20110131Comments.pdf

Peter J. Richardson ISB 3195
Greg Adams ISB 7454
RICHASON & O'LEARY PLLC
515 North 27th Street
PO Box 7218
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter(irichrdsonandolear .com
greg(irichardsonandoleary.com
Attorneys for J. R. Simplot Company
RE(:E
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF) /
IDAHO POWER COMPANY FOR A ) CASE NO. IPC-E-1O-47 V
DETERMINATION REGARING THE FIRM )
ENERGY SALES AGREEMENT FOR THE )
SALE AND PURCHASE OF ELECTRIC ) COMMENTS BY J. R. SIMPLOT
ENERGY BETWEEN IDAHO POWER ) COMPANY IN SUPPORT OF IDAHO
COMPANY AND DEEP CREEK WIND PAR,) POWER'S APPLICATION FORLLC ) APPROVAL OF ITS POWER PURCHASE
) AGREEMENT WITH DEEP CREEK
) WIND PARK, LLC
)
)
IN THE MATTER OF THE APPLICATION OF)
IDAHO POWER COMPANY FOR A ) CASE NO. IPC-E-I0-48
DETERMINATION REGARDING THE FIRM )
ENERGY SALES AGREEMENT FOR THE )
SALE AND PURCHASE OF ELECTRIC ) COMMENTS BY J. R. SIMPLOT
ENERGY BETWEEN IDAHO POWER ) COMPANY IN SUPPORT OF IDAHO
COMPANY AND COTTONWOOD WIND ) POWER'S APPLICATION FORPAR, LLC ) APPROVAL OF ITS POWER PURCHASE
) AGREEMENT WITH COTTONWOOD
) WIND PARK, LLC
)
)
Comments in Support of Application - J. R. Simplot Company
1
IN THE MATTER OF THE APPLICATION OF)
IDAHO POWER COMPANY FOR A ) CASE NO. IPC-E-I0-49
DETERMINATION REGARING THE FIRM )
ENERGY SALES AGREEMENT FOR THE )
SALE AND PURCHASE OF ELECTRIC ) COMMENTS BY J. R. SIMPLOT
ENERGY BETWEEN IDAHO POWER ) COMPANY IN SUPPORT OF IDAHO
COMPANY AND ROGERSON FLATS WIND) POWER'S APPLICATION FORPARK, LLC ) APPROVAL OF ITS POWER PURCHASE
) AGREEMENT WITH ROGERSON FLATS
) WIND PAR, LLC
)
)
IN THE MATTER OF THE APPLICATION OF)
IDAHO POWER COMPANY FOR A ) CASE NO. IPC-E-I0-50
DETERMINATION REGARDING THE FIRM )
ENERGY SALES AGREEMENT FOR THE )
SALE AND PURCHASE OF ELECTRIC ) COMMENTS BY J. R. SIMPLOT
ENERGY BETWEEN IDAHO POWER ) COMPANY IN SUPPORT OF IDAHO
COMPANY AND SALMON CREEK WIND ) POWER'S APPLICATION FORPARK, LLC ) APPROVAL OF ITS POWER PURCHASE
) AGREEMENT WITH SALMON CREEK
) WIND PAR, LLC
)
)
COMES NOW, the J. R. Simplot Company ("Simplot") pursuat to that Notice of
Application(s) and Notice of Modified Procedure issued by the Idaho Public Utilities
Commission ("Commission") in the above captioned docket and files these Comments in support
of the Applications by Idaho Power Company ("Idao Power") for approval of the Power
Purchase Agreements ("PP As") between Deep Creek Wind Park, LLC; Cottonwood Wind Park,
LLC; Rogerson Flats Wind Park, LLC; and Salmon Creek Wind Park, LLC (collectively the
"Projects") and Idaho Power.
I
INTRODUCTION AND STATEMENT OF INTEREST
The J. R. Simplot Company is interested in this matter because it is the land owner upon
whose propert the above referenced Projects wil be constructed and operated. As such,
Comments in Support of Application - 1. R. Simplot Company
2
Simplot has an importt interest in the prompt approval of the four PP As at issue. However,
Idaho Power's Application, and dicta in the Commission's notice, both make reference to IPUC
Case No. GNR-E-I0-04. In that docket, which is separate and distinct from the instat case, the
Commission is being asked to eliminate entitlement to publish avoided cost rates for certin QF
projects. Simplot is concerned by Idaho Power's and the Commission's reference to that docket
because the above referenced Projects are NOT among those projects that are the object of Case
No. GNR-E-I0-04.
II
THE PPA IS IN FULL COMPLIANCE WITH ALL OF THE PUC'S REQUIREMENTS FOR
APPROVAL
As pointed out in Idaho Power's application, the Agreements between the above
referenced Projects and Idaho Power are in full compliance with all of the of the provisions
previously deemed reasonable and/or necessar by this Commission in a PURP A QF contract
with Idaho Power. The PP As contain the necessar Mechanical Availabilty Guarantee, Wind
Integration Cost reduction, and Wind Forecasting cost sharng as required by the Commission in
Order No. 30488. Additionally, as pointed out by Idaho Power, all four Projects have agreed to
Delay Liquidated Damages and associated Delay Security provisions of $45 per kW of
nameplate capacity, which provisions in the PPAs have been in PPAs recently approved by this
Commission. In short, the PP As are identical in all material respects to all other PP As that have
been routinely approved by the Commission over the past year.
