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HomeMy WebLinkAbout20120814Joint Motion for Approval.pdfIDAHO PNER® RECE!VF An IDACORP Company 701A1JG ¶14 PH 3 12 DONOVAN E WALKER Lead Counsel UTL!T1E *SSO dwaIkercidahopower.com August 14, 2012 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83702 Re: Case Nos. IPC-E-12-20, IPC-E-12-22, and IPC-E-12-23 Complaint and Petition of Idaho Power Company for Declaratory Order - Joint Motion for Approval of Settlement Stipulation and Settlement Stipulation Dear Ms. Jewell: Enclosed for filing in the above matter are an original and seven (7) copies each of the Joint Motion for Approval of Settlement Stipulation and Settlement Stipulation. The Settlement Stipulation is confidential and is provided in a sealed envelope. Please handle the confidential information in accordance with the Protective Agreement executed in this matter. z Ve Donovan E. Walker DEW:csb Enclosures 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 ROY EIGUREN (ISB No. 2135) Sullivan, Reberger & Eiguren 802 West Bannock Street, Ste 1001-3 Boise, Idaho 83702 Telephone: (208) 344-9514 Facsimile: (208) 344-9563 reiguren(idaho-politics.com RE CE 1 yE D 7DI7AUG R PM 3 12 1DArl'u, PUELC Attorney for Exergy Development Group of Idaho, LLC JASON B. WILLIAMS (ISB No. 8718) DONOVAN E. WALKER (ISB No. 5921) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5104 Facsimile: (208) 388-6936 iwiIIiamsãidahopower.com dwaIker(ãidahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE COMPLAINT AND PETITION OF IDAHO POWER COMPANY FOR A DECLARATORY ORDER REGARDING THE FIRM ENERGY SALES AGREEMENTS AND GENERATOR INTERCONNECTION AGREEMENTS WITH COTTONWOOD WIND PARK, LLC; DEEP CREEK WIND PARK, LLC; ROGERSON FLATS WIND PARK, LLC; AND SALMON CREEK WIND PARK, LLC. CASE NO. IPC-E-12-20 JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION -1 IN THE MATTER OF THE COMPLAINT AND PETITION OF IDAHO POWER COMPANY FOR A DECLARATORY ORDER REGARDING THE FIRM ENERGY SALES AGREEMENT AND GENERATOR INTERCONNECTION AGREEMENT WITH NOTCH BUTTE WIND PARK, LLC. IN THE MATTER OF THE COMPLAINT AND PETITION OF IDAHO POWER COMPANY FOR A DECLARATORY ORDER REGARDING THE FIRM ENERGY SALES AGREEMENT AND GENERATOR INTERCONNECTION AGREEMENT WITH LAVA BEDS WIND PARK, LLC. CASE NO. IPC-E-12-22 CASE NO. IPC-E-12-23 COMES NOW, Cottonwood Wind Park, LLC, ("Cottonwood"); Salmon Creek Wind Park, LLC ("Salmon Creek"); Deep Creek Wind Park, LLC ("Deep Creek"); Rogerson Flats Wind Park, LLC ("Rogerson Flats"); Notch Butte Wind Park, LLC ("Notch Butte"); Lava Beds Wind Park, LLC ("Lava Beds") (collectively referred to as the "Exergy Projects"); and the Exergy Development Group of Idaho, LLC ("Exergy") and Idaho Power Company ("Idaho Power" or "Company") (hereinafter referred to as the "Parties"), by and through their undersigned attorneys, and hereby move the Idaho Public Utilities Commission ("Commission") for an order accepting the confidential settlement stipulation ("Settlement Stipulation"). The Settlement Stipulation is being submitted as a confidential agreement in this proceeding and will be provided to those parties that have executed the Protective Agreement in this proceeding. This Motion is based on the following: I. BACKGROUND JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION -2 1. On October 14, 2005 Idaho Power and Lava Beds entered into a Firm Energy Safes Agreement ("FESA") pursuant to the Public Utility Regulatory Policies Act of 1978 ("PURPA"), which provides that Lava Beds will design, construct, own, maintain and operate an electric wind generation facility and that Idaho Power will buy firm electric energy produced by the facility. The Commission approved the FESA by Order No. 29949 in Case No. IPC-E-05-31. 