20110601notice_of_application_order_no_32252.pdf

Office of the Secretary
Service Date
June 1,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR A )CASE NO.IPC-E-11-09
DETERMINATION REGARDING THE )
FIRM ENERGY SALES AGREEMENT )NOTICE OF APPLICATION
WITH CLARK CANYON,LLC FOR THE )
SALE AND PURCHASE OF ELECTRIC )NOTICE OF
ENERGY.)MODIFIED PROCEDURE
)
________________________________
)ORDER NO.32252
On May 24,2011,Idaho Power Company filed an Application with the Commission
requesting acceptance or rejection of a 20-year Firm Energy Sales Agreement (Agreement)
between Idaho Power and Clark Canyon,LLC (Clark Canyon)dated May 20,2011.The
Application states that Clark Canyon would sell and Idaho Power would purchase electric energy
generated by the Clark Canyon hydroelectric project (Facility)located near Dillon,ontana.
Idaho Power requests that its Application be processed by Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Application states that Clark Canyon
proposes to own,operate and maintain a 4.7 MW (maximum capacity,nameplate)hydroelectric
generating facility.Application at 2.The Facility will be a QF under the applicable provisions
of PURPA.The Agreement is for a term of 20 years and contains the current non-levelized
published avoided cost rates established by the Commission in Order No.31025 for energy
deliveries of less than 10 average megawatts (“aMW”).Should the Facility exceed 10 aMW on
a monthly basis,Idaho Power will accept the energy that does not exceed the maximum capacity
amount,but will not purchase or pay for the inadvertent energy.Agreement ¶7.5.
A.The Agreement
YOU ARE FURTHER NOTIFIED that Clark Canyon selected November 1,2012,as
its Scheduled First Energy Date and March 31,2013,as its Scheduled Operation Date.
Application at 3.Idaho Power asserts that various requirements have been placed upon the Clark
Canyon facility in order for Idaho Power to accept the Facility’s energy deliveries.Idaho Power
states that it will monitor the Facility’s compliance with initial and ongoing requirements
through the term of the Agreement.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32252 1
YOU ARE FURTHER NOTIFIED that the Application maintains that all applicable
interconnection charges and monthly operation or maintenance charges under Schedule 72 will
be assessed to Clark Canyon.Idaho Power states that the Facility is currently in the generator
interconnection process.“Upon resolution of any and all upgrades required to acquire
transmission capacity for this Facility’s generation,and upon execution of the FESA and the
GIA,this Facility may then be designated as a network resource.”Id.at 4.
YOU ARE FURTHER NOTIFIED that Clark Canyon and Idaho Power have agreed
to liquidated damage and security provisions of $45 per kW of nameplate capacity or the sum of
three months’estimated revenue.Agreement ¶J 5.3.2,5.8,1.
YOU ARE FURTHER NOTIFIED that ownership of environmental attributes (i.e.,
Green Tags,Renewable Energy Credits)associated with this Facility are addressed in a separate
agreement.Application at 3.
YOU ARE FURTHER NOTIFIED that idaho Power states that the Facility has also
been made aware of and accepted the provisions in the Agreement and Idaho Power’s approved
Schedule 72 regarding non-compensated curtailment or disconnection of its Facility should
certain operating conditions develop on Idaho Power’s system.The Application notes that the
parties’intent and understanding is that “non-compensated curtailment would be exercised when
the generation being provided by the Facility in certain operating conditions exceeds or
approaches the minimum load levels of [Idaho Power’s]system such that it may have a
detrimental effect upon [Idaho Power’s]ability to manage its thermal,hydro,and other resources
in order to meet its obligation to reliably serve loads on its system.”Id.at 5.
YOU ARE FURTHER NOTIFIED that,by its own terms,the Agreement will not
become effective until the Commission has approved all of the Agreement’s terms and
conditions and declares that all payments made by Idaho Power to Clark Canyon for purchases
of energy will be allowed as prudently incurred expenses for ratemaking purposes.Agreement ¶
21.1.
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 Commissions Rules
of Procedure.1DAPA 31.01.01.201 through .204.The Commission notes that Modified
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32252 2
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-eight (28)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 Application
shall be mailed to the Commission and Idaho Power at the addresses reflected below:
Commission Secretary Donovan E,Walker
Idaho Public Utilities Commission Lead Counsel
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 1221 West Idaho Street
P0 Box 70
Street Address for Express Mail:Boise,ID 83707-0070
E-Mail:dwalker(d,idahopower.com
472 W.Washington Street
Boise,ID 83702-5918 Randy C.Allphin
Energy Contract Administrator
Idaho Power Company
1221 West Idaho Street
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 the Idaho Power at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that Idaho Power and Clark Canyon may file
reply comments (if necessary)no later than 35 days from the service date of this Order.
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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32252 3
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application and Agreement have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices.The Application and Agreement are also available on the
Commissions web site at .puc.idaho.ov 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 Commissions 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.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter ‘will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000,et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than 28 days from the
service date of this Order.
IT IS FURTHER ORDERED that Idaho Power and Clark Canyon may file reply
comments (if necessary)no later than 35 days from the service date of this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32252 4
DONE by Order of the Idaho Public Utilities Commission at Boise,idaho this
day of May 2011.
7
t7_/’1PAULKJELLANDERJ SIDENT
MACK A.REDFORD,COMMISSIONER
ARSHA H.SMITH,COMMISSIONER
ATTEST:
Barbara Barrows
Assistant Commission Secretary
o IPC-E-I 1-O9ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32252 5