20130124Motion for Confidential Settlement.pdf

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DONOVAN E WALKER
Lead Counsel T1TI: IibL dwalker(idahopower.com
January 24, 2013
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, Firm Energy Sales Agreement - Idaho
Power Company's Motion for Approval of Confidential Settlement Agreement
Dear Ms. Jewell:
Enclosed for filing in the above matter are an original and seven (7) copies of Idaho
Power Company's Motion for Approval of Confidential Settlement Agreement.
In addition, the Confidential Settlement Agreement is provided in a sealed envelope
labeled confidential. Please handle the confidential information in accordance with the
Protective Agreement executed in this matter.
Very lyyours,
Donovan E. Walker
DEW:csb
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
dwaIker(ãidahoDower.com
RE CE 'i
2i3 JAN 2i PH [4 :33
ID,HO T1LIi ? c4M1S8:0
Attorney for Idaho Power Company
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.
CASE NO. IPC-E-10-19
IDAHO POWER COMPANY'S
MOTION FOR APPROVAL OF
CONFIDENTIAL SETTLEMENT
AGREEMENT
I. MOTION
Idaho Power Company ("Idaho Power" or "Company") hereby moves the Idaho
Public Utilities Commission ("Commission") pursuant to Idaho Code § 61-502, RP 56,
and RP 274 for an order approving the Confidential Settlement Agreement ("Settlement
Agreement") executed between Idaho Power and Grand View Solar One PV, LLC
("Grand View One"). The Settlement Agreement is being submitted as a confidential
document in this proceeding and will be provided to those parties that have executed
the Protective Agreement for this matter. This Motion is based on the following:
II. BACKGROUND
1. On June 8, 2010, Idaho Power and Grand View One entered into a Firm
Energy Sales Agreement ("FESA") pursuant to the Public Utility Regulatory Policies Act
IDAHO POWER COMPANY'S MOTION FOR
APPROVAL OF CONFIDENTIAL SETTLEMENT AGREEMENT -1
of 1978 ("PURPA"), which provides that Grand View One will construct, maintain, and
operate a photovoltaic solar electric generation facility and that Idaho Power will buy
electric energy produced by the facility. On September 1, 2010, the Commission
approved the FESA. Order No. 32068, Case No. IPC-E-1 0-1 9.
2.On April 3, 2012, Idaho Power and Grand View One executed a Letter of
Understanding and Agreement that addressed a potential default of the FESA,
established a required Operation Date of January 12, 2013, required posting of
$810,000 security by Grand View One, and provided that Idaho Power would terminate
the FESA and collect damages of $810,000 if Grand View One did not achieve the
January 12, 2013, Operation Date. The Commission approved this Letter of
Understanding and Agreement by Order No. 32593 in Case No. IPC-E-1 0-1 9.
3.On January 9, 2013, Grand View One contacted Idaho Power and advised
that the Grand View One project would not be on-line by the required Operation Date of
January 12, 2013, and requested to voluntarily terminate the FESA prior to the January
12, 2013, date.
4.A voluntary termination of an existing FESA, prior to a default or material
breach of the FESA, is not specifically contemplated in the FESA. Various provisions
within the FESA are triggered once a project misses its Operation Date or is otherwise
in material breach of the agreement. However, the FESA terms and conditions do not
specifically address a voluntary termination initiated by the project prior to the Operation
Date.
5.On January 11, 2013, Idaho Power and Grand View One executed a
Confidential Settlement Agreement, attached hereto, that provides for the immediate
IDAHO POWER COMPANY'S MOTION FOR
APPROVAL OF CONFIDENTIAL SETTLEMENT AGREEMENT -2
termination of the FESA, the collection of damages, and the disposition of the project's
Delay Security held by Idaho Power.
6.The Settlement Agreement contains a provision stating that all terms and
conditions of the Settlement Agreement are subject to approval by this Commission and
that only after such approval, without material change or modification, has been
received shall the Settlement Agreement be valid.
7.The Confidential Settlement Agreement is a fair, equitable, and final
resolution to this matter, and is in the public interest. Idaho Power respectfully requests
that the Commission grant this Motion and approve the Confidential Settlement
Agreement in its entirety, without material change or condition, pursuant to RP 274.
III. REQUEST FOR MODIFIED PROCEDURE
8.Pursuant to RP 201, Idaho Power believes the public interest does not
require a hearing to consider the issues presented by this Motion and Idaho Power
requests it be processed as expeditiously as possible by Modified Procedure.
IV. REQUESTED RELIEF
NOW, THEREFORE, Idaho Power respectfully requests that the Commission
enter its Order (1) directing that consideration of the Confidential Settlement Agreement
be conducted by Modified Procedure and (2) approving the Confidential Settlement
Agreement without material condition or modification.
Respectfully submitted this 24 th day of January 2013.
DONOVAN E. WALKER
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S MOTION FOR
APPROVAL OF CONFIDENTIAL SETTLEMENT AGREEMENT -3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 24 th day of January 2013 I served a true and
correct copy of IDAHO POWER COMPANY'S MOTION FOR APPROVAL OF
CONFIDENTIAL SETTLEMENT AGREEMENT upon the following named parties by the
method indicated below, and addressed to the following:
Commission Staff
Kristine A. Sasser
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-0074
X Hand Delivered
U.S. Mail
Overnight Mail
FAX
X Email kris.sassercpuc.idaho.qov
Grand View Solar One PV, LLC Hand Delivered
Mark Scher, General Manager X U.S. Mail
Corona Capital Partners Overnight Mail
300 Great Oaks Boulevard, Suite 320 FAX
Albany, New York 12203 X Email msche ID-co ronaca Pita l partners. com
WJC4EQi
Christa Bearry, Legal Assistant \,
IDAHO POWER COMPANY'S MOTION FOR
APPROVAL OF CONFIDENTIAL SETTLEMENT AGREEMENT -4
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-10-19
CONFIDENTIAL SETTLEMENT AGREEMENT
THE SETTLEMENT
AGREEMENT IS
CONFIDENTIAL
HAVE SIGNED THE
PROTECTIVE
AGREEMENT
It