20090529Application.pdf

esIDA~POR~
An IDACORP Company
BARTON L. KLINE
Lead Counsel
May 29,2009
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-09-16
IN THE MATTER OF IDAHO POWER COMPANY'S APPLICA TlON FOR AN
ACCOUNTING ORDER TO ESTABLISH RATEMAKING TREATMENT OF
QUALIFYING REPORTING ENTITY CONTRACTS
Dear Ms. Jewell:
Enclosed please find for filing an original and seven (7) copies of Idaho Power
Company's Application in the above matter.ve~
Barton L. Kline
BLK:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise. 10 83702
BARTON L. KLINE (ISB No. 1526)
LISA D. NORDSTROM (ISB No. 5733)
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: 208-388-6936
bklinecæidahopower.com
Inordstromcæidahopower.com
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2009 MA Y 29 Pl1 I: 14
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 MAnER OF IDAHO POWER
COMPANY'S APPLICATION FOR AN
ACCOUNTING ORDER TO ESTABLISH
RATEMAKING TREATMENT OF
QUALIFYING REPORTING ENTITY
CONTRACTS.
)
) CASE NO. IPC-E-09-16
)
) APPLICATION
)
)
)
Idaho Power Company ("Idaho Power" or "Company") hereby requests an Order
establishing the accounting and ratemaking treatment for revenues and expenses
associated with the Company's providing Qualifying Reporting Entity service to
renewable generation units located within the Idaho Power Balancing Authority area
which are registered account holders in the Western Renewable Electricity Generation
Information System ("WREGIS"). This Application is based on the following:
i. Background
1. The use of Green Tags or renewable energy credits ("RECs") to comply
with Renewable Portolio Standards ("RPSs") and other voluntary customer uses has
APPLICATION - 1
matured and expanded significantly in recent years. The Western Energy Coordinating
Council ("WECC"), in collaboration with the Western Governors' Association,
recognized the need to establish an independent REC inventory tracking system for
renewable generation units within the WECC region. The tracking system is needed to
ensure that (1) only one REC was created for each MWh generated from a qualifing
renewable energy project, (2) each individual REC was only used for one purpose
(prevent double counting), and (3) provide a system that allows both the generation
units creating RECs and the end users of the RECs (state RPS compliance and private
consumers) to communicate specific REC requirements. It is important to note that the
WREGIS system does not track the financial value of the RECs but instead tracks the
creation and disposition of the individual REC certificates. Participation in WREGIS is
voluntary; however, many of the states in the WECC area are requiring the use of
WREGIS to provide the RPS compliance documentation for their respective state RPS
regimes. In addition, many voluntary contracts for the purchase and sale of RECs are
requiring the use of WREGIS documentation.
2. The WREGIS process requires that a party, independent of the owner of
the renewable generation unit, supply WREGIS with the actual monthly MWhs (one
MWh equals one REC) that a renewable generation unit has delivered. WREGIS calls
this independent part a Qualified Reporting Entity ("QRE"). Utilities that provide
balancing authority services are already collecting, monitoring, and validating the MWh
deliveries from all generation units within their system; thus, they are a perfect
candidate to provide this MWh data to WREGIS as a QRE. Idaho Power has already
been approved as a QRE by the WREGIS administrator. This approval as a QRE
APPLICATION - 2
enables Idaho Power to use the WREGIS system to track the RECs from both the
Elkhorn wind farm and the Raft River Geothermal generation units.
3. Other renewable resource projects located in the area in which Idaho
Power provides balancing authority services have requested that the Company provide
QRE services for their projects. Idaho Power is wiling to provide QRE services on a
voluntary basis under the Agreement which is enclosed herewith as Attachment NO.1.
II. The Enclosed QRE Agreement Was Collaboratively Developed In Oregon
4. A number of issues associated with Oregon electric companies providing
QRE services for certification of RECs by WREGIS were explored this year in an
investigation conducted by the Oregon Public Utility Commission ("0PUC") in Docket
No. UM 1394.
5. The investigation in UM 1394 considered, among other issues, the
questions of: (1) does the OPUC have the legal authority to require electric companies
to provide QRE services and (2) can the OPUC regulate the rates, terms, and
conditions under which QRE services are provided? In the UM 1394 proceeding, Idaho
Power and the other participating utilities agreed that they could and should provide
QRE services and that they were wiling to do so, voluntarily, so long as their costs to
perform QRE services were fully compensated by the party requesting the QRE service.
The utilities' willngness to provide QRE services notwithstanding, they maintained the
legal position that providing QRE services is not one of the utilty services subject to the
OPUC's regulation. Staff and the non-utility participants argued that it was within the
OPUC's general authority to compel the utilities to provide QRE services and regulate
rate changes for QRE services. In the end, after multiple workshops and the filing of
APPLICATION - 3
several rounds of comments, the parties to the proceeding agreed that it was not
necessary to litigate the jurisdiction issue because the utilities were all willng to
voluntarily provide QRE services, under long-term contracts with rates, terms, and
conditions that were acceptable to Staff and the other participants. Attachment No.1,
the Qualified Reporting Entity Agreement ("QRE Agreement"), is the product of that
compromise which settled the dispute between the parties.
6. To memorialize this compromise, the Staff, and the utilities entered into a
Memorandum of Understanding ("MOU'), which is enclosed as Attachment NO.2. In the
MOU, the parties agree to hold the question of the OPUC's jurisdiction regarding QRE
agreements in abeyance for the time being. In comments filed in the case, the OPUC
Staff proposed, and the parties agreed, that the costs and revenues associated with
QRE agreements wil be treated as an "above the line" expense for ratemaking
purposes. The pertinent portions of Staffs comments on this issue are enclosed as
Attachment NO.3, As noted in the MOU, Attachment No.2, the utilities did not concede
that the OPUC has jurisdiction over the provision of QRE services. While Idaho Power
does not believe that QRE services are a utility activity subject to regulation in Oregon
(or Idaho), it is wiling to accept the Oregon compromise that includes the use of the
standard QRE Agreement and the agreement that costs and expenses related to QRE
services wil be included "above the line" for ratemaking purposes. The MOU and
supporting Motion have been filed with the OPUC and the case is currently pending.
