20120531Comments.pdf

Peter J.Richardson (ISB #3195)
Gregory M.Adams (ISB #7454)
Richardson &O’Leary,PLLC
515 N.27th Street
P.O.Box 7218
Boise,Idaho 83702
Telephone:[phone]
Fax:[phone]
[e-mail]
[e-mail]
Attorneys for Grand View Solar One PV,LLC
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AMENDMENTS TO )
THE FIRM ENERGY SALES AGREEMENT )
BETWEEN IDAHO POWER COMPANY AND)
GRAND VIEW SOLAR ONE,PV,LLC )
)
)
)
___________________________________________________________________________________)
COMES NOW,Grand View Solar One,PV,LLC (“Grand View”)pursuant to that
Notice of Modified Procedure and Order No.32535 issued by the Idaho Public Utilities
Commission (“IPUC”or “Commission”)and hereby lodges its comments on Idaho Power
Company’s (“IPCo”or the “Company”)Letter of Understanding regarding the scheduled
operation date for the Grand View Solar One,PV project.
RECOMMENDATIONS
Grand View recommends the Commission approve the Letter of Understanding and
Agreement as explained in more detail in the attached responses to Staff’s Production Requests
to Idaho Power (Exhibit 1)and to Grand View (Exhibit 2),the parties had a disagreement as to
the Scheduled Operation date.It is,and has been,Grand View’s position and understanding that
it has a rolling Scheduled Operation date that is triggered through the interconnection process
Page 1 —Comments of Grand View
---‘-I —
Case No.IPC-E-10-19
COMMENTS OF GRAND VIEW
SOLAR ONE,PV,LLC
and is determined by the project.The Letter of Understanding now makes that Scheduled
Operation Date a time certain.This will bring clarity to both parties as to their expectations and
responsibilities.
The project is currently under construction,with literally millions of dollars of panels and
equipment currently staged on site.It is Grand View’s understanding that changes in operation
date have been routinely,without the need for formal Commission action,approved by Idaho
Power with simple notice to the file at the Commission.Grand View sees no reason for it to be
treated any differently.
Grand View respectfully requests the Commission promptly issue its order approving the
Letter of Understanding and Agreement.
Dated this 31st day of May,2012
RICHARDSON AND O’LEARY,PLLC
Peter J.Richardson (ISB No:3195)
Gregory M.Adams (ISB No.7454)
Attorneys for Grand View
Page 2 —Comments of Grand View
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 31st day of May,2012,a true and correct copy of the
within and foregoing COMMENTS OF GRAND VIEW SOLAR ONE,PV,LLC in Case No.
IPC-E-10-19 was served in the maimer shown to:
Ms.Jean Jeweil X Hand Delivery
Commission Secretary U.S.Mail,postage pre-paid
Idaho Public Utilities Commission —Facsimile
P 0 Box 83720 X Electronic Mail
Boise,D 83 720-0074
jean.jewel1(puc.idaho.gov
Kris Sasser X Hand Delivery
Donovan L Howell U.S.Mail,postage pre-paid
Rick Sterling —Facsimile
Deputy Attorney General Electronic Mail
Idaho Public Utilities Commission
472 W.Washington St.
Boise,ID 83702
[e-mail]
donovan.howe1l(puc.idtho.gov
rick.sterling(puc.idaho.gov
Jason B Williams Hand Delivery
Randy Aliphin U.S.Mail,postage pre-paid
Idaho Power Company —Facsimile
PD Box 70 X Electronic Mail
Boise,Idaho 83 707-0070
[e-mail]
[e-mail]
Nina Curtis
Administrative Assistant
EXHIBIT 1
IPC-E-10-19
COMMENTS OF GRAND VIEW SOLAR ONE,PV,LLC
FE C FE V
Peter Richardson ISB #3195
Gregory Adams ISB #7454
515 N.27th Street
Boise,Idaho 83702
[phone]
petcr’àrichardsonandoteary.com
2U12 [lAY —3 11 3 f2
;.
[e-mail]
Attorneys for Grand View PV Solar One,LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AMENDMENTS TO THE
FIRM ENERGY SALES AGREEMENT
BETWEEN IDAHO POWFR COMPANY AND
GRAND VIEW SOLAR ONE PV,LLC.
)
)CASE NO.IPC-E-1O-19
)
RESPONSE TO FIRST
)PRODUCTION REQUEST OF
)THE COMMISSION STAFF TO
)GRAND VIEW SOLAR ONE PV,
)LLC
COMES NOW Grand View PV Solar One,and pursuant to Rule 228 of the Rules of
Procedure of the Idaho Public Utilities Commission and hereby provides the following responses
to the First Production Request of the Commission Staff.Rule 228 requires that the response
contain the name of the person who will be able to answer questions about or sponsor the answer
at hearing.
RESPONSE TO FIRST PRODUCTION REQUEST
TO GRAND VIEW SOLAR MAY 3,2012
REQUEST NO.1:Please explain why Grand View Solar One believes that an
extension until no later than January 12,2013 is a fair and commercially reasonably time period
for Grand View Solar One to achieve its operation date.In your explanation,please discuss
specifically how Grand View Solar One defines the phrase “commercially reasonable.
RESPONSE TO REQUEST NO.1:
Grand View Solar One believes that a no-later-than January 12,2013,operation date is
fair and commercially reasonable due to progress to date in the development and construction of
the project coupled with the commitment by Idaho Power to have the transmission interconnect
complete by October 12,2012.Currently the project roads and perimeter security fencing are
complete.In addition,all PV panels are on site.Upon completion ofthe final phase ofthe
project’s financing,anticipated by June 1,2012,the time required to install the solar panels and
associated equipment is approximately 100 days or October 12,2012.The additional 90 days
beyond the anticipated construction completion date for the Operation Date allows for
unexpected delays in construction due to weather or other factors.Several site photos are
attached showing the existing perimeter fencing,roads and PV panels.
Specifically,the phrase “commercially reasonable”is used in the agreement with Idaho
Power to describe the time frame in which financing,construction of the facility by Grand View,
construction of the interconnection facilities by Idaho Power (over which Grand View has no
control),energizing the facility,start-up and testing,and ultimately producing as provided for in
the power purchase agreement are all complete.In consultation with lenders,construction
managers and panel manufacturers,Grand View is ofthe informed opinion that the time flame
agreed to is,indeed,commercially reasonable.
Sean Stocker is able to answer questions about and/or sponsor this answer at hearing.
RESPONSE TO FIRST PRODUCTION REQUEST
TO GRAND VIEW SOLAR 2 MAY 3,2012
REQUEST NO.2:Please explain Grand View Solar One’s reasons for not meeting the
Scheduled Operation Date as specified in ¶B-3 of Appendix B ofthe FESA.Describe all
reasons for delays and discuss any actions taken by Grand View Solar One to remedy those
delays.
RESPONSE TO REQUEST NO 2:
There is no set “Scheduled Operation Date”specified in B-3 (1)of Appendix B of the
FESA.The scheduled Operation Date is defined in the agreement as “90 days past the date
identified within the final Facility Study report in which Idaho Power shall have completed
installation ofthe Idaho Power interconnection equipment”.As per the Facility Study section 2
and as referenced in the Facility Study cover later from Idaho Power,both dated December 7,
2010,the timeframe for posting the interconnection Construction Funds and the corresponding
Commercial Operation Date is “TBD”by the Seller (Grand View Solar One)resulting in a
“rolling timescale rather than specific dates”.Therefore,it is clear that both Idaho Power and
Grand View agreed and understood that the Firm Energy Sales Agreement,that was approved by
the Commission,did not specify a set Scheduled Operation Date.The letter agreement currently
before the Commission,for the first time,establishes a set Schedule Operation Date.Setting a
specifically defined,rather than “rolling”Scheduled Operation Date,is of benefit to Idaho Power
in that it may now plan on when it will receive the benefit of the,almost entirely,on peak
generation from this project.The development and funding of a commercial solar energy facility
is complex and variable.Grand View Solar has been in contact with Idaho Power about progress
and delays since the receipt of the Facility Study in December of2OlO.Unfortunately
development and funding challenges have caused the project’s Operation Date to be pushed later
in time than originally hoped and anticipated,however still in compliance with the executed
Generator Interconnection and Firm Energy Sales agreements between Idaho Power and Grand
View Solar One.Please refer to the attached Exhibit A —Idaho Power Cover Letter and
Generator Interconnection Facility Study for additional details.
Sean Stocker is able to answer questions about and/or sponsor this answer at hearing.
RESPONSE TO FIRST PRODUCTION REQUEST
TO GRAND VIEW SOLAR 3 MAY 3,2012
Exhibit A
IDHO
POWER®
An IDACORPCompany
December 7,2010
Peter Richardson
Richardson and O’Leary
515.N 27th.Street
Boise,ID 83702
Re:Grand View Solar PV One —Project #312
Dear Mr.Richardson:
Attached please find the Final Facility Study Report (FSR)for the subject project.I modified Section 2
Milestones to better reflect the changes to the on-line date as described in your letter dated December 1,
2010 and provided a rolling timescale rather than specific dates.I understand that you would prefer to be
on-line September 1,2011.Additionally,language has been added regarding Generator Output Limit
Control.
This report will be used to prepare a Generator Interconnection Agreement in preparation for
construction.Rowena Bishop will be working with you to finalize the Interconnection Agreement.
Before we can begin construction or order materials,you are responsible for contacting Idaho Power’s
credit department to discuss credit requirements for construction funding.Please contact Aubrae Sloan
(208-388-5697)at your earliest convenience.Once we receive funding,or the credit requirement is met,
we can proceed with construction of the project.
The actual construction and labor charges will be finalized approximately 90 days subsequent to project
completion.We will reconcile any over-or underpayment at that time.
I look forward to hearing from you soon.
