20080811Application.pdf

1SIDA~POR(I
An IDACORP Company
3U
BARTON L. KLINE
Senior Attorney
August 8, 2008
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-08-17
In the Matter of Idaho Power Company's Application for Approval of a
Schedule 86, Non-Firm Energy Sales Agreement Between Idaho Power and
Cargil Environmental Finance
Dear Ms. Jewell:
Enclosed please find for filing an original and seven (7) copies of Idaho Power's
Application in the above matter.
I would appreciate it if you would return a stamped copy of this letter for my file in
the enclosed stamped, self-addressed envelope.
Very truly yours,~¡~
Barton L. Kline
Senior Attorney for Idaho Power Company
BLK:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
BARTON L. KLINE, ISB No. 1526
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: 208-338-6936
bklineQYidahopower.com
Attorneys for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION
FOR APPROVAL OF A SCHEDULE 86,
NON-FIRM ENERGY SALES AGREEMENT
BETWEEN IDAHO POWER AND CARGILL
ENVIRONMENTAL FINANCE.
)
) CASE NO. IPC-E-08-17
)
) APPLICATION
)
)
)
COMES NOW, Idaho Power Company ("Idaho Power" or "the Company") and
hereby requests that the Commission issue its Order approving a Uniform Agreement
under Schedule 86 between Idaho Power and Cargil Environmental Finance ("Cargil")
for the purchase of non-firm energy ("Agreement").
1. Cargill is developing a 2.25 megawatt Anaerobic Digester near Hansen,
Idaho ("the Project"). The Project wil be a qualifying small power production facility
under the applicable provisions of the Public Utility Regulatory Policies Act of 1978
("PURPA").
APPLICATION - 1
2. Idaho Power and Cargil have entered into the July 28, 2008, Agreement
pursuant to Idaho Power's IPUC-approved Schedule 86, Cogeneration and Small
Power Production-Non-Firm Energy. The purchase price wil be in accordance with
Schedule 86. A copy of the Agreement, which includes Schedule 86, is enclosed
herewith as Attachment A.
3. Section 8 of the Agreement provides that the Agreement wil not become
effective until the Commission approves all terms and conditions of the Agreement
without change or condition and declares that all payments to be made under the
Agreement wil be allowed as prudently incurred expenses for ratemaking purposes.
4. The Project is operationaL. After the Project has operated under the
Agreement for a reasonable period of time, Idaho Power expects that Cargil and Idaho
Power wil enter into a long-term firm energy sales agreement for the Project.
5. The Agreement is a standard agreement under Schedule 86 and contains
non-firm energy rates in conformance with posted tariffs and applicable Commission
orders. Consequently, the Company believes that the Commission can approve the
Agreement and issue its Order without further notice or procedure.
6. Service of pleadings, orders, and other documents related to this
proceeding should be served on the following:
Barton L. Kline
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
bkline&Yidahopower.com
Randy Allphin
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
rallphim§idahopower.com
APPLICATION - 2
NOW, THEREFORE, BASED ON THE FOREGOING, Idaho Power Company
hereby requests that the Commission issue its Order:
(1) Approving the Schedule 86, Non-Firm Energy Sales Agreement
between Idaho Power and Cargil Environmental Finance, without change or condition;
and
(2) Declaring that all payments for purchases of energy under the Non-
Firm Energy Sales Agreement between Idaho Power Company and Cargil
Environmental Finance be allowed as prudently incurred expenses for ratemaking
purposes.
Respectfully submitted this 8th day of August 2008.
ßM. ~Barton L. Kline
Attorney for Idaho Power Company
APPLICATION - 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 8th day of August 2008 I served a true and
correct copy of the APPLICATION upon the following named parties by the method
indicated below, and addressed to the following:
Attn: Rick Rud
Cargil Environmental Finance
9350 Excelsior Blvd., MS 139-4-A
Hopkins, Minnesota 55343
Hand Delivered
-2 U.S. Mail
Overnight Mail
FAX
~ Email Rick Rudcæcargill.com
Barton L.~LJ
APPLICATION - 4
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-08-17
IDAHO POWER COMPANY
ATTACHMENT A
fi IDAHO POWER COMPANY
SCHEDULE 86
UNIFORM AGREEMENT
For the Purchase of Non-Firm Energy From Qualifyg Facilities
THIS AGREEMENT made this 1 ~ day of I (A/ Ý , 2008, between
CARGILL ENVIRONMENTAL FINANCE whose mailing address is Attn: RickRud,9350 ExcelsiorBoulevard,MS 139-
4-A, Hopkis, MN 55343, e-mail: Rick RudØ?cargill.com hereinafter called Seller and IDAHO POWER COMPAN, a
corporation with its principal office located at 1221 West Idaho Street, Boise, Idaho hereafter called "Company".
NOW, THEREFORE, The paries agree as follows:
1. Company shall purchase Energy produced by the Seller's Qualifyng Facility located at or near 2940 South
4225 East near the town of Hanen, Idaho , County of Twin Falls State of Idaho, located in the ~ of Section 34
Township LIS , Range 19E , BM, in the form of thee phase 60 Hz and at a nominal phase to phase potential of
480 volts, subject to emergency operating conditions of the Company. Purchases under this Agreement are subject to the
Company's applicable Tariff provisions, including but not limited to Schedules 86 and 72 approved by and as may be hereafter
modified by the Idaho Public Utilities Commssion ("Commssion") and the provisions of this Agreement.
2. Seller shall pay Company for all costs ofInterconnection Facilities as provided for in Exhibit A of ths Agreement
and Schedule 72.
3. In addition to the charges provided under Paragraph 2, Seller shall pay to the Company the monthy Operations
and Maintenance Charge specified in Schedule 72 on the Investment by the Company in Interconnection Facilities which
investment is set forth in Exhibit A, attched hereto and made a par hereof. As such investment changes, in order to provide
facilities to serve Seller's requirements, Company shall notify Seller in writing of additions or deletions of facilities by
forwarding a dated revised Exhibit A, which shall become part of this Agreement. The monthly Operation & Maintenance
Charge will be adjusted to correspond to the Revised Exhibit A.
4. The initial date of acceptance of Energy under this Agreement is subject to the Company's ability to obtain
required labor, materials, equipment, satisfactory rights of way, and comply with governental regulations.
5. The term of this Agreement shall become effective on the date first above written, and shall continue to full force
and effect until canceled by Seller upon sixty (60) days prior written notice.
6. This Agreement and the rates, term, and conditions of service set forth or incorporated herein, and the respective
rights and obligations of the parties hereunder, shall be subject to valid laws and to the regulatory authority and orders, rules,
and regulations of the Commssion and such other administrative bodies having jurisdiction.
7. Nothg herein shall be constred as limiting the Commission from changing any rates, charges, classification or
service, or any rules, regulation or conditions relating to service under this Agreement, or construed as affecting the right of the
Company or the Seller to unilaterally make application to the commssion for any such change.
8. This Agreement shall not become effective until the Commssion approves all term and provisions hereof without
change or condition and declares that all payments to be made hereunder shall be allowed as prudently incured expenses for
ratemakg purposes.
ENVIRONMENTAL FINANCE
(Seller)
J C. Miler, Sr. Vice President, Power Supply
DATED ~ 2.~Çè
EXHIDITA
FACILITY AN POINT OF DELNERY
PROJECT NO. 31615100
Bettencour Dry Creek BioFactory, LLC
A-I DESCRITION OF FACILITY
This Facility wil consist of an Anaerobic Digester waste processing unit that will supply fuel to 3 Guascor
SFGLD 560 engines that wil drive three (3) Stamford Newage P1736D generators, each with a nameplate
rating of 750 kW. Connected to Idaho Power Company using Gen-Tec GENCON II controls, ABB Isomax
Breaker, and Beckwith m341 OA protective relays.
A-2 LOCATION OF FACILITY
Near: Hansen, Idaho 2940 South 4225 East Twin, Falls Idaho
Sections: 34 Township: T11S Range: R19E County: Twin Falls il.
A-3 SCHEDULED OPERATION DATE
Seller has selected July 31, 2008 as the estimated Scheduled Operation Date.
Idaho Power, based on the information supplied by the Seller, wil schedule its construction in accordance
with Schedule 72 and the Generation Interconnection Process.
A-4 MAXIMUM CAPACITY AMOUNT: This value wil be 2.25 MW which is consistent with the value
provided by the Seller to Idaho Power in accordance with Schedule 72. This value is the maximum energy
(MW) that potentially could be delivered by the Seller's Facilty to the Idaho Power electrical system at
any moment in time.
