20110324Comments.pdf

Pc J. Rihan (ISB No. 3195)
Oror M. Adas (lSB No: 7454)
Rioha & O'Le, PLLC
sis N. 21Ui Strt
Bo, Ida 83102
Telep: (ZÒ8) 931.191
Fax: [phone]peçlwsolear.comsr~dsoiea.com
~s fo Or_ Cr Win Par LLC
an Grus Crek Win Park n, LLC
RECE ED
2011 Mß¡R 24 Pri 2: 05
BDOU.THE.IDABO
PlJLIC.tm COMMION
IN TI MATT OF TH
APICATION OF IDAHO POWE
COMPAN FOR A DETERMATION
REGARING TH FIR ENGY
SAL AGREEMET FOR TH SALE
AN PURCHAE OF ELECC
ENGY BETEN IDAHO POWER
COMPAN AN GROUSE CREEK
WI PAR LLC
IN TH MATTR OF TH
APPLICATION OF IDAHO POWER
COMPAN FOR A DETERMATION
REGARING TH FI ENERGY
SALES AGREEM FOR TH SALE
AND PUCHSE OF ELECTRC
ENRGY BETWEN IDAHO POWER
COMPANY AN GROUSE CREEK
WI PAR n, LLC
) CASE NO. IP-E-18-1
)
) COMM OF GROUSE CREEK
) WI PAR LLC IN SUPPORT OF
) APPROVAL OF TH ENRGY
) SALES AGREMENT
)
)
) CASE NO.IP..E..1ß.
)
) COMMNTSOFGROtJSE CREK
) WI PAR II,LLC IN SUPPORT
) OF APPROVAL OF TH ENRGY
) SALESAGREEM
)
)
COMES NOW',Orus Cre Win Par LLC an GrU5Crek Wind Par n, LLC,
eaot wbêh is t1an~ by Wasch Wind Inteounta (t1e'~Orous Crek QF',th
"OrusClk II QF," or collecvelythe "OrusCrekQFs"). andpU1tmthIdah. Public
Utilities Commission's ("'Comission's") Notice of Modìfied Prur an Orer No. 32191,
hereby files these Comments íntheabove..captioned mater.1 Fottherens se fort below,
the Grouse Creek QFs respetfuly reuest tht the Corissionapprove theFìiE..gySa.,s
Agreements ("FESAs") with Idao Power for both prjecs.
INRODUCTON
The. Grouse Crek QFsareach.locatedon privately-owned lan nea Lyn, Uta ClOSe
to the Uta..Idao Border~ aidareachqUåifyg facìlties("QFs") entitledm contactswith
raes set at Idao Power's ful avoided cots, unde the Public Utility Regulatory Policies Act of
1978 ("PURP A"), as implemented by th Ida Public Utìties Commion. Eah wi have a
naeplate. caity of 21 megawat e'M.W") but generate fa .averagernontymegawll
('~aMW") or less. The Grous Creek QFs and their precssors and pät compes bega
developin theswínd projects ín 2007,havepasse rights to us all prvat lands fot the
project sites since Febru 2008, an have over two year of wid data suprt the ouut
projections.
Under a Large Generator Intercnnection Agrment wìth Rf.R.verRur Electrc
Copetivethatha ben in effect since Marh 2010~ the GrusCrekQFshave finaiz the
Facilties. Stuy A,grentandlive even taellStps tooommencoonsonof'
ínterconnection facilties for a June 2013 onlin date. The Grus Crk QFs have ha
The relevånt facts for . each of the prjects. ar SqbstiaUy sùDi..Cöwl. for the
Grus Crek QFs ba thfore fied a síngl se of Comments applicable to bothprojecm
saVe theCoirssionand oth íntestpaes frin the nee toreVIewiwo sepate sets of
Com.ents.
COMMS OF GROUSE CREEK WI PAR LLC AN GROUSE CREK WI
PAR II, LLC
CASE NOS. IPC..E..10-61, IP-E. 1 0-62
PAGE 2
cø~_..Witb ~ Pøw !\Ømstoisin ealy 4010indça thPøinto
pQÙltr~) ~nin.'l iø. p()"'ets Midóka sllbscmis aYailale,an hayebe
qaintlpisøf.$1teintoam S(ce. agteotBl?A liaiicate th ¡twil
... a2o.~PT~š$on Sêceagi for eah.. ptjtc by tb .... of MtIh
2011. ..~deel~ oftb twoptjtóbave Spt $47,00 on intenr~~in_møn.
an widlif steø alone.
COMMS OF GROUSE CREEK WI PAR LLC AN GROUSE CREEK WI
PAR II LLC
CASE NOS. IP-E.l()1, IPC..E-l0-62
PAGE 3
Rocky Mounta.Power~ filed the Joint Motion to Reuce tbePublied R.Eligìbity Cap On
November 5, 2010~ the Gruse Crek QFs eah filed complaíts agat Idao Power On
November 8,2010.
A.fter. theCoiittdssion did. not inedately reuce the.eligìbilty cap, Ida Pow an
the urus Crek QFs agee on Novembe 19, 2010, m sty the complai progs an
execute stdad QF wind contrts contaning the $4S/k delaysetybut.not~tanhig th
precondition of firm trssion rights pror to execution. Theteand co.ndOI1 wer
materially complet at. ths poínt. The Grus Crek QFs prvide ldao..Powetwith contts
contani the project speifics for each projec on Dember 2, 2010, and on Debe 9, 2010,
clarfied th on1e dae m comply with the BP A. trsmission sece reuet .Ar Idao
Powe's fi prcessíng of executon-rey FESAs, th Gruse Crek QFs execut the
agments on Decembe 21,2010, an set th to Idao Power, whch executed th on
Deembe 28, 20iO~ and fied th cotr for Comission approva on Debe 29~ 2010.
Beaus the Grus Crek QFs ha menmrious complaíts on file on Novembe 8, 2010,
and beus al project spifics and materal tes of the contr m whch the Grus Crek
QFshave obligated themslve we final befo Debe 14, 2010, th Col'Ì$$Ìon sbw.d
approve both.FESAscontag th publisl.avoide cost rates?
2
The OrusCrek QFs nole .thatseer paes m GNR"E..IO-04haved18P\1 Wbether
the:eíIective date of Order No. 32176 could be rettoaevelyeffective on December 14~ 2010.
For ¡nses ofthSè' com.ents, the (3U$ Crek QFs wiiU$~~ .14, 201Q, sstbe
effecve date, without concedng th the Commsson ha the authority to m.e th reiion.ín
the eligibility cap retraçtivelyeffectve.
COMM OF GROUSE CREEK WI PAR, LLC AN GROUSE CREEK. WI
PAR II, LLC
CASE NOS. IPC-E-I0-61, IPC-E-I0-62
PAGE 4
LEGAL BACKGROUN
A. Th~tJtØ""ryPoJi" Aeto,19?," Mø...ry"""'", ~s
Tb Q3.invølve$. ~ Coøm$iøn'S iilc:tatiøii ofth~ry ~
ob~on of PtJ~ wbch reui electrc utilities to pur powe pr~ by
~. or sml po. pmuctbtobt sttu 8SåQF. 16 U.S.C. §824a..3(..X2).
Cong's intet "w m enure th promotion an developmt of rewable engy
tebnlO1es .....itêves to fø$$ t\ls an the col'onofiiwgeem& fàìlitìti by
eloe utûea."RQSøbud Bnt,rpriSø.a. In. v. ltJ Pub. Util. .(Jomm lZ81dt 6Ø;.613,
917 P.2d 766,180 (1996). ~~Tratioii elecc utities werereluettto purhapowe ftm,
llléU pøw. tot the llOOtrtiOna f&ôüitiC$." FERCv. Mississippi, 4S6.lJ.S. "142, 1S0, 102
S.et 2126,2137..2133 (1982). Toovelin. thsptblei "§ 210(a) (ofPURAJ.dì tb
(Fgr Eigy Regu_tory CømrsioR eFERC")J, in COIl1Jtaol1 with_ teguliøtY
auriti.~ to pi1Jpt $Uhrues as it dees nec to eicourcoieionlL(1
sm pøwepruetón. inludtues reuii utlities to øfIer to seU eleeeity tQ,an
~ele,city. frm, qtiif cogenonan sm powe prduction facilties." Itt,
456 U.S. at 750-51, 102 S.Ct. at 2133.
Tlpr~.PtJA setion 21Q().I'~the utities to piy .0 QFsin ex;çh fora.
QF'sêleecaouti$ tetheavoide cost ra, whichi$thcost to th u.ty øt~bi
th ~ itsor piha it ...fran altetiVêSólJe. 16 U.S.C,§ 824a..3(b), (d). PERC
pInrp. ~giatøirel. Utties. to copensteQFs for the utities' jùtavoidè .co
18C.,f .lt§ 29Z.304ii). . (b); Smal POlttPtodction. and CogenttQton Faciltis,' Reguations
COMM OF GROUSE CREEK WI PAR LLC AN GROUSE CREEK WI
PARD,LLC
CASE NOS. IPC~E-I0-i, IPC..E-I0-62
PAGES
Implementing Section 2100! the Public Utility R,eguatory Policy Act of 1978,45 Fed Reg.
12.,214, 12,222-12,223 (Feb. 25, 1980). The U.S. Supreme Cour dieçy afed PERc's
'~ful..av()ided..cost rue," American Papr Institute, Inc. v. .FERC, 4tH U.s. 402~ 411..18, 101
S.Ct. 1921, 1930 (1983), and tht rue is stll in efect toy.
PERC's reguatons entitle QFs m long te contr tate se atth~utlities' ftl :¡v-oided
cost at the tie the QFcommts itself to a legaly enOrci;Ie obHgatoiim .deli"er its :Pjects
outut. 18 C.P.a. § 292.304a), (b), (d)(2)(ü); JD Wind 1, LLC, '~der Denyi 'Reue for
Reheg, Recnsideraon or Clarcation,'" 130 FERC , 61,127, , 23 (Febr 19,2010).