II. Basis for Providing QRE Services in Idaho
7. To avoid having to account for QRE services one way in Oregon and
another way in Idaho, Idaho Power hereby requests that the Commission approve the
APPLICATION - 4
accounting and ratemaking treatment that is consistent with the compromise and
agreement reached in Oregon.
Idaho Power proposes that the following accounting be used to record expenses
and revenues associated with providing voluntary QRE services:
a. The Company's Delivery Finance group wil create a yearly QRE
services work order that wil have the following eight tasks:
b. Set-up Expenses - Idaho
c. Set-up Revenue - Idaho
d. Monthly Reporting Expenses - Idaho
e. Monthly Reporting Revenue - Idaho
f. Set-up Expenses - Oregon
g. Set-up Revenue - Oregon
h. Monthly Reporting Expenses - Oregon
i. Monthly Reporting Revenue - Oregon
j. The account used to record the revenue wil be 415020 REV FM
MJ&CW-QRE REPORTING.
k. The account used to record the expenses wil be 416020 EXP FM
MJ&CW-QRE REPORTING.
i. If Delivery Finance provides QRE service for one of the Company's
generation resources, Delivery Finance wil charge the Company's Power Supply group
via an internal accounting entry that wil debit the revenue account using a Power
Supply cost center and will credit the revenue account using a Delivery cost center.
APPLICATION - 5
This is required by GAAP to prevent Idaho Power from recognizing revenue from itself
for external financial reporting purposes.
m. Delivery Finance wil directly bil all other project owner's, including
Company affliates, for QRE services.
n. One of the key elements of the QRE Agreement is the pricing
mechanism that enables Idaho Power to charge the actual cost to perform QRE
services. All time and expenses incurred in providing QRE service to any entity wil be
charged to the expense tasks on the work order. All revenue billed for providing the
QRE service wil be credited to the revenue tasks on the work order. Annually, Delivery
Finance wil analyze the expenses (including overheads and profit) charged to the work
order to determine if the rates it charges for its services need to be adjusted.
IV. Conclusion
NOW, THEREFORE, Idaho Power respectfully requests that the Idaho
Commission issue its Order approving the above-described accounting and ratemaking
treatment for expenses and revenues associated with the Company's voluntarily
providing Qualified Reporting Entity services.
Respectfully submitted this 29th day of May 2009.
BA~
Attorney for Idaho Power Company
APPLICATION - 6
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-09-16
IDAHO POWER COMPANY
ATTACHMENT NO.1
Contract No.
Section
1.
2.
3.
4.
QUALIFIED REPORTING ENTITY AGREEMENT
Executed by Idaho Power Company
and
CUSTOMER NAME
(Providing for reportng of certain meter information
Western Renewable Energy Generation Inform
Page
............................................... 2
........................... ""......... 2
............................................... 3
........................................~.................ii........................................... 6
......................."'..................................................................... 7
armless and Waiver... ........................................................... 8
Defaults.... ............ .................... .... ............................................... 8
arding Confidentiality.............. ... .................... ........ ........ ........ 9
8ta ard ..Provisions ...................................~i...................."'................... ..... 9
Notices and Contact Information .. ........... .................. .......... ......... ............ 10
Signatures . ... ...................................... ..... ....... .... .... ..... ................ ..... ... 11
Exhibit A Generation Unit Identification and associated Meter Point
Exhibit A-
Idaho Power
This QUALIFIED REPORTING ENTITY AGREEMENT (Agreement) is executed by
Idaho Power Company. (Company) and ("Customer"). The
Company and the Customer are sometimes referred to individually as "Party" and collectively as
"Parties."
RECITALS
Western Renewable Electricity Generation Information System (WREGIS) provides an
independent, renewable energy tracking system for the region covered by the Western
Electricity Coordinating Council (WECC). Participation in WREGIS is voluntary.
The Company has voluntarily registered wih WREGIS as a Q
(QRE) and has been approved as a QRE by the WREGIS Admini
1.
The Company is uniquely suited to be a QRE i
the Company's Balancing Authority and Control Area.
The Customer has voluntarily regist
registered certin Generating Units with W
The Customer wis
Generating Unit identi
e availab or a Customets Generation Unit that is 1) a
tion resource, 2) located in the States of Idaho or Oregon,
) within the Balancing Autority of the Company, 5) is
eporting because of WREGIS size limitations and 6) provides
eter Output to the Company as specifed within this Agreement.
Each individual Generation Unit wil require a separate Agreement.
2. TERM AND TERMINATION
This Agreement shall be effective upon execution by the Parties and shall continue in
effect until XXX. XX 20XX or until such time as 1) Customer providing 60 days written
notice to the Company, chooses to terminate or 2) this Agreement is terminated by
either party upon Notice of Default and failure to cure as descrbed in Section 12 of this
Agreement.
The Company shall commence providing the QRE service as speciied under this
Agreement 1) after this Agreement has been executed by both Parties, 2) once the
Customer is capable of providing the Company with Revenue-Quality Meter Output, 3)
after the Customer has paid all applicable fees, and 4) after the first full Generation
Month has occurred.