Sincerely,
/T/’
Eric Hackett
Project Leader
Attachment:Grand View Solar PV One Project Facility Study Report with Drawings
Cc:R Bishop/IPC
A Sloan!IPC
Exhibit A
IHO
PflIER®
An IDACORP COrnpny
Generator Interconnection
Facility Study Report
for the
Grand View Solar PV One Project —Project #312
for
Grand View Solar PV One,LLC
in
Elmore County,ID
December 7,2010
Exhibit A
FACILITY STUDY REPORT (FSR)
Grand View Solar PV One Project
Project #312
December 7,2010
General Facility Description
The proposed project consists of 185 solar barns,Sharp TF (I 28-BEW)thin film solar panels in
Elmore County,Idaho and connects to the 34.5 kV system on Idaho Power Company’s Canyon
Creek (CACK-042)distribution line.The total project output is 20 MW.
Interconnection Customer:
Peter Richardson
Richardson and O’Leary
515.N 27th.Street
Boise,ID 83702
A Standard Generator Interconnection Agreement under Idaho Power Company’s Open Access
Transmission Tariff (OATT)or Schedule 72 between Interconnection Customer and Idaho Power
Company —Delivery (Transmission Owner)for the Grand View Solar PV One Project,specifically
Generator Interconnection Project #312,will be prepared for this project.
1.1 Interconnection Point
The Interconnection Point for the Grand View Solar PV One Project will be the spade located on
the Interconnection Customer side of the disconnect switch (defined as X_—on the work order
map)on the Interconnection Customer side of the interconnection package.The project’s
location is in Elmore County,ID and in TO5S,RO4E,and Section 05 in relation to the Boise
Meridian.A drawing identifying the Interconnection Point is attached.
1.2 Point of Change of Ownership
The Point of Change of Ownership for the Grand View Solar PV One Project is the same as the
Interconnection Point.
1.3 Customer’s Interconnection Facilities
The Interconnection Customer will install generators,step-up transformers,d istiibution Collector
system,appropriate groundmg devices,and associated auxiliary equipment.Interconnection
customer will build facilities to the Point of Change of Ownership for the generator facility and
will connect to the Interconnection Point via overhead line at a tension not to exceed the design
tension specified by Idaho Power.
Exhibit A
1.4 Other Facilities Provided by Interconnection Customer
1.4.1 Telecommunications
The Interconnection Customer will provide two communication circuits between the
generation interconnection site and a location,or locations,specified by Idaho Power.
One of the circuits will be a dedicated 4-wire leased analog circuit connected to the
SEL 3 II C relay and the other vill be a POTS dial-up circuit to the revenue meter.
The Interconnection Customer is responsible for supplying and coordinating the
installation of the phone lines and paying the monthly service charges.The
coimnumcation circuits vill need to be installed and operational prior to generating
into the Idaho Power system.
1.4.2 Ground Fault Equipment
The Interconnection Customer will install transformer configurations that will limit
the contribution of ground fault current to 20 amps or less at the Interconnection
Point,Additionally,the high side of the step-up transformers must be grounded-wye.
1.4.3 Generator Output Limit Control
The interconnection Customer will install equipment to receive signals from Idaho
Power Grid Operations for Generation Output Limit Control (“GOLC”)-see Section
3 Operating Requirements.
1.4.4 Easements
The Interconnection Customer will secure appropriate easements with the land owner
for the upgrades and interconnection facilities.Idaho Power will provide the
documentation.
1.4.5 Monitoring Information
If the Interconnection Customer requires the ability to monitor information related to
the Idaho Power recloser in the generation interconnection package they are required
to supply their own communications circuit to the control box.
1.5 Idaho Power Company’s Interconnection Facilities
Idaho Power will install a standard generation interconnection package on the existing
distribution feeder (CACK-042).If desired,Idaho Power can install a pole riser if the
Interconnection Customer would like to install underground cable to make the final
connection to the Interconnection Point.
The new interconnection package will include four distribution poles to mount a local service
transformer,solid blade disconnects,primary metering package,recloser,relays,fuses and
riser necessary for the package.The interconnection will be controlled by a SEL-3l 1C line
protection relay located in a pole mounted box.
2
Exhibit A
1.6 Interconnection Facilities Cost Estimate
The following good faith estimates are provided in 2010 dollars:
-
interconnection Facilities:
Four-Pole Interconnection Package IPC $225,000.00
SUBTOTAL $225,000.00
See Section 6for Project Grand Total
2.Milestones
-
TBD Construction Funds Received by Idaho Power
5 Months after Construction IPCO Construcuon Complete
Funds Received by IPCO
1 Month after IPCO IPCO Commissioning Coniplete
Construction Complete -—
Com,nerciaI Operation Date [thd by sellerI
Milestone dates are approximate and are subject to material and resource availability.
3.Operating Requirements
Voltage flicker at startup and during operation will be limited to less than 5%as measured at the
Interconnection Point.It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system.The project is required to comply with the applicable
Voltage and Current Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended
Practices and requirementsfor harmonic Control in Electrical Power Systems.
The Project will be allowed to deliver the net output of 20 MW at the Interconnection Point subject
to reductions directed by Idaho Power Grid Operations during system contingencies.When outages
occur,the Project will be subject to Generator Output Limit Control (“GOLC”)and will have
equipment capable of receiving signals from Idaho Power for GOLC.Generator Output Limit
Control will be a signal from Idaho Power to the Project indicating maximum output allowed during
contingencies.
Interconnection Customer will be able to modify power plant facilities on the Interconnection
Customer side of the Interconnection Point with no impact upon the operation of the transmission or
distribution system whenever the generation facilities are electrically isolated from the system via
the X ——switch.
4.Reactive Power
The project must be controlled to operate at unity iower factor or meet the voltage schedule
provided by Idaho Power.If this requirement cannot be met,further voltage studies will be
necessary.
3
Exhibit A
5.Upgrades
5.1 Distribution Upgrades
Idaho Power will upgrade approximately 1.5 miles of the existing distribution feeder to
accommodate the new Grand View Solar PV One project.The existing conductor will be
upgraded to 336.4 AAC conductor with a 2/0 neutral.The associated support structures will be
rebuilt as necessary to accommodate the larger conductor.The feeder will be rebuilt from the
Interconnection Point back to the northwest.
6.Total Estimated Costs
The following good faith estimates are provided in 2010 dollars:
Iuterconnection Facilities:
Four-Pole Interconnection Package (from Sec 1.6)IPC $225,000.00
SUBTOTAL $225,000.00
Upgrades to Distribution:
1.5 Mile CACK-042 Line Reconductor IPC $250,000.00
SUBTOTAL $250,000.00
GRAND TOTAL $475,000.00
Note Regarding Transmission Service:
Transmission system improvements and associated costs outside the scope of this Generator
Interconnection Facility Study Report may be required for the delivery of energy from this project.
Generator interconnection service does not in any way convey transmission rights nor determine other
transmission system improvements to deliver your project energy to any specific customer or point of
delivery in our system.A separate transmission service request is required to procure transmission
rights.
4
REQUEST NO.3:Please explain how Grand View Solar One intends to determine when its
facility has met its revised Scheduled Operation Date.For example,this project will consist of
approximately 75,000 PV panels.How many panels have to be operational before Grand View
Solar One believes the facility should be deemed to have met its Scheduled Operation Date?
RESPONSE TO REQUEST NO.3
Determination of the Operation Date is subject to “confirmation from Idaho Power”
pursuant to Section 5.2 of the FESA.Idaho Power has the authority to make that determination,
which determination “will not be unreasonably withheld.”Grand View Solar One’s conditions
for achieving the Operation Date as per the FESA,Section 5.2,require “the Facility to be able to
provide energy in a consistent,reliable and safe manner”.As of this date,Idaho Power has not
provided Grand View with a target number of panels that must be operational in order for Grand
View to have “demonstrated to Idaho Power’s satisfaction that the Facility is complete.”Absent
those instructions from Idaho Power,Grand View Solar One will consider it has met the
Scheduled Operation Date when a minimum of 80%of the PV panels have been installed and
verified to be capable of consistently,safely and reliably delivering power to the interconnection
point with Idaho Power.In compliance with the FESA,Section 5.2,Grand View Solar One will
request written confirmation ofthe Operation Date from Idaho Power once this minimum has
been achieved,It will then be Idaho Power’s responsibility to provide “written confirmation”
that the Operation Date has been achieved,and as noted above,such “written confirmation”will
not be “unreasonably withheld by Idaho Power.”Grand View will certainly work with Idaho
Power to achieve installation of whatever number of panels the Company requires within the
time frame provided in the letter agreement.
Sean Stocker is able to answer questions about and/or sponsor this answer at hearing.
RESPONSE TO FIRST PRODUCTION REQUEST
TO GRAND VIEW SOLAR 4 MAY 3,2012
REQUEST NO.4:Please explain why Grand View Solar One disputes Idaho Power’s
inteipretation of the FESA that the Scheduled Operation Date was January 30,2012,and instead
asserts that the FESA has a ‘rolling scheduled operation date as stated in Idaho Power’s April 3,
2012 Letter of Understanding and Agreement with Grand View.
RESPONSE TO REQUEST NO 4:
Grand View and Idaho Power have consistently viewed the Scheduled Operation Date as
a “rolling”date that is not specified in the existing FESA.Idaho Power’s assertion that the
Schedule Operation Date was January 30,2012 was only first asserted on March 22 ofthis year.
See the attached letter (Exhibit B)from Mr.Sher to Mr.Allphin for a complete exposition of the
events and Grand View’s response.That said,as per B..3 (1)of Appendix B of the FESA,the
scheduled Operation Date is “90 days past the date identified within the final Facility Study
report in which Idaho Power shall have completed installation of the Idaho Power
interconnection equipment”.As per the Facility Study section 2 and as referenced in the Facility
Study cover later from Idaho Power,both dated December 7,2010,the timeframe for posting the
interconnection Construction Funds and the corresponding Commercial Operation Date is
“TBD”by the Seller (Grand View Solar One)resulting in a “rolling timescale”.This “rolling:
scheduled operation date is acknowledged in the Facility Study Cover letter from Idaho Power.
Please refer to Exhibit A attached to Response to Request No.3 —Idaho Power Cover Letter and
Generator Interconnection Facility Study for additional details.
Sean Stocker is able to answer questions about and/or sponsor this answer at hearing.
RESPONSE TO FIRST PRODUCTION REQUEST
TO GRAND VIEW SOLAR 5 MAY 3,2012
Exhibit B 300 Great Oaks Boulevard —Suite 320
Albany,New York 12203
DIDM
CF’ITAL Phone:[phone]
-
Fax:[phone]
March 23,2012
Randy Allphin
Energy Contracts Adniin istrator
Idaho Power Company
1221 West Idaho Street
Boise,Idaho 83702
HAND DELIVERY
Re:Grand View Solar One PV —Notice of Breach
Dear Randy:
Thank you for visiting with Sean Stocker,Corona’s Director of Development,who serves as our
point man on this project.We share your concern relative to getting this project on line as
quickly as possible.At your invitation we are presenting you with a proposal addressing your
concerns --but first some context.
As you know,Randy,we have already commenced construction of this project.The long lead-
time items (the solar panels themselves)have not only been ordered --they have been delivered
to the site.We currently have in excess ofthirty million dollars’worth of panels on site at this
very moment!Relative to the letter ofcredit,I can assure you nothing nefarious was intended by
its lapse.Corona just wanted to double check with Idaho Power Transmission as to the timing of
the interconnection process in order to sync up the timing of the letter ofcredit with Idaho
Power’s timetable for the interconnect work.Yesterday morning,(before receipt ofyour letter
yesterday afternoon)Sean visited with Mr.Hackett about that very subject,which was confirmed
by the attached copy of Mr.Hackett’s email to Sean.It seemed to us,which was confirmed by
Mr.Hackett’s letter,that everything was moving along nicely —at least it seemed so before
receipt of your letter yesterday afternoon.
Literally,on the same day Corona was having productive discussions with Idaho Power
personnel moving this project forward,we received your letter asserting material breaches.You
assert that the project is in material breach of the Firm Energy Sales Agreement (FESA)for two
reasons.First you assert that the liquid security letter of credit has expired and has not been
renewed.Second you assert that the project has missed its operation date due to the project’s
inaction in thiling to post the required construction deposit.
I would like to keel)w’ith the spirit of Mr.Stocker’s conversation with you today.Therefore,I
will not use this opportunity to point to all of our legal defenses ——which are many ——and all of
our counterclaims ——which also are many and include written acknowledgement that we have a
Exhibit B
Randy Aliphin
March 23,2012
Page 2
FESA with a “rolling”on line date --that we will assert in the event Idaho Power attempts to
terminate this agreement.Rather,I outline a proposal going forward that should meet your needs
as well as get this project on line in the near term.
First,I have wired the amount of four hundred and seventy-five thousand dollars ($475,000)to
my lawyer’s trust account in Idaho.Upon your acceptance of this letter agreement,he has been
instructed to hand deliver a check in that amount made out to Idaho Power in completion of our
obligation under the Generator Interconnection Agreement.This will cure the first material
default you identified.It will also trigger a hard and fast operation date —90 days after,what is
likely to be a six month period according to Mr.Hackett,the date Idaho power transmission
states that it will have the interconnection equipment installed.
Second,a letter of credit in the full amount of $810,000 will be posted immediately after you
accept the terms of this letter agreement.In exchange for your withdrawal of the second material
default and your forbearance on pursuing Delay Liquidated Damages,Corona would agree to
forfeit the $810,000 in its entirety and release Idaho Power fiom any and all liability in any way
connected to this project if it has not reached its Commercial Operation Date the later of ninety
days after the date identified by Idaho Power transmission that it should have the interconnection
equipment installed or ninety days after six months from the date of your acceptance ofthis letter
agreement.
I am looking forward to your prompt response and am prepared to come to Boise to meet with
your management at their convenience to discuss our proposal.
Sincerely
Corona Grandview,LLC
Mark Scher —CEO and Manager
Exhibit B
Mark Scher
From:Sean Stocker
Sent:Friday,March 23,2012 5:20 PM
To:Peter Richardson
Cc:David Scher;Mark Scher;Terry Kees
Subject:FW:Grandview Solar
See below for email from Eric Hackett regarding my conversation with him on Thursday before receiving the email /
notice from Randy.
From:Hackett,Eric [mailto:EHackett©idahopower.coml
Sent:Thursday,March 22,2012 5:04 PM
To:Sean Stocker
Cc:Bauer,Rich;Bishop,Rowena;Harris,Joshua;Sloan,Aubrae;Walker,Donovan;Williams,Jason
Subject:Grandview Solar
Sean,
As we discussed this morning,I feel confident that IPCO can have the project interconnection facilities and upgrades completed and
commissioning done in the six month timeframe stated in the FSR and GIA after the project is funded.I will be notified of funding
from Aubrae once that piece is finalized.
I spoke with Rowena and I do believe your GIA is signed.
One note regarding the timeframe stated above.When commissioning is complete I will send a letter to our operations group
saying that all necessary construction activities are final and essentially turning the project over to them.They in turn have some
things to check off on and will provide the final notice to you to begin operation.I simply bring this up as you may want to further
coordinate your dates with our power supply and operations departments as you suggested.
Eric hackett,P.E.
Project Leader
Idaho Power Company
PU Box 70,83707
1221 JI’es Idaho Si.
Boise,ID 83702
Office Phone:[phone]
Cell Phone:[phone]
This transntissioii may contain iofoiiiiatioii that is privileged,confidential and’or eseitipt 1mm disclosure tinder applicable law Ifyon arc not the irtended lecipieni,you are hereby
notified that any disclosure,copying,d,stnba ion,or use of the nforniaiioii contained hcien (including any reliance ttiereoii)is STRICTLY PROj III3ITED Ifyon received this
transmission iii enGr.please immediately contact lie sender and destroy tim material in its entirety,sslictliw in electronic or hard copy fonnai Thank you.
REQUEST NO.5:Please state whether Grand View Solar One has commenced
construction activities at the project site.If construction has commenced,please describe those
activities.
RESPONSE TO REQU1iST NO.5:
The project has commenced construction,Engineering and permitting are complete,access and
on-site roads are complete and all site perimeter fencing is installed.In addition,all PV panels
have been delivered to the site.See attached photos.The site is graded,drainage facilities
installed,there are personnel on site twenty-four hours a day.
Sean Stocker is able to answer questions about and/or sponsor this answer at hearing.
RESPONSE TO FIRST PRODUCTION REQUEST
TO GRAND VIEW SOLAR 6 MAY 3,2012
A’
REQUEST NO.6:Please provide a schedule showing the expected completion date of
key activities necessary for the facility to achieve a Scheduled Operation Date of January 12,
2013.List all key activities completed to date as well as those yet to be completed.
RESPONSE TO REQUEST NO.6:
See enclosed schedule.
DATED at Boise,Idaho,this 3 day of May 2012.
Peter Richardson
CERTIFICATE OF SERVICE
I hereby certify that on this 3 day of May 2012 1 served a true and correct copy of the
foregoing Response to the First Production Request of the Commission Staff by hand delivery on
the following:
Kristine Sasser
Deputy Attorney General
Idaho Public Utilities Commission
P0 Box 83720
Boise,Idaho 83720-0074
Donovan Walker
Idaho Power Company
1221 West Idaho Street
Boise,I ho 837
Peter ichardson
RESPONSE TO FIRST PRODUCTION REQUEST
TO GRAND VIEW SOLAR 7 MAY 3,2012
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EXHIBIT 2
IPC-E-10-19
COMMENTS OF GRAND VIEW SOLAR ONE,PV,LLC
RE CE IV ED PER®
An IDACORP Company
ZflI2MAY 15 1M t1:28
DONOVAN E.WALKER
Lead Counsel UTIL[fi-O?.SSIu
May 15,2012
VIA HAND DELIVERY
Jean D.Jewell,Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise,Idaho 83702
Re:Case No.IPC-E-10-19
Grand View Solar One PV,LLC,FESA —Response to the Idaho Public
Utilities Commission Staff’s Third Production Request
Dear Ms.Jewell:
Enclosed for filing please find an original and three (3)copies of Idaho PowerCompany’s Response to the Third Production Request of the Commission Staff to IdahoPowerCompanyintheabovematter.
DEW:csb
Enclosures
1221 W.Idaho St.(83702)
P.O.Box 70
Boise,ID 83707
Vei yours,
RE CE!VE U
DONOVAN E.WALKER (ISB No.5921)
JASON B.WILLIAMS (ISB No.8718)
Idaho Power Company
1221 West Idaho Street (83702)
P.O.Box7O
Boise,Idaho 83707
Telephone:[phone]
Facsimile:[phone]
dwalker(ãidahopower.com
2U12 HAY 15 Pti L:28
iD.;c.UT1L(Tj.3 COTiFrAjsSjQ,
IwiIIiamsidahopower.com
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AMENDMENTS
TO THE FIRM ENERGY SALES
AGREEMENT BE1WEEN IDAHO
POWER COMPANY AND GRAND VIEW
SOLAR ONE PV,LLC.
CASE NO.IPC-E-1O-19
IDAHO POWER COMPANY’S
RESPONSE TO THE THIRD
PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO
POWER COMPANY
COMES NOW,Idaho Power Company (“Idaho Power”or “Company’),and in
response to the Third Production Request of the Commission Staff to Idaho Power
Company dated April 24,2012,herewith submits the following information:
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)
)
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)
)
)
)
)
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -1
REQUEST NO.10:Please explain why Idaho Power believes that an extension
until no later than January 12,2013 is a fair and commercially reasonably time period
for Grand View Solar One to achieve its operation date.In your explanation,please
discuss specifically how Idaho Power defines the phrase “commercially reasonable.”
