20090804notice_of_application_ipc_2.pdf

Office of the Secretary
Service Date
August 4, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF A FIRM ENERGY SALES
AGREEMENT FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY
BETWEEN IDAHO POWER COMPANY
AND YAHOO CREEK WIND PARK LLC
CASE NO. IPC-O9-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT/PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on July 17, 2009, Idaho Power Company
(Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission
(Commission) requesting approval of a 20-year Firm Energy Sales Agreement between Idaho
Power and Yahoo Creek Wind Park LLC (Yahoo Creek) dated July 9 2009 (Agreement).
AGREEMENT
Yahoo Creek proposes to design, construct, install, own, operate and maintain a 22.
megawatts (MW) wind generating facility. The Yahoo Creek facility will be located near
Hagerman, Idaho, in an area more particularly described as all except the SE 1/4 ofthe SE 1/4 of
Section 35 , and all except the NE 1/4 of the NE 1/4 of Section 36, Township 7 S, Range 12 E
Boise Meridian, Twin Falls County, Idaho; Section 2 and the W 1/2 and SW 1/4 of the NE 1/4
and the W 1/2 of the SE 1/4 and the SE 1/4 of the SE 1/4 of Section 1 , Township 8 S , Range 13
, Boise Meridian, Twin Falls County, Idaho; and the N 1/2 of Section 6, Township 8 S, Range
13 E, Boise Meridian, Twin Falls County, Idaho. Yahoo Creek warrants the facility will be a
qualified small power production facility (QF) under the applicable provisions of the Public
Utility Regulatory Policies Act of 1978 (PURP A). Agreement ~ 3.2.
The Application states that the Agreement comports with the terms and conditions of
the various Commission Orders applicable to PURP A agreements for wind resources. Order
Nos. 30415 (daily load shape adjustment), 30488 (wind integration adjustment; Mechanical
Available Guarantee), 30738 (SAR non-fuel cost variables), and 30744 (published avoided cost
rates). The Agreement contains levelized published avoided cost rates as currently established
by the Commission for energy deliveries of less than 10 aMW. Agreement Article VII. The
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
Agreement includes the various security requirements required by the Commission for levelized
agreements (i., debt service reserve account (~ 19.3.2), maintenance reserve account (~ 4.19),
second lien requirements (~ 4.1.10), and an expanded list of required insurances (~ 13.2)).
The nameplate rating of the facility is 22.5 MW. Under normal and/or average
conditions, the facility will not exceed 10 aMW on a monthly basis. Should the facility exceed
10 aMW on a monthly basis, Idaho Power will accept the energy (Inadvertent Energy) that does
not exceed the maximum capacity amount; however, the Company will not purchase or pay for
this Inadvertent Energy. ~ 7.5. Yahoo Creek has selected September 30 , 2010, as both the
scheduled First Energy Date and the Scheduled Operation Date. Appendix B-
As reflected in the Application, this is one of the first PURP A wind agreements
executed since the issuance of Commission Order No. 30488, which requires the inclusion of the
Mechanical Availability Guarantee (MAG) (~ 6.4), wind integration cost reduction (~ 7.1), and
wind forecasting cost sharing (Appendix E). In addition, the Agreement contains provisions for
delay liquidated damages (~ 5.3) and associated delay security (~ 5.7) to secure the established
scheduled operation date of September 30 2010.
Agreement ~ 21 provides that the Agreement will not become effective until the
Commission has approved all of the Agreement's terms and conditions and declares that all
payments Idaho Power makes to Yahoo Creek for purchases of energy will be allowed as
prudently incurred expenses for ratemaking purposes.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. IPC-09-19. The Commission has preliminarily found that the public
interest in this matter may not require a hearing to consider the issues presented and that issues
raised by the Company s filing may be processed under Modified Procedure , by written
submission rather than by hearing. Reference Commission Rules of Procedure, IDAP
31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to Idaho Power s Application and the use of Modified Procedure in Case
No. IPC-09-l9 is Tuesday, September 22 2009.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and may
enter its Order without a formal hearing. If comments or protests are filed within the deadline
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
the Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it. Reference IDAP A
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. IPC-
09-19 should be mailed to the Commission and the Company at the addresses reflected below.
Commission Secretary Donovan E. Walker
Idaho Public Utilities Commission Barton L. KlinePO Box 83720 Idaho Power Company
Boise, ID 83720-0074 PO Box 70
Boise, ID 83707-0070
E-mail: dwalker(ll),idahopower.com
bkline(g)idahopower. com
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918 Randy C. Allphin
Contract Administrator
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: rallphin(~jdahopower.com
Street Address for Express Mail:
1221 W. Idaho Street
Boise, ID 83702
All comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon and complete the comment form using the case number as it appears on the front of this
document. These comments must also be sent to Idaho Power at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application in Case No. IPC-09-
may be viewed at www.puc.idaho.gov by clicking on "File Room" and "Electric Cases " or can
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
be viewed during regular business hours at the Idaho Public Utilities Commission, 472 West
Washington Street, Boise, Idaho and at the general business office of Idaho Power Company,
1221 West Idaho Street, Boise, Idaho.
DATED at Boise, Idaho this 'f
f4'day of August 2009.
iE:ill.
LifA.Je D. Jewell
Co mISSIOn Secretary
bls!N:IPC-O9-19 sw
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE