20130509Price Schedule Update.pdf

I
An IDACORP Company
JULIA A. HILTON
Corporate Counsel
jhilton(idahopower.com
May 8, 2013
4 II ,j U
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. IPC-E-09-24
Cassia Gulch Wind Park, LLCITuana Springs Energy, LLC, Firm Energy
Sales Agreement - 20-Year Pricing Schedule Update
Dear Ms. Jewell:
On August 11, 2009, in Case No. IPC-E-09-24, Idaho Power Company ("Idaho
Power") filed an Application with the Idaho Public Utilities Commission ("Commission")
for approval of the Firm Energy Sales Agreement ("Agreement") between Idaho Power
and Cassia Gulch Wind Park, LLC, and Tuana Springs Energy, LLC ("Project") under
which Idaho Power will purchase electric energy generated by the wind Project. The
Commission approved the Agreement on October 5, 2009, in Order No. 30917.
Idaho Power was notified by the Project that the 20-year pricing schedule
contained within the Agreement did not extend through the full term of the Agreement
(2030). The pricing schedule contained in the Agreement is a blend between the
original Cassia Gulch Wind Park, LLC, prices and negotiated prices for the expansion of
the project. The pricing schedule for Cassia Gulch Wind Park, LLC, did not extend
through the term of the contract due to a 12-month delay in the scheduled Operations
Date. Idaho Power has sent the enclosed letter to the Project for its records.
To ensure this is properly documented and to prevent any potential confusion,
Idaho Power seeks to include this letter and its letter containing pricing schedule
updates for the Project with the original Agreement. Therefore, enclosed for filing are
an original and seven (7) copies of the aforementioned letters.
Please contact me if you have any comments, questions, or concerns.
Sincerely,
Julia A. Hilton
JAH:csb
Enclosures
cc: Richard Free (w/encl.)
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
I 'd Alk
* • ! —.
An IDACORP Company
May 3, 2013
Cassia Gulch Wind Park, LLC and Tuana Springs Energy, LLC
do Exelon Wind, LLC
Attn: Richard Free, Director, Utility and Regulatory Process Support
4601 Westown Parkway, Suite 300
West Des Moines, IA 50266
Sent Via: Email (Richard.Freeexeloncorp.com ), Certified Mail
Subject: Tuana Springs Expansion - Project Number - 31315150
Dear Richard,
Recently you contacted Idaho Power regarding your discovery that the pricing schedules contained in
Article VII of the Firm Energy Sales Agreement (Agreement) between Cassia Gulch Wind Park, LLC-
Tuana Springs Energy, LLC and Idaho Power Company dated August 5, 2009 did not extend through
the full 20 year term of the Agreement.
As you are aware, this project was an expansion of the existing Cassia Gulch Wind Park and the
energy prices contained within this new Agreement for the larger, expanded project was a blending of
the published avoided cost energy prices contained within the original Cassia Gulch Wind Park
Agreement and the negotiated avoided cost prices that were applicable at the time of the expansion of
this project. The original Cassia Gulch Wind Park Pricing schedule contained avoided cost values
directly from IPUC order 29646, and the pricing schedule associated with the expansion was a
negotiated pricing schedule applicable to projects over the published rate eligibility cap. The IPUC
approved this new Agreement and the new pricing schedule in IPUC order 30917 on October 5, 2009.
The Agreement does contain a 20 year pricing schedule through the calendar year of 2028. However
due to the actual Operation Date being May 14, 2010, the full 20 year term of the Agreement will
extend to May, 2030, which unfortunately is beyond the pricing schedule contained within the
approved Agreement.
In order to extend the pricing schedule to include prices for the years 2029 and 2030 we have reviewed
the Agreement and various information used in the negotiations of the Agreement. A key component
of the price negotiations for the new Agreement was to maintain the energy values within the original
Cassia Gulch Wind Park Agreement and to add the negotiated value of the expansion, as this new
larger project now exceeded the 10 average MW eligibility cap. Thus, a blending of these two energy
values was used. In reviewing the original pricing within the Cassia Gulch Wind Park Agreement that
was in accordance with IPUC Order 29646, we have calculated the annual energy price escalation
within that pricing schedule to be approximately 2.3 % per year. As the negotiated energy values of
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the expansion took into account Idaho Power energy needs and forecasted energy prices, there is no
consistent escalation pattern within that serious of values. Thus, we have applied a 2.3% escalation to
the 2028 energy prices within the approved pricing schedule and calculated the 2029 and 2030 energy
prices for this Agreement to be the following:
Article VII: PURCHASE PRICE AND METHOD OF PAYMENT
7.1 Heavy Load Purchase Price:
Season 1 - (73.50 %) Season 2 - (120.00 %)
Year Mills/kWh Mills/kWh
2029 78.49 128.14
2030 80.30 131.10
7.2 Light Load Purchase Price:
Season 1 - (73.50 %) Season 2 - (120.00 %)
Year Mills/kWh Mills/kWh
2029 73.01 119.21
2030 74.70 121.96
7.3 All Hours Energy Price:
Season I - (73.50 %) Season 2 - (120.00 %)
Year Mills/kWh Mills/kWh
2029 76.05 124.17
2030 77.81 127.03
Season 3 - (100.00 %)
Mills/kWh
106.79
109.25
Season 3 - (100.00 %)
Mills/kWh
99.34
101.63
Season 3 - (100.00 %)
Mills/kWh
103.47
105.86
Idaho Power will file this information with the IPUC and ask that it be included with the original
agreement. However, if the IPUC determines that additional information or specific IPUC approval of
this information is required such prices shall not be effective until such Commission approval is
obtained.
If you have any questions please do not hesitate to contact me.
Sincerely,
Energy Contract Coordinator, Sr.
Idaho Power CompanyPower Suppy
208-388-2265
Jglenn(äidahopower.com
cc: Donovan Walker (IPC)
Randy Aliphin (IPC)
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P0 BOX 70 Boise, Idaho 83707 122t W Idaho St. Boise, Idaho 83702