3. INCORPORATION OF WREGIS DOCUMENTS
Agreement No., Customer Name
Qualied Reporting Entity Agreement 2
Exhibit A-
Idaho Power
There are three WREGIS documents that govern the relationship between the Customer
and WREGIS, as well as the relationship between the Company and WREGIS. They
are:
(a) WREGIS Terms of Use Agreement (a.k.a. Account Holder Registration
Agreement). The WREGIS Terms of Use Agreement (WREGIS TOU)
incorporates by reference the WREGIS Operating Rules and WREGIS Interface
Control Document.
(b) WREGIS Operating Rules
(c) WREGIS Interfce Control Document
Prior to executing this Agreement Customer must become a WREGIS
Account Holder by executing the WREGIS Terms of Use Agreement.
This ORE Agreement hereby incorporates by reference, in their e .
form versions of the WREGIS TOU, Operating Rules, and Int
(each available at WW. wregis.org or by contacting the
subsequent revisions to or versions thereof. This
WREGIS documents for definitional and other bi
e general
i Document
rator) and any
o these three
4. DEFINITIONS
(a) "Account Holdet' is defined in
(b)
(c)
(f) defined as the process described in Secion 24 of the
o t, unless such process conflicts with the Company's
ry obligations, which, in the event of conflict, wil control.
(g) "Ge n Interconnection Process" is the Company's generation
interconnection application and engineering review process developed to ensure
a safe and reliable generation interconnection in compliance with all applicable
regulatory requirements. Prudent Electrical Practices and national safety
standards.
(h) "Generation Month" is the calendar month in which the Generation Unit delivered
energy to the Company.
(i) "Generating Unit" (GU) is defined in section 2 of the WREGIS Operating Rules.
ü) "Metering and Telemetry Equipment" as defined in section 9 of this Agreement.
(k) "Monthly ORE Fee" as defined in section 7 of this Agreement.
Agreement No., Customer Name
Qualified Reporting Entity Agreement 3
Exhibit A-
Idaho Power
(I) "Monthly Generation Extract File" means a Data fie that contains generation
Data from the Customer's Point of Metering and conforms to the characteristics
and requirements set forth in the WREGIS Interface Control Document.
(m) "Output" is defined in attachment 1 of the WREGIS TOU.
(n) "Point of Interconnection" means the point on the Company's electrical system
where the Customer physically delivers the Customer's Renewable Generating
Unit's energy to the Company.
(0) "Point of Metering" means the point at which the Customets Renewable
Generating Unit electric generation Revenue-Qualiy Meter Output is measured.
(p) "Qualified Reporting Entity" (QRE) is defined in attchment 1 of the WREGIS
TOU.
(w)
(q) "Renewable" is defined in section 2 of the WREGIS Operating Rule~!
(r) "Revenue-Quality Meter Output" is defined in section 2 of .
Rules.
(s) "Station Service" is defined in section 2 of th
(t)
(u)
(v)
5.
is hereby incorporated by reference as:
Unit Identification and Associated Meter Point
6. SCOPE
The Parties a edge that the Company may serv as a QRE only for Generating
Units requesting this servce that meet the Availabilty cnteria as specified in this
Agreement and for which Revenue-Quality Meter Output is available for the Customets
Renewable energy Generation Unit.
The specific Point of Metenng that the Company wil use in its performance as the QRE
for the Customer are set forth in Exhibit A. By signing this Agreement, the Customer
certifes that the Point of Metering listed in Exhibit A measures generation data only from
the Generating Unit identified in Exhibit A and it meets the Availabilty cnteria of this
Agreement.
Agreement No., Customer Name
Qualied Reportíng Entity Ageement 4
ExhibitA-.
Idaho Power
The Customer shall notify the Company at least thirt (30) Working Days prior to any
material changes being made to the Point of Metering set forth in Exhibit A. Such notice
shall comply with the Notices and Contact Information procedures of section 12 of this
Agreement. Following such notification, the Parties wil determine whether such
changes are mutually acceptable and can be added to Exhibit A.
7.FEEs
(a)Meter and Telemetry Equipment fee
The Customer shall be responsible for all costs associated with the
equipment, installation, communiction lines, operations and
maintenance of the Metering and Telemetr Equipment as required within
this Agreement. The required equipment, cost and payment of these
costs wil be determined by the Company's routine Generation
Interconnection Process.
(b) Initial ORE Agreement set up fee
The Customer shall be responsible for a onetime, non-refundable set up
fee of $205. This amount shall be payable to the Company within 15
days of the date this Agreement is executed. The Company will not bein
any setup of the Customets Generation Unit in the Company's WREGIS
reporting system until such time as this payment has en received by
the Company.
(c) Monthly ORE Fee
The Customer shall be responsibl
Company for this ORE serv
i.any incurs in
eporting
direct payroll, i ings, taxes,
elude a profi margin equal to
- authorized return on equity.
r 31 of tlie first calendar year
e payable to the Company by the last day of
Genera onth. On or before the 15th Working Day of the
ration Month, the Company shall submit to the Customer a
for the fees due for that Generation Month. This biling shall
be provided to the Customer in the manner selected by the
Customer identified in section 14 of this Agreement. If the
Customer elects to pay fees in advance (i.e. quarterly, annually,
etc) the Company shall deduct the current fees from the
Customers prepaid amounts and report the balance of the
Customers prepayment on the monthly biling. The Customer and
the Company may mutually agree to net this billng against other
payments associated with the Generation Unit. (Le. - energy
payments under a purchase power agreement).
iv. Annual adjustment of the Monthly ORE Fee
Agreement No., Customer Name
Qualified Reporting Entity Agement 5
ExhibitA-
Idaho Power
In January of the second calendar year and for all subsequent
calendar years, the Company shall update the Monthly ORE Fee
calculation to reflect the most recent Company values.