A-5 POINT OF DELNERY
"Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers
Facility's energy is delivered to the Idaho Power electrical system. Schedule 72 wil determne the specific
Point of Delivery for this Facility. The Point of Delivery identified by Schedule 72 wil become an
inteiral part of this Aireement.
A-6 LOSSES
If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to
the Idaho Power electrical system at the Point of Delivery, no Losses wil be calculated for this Facility. If
the Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power
electrical system at the Point of Delivery, a Losses calculation wil be established to measure the energy
losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation
wil be initially set at 2% of the kWh energy production recorded on the Facility generation metering
equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications
(transformer loss specifications, conductor sizes, etc) of all of the electrical equipment between the Facility
and the Idaho Power electrical system, Idaho Power wil configure a revised loss calculation formula to be
agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement.
If at any time during the term of this Agreement, Idaho Power determnes that the loss calculation does not
correctly reflect the actual kWh losses attributed to the electrical equipment between the Facilty and the
Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the
previous months kWh loss calculations.
A-7 METERIG AN TELEMETRY
Schedule 72 wil determne the specific metering and telemetry requirements for this Facility. At the
minimum the Metering Equipment and Telemetry equipment must be able to provide and record hourly
energy deliveries to the Point of Delivery and any other energy measurements required to admnister this
Agreement. These specifications wil include but not be limited to equipment specifications, equipment
location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the
equipment, design and installation of the Idaho Power provided equipment. Seller wil arrange for and
make available at Seller's cost communication circuit(s) compatible to Idaho Power's communcations
equipment and dedicated to Idaho Power's use termnating at the Idaho Power facilities capable of
providing Idaho Power with continuous instantaneous information on the Facilities energy production.
Idaho Power provided equipment wil be owned and maintained by Idaho Power, with total cost of
purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho
Power by the Seller. Payment of these costs wil be in accordance with Schedule 72 and the total metering
cost wil be included in the calculation of the Monthly Operation and Maintenance Charges specified in
Schedule 72.
A-8 NETWORK RESOURCE DESIGNATION AN TRASMISSION SERVICE REQUEST
Idaho Power cannot accept or pay for generation from this Facility until a Transmission Service Request
("TSR") and a Network Resource Designation ("NR") application have been accepted by Idaho Power's
delivery business unit. Federal Energy Regulatory Commssion ("FERC") Rules require Idaho Power to
prepare and submit the TSR and NR. Because much of the information Idaho Power needs to prepare the
TSR and NR is specific to the Seller's Facility, Idaho Power's ability to fie the TSR and NR in a
timely maner is contingent upon timely receipt of the required information from the Seller. Seller's
failure to provide complete and accurate information in a timely manner can delay the First Energy
Date and may result in Seller paying higher costs for interconnection.
i.) Transmission Servce Request (TSR)- Idaho Power wil prepare and submit the TSR
within a reasonable period of time after the Seller (a) provides written confirmtion that
the Generation Interconnection Agreement ("GIA") between Seller and Idaho Power's
delivery business unt has been executed for this Facility and (b) provides all of the
Facility-specific details required to complete the TSR.
ii.) Network Resource Designation - Idaho Power wil complete and fie the NR application
within a reasonable period of time after a) this Agreement has been executed by both
parties and b) the TSR has been filed and accepted and c) all necessary information has
been received from the Seller to enable Idaho Power to complete the NR application.
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 86-1
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Feb. 29, 2008 March 1, 2008
Per O.N. 30508
Jean D. Jewell SecretarySCHEDULE 86
COGENERATION AND SMALL
POWER PRODUCTION NON-FIRM
ENERGY
AVAILABILITY
Service under this schedule is available throughout the Company's service territory within the
State of Idaho.
APPLICABILITY
Service under this schedule is applicable to any Seller that:
1. Owns or operates a Qualifying Facilty with a nameplate capacity rating of less than 10
MW and desires to sell Energy generated by the Qualifying Facility to the Company on a non-firm, if, as,
and when available basis;
2. Meets all applicable requirements of the Company's Schedule 72 and the Generation
Interconnection Process.
DEFINITIONS
Avoided Energy Cost is the weighted average of the daily on-peak and off-peak Dow Jones Mid-
Columbia Electricity Price Index (Dow Jones Mid-C Index) prices for nonfirm energy published in the Wall
Street Journal. If the Dow Jones Mid-C Index prices are not reported for a particular day or days, the
average of the immediately preceding and following reporting periods or days wil be used.
Designated Dispatch Facility is the Company's Boise Bench Dispatch Center.
Energy means the non-firm electric energy, expressed in kWh, generated by the Qualifying
Facilty and delivered by the Seller to the Company in accordance with the conditions of this schedule.
Energy is measured net of Losses and Station Use.
Generation Facilty means equipment used to produce electric energy at a specific physical
location, which meets the requirements to be a Qualifying Facility.
Generation Interconnection Process is the Company's generation interconnection application and
engineering review process developed to ensure a safe and reliable generation interconnection.
Interconnection Facilties are all facilties reasonably required by Prudent Electrical Practices and
the National Electric Safety Code to interconnect and safely deliver Energy from the Qualifying Facilty to
the Company's system, including, but not limited to, connection, transformation, switching, metering,
relaying, communications, disconnection, and safety equipment.
Losses are the loss of electric energy occurring as a result of the transformation and transmission
of electric energy from the Qualifying Facility to the Point of Delivery.
IDAHO
Issued per Order No. 30508
Effective - March 1, 2008
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, ID
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 86-2
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Feb. 29, 2008 March 1, 2008
Per O,N. 30508
Jean D. Jewell SecretarySCHEDULE 86
COGENERATION AND SMALL
POWER PRODUCTION NON-FI RM
ENERGY
(Continued)
DEFINITIONS (Continued)
Point of Deliverv is the location where the Company's and the Seller's electrical facilities are inter-
connected.
Prudent Electrical Practices are those practices, methods and equipment that are commonly used
in prudent electrical engineering and operations to operate electric equipment lawfully and with safety,
dependability, effciency and economy.
PURPA means the Public Utility Regulatory Policies Act of 1978.
Qualifying Facility is a cogeneration facilty or a small power production facility which meets the
PURPA criteria for qualification set forth in Subpart B of Part 292, Subchapter K, Chapter I, Title 18, of the
Code of Federal Regulations.
Schedule 72 is the Company's service schedule which provides for interconnection to non-utility
generation or its successor schedule(s) as approved by the Commission.
Seller is any entity that owns or operates a Qualifying Facility and desires to sell Energy to the
Company.
Standby Power is electrical energy or capacity supplied by the Company during an unscheduled
outage of a Qualifying Facilty to replace energy consumed by the seller which is ordinarily supplied by
the Seller's Qualifing Facilty.
Station Use is electric energy used to operate the Qualifying Facility which is auxilary to or directly
related to the generation of electricity and which, but for the generation of electricity, would not be
consumed by the Seller.
Supplementary Power is electric energy or capacity supplied by the Company which is regularly
used by a Seller in addition to the Energy and capacity which the Qualifying Facility usually supplies to
the Seller.
PURCHASE PRICE
The Company wil pay the Seller monthly, for each kWh of Energy delivered and accepted at the
Point of Delivery during the preceding calendar month, an amount equal to 85 percent of the monthly
Avoided Energy Cost.
IDAHO
Issued per Order No. 30508
Effective - March 1,2008
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, ID
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 86-3
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Feb. 29, 2008 March 1, 2008
Per O.N. 30508
Jean D. Jewell SecretarySCHEDULE 86
COGENERA liON AND SMALL
POWER PRODUCTION NON-FI RM
ENERGY
(Continued)
CONDITIONS OF PURCHASE AND SALE
The conditions listed below shall apply to all transactions under this schedule.
1.
Company.
The Company shall purchase Energy from any Seller that offers to sell Energy to the
2.As a condition of interconnection with the Company, the Seller shall:
a. Complete and maintain all requirements of interconnection in accordance with
Schedule 72.
b. Complete and maintain all requirements of the Company's Generation
Interconnection Process.
c. Submit proof to the Company of all insurance required by paragraph 12.
d. Obtain written confirmation from the Company that all conditions to
interconnection have been fulfiled prior to operation of the Generation Facilty. Such
confirmation shall not be unre asonably withheld by the Com pany.
3. The Seller shall never deliver or attempt to deliver energy to the Company's system
when the Company's system serving the Seller's Generation Facilty is de-energized for any reason.
4. The Seller and the Company shall each indemnify the other, their respective officers,
agents, and employees against all loss, damage, expense, and liabilty to third persons for injury to or
death of persons or injury to propert, proximately caused by the indemnifying party's construction,
ownership, operation or maintenance of, or by failure of, any of such party's works or facilties used in
connection with purchases under this schedule. The indemnifying party shall, on the other party's
request, defend any suit asserting a claim covered by this indemnity. The indemnifying party shall pay
all costs that may be incurred by the other party in enforcing this indem nity.
5. The Company shall offer to provide Standby Power and Supplementary Power to the
Seller. Charges for Supplementary and Standby Power wil be in accordance with the Company's
Schedule 7 as that schedule is modified from time to time by the Commission.
6. The Seller shall maintain voltage levels acceptable to the Company.
7. The Seller shall maintain at the Qualifying Facility or such other location mutually
acceptable to the Company and Seller, adequate metering and related power production records, in a
form and content recom mended by the Company.
IDAHO
Issued per Order No. 30508
Effective - March 1,2008
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, ID
Idaho Power Company
I.P.U.C. No. 29. Tariff No. 101 Original Sheet No. 86-4
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Feb. 29, 2008 March 1, 2008
Per O.N. 30508
Jean D. Jewell SecretarySCHEDULE 86
COGENERATION AND SMALL
POWER PRODUCTION NON-FIRM
ENERGY
(Continued)
CONDITIONS OF PURCHASE AND SALE (Continued)
Either the Seller or the Company after reasonable notice to the other part, shall have the right,
during normal business hours, to inspect and audit any or all such metering and related power
production records pertaining to the Seller's account.
8. During a period of shortage of energy on the Company's system, the Seller shall, at the
Company's request and within the limits of reasonable safety requirements as determined by the Seller,
use its best efforts to provide requested Energy, and shall, if necessary, delay any scheduled shutdown
of the Qualifying Facility.
9. The Company and the Seller shall maintain appropriate operating communications
through the Designated Dispatch Facility.
10. The Company shall not be obligated to accept, and the Company may require the Seller
to curtail, interrupt or reduce deliveries of Energy if the Company, consistent with Prudent Electrical
Practices, determines that curtailment, interrption or reduction is necessary because of line
construction or maintenance requirements, emergencies, or other critical operating conditions on its
system.
11. If the Company is required by the Commission to institute curtailment of deliveries of
electricity to its Customers, the Company may require the Seller to curtail its consumption of electricity
in the same manner and to the same degree as other Customers within the same Customer class who
do not own Generation Facilities.
12. The Seller shall secure and continuously carry liabilty insurance coverage for both
bodily injury and property damage liabilty in the amount of not less than $1,000,000 each occurrence
combined single limit.
Such insurance shall include an endorsement naming the Company as an additional insured
insofar as liabil ity arising out of operations unde r this schedule and a provision that such I iabilty policies
shall not be canceled or their limits of liability reduced without 30 days' written notice to the Company.
The Seller shall furnish the Company with certificates of insurance together with the endorsements
required herein. The Company shall have the right to inspect the original policies of such insurance.
13. The Seller shall grant to the Company all necessary rights of way and easements to
install, operate, maintain, replace, and remove the Company's metering and other Interconnection
Facilties including adequate and continuing access rights to the property of the Seller. The Seller
warrants that it has procured suffcient easements and rights of way from third parties as are necessary
to provide the Company with the access described above. The Seller shall execute such other grants,
deeds, or documents as the Company may require to enable it to record such rights of way and
easements.
IDAHO
Issued per Order No. 30508
Effective - March 1, 2008
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, ID
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 86-5
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Feb. 29, 2008 March 1, 2008
Per O.N. 30508
Jean D, Jewell SecretarySCHEDULE 86
COGENERATION AND SMALL
POWER PRODUCTION NON-FIRM
ENERGY
(Continued)
CONDITIONS OF PURCHASE AND SALE (Continued)
14. Depending on the size and location of the Sellets Qualifying Facilty, it may be
necessary for the Company to establish additional requirements for operation of the Qualifying Facilty.
These requirements may include, but are not limited to, voltage, reactive, or opera ting requirements.
IDAHO
Issued per Order No. 30508
Effective - March 1, 2008
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, 10