20071206Settlement stipulation.pdf

lSB
LISA D. NORDSTROM, IS8
Attorneys Jor Idaho Power Company
M.
ADVOCATES FOR THE
610 SW Alder Street,
Portand, OR 97205
T et 503-542-5245
Fax: [phone]
bedd¡e~advocateswest()rg
Attorneys fo Renewable Northwest Project
and NW Energy Coalition
RECEIV
iU1n DEC - 6 PM
4: 0-1
'r'ißHO PUBLIC,
Ulll1flES COMMISSIO¡
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S PETITION TO INCREASE
THE PUBLISHED RATE ELIGIBILITY CAP
FOR WINO POWERED SMALL POWER
PRODUCTION FACILITIES; and
TO ELIMINATE THE 90%1110%
PERFORMANCE BAND FOR WIND
POWERED SMALL POWER PRODUCTION
FACILITIES
)
)
) CASE NO. IPC-E-07-03
)
) SETTLEMENT STIPULATION
)
)
)
)
)
)
1. This Settlement Stipulation ("Stipulation") is entered Into by and among
Idaho Power Company ("Idaho Power" or "the CompanY'), Renewable Northwest
SETTLEMENT STIPULATION -1
and to this
toareto as or
as,
t INTRODUCTION
a
and is
interest The
Utiltis
Stipulation
or
the issues identified in this matter.
Commission, accrdance Rule of
and all of and conditons without material
n. BACKGROUND
3. In Case No. IPC-E-0&-22, the Commtssion endeavored to propeiiy
determine the appropriate pricing ofintermltent generation purchased from Qualified
Facilities ("QFs") pursuant to Section 201 and 210 the Public Utîlty Regulatory
Policies Act of 1978 ("PURPA") ascertain whether any related integratioo
costs were fully reftectedin pubUshed avoided cost rates. pending this
determination, the Commission issued Order No. 29839 in August 2005 reducing the
published rate eligibility cap for intermittent QFs using wind as the motive force ("Wind
QFs") from 1 0 average MW per month to 100 kW and required individual contract
negotiations for Wind QFs larger than 100 kW,
Idaho Power subsequently perfrmed a study to quantify the additi,onal costs it
would incur directly related to purchasing a signifcant amount of wind generation rWind
SETTLEMENT STlPULATION .2
or filed
together a
was
to
of
and
cost rates
in system
avoided
to 10,000
forA.
kWs
average
B,
.OFs to compensate
requested;
publiShed to
wind variabilty as
Idaho Power to purchase state-of-the-art wind energy
production forecasting services that wil provide Idaho Power forecasts of wind
conditions in those geographic areas In which Wind QFs are locted. The Petition
requested the order further provide that OFs reimburse the Company for their
share of the on-going cost of the wind forecasting service; and
D. Authorizing the Company to include a "mechanical avaUabilty guarantee"
("MAG") in all contracts with new intermittent Wind QFs. The MAG would require
intermittent Wind QFs to demonstrate monthly that, except for scheduled maintenance
and events of force majeure,. the Wind OF project was physically capable and available
to generate at full output during 85°/0 of the hours in the month; and
E. If the Commission orders the requested changes to the published rates,
authorizes the acquisition and funding of the wind forecasting services and authorizes
SETTLEMENT STIPULATION -3
energy from
the
remove
new
in
~s us
positons of the case, other consideration as
the Parties agree terms:
3. Terms oUbe Stipulation.
(a.) Idaho Power's published avoided cost rates for Wind OFs wil be
adjusted to recognize an assumed cost integrating the energy generated by Wind
OFs as a part of the Company's generating resource portolio. rate adjustment
be applied three increasing as the total of wind integrated onto idaho
Powerfssystern grows. The Integration charge for each Wind OF project be
calculated at the time a Wind OF project achieves its Operation Date as that term is
defined in the Energy Sales Agreement ("FESA") between the Company and the
OF. The integration charge wm be calculated as a percentage (7%,8% 01'9%) of
the current 20-year, levelized, avoided cost rate, subject to a cap of $6.50/MWh. The
integration charge as calculated on the Operation Date will remain fixed throughout the
term of the contraetand wil be applied as a decrement to the applicable published fate
according to the table below:
SETTLEMENT STlPULATION -4
1
2
3
the wind
on a
with Wind been by
as wil
wind as such are in If the capacity
associated a causes the of to 300 or to
exceed 500 MW, such Wind QF wm be subject applicable integration cost for Tier
2 or Tier respectively.
The term "applicable pubiished rate" means the applicable avoided cost rate
approved by the Idaho PUC for purchases of power fromOFs producing less than
10aMW, the relevant contract year and time period of energy generation.
(b.) Thé "90%1110%" performance band approved by Commission
in Order No. .29632 be eliminated from the template Firm Energy Sales Agreement
for future Wind QFs. The 90%/11 0% performance band wil be replaced in future
FESAs by the integration charge described in paragraph 3(a) above, a mechanical
availabilty guarantee as described Idaho Powets Petition this case, IPC-E-07-o3
and a wind forecasting charge as described in paragraph3(f) below.OFs currently
holding approved FESAs which include the 90%/110% performance band can elect to
amend their existing FESAs to replace the 90%/110% performance band with the
mechanicalavailabmty guarantee but if they make that election, they will be subject to
SETTLEMENT STlPULATION ~5
Idaho Power an
in
venues.
SETTLEMENT STIPULA TION.-ô
not
Idaho wil share
over
the It
and cost
Reasonable Compromise:
a of in case.provided in RP
other support of approval of
to a Party to explain before the own
statements and positions with respect to this Stipulation, statements made and
positions taken in negotiations to Stipulation shall be confidential and
not be admissible in evidence in orany other proceeding.
5. Best Efforts for Approval: The Parties submit this Stipulation to the
Commission and recommend approval in entirety pursuant to RP274. The Parties
shall suppo.rt this Stipulation before the Commission and no Party shall appeal a
Commission Order approving this Stipulation or an issue resolved by this Stipulation. If
this Stipulation ,is challenged by any person not a party to this Stipulation, the Parties to
this Stipulation reserve the right to file testimony, cross-examine witnesses and put on
such case as they deem appropriate to respOnd fully to the issues presented, including
the right to raise issues that are incorporated in the settements embooiedin this
Stipulation. Notwithstanding this reservation of rights, the Parties to this Stipulation
SETTLEMENT STIPULA T!ON -7
they
or this
on approval of
the
to withdraw seek
reconsideration the as it
witnesss, and do things to case as it deems
appropriate. In case, the Parties immediateiy will convening of
a conference for purposes of establishing a procedural the
completion case. The Parties agree to cooperate in deveiopment of a schedule
that concludes the proceeding the earliest possibie date, taking into accunt the
needs of the Parties in pa.rticîpating hearings and preparing briefs.
Public Interest: The Parties agree that thís Stipulation is the public
interest and that all of its terms and conditions are fair, just and reasonable.
8. Commission Ap.proval: The obligations of the Parties under this
Stipulation are subject to the Commissíon's approval of this Stipulation in accrdance
with its terms and conditions.
9. Counterparts: This Stipulatíon may be executed íncounterparts and
eaCh signed counterpart shall constítute an origínal document
SETREMENT STiPUlATION-8
of
FLEISCHMAN
SETTLEMENT STIPULATION