The Company wil notify the Customer in writing of any applicable
changes to the Monthly ORE Fee by January 31st of each year, to
become effective beginning with the March Generation Month of
each calendar year.
v. Other cost adjustments
If WREGIS, WECC, or any other entity which has the abilty and/or
jurisdiction to modify the QRE reporting process requires a
change in the ORE reporting process, the Company shall
determine the cost of revising its internal proess(es) and the
costs shall be biled to and payment received from the Customer
prior to the Company making the required changes.
1) If these changes require the Company to change the setup of
the Customer's accunt either in the Company's or the
WREGIS system, a onetime setup change fee wil be charged
to the Customer.
2) If these changes require additional mon
Monthly ORE Fee wil be adjusted
process.
(d) Failure to pay feesi. . A Customets failure to pa Equipmentfees, as specified in item ent set up
fee as specified ve in ite esult in
automatic termi of this ubject to
the Default proc ified i ent.
8.QU
The
Rene
perform
the Com
the manner
the Monthly ORE Fee as
ation Month, the
EGIS for that Generation
no future eratlon Month's Data wil be
ntil all past due fees have been paid in full.
hly ORE Fee shall be an event of default.
TlTY
ualified Reporting Entity (ORE) to report the Customer's
Da a 0 WREGIS. In order for the Company to be able to
the Customer shall submit such Data to the Company by allowing
lect such Data, at the Point of Metering set forth In Exibit A, and in
t forth in sections 9, Measurement and 10, Reporting.
9. MEASUREMENT
(a) Metering and Telemetry Equipment
Agreement No., Customer Name
Qualied Reporting Entity Agreement 6
Exhbit A-
Idaho Power
i. At the Customer's expense, the Company wil design, supply,
install, operate and maintain all Metering and Telemetry
Equipment at the Generation Unit's Point of Interconnection to
enable the project to provide Revenue-Quality Meter Output and
meet the requirements of paragraph 9.3, Revenue Metering
Standards of the WREGIS Operating Rules,
ii. Upon receipt of a written request for a QRE Agreement from a
potential Customer, the Company shall make an inital
assessment of the existing metering and telemetry equipment to
determine if it is able to provide RevenuewQuality Meter Output to
the Company. If it is determined that any additions, changes or
modifications to the metering or telemetry equipment is required,
the Customer shall be required to contract with the Company
through the Company's routine Generation Interconnection
Process to install the required metering and telemetry equipment.
(b) Estimates
When RevenuewQuality Meter Output is not available due to meter or telemetr
hardware failure or metered data that is determined to be invalid due to meter
malfunction or calibration/configuration error, the Company at the Customer's
expense within a reasonable time shall take the necessary action to repair the
meter or telemetry equipment.
10,
The Company wil rely on readings from Company an
redundant meters to establish an estimate of th
Generation Unit for just the period of time t
not operating correctly. If redundant me .
use electical industry standard practices
output of the Customer's Gen 'on Unit
determined that the meter wa perati
will only be used on a limited til suand these Es . .. . i only b to
guideline ese E
Quality
provided
he Customer's
t the meter was
Company shall
theMWh
at it is
process
s the repairs ar mpleted
S if WREGIS rules and
lieu of the actual Revenue-
in which Revenue-Quality Meter Output is
try Equipment fee, Initial QRE Agreement
een paid by the Customer the Company shall
(a)
er authorizes the Company to provide the Customer's Data directly
EGIS in the form of the Monthly Generation Extract File
i. Within the first 15 Working Days of the month following the
Generation Month, the Company shall submit a Monthly
Agreement No., Customei' Name
Qualied Reportng Entity Ageement 7
ExhibitA-
Idaho Power
Generation Extract File to WREGIS on the Customer's behalf
containing the Revenue..uality Meter Output which wil conform
to the characteristics and Data requirements set forth in the
WREGIS Interface Control Document.
ii. As specified within the WREGIS Interface Control Document,
WGEGIS wil notify the Customer via automated e-mail of the
Data loaded into the Customer's account by the Company. The
Customer shall then approve or dispute this data within 5 Working
Days of the date the Company has submitted the Data to
WREGIS. Failure of the Customer to approve or dispute this data
within the 5 Working Days shall be deemed to be approval of the
Data by the Customer.
iii. If the Customer disputes the Data, the Customer shall 1)
appropriately respond to the WREGIS notification and 2) notify the
Company of this dispute within 5 Working Days from the date the
Company submitted the Data to WREGIS. Notification of a
dispute of the Data to the Company shall include but not be limited
to detail of the Customer's dispute, the Customers
recommendation and evidence supporting the Customers dispute.
11.
iv. Both parties shall in good faith work to resolve any dispute within
60 days from the date of notification of the dispute. At the end of
60 days the parties may mutually agree to continue their efforts to
mutually resolve the dispute or if a mutual agreement is not
reached, either part may request the dispute solved in the
Dispute Resolution process as defined greement.
(b) Adjustments
WREGIS,and
àny
final for
ures set
ompany is voluntarily agreeing to serve as a
ponsible for Data Submitted to the Company
r is solely responsible for the Data created and submitted to the
cting as a QRE, to forward to WREGIS.
P ant to this Agreement the Customer provides permission to the Company
to gather Data from the Points of Metering listed in Exhibit A. All such Data is
Agreement No., Customer NameQualied Reporting Entity Ageement 8
Exhibit A-
Idaho' Power
considered Data which the Customer has created and submitted to the
Company, notwthstanding the fact that the Company, rather than the Customer
wil gather it.