3.On October 14, 2005 Idaho Power and Notch Butte entered into a FESA pursuant to PURPA, which provides that Notch Butte will design, construct, own, maintain and operate an electric wind generation facility and that Idaho Power will buy firm electric energy produced by the facility. The Commission approved the FESA by Order No. 29950 in Case No. IPC-E-05-32. 4.On December 10, 2010, Idaho Power and each of Cottonwood, Deep Creek, Rogerson Flats, and Salmon Creek entered into FESAs pursuant to PURPA (the "Jack Ranch FESAs") which provide that each of Deep Creek, Cottonwood, Rogerson Flats, and Salmon Creek will design, construct, own, maintain and operate an electric wind generation facility and that Idaho Power will buy firm electric energy produced by the facility. The Commission approved each of the FESAs by Order Nos. 32182, 32183, 32184, and 32185 in Case Nos. IPC-E-10-47, IPC-E-10-48, IPC-E-10-49, and IPC-E-1 0-50, respectively. 5.Pursuant to the terms of the Jack Ranch FESAs, each of Deep Creek, Cottonwood, Rogerson Flats and Salmon Creek were required to post with Idaho Power Delay Security (as that term is defined in the FESAs), which they did. 6.Numerous disputes related to the FESAs as well as the generator interconnection processes and agreements and transmission service arrangements JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION -3 ("Interconnection and Transmission Agreements") between the Exergy Projects and Idaho Power ensued, which ultimately led to Idaho Power submitting a Complaint and Petition for Declaratory Order ("Complaints") in each of Case Nos. IPC-E-12-20, IPC-E- 12-22, and IPC-E-12-23. As of the date of this Joint Motion, none of the FESAs are in Material Breach (as that term is defined in the FESAs) nor has Idaho Power drawn on any of the Delay Security. 7.After Idaho Power submitted the Complaints, the Parties engaged in settlement negotiations. This Settlement Stipulation is the result of those settlement negotiations. The Settlement Stipulation provides that Idaho Power shall return to Exergy the Letters of Credit it holds as Delay Security. In addition, the Settlement Stipulation provides that the FESAs for the Exergy Projects shall be terminated. 8.The Parties recommend that the Commission grant this Motion and approve the Settlement Stipulation in its entirety, without material change or condition, pursuant to RP 274. II. REQUEST FOR MODIFIED PROCEDURE 9.Pursuant to RP 201, the Parties believe the public interest does not require a hearing to consider the issues presented by this Motion and the Parties request it be processed by Modified Procedure. NOW, THEREFORE, the Parties respectfully request that the Commission enter its Order (1) directing that consideration of the Settlement Stipulation be conducted by Modified Procedure and (2) approving the Settlement Stipulation without material condition or modification. Respectfully submitted this Lwliiay of August 2012. JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION -4 Attorney for Idaho Power Company cPROY EIGUREN Attorney for: Rogerson Flats Wind Park, LLC Cottonwood Wind Park, LLC Deep Creek Wind Park, LLC Salmon Falls Wind Park, LLC Notch Butte Wind Park, LLC Lava Beds Wind Park, LLC Exergy Development Group of Idaho, LLC JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION -5 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-12-20 CASE NO. IPC-E-12-22 CASE NO. IPC-E-12-23 ATTACHMENT NO. I CONFIDENTIAL SETTLEMENT STIPULATION THE SETTLEMENT STIPULATION IS CONFIDENTIAL AND WILL BE PROVIDED TO THOSE PARTIES THAT HAVE SIGNED THE PROTECTIVE AGREEMENT