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Home My WebLink About20120223Termination Notice.pdfRECEiVED eesIDA~POR~ JASON B. WILLIAMS Corporate Counsel jwilliamsl.idahopower.com An IDACORP company 4: 50 February 23, 2012 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83702 Re: Case No. IPC-E-11-10 IN THE MATTER OF THE APPLICA TlON OF IDAHO POWER COMPANY FOR A DETERMINA TlON REGARDING THE FIRM ENERGY SALES AGREEMENT WITH INTERCONNECT SOLAR DEVELOPMENT, LLC FOR THE SALE AND PURCHASE OF ELECTRIC ENERGY Case No. IPC-E-12-10 INTERCONNECT SOLAR DEVELOPMENT, LLC V. IDAHO POWER COMPANY Dear Ms. Jewell: Please be advised that Idaho Power Company ("Idaho Powet') has terminated the Firm Energy Sales Agreement ("FESA") with Interconnect Solar Development, LLC ("Interconnect Solat') that was approved by the Idaho Public Utilties Commission ("Commission") in Final Order No. 32384. Enclosed please find the December 16, 2011, Notice of Material Breach of Firm Energy Sales Agreement sent by Idaho Power to Interconnect Solar. This Notice advised Interconnect Solar that it was in material breach of the FESA for failure to post the required delay security deposit. The Notice further advised that Idaho Power would terminate the FESA if Interconnect Solar failed to cure this material breach as expeditiously as possible, as is required by the Firm Energy Sales Agreement. Also enclosed please find the February 9, 2012, Termination Notice from Idaho Power to Interconnect Solar advising that Idaho Power would terminate the FESA if Interconnect Solar failed to cure the material breach of the FESA and post the required delay security deposit by February 17, 2012, at 5:00 p.m. 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 Jean D. Jewell February 23, 2012 Page 2 of 2 e e Interconnect Solar failed to post the required delay security deposit by the February 17 deadline and, thus, failed to cure the material breach of the FESA. Accordingly, the FESA between Idaho Power and Interconnect Solar is now terminated. This letter and its attachments are being sent to the Commission for inclusion as part of the Commission's file and record, evidencing the Notice of Material Breach and Termination of this Commission-approved Firm Energy Sales Agreement. Sincerely, 0~w'S~.~ JBW:csb Enclosures cc: Kristine A. Sasser (w/encls.) Randy Lobb (w/encls.) Rick Sterling (w/encls.) Ronald L. Willams (w/encls.) Randy Hemmer (w/encls.) Bil Piske (w/encls.) e e_.. An IDACORP company Deceber 16, 2011 Randy C. Alphin Senior Energy Contracs Coordinator Interconnect Solar Development LLC 3777 Twilght Drve Boise,ID 83703 Origial: Cerified u.S. Mail E-mail Copy: Bil Piske Randy Hemer Ron Williams billpiske~cableone.net randyhemmer~gmail.com ron~l1amsbradbur.com RE: Interconnect Solar Development LLC Project Name: Murhy Flats Solar Power Project Projec Number - 12616650 Notice of Materal Breach of the Firm Energy Sales Agreement - Delay Securty Deposit Idaho Power and Interconnect Solar Development LLC are pares to the Fir Energy Sales Agreement ("FESA") betwee Interconnect Solar Development LLC and Idaho Power Company dated October 4th, 2011 ("Agreeent") which was approved by the Idao Public Utilities Copimission ("Commission") on October 20,2011, by Comm~sion Orer 32384. Paragraph 5.8 of ths Agreeent states: "Within thrty (30) days of the date of a fial non-appeaable Commssion Order as specified in Arcle XXI approving ths Agreement, the Seller shall post liquid securty ("Delay Securty") in a form as descrbed in Appendi D equa to or exceeding the amount calculated in paragraph 5.8.1. Failure to post ths Delay Securty in the time specified above will be a Material Breach of ths Agreement and Idao Power may terinate this Agreeent." Page 1 of2 e e Idaho Power calculates the amount of ths required Delay Securty as specified in paragraph 5.8.1 to be; $45 times the Maximum Capacity of 20,000 kW equas $900,000. Commssion Order 32384 appoving this Agreement was dated October 20,2011, the final non appealable order date being Novembe 10, 2011 (21 day reconsideration perod past the date the Commission Order was issued) and 30 days past that date (due date for posting of Delay Securty) cacuates to be December 10, 2011. As December 10, 2011 was a Satuay, Idaho Power consider the due date to post the Delay Securty to be Monday December 12, 2011. As of the date of ths letter, December 16,2011, Interconnect Solar Development LLC has failed to post the Delay Securty as required by ths Agreeent. Consequently, please be advised that Idaho Power is providing this written Notice to Interconnect Solar Development LLC, that ít is now in Materal Breach of the FESA. Puruant to Paragraph 19.2.2 of the FE SA, Interconnect Solar Development LLC must cue ths Materal Breach "as expeditiously as possible following occurrence of the breach." Idao Power will ternate this FESA if ths Materal Breach is not cured as expeditiously as possible. Please contact me with any questions you may have. Sincerely, A,. fd. Randy C Allphin Idaho Power Company Cc: Donovan Waler (lCo) Bil Piske 1303 E. Carer Boise, ID 83706 PAOP.? nf? e e ..e An IDACORP company Februar 9,2012 Rady C. Allphin Senor Energy Contracts Coordinr Interconnec Solar Development LLC 3777 Twilight Drve Boise, il 83703 Orgial: Cerfied U.S. Mail E-mail Copy: Bil Piske Randy Hemer Ron Willams bilpiske~cableone.net randyhemer~gmail.com ron~willambrabur.com RE: Interconnec Solar Development LLC Projec Name: Murhy Flats Solar Power Projec Project Number - 12616650 My recrds indicate that the prject was provided a revised Facilty Study on Janua 4th, 2012. The prject has identified this revised Facility Study in varous meetings and correspondence as a ke~ element the project reuired in order to cue the curett Materal Brech of the Firm Energy )Sales Agreement ("FESA"). ) Mr. Williams' letter dated December 21,2011 states that the project will requir two to four weeks after presentation of the revised Facilty Study to cue this Materal Breach. Notification of the Materal Breach was issued on December 16, 2011. It has now ben over five weeks since the project received the revised Facilty Study, and eight weeks since notification of the Materal Breach. Page 1 of2 e e . , Pleae provide Idaho Power actable securty as reuied in the FESA to cure ths Maeral Breh no later th close of business, Friday Febr 17th 2012, 5:00 p.m. Mounta Standar Time to avoid teration of ths FESA. If the require sèty is not so posted by the deadle mentioned above, the FESA will be terated as oftlt date and tie. Sìnoely, a..~.~' RlUy C Allph Idal Power Company Cc:l)van Wal (I) BiUPis 1303£. Ca BQ~l ID837Ø6 Pa2e2of2