(c) Indemnity and Hold Harmless
The Customer shall indemnify and hold the Company, its offcers, employees,
agents, or representatives, harmless for any and all liabilty to third partes for
damages associated with the Company's performance of the ORE function
unless such damages result solely from the intentional or reckless misconduct of
the Company. The indemnifcation contained in this subsection includes, but is
not limited to, liabilty ansing from: the Data contained in the Monthly Generation
Extract File, or any other financial injury, or damage to persons or propert.
(d) Waiver of Causes of Action and Claims for Damages
The Customer further agrees to waive any and all causes of action ansing under
or in respect to this Agreement, whether in contract, tort or any other legal or
equitable theory (including stnct liabilty) against the Company. In no event shall
the Company be liable to the Customer its board of directors, employees, agents,
or representatives for any demands, direct costs, lost or prospective profits or
any other losses, liabilties or expenses, whether special, punitive, exemplary,
consequential, incidental, or indirect in nature, that are in any way associated
with the Company's performance of the ORE function or that arise under or in
respect of this Agreement unless such demands, losses, liabilties or expenses
result solely from the intentional or reckless misconduct of the Company. This
includes, but is not limited to, damages based on Data contained in the Monthly
Generation Exract File, or any other damages ansing from financial injury or
damage to persons or property.
12. Disputes and Defaults
Disputes - The parties shall mutually cooperate to resolve any disputes of this
Agreement. Only after an unsuccessful reasonable attempt to mutually resolve a dispute
shall a party or parties submit the dispute to the Dispute Resolution process as. defined
in section 4f of this Agreement.
Notice of Default ~ If either part fails to perform any of the terms or conditions of this
Agreement (an "event of default", the nondefaulting Party shall cause notice in writing to
be given to the defaulting Party, specifying the manner in which such default occurred. If
the defaulting part shall fail to cure such default within the sixty (60) days after service
. of such notice, or if the defaulting party reasonably demonstrates to the other party that
the default can be cured within a commercially reasonable time but not within such sixty
(60) day period and then falls to dilgently pursue such cure, then, the nondefaulting
Party may, at its option, terminate this Agreement.
13. NOTICE REGARDING CONFIDENTIALITY
By signing this Agreement, the Customer acknowledges that, pursuant to secion 11 of
the WREGIS TOU, any Data that the Company, acting as a QRE, provides to WREGIS
shall reside in WREGIS and the Customer wil have no control over such Data's use
other than that provided for under the WREGIS TOU.
Agreement No., Customer NameQualfied Reporting Entity Agreement 9
Exhibit A-
Idaho Power
14. STANDARD PROVIS
(a) Amendm
By signing this Agreement the Custo
information shall be governed by se
Party to unilaterally amend
mendm ' r exhibit revision to this
ffect unless set forth in a written instrument
of each Part.
,i udin9 documents expressly incorporated by reference,
e entire agreement between the parties. It supersedes all previous
tions, representations, or contracts, either written or oral, which
p rt to describe or embody the subject matter of this Agreement. The body of
this Agreement shall prevail over the exhibits to this Agreement in the event of a
conflict.
(c) Information Exchange
To the extent not set forth in previous sections of this Agreement, the Parties
shall provide each other with any information that is reasonably required to
administer this Agreement.
Agreement No., Customer Name
Qualified Reporting Entity Agrement 10
ExhibitA-
Idaho Power
(d) Assignment
This Agreement is binding on any successors and assigns of the Partes. Neither
Party may otherwse transfer or assign this Agreement, in whole or in part,
without the other Party's written consent. Such consent shall not be
unreasonably withheld.
(e) No Third-Part Beneficiaries
This Agreement is made and entered into for the sole benefi of the Parties, and
the Parties intend that no other person or entity shall be a direct or indirect
beneficiary of this Agreement.
(f) Waivers
No waiver of any provision or breach of this Agreement shall be effective unless
such waiver is in writing and signed by the waiving Part, and any such waiver
shall not be deemed a waiver of any other provision of this Agreement or any
other breach of this Agreement.
(g) Each Part Has Read Agreement
Each Part represents and warrants that it or .
Agreement and understands its content
(h)
This Agreement shall be in
the State in which the Cust
ake a good faith effort to
y may initiate litigation. Such
tions between the Partes'
contra ute or contract issue between the
nt, the Parties shall continue performance
lution of the dispute, unless to do so would be
ractcabl h Parties reserve the right to seek judicial
ispute arising under this Agreement.
14. NO T INFORMATION
Any under this Agreement shall be in writing and shall be delivered: (a) in
perso ith proof of receipt, by a nationally recognized delivery service or by
United es Certified Mail; or (c) electronic mail (e-mail) followed by proof of receipt, by
a nationally recognized delivery servce or by United States Certified Mail
Notices are effective when received. Either party may change the name or address for
receipt of notice by providing notice of such change. The parties shall deliver notices to
the following person and address:
Agreement No., Customer Name
Qualified Reporting Entity Agreement 11
Exhibit A-
Idaho Power
If to the Customer:If to the Company:
(Customer Name)
(Customer Address)
(Customer City, State, Zip)
Attention: (Customer Contact)
Title: (Customer Title)
Phone:
Fax:
E-Mail:
Attention:
Phone:
Fax:
E-Mail:
Invoicing method (select one):
E-Mail: 0 U SMail: 0
If by First Class Mail:
Idaho Power Company
PO Box 70
Boise, 10 83707
If by Overnight Delivery service:
Idaho Power Company
1221 W Idaho
Boise, 10 83702
13. SIGNATURES
Each Part represents that it has the authorit
been duly authorized to enter into this Agr
CUSTOMER NAME
By:
(Printlype)
Title:
Date:Date:
Agreement No., Customer Name
Qualifed Reportng Entity Agreement 12
Exhibit A-
Idaho Power
EXHIBIT A
GENERATION UNIT IDENTIFicATION AND ASSOCIATED METER POINT
Company Unique
WREGIS Generation Unit Meter Meter Point Meter Meter Point
IdentificationIdentificationNumberNameMultiplier(i.e.- MV 90
header number)
Agrement No., Customer Name
Qualified Reporting Entity Agreement 13
Exhibit A-
Idaho Power
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-09-16
IDAHO POWER COMPANY
ATTACHMENT NO.2
MEMORADUM OF UNERSTANDING
.. This Memorandum of Understanding and Agreement ("MOU") is made and entered into
this ~day of I\A'l ,2009, by and among the Public Utilty Commission of
Oregon Staff ("Staff"); PacifiCorp, dba Pacific Power ("PacifiCorp"); Portland General Electic
Company ("PGE"); and Idaho Power Company ("Idaho Powet'). PacifiCorp, PGE and Idaho
Power are hereaftr sometimes collectively referred to as the investor-owned-utilties "IOUs."
Staff,PacifiCorp, PGE and Idaho Power ar sometimes referred to herein collecively as the
"Paries" or singularly as "Part."
Recitals
WHREAS, the IOUs are electric utilties operating in the state of Oregon and are
subject to the supervision and regulation of the Public Utilty Commission of Oregon
("Commission"); and
WHEREAS, on September 30, 2008, the Commission granted Stas request to open an
investigation under Docket No. UM 1394 into electnc companies providing qualified reporting
entity ("QRE") service for certification of renewable energy certificates by the Western
Renewable Energy Information System ("WREGIS"); and
WHEREAS, the Citizens' Utilty Boar of Oregon ("CUB"); the Industial Customers of
Nortwest Utilties ("ICND"); Exergy Development Group of Idaho ("Exergy"); Renewable
Nortwest Project; Ibrdrola Renewables, Community Renewable Energy Associaton
("CREA"); the Oregon Departent of Energy (''ODOE'') and the Bonnevile Power
Adminsistration ("BPA") and the IOUs have all been granted intervention in UM 1394 (CUB,
ICNU, Exergy, Renewable Nortwest Project, Iberdrola Renewables, CREA, ODOE and BPA
are hereaer sometimes referrd to collectively as the "Stakeholders"); and
WHEREAS, the 10Us fied initial comments in UM 1394 on November 6, 2008, and the
Partes and Stakeholders thereafer fied opening comments in UM 1394 on December 12, 2008;
and
WHEREAS, the Paries held a series of workshops to discuss issues surrounding UM
1394 on November 12,2008, Januar 9, 2009, and Februar 23, 2009; and
WHEREAS, based upon the outcome of those workshops, the Parties have reached an
understanding and agreement with respect to the provision of QRE service within their respecive
Oregon allocated service territories; and
WHEREAS, the IOUs intend to furter explore the option of providing QRE service
outside their respective allocated service territones for generators for which they act as the
Balancing Authority; and
WHEREAS, to accomplish the objectives stated above, the Paries desire to enter into
this MOU regading QRE service by the IOUs and the suspension ofUM 1394;
l
Staf Joint Motion
Exhibit i
NOW, THREFORE, in consideration of the mutual promises expressed herein and other
goo and valuable consideration, the reeipt and suffciency of which are hereby accepted, the
Parties agree as follows:
Terms
1. QRE Service. The IOUs agree to voluntarly offer QRE service pursuant to the
independently developed terms and conditions of their respective form QRE services ageements
attched hereto as Exhibit "A." However, nothing in this Agreement shan prevent an lOU and
QRE customer from mutually agreeing to alter any portion their service agrment.
. 2. Suspension ofUM 1394. The Parties shall request and recommend that the
Commission suspend UM 1394.
The ODOE is adopting a process to allow retractive creation ofRECs from generation
beginning in 2007. If any Stakeholder or Par reuests, the Parties agree to reconvene another
workshop at a mutually agreeable time and place after the ODOE adopts a process that allows for
the retroactive cretion of RECs to assess the provision of QRE services for the creation of
retroactive RECs by the IOUs.
The Parties agree to reconvene another workshop among the Stakeholders and the Pares
at a mutually agreeable time and place on or about March 15, 201 1, in order to assss the
provision of QRE services by the IOUs under the form QRE service agrements. Based on the
reults of that workshop, Staff shall make an assessment and recommendation as to whether to
initiate fuher procedings under UM 1394, including but not limited to:(l) further briefing by
Staff, the IOUs, and the Stakeholders on the issue of Commission authority and jurisdiction to
require the IOUs to provide QRE service; (2) further discussions on providing QRE service
outside the IOUs' respective allocated service territories for which they act as the Balancing
Authority; (3) further discussions on pricing and price changes; (4) furter workshops; or (5)
holding a potential hearing.
Nothing in this agreement precludes the Commission from reopening UM 1394 or any
other investigation, and by signing this agrement, Staff does not waive its right to request the
Commission to reopen UM 1394 or any other investigation for cause. The Parties further agree
that this MOU in no way precludes the Staeholders from pursuing any available remedies.
3. Commission Jurisdiction. The Parties acknowledge that a dispute exists as to
whether the Commission has jurisdiction or authority to require the ¡OUs to provide QRE service.
Notwithstding anyting contained herein to the contrary, the ¡OUs do not consent to the
assertion of Commission jurisdiction or authority with respect to the provision ofQRE service by
the ¡OUs and reserve any and all rights to challenge the Commission's jurisdiction regarding the
same.
4. Provision ofQRE Service. The paries acknowledge that the IOUs have
voluntaly agreed to provide QRE service pursuant to the terms and conditions of their respective
form QRE service agreements. The IOUs cannot leave the business of being a QRE before the
first two-year review proceeding/meeting without notifying the Commission.
