20120424notice_of_modified_procedure_order_no_32535.pdf

Office of the Secretary
Service Date
April 24.2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AMENDMENTS TO )CASE NO.IPC-E-1O-19
THE FIRM ENERGY SALES AGREEMENT )
BETWEEN IDAHO POWER COMPANY )NOTICE OF PROPOSED
AND GRAND VIEW SOLAR ONE PV,LLC.)AMENDMENTS TO FESA
)
)NOTICE OF
)MODIFIED PROCEDURE
)
________________________________
)ORDER NO.32535
On April 11.2012,idaho Power Company filed a Letter of Understanding with the
Commission.The Letter is dated April 3,2012,and memorializes an agreement reached
between Idaho Power and Grand View Solar One PV regarding Grand View’s required security
and scheduled operation date.idaho Power requested that the Commission ‘file the enclosed
letter in the contract file for this matter.”After reviewing the filing,Staff recommended that the
Commission process the Letter through the use of Modified Procedure because the amendments
pertained to material terms of the Firm Energy Sales Agreement.
NOTICE OF PROPOSED AMENDMENTS
YOU ARE HEREBY NOTIFIED that Idaho Power deemed Grand View Solar One in
material breach of its Firm Energy Sales Agreement (FESA)for failing to maintain the required
security and failing to meet its scheduled operation date.
YOU ARE FURTHER NOTIFIED that Grand View disputed Idaho Power’s
interpretation of the FESA and asserted that it had a “rolling”scheduled operation date for which
a deadline had not expired.
YOU ARE FURTHER NOTIFIED that,as a result of negotiations,Idaho Power and
Grand View Solar One agreed to the following:
1.A (scheduled)commercial operation date of no later than January 12,
2013;
2.The commercially reasonable time period granted to Grand View Solar
One to achieve its operation date is fair and reasonable;
3.Grand View Solar One shall post security in the amount of $810,000 no
later than April 6,2012,to secure the scheduled operation date.If Grand
NOTICE OF PROPOSED AMENDMENTS
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32535
View Solar One fails to achieve a January 12,2013,operation date Idaho
Power has the right to immediately draw funds from the Project’s posted
security and terminate the Project’s FESA without further action or notice;
4.In the event that Grand View Solar One achieves its operation date by or
before January 12,2013,Idaho Power shall release the posted security;
5.If Grand View Solar One does not post the required security by April 6,
2012,the FESA will be terminated without further notice;
6.If Grand View Solar One does not achieve commercial operation on or
before January 12,2013,the FESA will be terminated without further
notice;
7.Grand View Solar One shall pay $475,000 no later than April 6,2012,
representing the required construction deposit pursuant to the Generator
Interconnection Agreement (GIA).If the payment is not made the FESA
will be terminated without further notice;and
8.If it could be reasonably demonstrated that Idaho Power was the cause of
any delays that would prevent Grand View Solar One from achieving its
operation date of January 12,2013,then the operation date shall be
extended by the length of such delays or to a reasonable date mutually
agreed upon by Idaho Power and the Project.
YOU ARE FURTHER NOTIFIED that paragraph 22.1 of the FESA states that,“[nb
modification to this Agreement shall be valid unless it is in writing and signed by both Parties
and subsequently approved by the Commission.”Agreement,¶22.1.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that,while the public interest may not require a
formal hearing in this matter,the Commission has determined that the public interest is best
served by proceeding under Modified Procedure pursuant to Rules 201 through 204 of the Idaho
Public Utilities Commission’s Rules of Procedure,IDAPA 31.01.01.201-204.The Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or in opposition with the Commission no
later than May 31,2012.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written
NOTICE OF PROPOSED AMENDMENTS
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32535 2
comments.Written comments concerning this Application may be mailed to the Commission
and Idaho Power at the addresses reflected below:
Commission Secretary Jason B.Williams
Idaho Public Utilities Commission Idaho Power Company
P0 Box 83720 P0 Box 70
Boise,ID 83720-0074 Boise,ID 83707-0070
E-mail:[e-mail]
Street Address for Express Mail:
Randy Allphin
472 W.Washington Street Idaho Power Company
Boise,ID 83702-5918 P0 Box 70
Boise,ID 83707-0070
E-mail:[e-mail]
These 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 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.IDAPA
31.01.01.204.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices or on the Commission’s website at
www.puc.idaho.gov by clicking on “File Room”and then “Electric Cases.”
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final order consistent with its authority under Title 61.
NOTICE OF PROPOSED AMENDMENTS
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32535 3
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 31.01.01.000,et seq.
ORDER
IT IS HEREBY ORDERED that Idaho Power’s Letter of Understanding with Grand
View Solar One PV be processed by Modified Procedure.Persons interested in submitting
written comments in this matter must do so no later than May 31,2012.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2012.3 /,_/v_
PAUL KJELLANDER,PRESIDENT
MACK A.REDFCO MISSIONER
XL
MARSHA H.SMITH,COMMISSIONER
ATTEST:
/1 /1 /11)
ii I /i-eXA
J,n D.Jewelt)
C’ommission Secretary
O:IPC-E-10-1 9ks
NOTICE OF PROPOSED AMENDMENTS
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32535 4