20130603Acceptance of Agreement.pdf

ntull0Npggl6p.
An IDACORP Company
JULIAA. HILTON
Corporate Gounsel
[e-mail]
?fi13 itF,Y :i I Pi{ L: l+6
I i-r ,'.i , .-r i ".,
iJTl l-l-ii :;:i i,ir ;,, i.; i$::;i i; i
May 31 ,2013
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
47 2 W est Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-O9-24
Cassia Gulch Wind Park, LLC/Tuana Springs Energy, LLC, Firm Energy
Sales Agreement - Project's Agreement to Pricing Schedule Update
Dear Ms. Jewell:
Enclosed for filing are an original and seven (7) copies of a Ietter signed by Richard
S. Free on behalf of Cassia Gulch Wind Park, LLC/Tuana Springs Energy, LLC ("Project")
in which Mr. Free has agreed, understood, and accepted the update to the pricing schedule
contained in the Project's Firm Energy Sales Agreement.
Very truly yours,J*^W
Julia A. Hilton
JAH:csb
Enclosures
cc: Richard S. Free (w/encl.)
1221 W. ldaho St. (83702)
PO. Box 70
Boise, lD 83707
<IHilh-
An IDACORp C0m0rny
May 23,2013
Cassia Gulch Wind Park, LLC and Tuana Springs Energy, LLC
c/o Exelon Wind, LLC
Attn: Richarrd Free, Director, Utility and Regulatory Process Support
4601 Westown Parkway, Suite 300
West Des Moines, lA 50266
Sent Via: Email (Richard. [e-mail]), Certifi ed Mail
Subject: Tuana Springs Expansion - Project Number - 31315150
Dear Richard,
Idaho Power previously provided you a letter dated May 3,2A13 which addressed
your request for an update on the pricing schedule contained in Article VII of the
Firm Energy Sales Agreement (Agreement) betrveen Cassia Gulch Wind Park,
LLC-Tuana Springs Energy, LLC and ldaho Power Company dated August 5,
2009.
As you are aware, this project was an expansion of the existing Cassia Gulch Wind
Park. The energy prices contained within this Agreement were a blending of the
published avoided cost energy prices contained within the original Cassia Gulch
Wind Park Agreerrent 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 No.
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
No. 30917 on October 5,2009.
The Agreement does contain 20 years of pricing, however due to the actual
Operation Date of May 14,2010, the full 20 year term of the Agreernent extends to
May, 2030. In reviewing the original pricing within the Cassia Gulch Wind Park
Plge I lrl -1
Agreement which was set out in IPUC Order No. 29646, we have calculated the
annual energy price escalation within that pricing schedule to be approximately 2.3
Yo per year. Because the negotiated energy values of the expansion took into
account ldaho Power energy needs and forecasted energy prices, there is no
consistent escalation pattem within that series of values. Thus, we have applied a
2.3o/o ercalation to the2028 energy prices within the approved pricing schedule and
calculated the2O29 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 I - (73.50o/o)
Year Mills&Wh2029 78.49
2030 80.30
7.2 Ligttt Load Purchase Price:
Season I - (73.50o/o)Year Mills/kWh2029 73.012030 74.7A
7.3 All Hours Energy Price:
Season I - (73.50o/o)
Year Mills/kWh2029 76.0s2030 77.8t
Season 2 - (120.00o/o)
Mills/l(Wh
128.14
l3l.l0
Season3-(100.00%)
Mills/kwh
106.79
t09.25
Season 2 - (120.00%l
Mills/kWh
n9.2t
121.96
Season3-(100.00%)
Mills/kwh
99.34
10t.63
Season 2 - (l20.OO%)
Mills/kWh
124.17
t27.O3
Season3-(100.00%)
Mills/kWh
t03.47
105.86
As stated in the last paragraph of the letter, Idatro Power filed the letter with the IPUC as
an informational copy. The IPUC has subsequently advised that the letter will require
IPUC approval and as part of that process ldalro Power seeks the project's agreement to
include the above-listed prices for the final two years of the Agreement.
Please execute this letter in the appropriate space provided below indicating your express
agreement with the prices to be included in the pricing schedule within the Agreonent.
Please return an original signed copy of this letter to ldatro Power and we will forward it
to the IPUC for inclusion in the appropriate IPUC case. lf a signed copy is not returned
by May 31, 2013 it will be assumed that the project does not agree with the additiond
P O tkrx 70 Boise. ldaho 837()7
prices and ldaho Power will withdraw its application seeking approval and will not add
these prices to the existing Agreement.
Agreed, Understood, and Accepted:
Signature:
Title:
Printed Name:
Date:
/YIM/ACEE
fr," ,+* R/> S. FBet
If you have any questions please do not hesitate to contact me.
Energy Contract Coordinator, Sr.
Idalro Power CompanylPower Suppy
Jgl€nn@idahopow€r.com
208-388-2265
Julia Hilton (IPC)
Donovan Walker (lPC)
Randy Allphin (lPC)
P 0 Bor 70 Borsr:. ldaho lli70"
Pagc -1 ol -1
122 I W ltlaho St lloisc" ldaho ill702