5. Third Par QRE Service Providers. The parties acknowledge and agree that
other individuals and/or entities currently provide QRE service to generators and that other
entities may provide such service in the future. As a result, the parties agree that if an lOU agrees
2
Sta Joint Motion
Exhibit 1
to provide QRE service, this does not create an exclusive service provider obligation on an iou
or require an iou to provide this service as a provider of last resort.
6. Goo Fai Covent to Cooperate. It is the paes' intent to work together in goo
fait to fulfll their repective obligations under this MOU. Each par specifcally acknowledge
and agees that it shall coperate with the other par to effecate the purposes of this MOU.
7 Governing Law. This MOU shall be governed by and constred in accordance
with the laws of the state of Oregon. The parties furter agree that the proper venue and
jurisdiction for any disputes surrounding this MOU shall be the Commission.
8. No Joint Venture. This MOU shall not be deemed to create a parnership. joint
venture. or agency relation among or beeen the paries.
9. Authorization. Each individual executing this MOU represents and warants that
he or she has been duly authorized by appropriate action of the governing body of the par for
which he or she signs to execute and deliver this MOU in the capacity and for the entity set forth
where he or she signs and that as a result of his or her signature. this MOU shall be binding upon
the par for which he or she signs.
10. Entire Agreement. This MOU sets fort the entire understanding among the
paries and fully supersedes any and all prior understandings, oral or written, between the paries
pertining to the subject of this MOU. This MOU may only be amended or modified in writing.
i i. Parties' Positions. The paries agree that the agrements reached in this MOU
shall not be cited or used as indicative of a part's position on the issues resolved or as any other
tye of precedent or evidence in any other cae or proeeing. In paricular. this MOU does not
constitute an agreement by any par to the theories used by any par in deciding to enter this
MOU.
12. Facts and Legal Positions. The paries have entere in to this MOD to relve
disputed issues and no part admits or denies any fact or legal position at issue.
13. Adoption by Commission. The parties recommend that the Commission adopt
this MOU in its entirety. The partes have negotiated this MOU as an integrated document.
Accordingly, if the Commission in any order rejects all, or any part of this MOU, or adds to or
changes any of its terms, each par reserves the right to withdraw from the MOD upon written
notice to the Commission and the paries within fifteen (i 5) days of receiving notice of any such
action by the Commission. In the event of such withdrawal. the part wil not be bound by any
provision of this MOU. and no such term may cited or used against any part in connection with
any case or proceeding, or otherwise.
14. Counterpars. This MOU may be executed in counteart and each signed
counterpart wiJ constitute an original document.
3
Staf Joint Motion
Exhibit 1
IN WITNESS WHEREOF, this MOU shall be dat and effective on date and yea first
above written.
.."
Its:
By: ~.. .. i.
Its: A l#-,I\ .1
IDAHO POWER COMPAN
By:
Its:
PORTLAND GENERAL ELECTRC COMPAN
By:
Its:
4
Sta Jóint Motion
Exhibit i
IN WITS WHEREOF, this MOU shall be dated and effective on date and yea first
above written.
PUBLIC UTILITY COMMISSION OF OREGON STAFF
By:
Its:
PACIFICORP
By:
Its:
IDAHO POWER COMPANY
By:
Its:
PORTLAND GENERAL ELECTRC COMPANY
..
By: ti.i~ fJ
Its: ,,(1 eE ?&S ~E1
4
Staff Joint Motion
Exhibit 1
IN WlINESS WHEREOF, this MOD shall be dated and effecve on date and yea firs
above written.
PUBLIC UTILIT COMMSSION OF OREGON STAFF
By:
Its:
PACIFICORP
By:
Its:
IDAHO:i:~
Its: ~J1
PORTLAN GENERA ELECTRIC CO:MAN
By:
Its:
4
Staff Joint Motion
Exhibit 1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-09-16
IDAHO POWER COMPANY
ATTACHMENT NO.3
accounting and transferring RECs. In September 2008, ODOE offcially adopted
WREGIS as the accepted REC-implementing system for the RPS law. See OAR 330-
160-0020. Again, simply stated, a QRE serves to upload generating data from
generators to WREGIS. WREGIS in turn issues RECs based upon this data. Utilties
may use the WREGIS-issued RECs, subject to various legal constraints, to comply with
Oregon's RPS law.
Thus, in a very real sense, in order for the RPS law to work effectively and effciently, it
isimper(itive that the WREGlS requirements, including the use of QREs, are also
effectively and effciently implemented. Provision of ORE service to Third Party
Generators by public utilties wil benefit Oregon ratepayers by enlarging the pool of
qualifying electricity and unbundled RECs eligible to meet the Oregon RPS and by
facilitating REC trading. in the West. Even if utilties don't purchase the RECsfrom an
individual Third Part Generator, the availabilty of more Oregon RPS-eligible RECs in
the market helps keep down the cost of eligible renewable resources. Utilties are best-
situated to serve as aREs.
As stated in their November comments, the utilities act as the balancing authority for
their respective balancing authority areas. WREGIS states that the balancing authority
should be the ORE if the generating unit reports to a balancing authority and the data
can be reported on a generating unit basis. For other generators, WREGIS requires the
ORE applicant to demonstrate its independence from the generator or the purchaser ofthe RECs.11 .
It is the utilties' unique position as regulated monopoly providers of electricity-related
services that enables them to provide QRE service at a clear advantage to any other
potential provider, particularly where the utility owns the meter, reads the meter, collects
and reconciles the metering data, and may also serve as the balancing authority.
Further, utilties have the unique abilty to provide ORE service for Third Party
Generators because retail customers already are paying (in rates) for the personnel,
hardware and softare the utilties are using today to provide ORE services for their
owned and contracted generators where they receive the RECs.
