20051214Supplemental Jared Grover affidavit.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]
i oeCW,mcdevitt -miller .com
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Attorneys for Cassia Gulch Wind Park LLC
and Cassia Wind Farm LLC
ORIGINAL
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MA TIER OF THE PETITION OF
CASSIA WIND TO DETERMINE
EXEMPTION STATUS
Case No. IPC-O5-
SUPPLEMENTAL AFFIDAVIT OF
JARED GROVER
STATE OF IDAHO
County of Ada
Jared Grover, being first duly sworn upon an oath deposes and says:
1. I am the principle member of Cassia Gulch Wind Park LLC and Cassia Wind
Farm LLC ("Cassia Wind"
2. Attached hereto as Exhibit A is a letter transmitted by John Deere Credit Company
JDC") to Idaho Power Company on November 30, 2005. John Deere Credit is a subsidiary
of the John Deere Company, and has the financial capacity to provide financing to the Cassia
Wind Projects. The JDC letter to Idaho Power Company represents the culmination of
discussions between Cassia Wind that began in the spring and early summer of2005.
3. Attached hereto as Exhibit B is a letter from Signal Wind Energy construction
company experienced in the installation of wind turbines. As noted in Exhibit B, it is
SUPPLEMENTAL AFFIDAVIT OF JARED GROVER - 1
208-336-6912
PAGE 02/0312/12/2005 14: 45
Dee 12 05 02:04p
2083235155
important that Cassia Wind be able to make a commitment to Signal Wind Energy by January
, 2006 so that construction can be scheduled to begin during the year 2006.
4. Despite the JOC letter and other evidence of project maturity previously submitted
to ii, Idaho Power Company has failed, refused and neglectell to agree that Cassia Wind is
exempt from the rate eligibility cap in Order No. 29839.
Dated this j'J-day of December, 2005.
State ofIdaho
1-
:ss
County of.1::1dtL- )
On this ztlhay of December, 2005, before me
~~.
a notary
public, personally appeared Jared Grover known or identifi 0 me to be the person whose
name is subscribed to the within instrument, and acknow ge to me tbat he executed the
same.
Notary Pu . c for IDAHO
Residing at:
Commission Exp.
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SUPPLEMENTAL AFFmA VIT OF JARED GROVER - 2
CERTIFICATE OF SERVICE
I hereby certify that on the ~day of December, 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
11 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(iV,idahopower. com
MMoen~idahopower. com
Hand Delivered
u.s. Mail
Fax
Fed. Express
Email
SUPPLEMENTAL AFFIDAVIT OF JARED GROVER - 3
JOHN
CR EDIT
OO i\\A! 867:: STREET, JOIJ,srui'-, jr,WA 50131
OWUT J'ffO~:r,: (515) 267-4.199
November 30 2005
Mt, Sartor: L Kline
Idaho Power Company
j 221 West Idaho Street
O. Box 70
Boise , 1083707
RE:Cassia Gulch Wind Park, LLC
Cassia Wind Farm , LLC
Confirm ,A,vai!abiiity of SuLlen 2. 'I MW Nameplate TurbinE's
Dear Mr, K!lne:
John Deere Credit ("JOG"), an affiliate of Deere & Company, provided Cassia GUICI1
Wind Park, LLC and Cassia Wind Fa:-, LLC (collet...'tiveiy, "CaSS!8 Wind") a Term Sheet
in August 2005, a copy of which ~'vas previously provided to Idaho Power Company. The
Term Sheet outlined the proposed investment in anci the financing of the two Cassia
Vvind projects. The parties are currentlY finalizing the requirements of the due diJigence
process,
Prier to issuing the Terrn Sheet for the Cassia Wind projects, JOC staff met on
numerous occasions ""Ith Mr. Grover, the developer, starting in May 2005, .Joe and Mr.
Grover entered into a confidentiality agreement onl July 2005 and thereafter began our
internal due d!li~lence process with the full intent of closing trle deal as soon as possibie.
~.Jiuch of the due diligence process has been (;ompleted , including an on-site physical
visit to survey the proposed wind farms by our in"house engineer in Ju!y and an
Independent , third-party produced , \Nind data analysis !SSUE:ej by WindLogics , which JOG
has accepted,
.Joe is considering a commitment for the investment , debt and allocation of a total of 14
Suzion 8-88 Arctic 2.1 MVv' nameplate turbines , which have been secured by JOC from
Suzlon VVind Energy Corp.: to the Cassia 'vVind projects in order to ccmpiete the due
diligence process and submit the projects to ~jDC:s senior management for approval
JOC r€:,quires a confirmation from the Idaho Public Utilities Commission that each of the
projects wi!! be exempt from the reduction of rate cap eligibility reduction contained in
Idaho Public Ut\lities Commission Order No 29839. if approved by ,JOC's senior
management team , JOG and Cassia Wind anticipate that both of the projects will be
commissioned no later than December 2006,
Exhibit A
Page 1 of 2
Mr Ba.ian L. Kiir.6
Idaho Power Company
Page 2
The enciosed information is being provided by JOe and Cassia Wind at tM request of
Idaho Powe, Company. It is to be used by idaho PovIler Cornpany solely for the purpose
of evaluating the maturity of the Cassia Wind projects as required by idaho Public
Utilities Commission Order NO, 29839, and for no other purpose, No copies of this letter
may be made except as may be n8cessary for the above purposes, When copies are
made , such copies rnust clearly reveal the confidential markings, Idaho Power
Company shall neither disclose the existence nor the content of this letter to any third
party without the written consent of JOC and Cassia, If any reguiatory body requires The
production of this letter , Idaho Power "vill consult witl'1 jDC and Cassia before production
of the Jetter with a view toward redacting any ponions of the letter considered by JOC or
Cassia to be confidential or a trade secret
Sincerely,
jN DEER ~~EOIT
-----"
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David rJL ~rija-ToWery
Business Development fv1anager - Wind Energy
Cc:Mr, Jared Grover, Cassia Wind Projects
Mf. Dear! j, Miller, iv1cDevitt & Miller
Exhibit A
Page 2 of 2
12/12/2005 09: 41 2083235155
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WIND ENERGY"c
November 1 7, 2005
Cassie Gulch Wind Park
4200 North Cloverdale Road
Boise, Idaho 83704
Attn:Jared Grover
Subject:Cassia Wind Farm and Wind Park Projects
Dear Mr. Grover
As we discussed I wanted to give you an update on the cost and schedule concerns
as they relate to your Cassia Wind Farm and Cassia Wind Park Projects.
While cost increases due to material prices and expedited delivery will impact the
project cost as the notice to proceed date extends, the largest risk for completing the
project in 2006 is being able to procure material and specialty equipment at all.
Substantial engineering needs to take place prior to procurement of material and
equipment. In addition, the specialty equipment needed to install wind turbines such
as a 300-500 ton crane is in very high demand.
Without approval to begin work prior to the end of the year the projects will suffer
cost increases and schedule extensions. Please keep us informed on your progress
and feel free to call if you have any further questions.
Best regards,
Ben Fischer
President
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PAGE 02/02.----
Exhibit B
Page 1 of 1