years collecting and analyzing data for Bell Rapids Irrigation District.
In fact, I helped install the first anemometer for the district which was a loaned
anemometer providing data for public benefit demonstrating the wind resource on the
plateau. In addition to the first anemometer installed with a 20m tower a couple years
ago, Bell Rapids Irrigation District this last year purchased the Idaho Power reference
anemometer to the East towards the canyon rim. That was a loaned anemometer and
Idaho Power expressed no interest in keeping it for themselves or purchasing it~ Also
last fall I helped your manager Robert Lipskoch install a 50 meter investment grade
anemometer on the west end of the project acreage near your personal property.
addition to the two reference 20 meter anemometers and the 50 meter unit, we installed
two additional 20 meter anemometers on lands to the south and west to enable assessment
of wind across the entire plateau. Shortly after those installations you put up your own
50 meter anemometer on your private property about 1 mile from that site.
"'-' '
It is my understanding that upon selling the water, decisions were made by the Bell
Rapids Irrigation District to sell the company land instead of keeping it and trying to
create anything as a group. Through your shares in the company, you clearly had access
to the site and your interconnection filings made sense to essentially secure wind rights
not only for your own private land, but also to work in conjunction with the corporate
lands as well as your neighboring farm. Discussions between you and myself at that time
relating to this project were revolving around the development with Bell Rapids in
comparison to simply buying the land. Your indication which was confirmed by Robert
Lipskoch even then was that the Bell Rapids Company did not intend to develop a wind
park, but that it looked like you would be able to buy the land. Since you now have
officially added 700 acres to your land we have over a thousand acres available for the
larger wind park. That land includes data from two 50 meter anemometers, the one I
helped install and the one on your personal property.
7800 Alfalfa Lane, Melba Idaho 83641 ph 208-495-1111 fax [phone] brian~clever-ideas.com
Exhibit A
Page 1 of 2
RENAISSANCE ENGINEERING DESIGN PLLC
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The fonnal, complete data analysis for the Bell Rapids area is a requirement as an exhibit
in a financial package as part of the due diligence. In this case, however, we have
multiple anemometers to compare with and other projects happening all around your
sites. As you know, there are only subtle differences between anemometers all around
the Bell Rapids area. Thus, any anemometer closely indicates the potential wind resource
in that area. There is no doubt about the extent of the resource and no doubts about
whether or not the projects can be built there. Furthennore, Twin Falls county has
approved at least five windparks in the area and thus you should have every expectation
that with the appropriate studies and application documentation approval from the
planning and zoning for conditional use will be granted.
CASSIA WIND FARM: 10.5 MW Interconnection App: 5/26/2005
Clearly you satisfy major distinct qualification requirements in the two listed categories.
The first important qualification is the application date for interconnection. That was
done for the first project Cassia Wind Fann in anticipation of using seven GE 1.5MW
Turbines.
CASSIA GULCH WIND FARM: 18.9 MW Interconnection App: 6/16/2005
Clearly you again satisfy major distinct qualification requirements in the two listed
categories. The first important qualification is the application date for interconnection.
The second project named Cassia Gulch Wind Fann is larger total in size. Originally this
anticipated using 9 Suzlon 2.1 MW Wind Turbines, then after a group of GE turbines
were found after this interconnection application, the intent was leaning toward
installation of 12 GE 1.5 MW turbines. In particular this made sense to match the same
units for the Cassia Wind Farm. Furthennore, the additional acreage you were securing
at the time for this entire development lessened the need for the larger turbines as a
critical requirement.
More than 19 GE 1.5MW turbines with 100 meter towers have been retained for these
two Cassia projects and other projects since June of2005. They have been ready for
shipment since July waiting for conclusion of the interconnection and power purchase
agreement issues with Idaho Power Company. These turbines are still available though
they may be sold outside of the US very soon since there are several interested buyers.
However, recent developments have led to an arrangement for Clipper Wind Turbines
which can be delivered to your project for a 2006 installation. Once final contract
agreements are reached for these projects in the power sales and other categories, we can
develop a true project construction schedule.
Sincerely,
kson, PE MBA CEM
7800 Alfalfa Lane, Melba Idaho 83641 ph 208-495-1111 fax [phone] brian~clever-ideas.com
Exhibit A
Page 2 of 2
Jared Grover
Casgia \Vind Fann LLC
42J~ N Cr~wetl Way-
Boise lD 83713
20&- 3"71 4066
208 3"23 6155 fux-
May 15 , 2005
Sherman: Y rnt"- g
:3 1 34 South 1900 East
Wendell, JD .83355
RE: Option to develop wind conversion electrical generation on approximately 220 acres
of land curre.otly,owned by Sherman Young.
Cassia \Vind Fann LLC (Cassia) ente(S' inro BIT agreEment to- furthere-xpfm=e t!)e
development of approximatcly 220 acres of land located jp, Twin Falb CUUli\y, and
Elmore County, JD. Cassia win provide the pre-development scrviees'ca;:):)3,,(j to-
eOl11.plcte a ~tll,jy ~ tv lh~ viability of the ~.i,tc for wind convc.rsioJ1 generatioD-
If the site. proves cnmm~rci:d: viable:. C::I(;,.lO:ta would proceed to secure the necessary
agreements for the purchase of power from the site and the financing for the project
completion, Cassia wooM fJrther explGfe. the. arrangeJ.JJent in offering. a percentage of i1et-
profits f-1:Qm any development, sal~, or C\ther transaction if a v.:ind park is developed on
the site as de~cribed in-. Ex:hTbit A. Ca$S~ win make a-detcrm-iHatron. of t~.e viabilit-y.,
enteringin1o ~,mutuaLly benefICia) agreement with (6) momh:s fruUl lh~ datI:: of execution
of this letter. S~h an arrangement may ine tude but not be l.iinited to~ reimbursement
ba:st:J. un the; net profit~~ gro~ rcvcn~, or ~other such calculation which is mt1tm~l1y
benefi.cial.
T1.lis Jetter shaH serve to provide the Oprion to cnterInro-'rn arrangement on said property.
Cassia Wind Farm LtC appreciates this opJXtf1..unity. ~ignatures below shaH memorial;z~ '
tbi~ Option to'enterinto an aO'.angement.
. ~
Exhibit B
Pa2e 1 of 1
~8/22/2005 13: 10 2088374542 BELL RAPIDS
BELL RAPIDS MUTUAL IBJUGATION co.
~,!",fJt ~ffv8 ?rrlytton 1JmHJfcp"""t
M7fN;;,(iF'M'ENr
388 EAST 5900NORTH - HAGERMAN, 10 83332
[phone] - FAX: [phone]
E-MAIL: bellrapid5ernagiclink. cern
August 22, 2005
Jared Grover
4200 Cloverdale
Boise, Id. 83713
Jared,
PAGE ..-" , ,,-,--.------, .,,- ."-'
Bell Rapids accepts your bids for the following
property:
Unit
Unit
Unit
Unit
#62, approximately 316 acres.
#57a, approximately 158 acres.
#52a, approximately 160 acres.
#10, approximately 59 acreS.
BRMIC will be in contact wi th you soon-
Good luck on your future wind parks!
Thank you,
Diana Bray, Office Manager
Exhibit C
Page 1 of 1