RESPONSE TO REQUEST NO.10:The establishment of a firm Commercial
Operation Date of January 12,2013,was considered to be commercially reasonable
based on Idaho Power’s desire for a date certain Commercial Operation Date and the
parties’dispute as to the proper interpretation of the language contained in Appendix B
of the Firm Energy Sales Agreement between Idaho Power and Grand View Solar One
PV,LLC dated June 8,2010 (“FESA”)approved by the Idaho Public Utilities
Commission in Order No.32068 issued September 14,2010.Specifically,the
Scheduled Operation Date specified in Appendix B,item B-3 is defined as:
1.)90 days past the date identified within the final Facility
Study report in which Idaho Power shall have completed
installation of the Idaho Power interconnection equipment as
the Scheduled Operation Date or 2.)If by Seller action or
inaction,a final Facility Study is not completed or the
installation of idaho Power interconnection equipment is
delayed,January 30,2011 shall be the Scheduled Operation
Date.
As part of agreeing to set a firm Commercial Operation Date,Grand View Solar
One PV,LLC (“Grand View Solar One”)agreed to immediately refresh its Delay
Security,which had recently expired,as well as immediately pay the required $475,000
deposit for construction of its generator interconnection facilities.Based upon the good
faith dispute among the parties as well as Grand View Solar One’s immediate remedy
and payment of the necessary funding for the project,Idaho Power determined that
settling this matter with Grand View Solar One was both fair and commercially
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -2
reasonable.While I am not an attorney,my understanding of the phrase “commercially
reasonable”is that it is a legal term of art that is based upon all the facts and
circumstances of a particular situation.As described above,Idaho Power believes that
based upon all the facts and circumstances of this situation,it was commercially
reasonable to enter into the Letter Agreement with Grand View Solar One.
The response to this Request was prepared by Randy C.Aliphin,Energy
Contracts Coordinator Leader,Idaho Power Company,in consultation with Donovan E.
Walker,Lead Counsel,Idaho Power Company.
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -3
REQUEST NO.11:Please explain Idaho Powers understanding of the reasons
given by Grand View Solar One for not meeting the Scheduled Operation Date as
specified in ¶B-3 of Appendix B of the FESA.
RESPONSE TO REQUEST NO.11:Idaho Powers understanding of Grand
View Solar One’s reasons for not meeting the Scheduled Operation Date was that it had
a different interpretation than Idaho Power of the Scheduled Operation Date,as well as
Grand View Solar One’s claim that it was unable to secure financing to make the
required payments to construct the necessary interconnection facilities.
The response to this Request was prepared by Randy C.Aliphin,Energy
Contracts Coordinator Leader,Idaho Power Company,in consultation with Donovan E.
Walker,Lead Counsel,Idaho Power Company.
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -4
REQUEST NO.12:Please submit an amendment to Article VII in the FESA
(rates portion)to accommodate a full 20 year contract term (unless Idaho Power and
Grand View are now proposing less than a 20-year contract term).
RESPONSE TO REQUEST NO.12:The Company has not prepared an
amendment to Article VII in the FESA.If the Commission directs the Company to
amend the FESA,the Company will do so.
The response to this Request was prepared by Randy C.Allphin,Energy
Contracts Coordinator Leader,Idaho Power Company,in consultation with Donovan E.
Walker,Lead Counsel,Idaho Power Company.
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -5
REQUEST NO.13:Please identify any interconnection and/or transmission
studies that are required for the project and state the status of each (i.e.,completed,in-
progress,etc.).Please also indicate whether Grand View Solar One is current on any
required payments for the studies.
RESPONSE TO REQUEST NO.13:A Feasibility,System Impact,and Facility
Study were completed for Grand View Solar One’s interconnection.The required
deposits have been paid for all three studies.Final costs,as estimated in the Facility
Study,will ultimately be trued-up to actuals upon final completion of construction.
The response to this Request was prepared by Josh Harris,Operations Analyst I,
Idaho Power Company,in consultation with Donovan E.Walker,Lead Counsel,Idaho
Power Company.
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -6
REQUEST NO.14:Please discuss whether any interconnection and
transmission facilities have been constructed or upgraded to date in order to
accommodate the Grand View Solar One facility.Please list any amounts paid by either
Idaho Power or Grand View for construction of these facilities.
RESPONSE TO REQUEST NO.14:On April 5,2012,Idaho Power received a
construction deposit from the project in the amount of $475,000 and is in the initial
phases of detailed design,scheduling,and construction of the interconnection facility.
The response to this Request was prepared by Josh Harris,Operations Analyst I,
Idaho Power Company,in consultation with Donovan E.Walker,Lead Counsel,Idaho
Power Company.
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -7
REQUEST NO.15:Please explain how Idaho Power intends to determine when
the Grand View Solar One facility has met its revised Scheduled Operation Date.For
example,this project will consist of approximately 75,000 PV panels.How many panels
have to be operational before the facility will be deemed to have met its Scheduled
Operation Date?
