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Home My WebLink About20091028notice_of_application.pdfOffice of the Secretary Service Date BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION October 28, 2009 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 IDAHO WINDS LLC CASE NO. IPC-O9- NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE YOU ARE HEREBY NOTIFIED that on September 10, 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 Idaho Winds LLC (Idaho Winds) dated September 1 , 2009 (Agreement). Idaho Winds proposes to design, construct, own, operate and maintain a 21 MW wind generating facility located approximately six miles northwest of Glenns Ferry in Elmore County, Idaho. The location of the project is more particularly described as Section 16, Township 5 S Range 9 E, Boise Meridian, Elmore County, Idaho. Idaho Winds warrants that the facility to be known as the Sawtooth Wind Project will be a qualified small power production facility (QF) under the applicable provisions of the Public Utility Regulatory Policies Act of 1978 (PURP A). This is the second firm energy sales agreement executed by Idaho Power and Idaho Winds LLC for this location. Reference Case No. IPC-06-, Order No. 30253 (Alkali Wind Project - 18 MW). 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 Availability Guarantee), 30738 (SAR non-fuel cost variables), and 30744 (published avoided cost rates). The Agreement contains non-Ievelized published avoided cost rates as currently established by the Commission for energy deliveries ofless than 10 aMW. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE The nameplate rating of the facility is 21 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. Idaho Winds has selected October 31 , 2012, as the first energy date and December 31 , 2012 as the Scheduled Operation Date. Appendix B- As reflected in the Application, in conformance with Commission Order No. 30488 this Agreement includes a 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 December 31 , 2012. Idaho Winds has been advised and understands that delays in the interconnection process do not constitute excusable delays in achieving the Scheduled Operation Date and if the Scheduled Operation Date is not achieved, delay damages will be assessed. Agreement Paragraph 21.1 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 Idaho Winds for purchases of energy from the Sawtooth Wind Project 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-09-25. 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, i., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAP A 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-09-25 is Wednesday, November 25,2009. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE 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 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- 09-25 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(fYJdahopower .com bkline(fYJ dahopower. 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!illidahopoweLcom 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 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE 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 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. drJ..DATED at Boise, Idaho this ;;J. jj day of October 2009. ~~ L1~ ARSHA H. SMITH, COMMISSIONER ATTEST: je . D. Jewell Co mission Secretary bls/O:IPC-09-25 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE