20120619notice_of_filing_order_no_32573.pdf

Office of the Secretary
Service Date
June 19,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-1O-22
OF IDAHO POWER COMPANY FOR )
APPROVAL OF A FIRM ENERGY SALES )NOTICE OF FILING
AGREEMENT WITH YELLOWSTONE )
POWER,INC.FOR THE SALE AND )NOTICE OF
PURCHASE OF ELECTRIC ENERGY.)MODIFIED PROCEDURE
)
_________________________________
)ORDER NO.32573
On May 31,2012,Idaho Power Company and Yellowstone Power,Inc.filed a
Motion requesting that the Commission accept a Settlement Stipulation entered into between the
parties.Idaho Power requests that the Motion be processed by Modified Procedure pursuant to
Commission Rules of Procedure 201-204.IDAPA 31.01.01.201 -.204.
NOTICE OF FILING
YOU ARE HEREBY NOTIFIED that on May 4,2004,the Commission approved a
Firm Energy Sales Agreement (FESA)between Idaho Power and Renewable Energy of Idaho,
Inc.(“Renewable Energy”)for a 17.5 megawatt (MW)biomass generating facility to be located
at the old Boise Cascade Plant site near Emmett,Idaho.Order No.29487.The FESA
subsequently went into default and was terminated by Idaho Power after Renewable Energy
failed to meet its scheduled operation date.Idaho Power determined that the project had incurred
damages in the amount of $106,804 for Renewable Energy’s non-performance.Renewable
Energy was unable to pay the assessed damages.
YOU ARE FURTHER NOTIFIED that on August 13,2010,Idaho Power filed an
application with the Commission requesting approval of a 15-year FESA between Idaho Power
and Yellowstone Power for an 11.7 MW biomass fueled combined heat and power generator
located at the same site as the Renewable Energy project.Richard Vinson,a principal of
Yellowstone Power,was also a principal of Renewable Energy.Mr.Vinson agreed,as part of
the Yellowstone FESA negotiations,to pay the non-performance damages of the Renewable
Energy FESA as an offset to the energy payments Yellowstone was to receive in its FESA.On
November 2,2010,the Commission approved the FESA between Idaho Power and Yellowstone,
including the payment by Yellowstone of Renewable Energy’s $106,804 in non-performance
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32573 1
damages.Order No.32104.Yellowstone chose a scheduled operation date of December 31,
2011.
YOU ARE FURTHER NOTIFIED that Yellowstone has failed to achieve its
December 31,2011,scheduled operation date.On May 3,2012,Idaho Power sent Yellowstone
a Notice of Material Breach.Yellowstone responded by alleging that a force majcure event had
occurred.Settlement discussions between the parties ensued.
YOU ARE FURTHER NOTIFIED that the Settlement Stipulation provides for
termination of the FESA between Idaho Power and Yellowstone Power and mutual release of
any future claims or causes of action between the parties.Yellowstone agrees to pay Idaho
Power $200,000 for its material breach of the FESA,which amount includes Renewable
Energy’s pre-existing debt of $106,804.If Yellowstone fails to make the $200,000 payment then
Yellowstone agrees to allow Idaho Power to draw on the current $450,000 Letter of Credit.
YOU ARE FURTHER NOTIFIED that Idaho Power and Yellowstone state that the
Settlement Stipulation is in the public interest and that all of its terms and conditions are fair,
just,and reasonable.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
of Procedure,IDAPA 31.01.01.201 through .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 opposition with the Commission no later
than twenty-one (21)days from the service date of this Order.The comment must contain a
statement of reasons supporting the comment.Persons desiring a hearing must specifically
request a hearing in their written comments.Written comments concerning this filing shall be
mailed to the Commission and the Applicants at the addresses reflected below:
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32573 2
Commission Secretary Jason B.Williams
Idaho Public Utilities Commission Idaho Power Company
P0 Box 83720 1221 West Idaho Street
Boise,ID 83720-0074 P0 Box 70
Boise,ID 83707
Street Address for Express Mail:E-Mail:[e-mail]
472 W.Washington Street
Boise,ID 83702-5918 Dean J.Miller
McDevitt &Miller,LLP
420 West Bannock Street
P0 Box 2564
Boise,ID 83701
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 the Applicants 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 Settlement Stipulation has been filed with
the Commission and is available for public inspection during regular business hours at the
Commission offices.The filing is also available on the Commission’s web site 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 the Public Utility
Regulatory Policies Act of 1978 (PURPA).The Commission has authority under PURPA and
the implementing regulations of the Federal Energy Regulatory Commission (FERC)to set
avoided costs,to order electric utilities to enter into fixed-term obligations for the purchase of
energy from qualified facilities and to implement FERC rules.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32573 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 this Motion be processed by Modified Procedure.
Interested persons and the parties may file written comments no later than twenty-one (21)days
from the service date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /9’
day of June 2012.
MACK A.REDFORD,CO ISSIONER
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I
IvTARSHA H.SMITH,COMMISSIONER
ATTEST:
/1 A
Jean D.Jewe4i
Commission Secretary
O:IPC-E-I O-22ks5
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32573
PAUL
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