RESPONSE TO REQUEST NO.15:As identified in this Request,the fact that
this project will consist of approximately 75,000 separate generation units (PV panels)
makes the identification of “operation”and “complete”significantly different issues than
a hydro unit with a single generator or even a wind project with 10 wind turbines.
Unfortunately,the agreement does not specifically address this issue.Idaho Power
intends to interpret and implement this in a commercially reasonable manner.
It is Idaho Power’s understanding that the multiple panels will be aggregated in
smaller groups which will be connected to individual inverters.Idaho Power has not
received data from this project on this precise configuration,but in other proposed solar
PV projects,use of 2 megawatt inverters was proposed.Thus,if the same equipment is
planned to be used in this project,it would require 10 inverters.Idaho Power believes a
reasonable interpretation of operational and complete would be that all of the designed
inverters have been installed,interconnected,and are delivering energy to Idaho
Power’s system.In addition,the bank of PV panels supplying each inverter must be
materially complete.For example,a planned bank of 7,000 panels that only 1,000
panels are installed would not be materially complete.As to the exact panel count to
qualify as materially complete,this is not specifically known at this time and will be
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -8
determined at the time the completion status becomes an issue,at which time all
information and circumstances will be considered.
The response to this Request was prepared by Randy C.Allphin,Energy
Contracts Coordinator Leader,Idaho Power Company,in consultation with Donovan E.
Walker,Lead Counsel,Idaho Power Company.
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -9
REQUEST NO.16:Please explain why Grand View Solar One disputes Idaho
Power’s interpretation of the FESA that the Scheduled Operation Date was January 30,
2012,and instead asserts that the FESA has a “rolling”scheduled operation date as
stated in Idaho Power’s April 3,2012 Letter of Understanding and Agreement with
Grand View.Does Idaho Power believe that there is ambiguous language in the FESA
that needs to be revised for use in future contracts?
RESPONSE TO REQUEST NO.16:Idaho Power believes there Es language in
the Grand View Solar One FESA which has created some uncertainty of the Scheduled
Operation Date.The proposed Letter Agreement has resolved this issue for this FESA
and the language originally in this FESA has not been used in any other qualifying
facility agreements.Please see Idaho Power’s response to the Idaho Public Utilities
Commission Staffs Production Request No.10.Idaho Power continues to explore
solutions to the coordination of the Generation Interconnection process and the
Scheduled Operation Date within the FESA.
The response to this Request was prepared by Randy C.Aliphin,Energy
Contracts Coordinator Leader,Idaho Power Company,in consultation with Donovan E.
Walker,Lead Counsel,Idaho Power Company.
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -10
REQUEST NO.17:Please confirm whether Grand View Solar One posted
security in the amount of $810,000 no later than April 6,2012 by 5:00 pm as required by
the April 3,2012 letter Agreement between the parties.
RESPONSE TO REQUEST NO.17:Yes,Idaho Power confirms that security in
the amount of $810,000 was received from the project prior to the 5:00 p.m.deadline.
The response to this Request was prepared by Randy C.Aliphin,Energy
Contracts Coordinator Leader,Idaho Power Company,in consultation with Donovan E.
Walker,Lead Counsel,Idaho Power Company.
DATED at Boise,Idaho,this 15th day of May 2012.
5OOVAN E.WALKER
Attorney for Idaho Power Company
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -11
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 15th day of May 2012 I served a true and correctcopyofIDAHOPOWERCOMPANY’S RESPONSE TO THE THIRD PRODUCTIONREQUESTOFTHECOMMISSIONSTAFFTOIDAHOPOWERCOMPANYuponthefollowingnamedpartiesbythemethodindicatedbelow,and addressed to the following:
Commission Staff
____Hand
DeliveredKristineA.Sasser
____U.S.
MailDeputyAttorneyGeneral
____Overnight
MailIdahoPublicUtilitiesCommission
____FAX
472 West Washington (83702)X Email kris.sasserpuc.idaho.qovP.O.Box 83720
Boise,Idaho 83720-0074
Grand View Solar One PV,LLC
____Hand
DeliveredPeterJ.Richardson
____U.S.
MailGregoryM.Adams
____Overnight
MailRICHARDSON&O’LEARY,PLLC
___FAX
515 North 27th Street (83702)X Email peterrichardsonandoIeary.comP.O.Box 7218 qreq(ãrichardsonandoIeary.comBoise,Idaho 83707
Sean Stocker,Director of Development
____Hand
DeliveredCoronaCapitalPartners,LLC
____U.S.
Mail300GreatOaksBoulevard,Suite 320
____Overnight
MailAlbany,New York 12203
____FAX
X Email sstocker(äcoronacapitalpartners.com5WhitneyLane
New UIm,Minnesota 56073
(1 )t(LL44
CfIrista Bearry,Legal Assistant
IDAHO POWER COMPANY’S RESPONSE TO THE THIRD PRODUCTIONREQUESTOFTHECOMMISSIONSTAFFTOIDAHOPOWERCOMPANY -12