Comments in Support of Application - J. R. Simplot Company
3
III
THE REACH OF CASE NO. GRN-E-I0-04 DOES NOT EXTEND TO THE FOUR PROJECTS
AT ISSUE AND HENCE THE COMMISSION'S DECISION HERE SHOULD NOT BE
INFLUENCED BY AVERMENTS AND ACTIONS IN THAT DOCKET
On December 3,2010, in Order No. 32131 in Case No. GNR-E-1O-04, the Commission
found:
After reviewing the Joint Petition and the Answers, the Commission will first take
up the request to reduce the eligibility cap. As set out in the schedule below, the
Commission will process the Petitioner's request to reduce the eligibility cap via
Modified Procedure and schedule an oral argument. In paricular, the
Commission is interested in receiving comments regarding: (1) the advisability of
reducing the published avoided cost eligibility cap. . .
Order No. 32131, p 5.
In establishing the GNR - E-l 0-04 schedule, the Commission explicitly ruled that, "Finally, it is
our intent that our decision regarding the' Joint Motion' to reduce the eligibilty cap shall
become effective on December 14,2010." Id
The four PPAs at issue were executed by the project developer on December 9,2010, and
were executed and filed with the Commission for approval by Idaho Power Company on
December 10,2010. There can be no doubt the parties to the agreements were relying, in good
faith, on the Commission explicit declaration that the effective date of the Commission's
decision on the eligibility cap would be no earlier than December 14 -- hence, Simplot questions
why the eligibility cap docket is even referenced in Idaho Power's Applications and the
Commission's Notice of Application for the four PP As.
Furher troubling is Idaho Power's prayer for relief in its Applications wherein Idaho
Power states:
Comments in Support of Application - 1. R. Simplot Company
4
Idaho Power Company respectfully requests that the Commission issue an Order:
(1) authorizing that this matter may be processed by Modified Procedure; (2)
accepting or rejecting the Firm Energy Sales Agreement between Idaho Power
Company and (the specific project's), LLC
Application p. 8, emphasis provided.
Never, prior to the filing of the Joint Motion requesting a reduction in the eligibilty cap,
has Idaho Power fied for approval of a PP A, such as the four PP As at issue, with a request that
the Commission either accept or reject its filing. Prior to the filing of the Joint Motion on
November 5, 2010, the standard, routine request for approval of a PPA by Idaho Power was just
that, a request for approvaL. Clearly, this Commission wil approve or reject an application based
on the evidence and law before it -- regardless of whether a party invites it to approve or reject
said application. Since the effective date ofthe Commission's eligibility cap decision (whenever
that decision is made) will be no earlier than December 14 i , and the applications for approval of
the four PPAs were lodged on December 10, the four PPA's clearly should be approved in the
same Commission sanctioned process as any other "pre-December 14" contract -- which means
it should be approved.
Idaho Power's obligations, as a pary to the contract, include the obligation to perform
and not to improperly hinder the ability of its counter par to perform. By inviting the
Commission to "accept or reject" it's Applications, Idaho Power should not be deemed by the
Commission to be opposed to approval of the PPAs. In all probabilty, Idaho Power's insertion
of the words "or reject" was done due to an overabundance of caution in light of the pending
GNR -E-I0-04 docket.
Simplot notes that several paries to GNR-E-I0-04 contest the legal and policy
implications of the Commission's December 14 date.
Comments in Support of Application - J. R. Simplot Company
5
Simplot appreciates the opportity to comment favorably on the pending applications
for approval of the Deep Creek Wind Park, LLC PP A, the Cottonwood Wind Park, LLC PP A,
the Rogerson Flats Wind Park, LLC, PP A and the Salmon Creek Wind Park, LLC PP A and
urges the Commission to do so expeditiously.
Respectfully submitted this 31 st day of Januar, 2011.
RICHARDSON & O'LEARY PLLC
By Il-d ¡;Peter J~ardson
Gregory Adams
Attorneys for J. R. Simplot Company
Comments in Support of Application - J. R. Simplot Company
6
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 31st DAY OF JANUARY 2011,
SERVED THE FOREGOING COMMENTS OF THE J. R. SIMPLOT COMPANY,
IN CASE NOS. IPC-E-47 -48 -49 -50, BY MAILING A COPY THEREOF, POSTAGE
PREPAID, TO THE FOLLOWING.
DONOV AN WALKER
LISA NORDSTROM
IDAHO POWER COMPANY
PO BOX 70
BOISE, IDAHO 83707-0070
JEAN JEWELL
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMM'N
472 WEST WASHINGTON STREET
BOISE, IDAHO 83702
(HAND DELIVERY)
JAMES CARULIS
802 WEST BANOCK STREET
BOISE, IDAHO 83702
(HAND DELIVERY)
~Culì~
NINA CURTIS,
RANDY ALLPHIN
ENERGY CONTRACTING ADMIN
IDAHO POWER COMPANY
POBOX 70
BOISE, IDAHO 83707-0070
KRS SASSER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMM'N
472 WEST WASHINGTON STREET
BOISE, IDAHO 83702
(HAND DELIVERY)