Thus, while it is not necessary to reach this determination in this docket, staffs counsel
advises for the reasons discussed above, a strong argument may be made that the
Commission has authority to require a utilty to provide QRE service under the
circumstances assumed in Issue 1(a).
Regardless of the answer to Issue 1 (a), because the utilties are willng to provide QRE
service, the next question becomes should the Commission allow (or require) ORE .
service costs and associated revenues to be recovered in rates - "above the line."
Staff understands that PacifiCorp and PGE favor this approach, and Idaho Power, while
not necessarily refusing to include the service above the line in rates, prefers to keep
the service out of rates - providing it "below the line."
11 See issue 12 for more detailed information.
\
4
(
Even if the Commission is not authorized to regulate the QRE service as a fully
regulated (Le., tariffed) service, staffs counsel advises that there is no legal problem
with including ORE service above the line in rates. The facilties the utiities would use to
provide QRE service were, in whole or for the most part, paid for by ratepayers. The
Commission has previously held that an otherwise "unregulated" utilty service may be
considered regulated to some degree if it is provided in whole or in part by means of
. facilities paid for by ratepayers. The most notable example of this is the yellow pages
imputation order. See Commission Order No. 88-488 at 5-6. (Commission finds that,
while yellow page advertising was not a necessary part of Pacific Northwest Bell's utility
service, the value of the yellow page advertising "is linked inextricably with the
publication and distribution of the (regulated) white. pages by, or on behalf of, the local
exchange company. Tne profis from the yellow pages are extremely useful...in
supporting costs of communications service and making it more affordable.") There
have been other examples of an arguably unregulated service, whose value is derived
from regulated plant or services, being allowed in rates even though it was not tariffed
as a fully regulated service. See Commission Order No. 05-230. (PGE agrees to share
royalties with ratepayers from an otherwise unregulated business that was initially paid
for by ratepayers.)
Staff also recommends the utilities provide QRE service ås an above-the-line service for
the following reasons:
It would be impossible to ensure that utilty personnel, hardware, softare, and other
costs necessary for providing ORE service and included in retail rates would not be
used to provide ORE service for Third Party Generators, and vice versa. In other words,
there will necessarily be an intermingling of costs incurred by the utilty to provide ORE
service for owned, contracted (where the utility receives RECs) and Third Party
generators. See PacifiCorp's response to Staff Data Request No.6, attached. Further,
in a general rate case, costs are on a forecasted basis for the test year. The utiities
state that it is diffcult to predict how many Third Party Generators may request ORE
service in the future. It also wil be diffcult to predict how many utility-owned and
contracted generators wil require ORE service in the future. Forecasting costs due to
Third Party Generators, versus utility-owned and utility-contracted generators, is prone
to inaccuracy.
As an above-the-Iine service, ratepayers would provide a backstop to cover the utility's
prudently incurred costs in providing QRE service for Third Party Generators. Staff
recommends a separate utilty subaccount be established to track revenues from
generators purchasing ORE service. Revenues would offset costs in rates through a
rider. To the extent the revenues exceed forecasts used to design service rates,
ratepayers would receive the benefit. If QRE servce ever became a profitable endeavor
for the utiities, ratepayers would appropriately share in the benefis given their
investment in the infrastructure used to provide the service.
5
If QRE service is allowed as an above-the line service, staffs counsel advises that the
Commission has general authority to review proposed costs to ensure rates are fair and
reasonable. See Order No. 88-488 at 10. (liThe final rate-making treatment to be
accorded the transactions described in this order and the amount of the revenues which
will be imputed to PNB from them, will be reserved until a general rate proceeding of
PNB.") Toward that end, the utilities have offered to informally submit to the
Commission for its (staffs) review the pro forma QRE contract between the utiity and
the generator.
b. The generator is located in Oregon and the public utilty serves as its
Balancing Authority, but the generator is not I()cated in the public
utilty's allocated Oregon service territory?
Like theresp()oseto lss,ue1 (a), beca.l,se the utilities are geoeraHy vvillngto provide
ORE service, the question of the Commission's legal authority to require a utility to
provide QRE service is essentially moot. Nonetheless, staffs counsel advises that the
strength of the argument set forth in Issue 1 (a) for the proposition that the Commission
has such authority weakens the further the assumed facts stray from the utilty's
business of providing electric service in its allocated service territory. But, so long as the
generator is located in Oregon and the generator is willing to pay for whatever is
reasonably necessary to record and transmit its generation data to the utilty serving as
the aRE, then the basic reasoning delineated in Issue 1 (a) is stil valid under the facts
assumed in Issue 1 (b).
c. The generator is located in the public utilty's allocated service territory
or control area, or both, but is not interconnected to the public utilty's
distribution or transmission system?
Staffs response to Issue 1(c) is generally the same as its response to Issue 1(b).
Issue 2: To the extent the Commission has authority to require the public utilties
to provide QRE service, should the service be provided through a Commission-
approved rate schedule?
Staff assumes in responding to this issue that the phrase "through a Commission-
approved rate schedule" refers to a service that is contained in a tariff approved by the
COmmission pursuantto ORS 757.205. Staffs counsel advises that ORS 757.205 is
generally applicable only to services over which the Commission has full regulatory
powers. As explored in Issue 1 (a), strong arguments can be made both for, and against,
the Commission's regulatory authority to require a utility to provide QRE service.
But, as discussed in Issue 1 (a), PGE, PacifiCorp and staff favor allowing a utiity to
provide QRE service above the line in rates. Under this scenario, the utilty would not
file with the Commission a schedule or tariff for the service pursuant to ORS 757.205
under the premise that the Commission does not necessarily have full regulatory
authority over the service. However, the Commission would still retain authority to
(
6