With r~gåtd to off-system QFs, "Any eleccutto wmchSUheiietgyor caityIs
deliver must puhae ths ener under the obligaons set fort in tfse niesas if tbe
purba wer made dirtlyfrom the quaifg faclity."45 Fed. Reg. llt lZ,Z20,cø4fying lR
C.F.a. § 292.303(aX2).
Furer,FERC~ s reguationreutilitiestopublish .~stiate:s"avaîìe forlong
ter contracts.åvailable .to QFs beloW a sta..ìiplenente m.um geneûiigcacìty. 18.
C.F.a. §292.304c)(1)-(3). Th Ida Common reui utìties ín Idao m make th ra in
the publis rate scedule availale to QFs th ge les tha 10 aM. See U.S. Geothrtn,
Inc. v. Idaho Power Compy, Cas No. IP-E-04-8, Or No. 29632, p. 14 (200). On
Febr 7, 2011, however, the Commssion reuc the eHgibüity cap to 100 le for wi and
solar QFs and stte the effective date of ths reucon would be Deber 14,2010. See Orer
No. 32176,atpp. 11-12.
COMM OF GROUSE CREEK WI PAR LtC AN GROUSE CREEK WI
PAR II, LLC
CASE NOS. IPC..E-lO-61, IPC-E..I0-62
PAGE 6
B. PUR A G..dttl Criteri
Wh th puli ra ch, or bee otse unvaiable to a QF beor th QF
ca ob a co th QF is entitled m gran rats if it ca "demonse th 'but for'
th.doo.of(tb utity. thQFJ wa otlseentitled to apowerpurbaøontr."wfh
P()" Resoflces1 inc. V.Washiflgkn 'Wtier POWer Company. Ca 'Nò.WW..:E96-,Orer
No. 2721 (1991) (fi utlity delayed negotiti and therefore QF was entitled m
grer ra); seØ also Blind Cann Aqllh v. ida Power Compny, Ca No. lP-
E-941, Orr No. 25802 (1994); Sno Mounain Pin v. Maui~ 84 Or. App. 590.60, 734
P.2d 1366. 1311 (1981).
Th mos oneus te the Comssion ha ever us for det grfa
eli¡ilty is th prfi complait test. Ths te reui, pnor to th effective da of th ra
çha, th QF mus have obta an executed cont or have filed a mertoou cot at
th Cosin alegi it is entled to a contr. See Á. w: Brown Co., inc, v. ida Power
Co., 121 Ida 812, 816-18,828 P.2d 841,845-41 (199). The Idao Sup Co ha neer
tt th u,st as th Cosion's onIy available way m tewhetheta QF haelfeca
lepUy enorcle obligaon, an th Commsson ha not aplied this oneus prfied
complt te conssttly. See, e.g" Blind Canon Aquaanch, Orde No. 25802; Eath Power
Resouces, inc., Orer No. 27231.
COMMS OF GR.OUSE CRE WI PAR LtC AN GROUSE CREEK WI
PARn,LLC
CASE NOS. IP-E~I0-1, IPC-E-I0-62
PAGE 7
PROCEDURA AN FACTAL BACKGR.OUN
MWproject down m the two smler 21 MW QFs se by at lea ot1eoole. ld.at, 10.
From the $215;OOOín wildlifeand vegettionsure)s andsidìes êondueteWasch.Wiii ba
identified no widlife issues tht would prlud development of th QFs on prva lan. Id. at
, 12. Wind da collecte for over tw yea indcas th the wid reur is ver goo an
baa.lowe Wastch Wínd to acurelyprci the eleccal ()tputpf the Grus Ciek QFs.
ld at' 13.
Should the Comission aprove the FESAs Wash WiieXththwìllbcran
:3 th Affddit ()f ChriStihê Milæll.andÌts Exbbitsprvide adeed.nmveofth
QrusCrekQFsdevelopmentandcoiitrçtieffor iigrer Qetal ththes.Coi.
COMMNT OF GROUSE CREEK WI PAR LLC AN GROUSE CRE WI
PARII,LLC
CASE NOS.lPC.E-io-6l, IPC-E-10-62
PAGE 8
avere of 96 on-site conson work over the six month of th wid pek conson
with as ma as 168 work at one poin Id at, 14. On the Prjec ar built, th wod
al be be 3-5 work on site. Many of the work an emoyees ar ex to be
Id re beus th clos city of substi si is ín Ida. Id.
B. IDtereeeu. aad Traa RJts
Grus Cre Wind Par LLC sub a Lage Genation Inteon
Aplicaon m BPA for 150 MW on May 5, 2008, for inteon to a 138 ldovot lin
lea to BP A by Ra Rive Rur Elecc Coopee. Id at' 16. The Feabilty an Sys
im Stues both in tht 93 MW wa available for íntenntion. Id. at 4f 11.. 1 9.
With BPA's agt, th Grus Crek QF sign an Intennon Agt with Ra
Ri Ri Elecc Cooperave on Mah 31,2010. Id at' 20. In June 2010, BPA iss the
Facty Sty Agrnt, an Ra River Rur Elecc Copeve ag m am the
Inteon Agren m acomm th two smer prjec which wi st us the
sa si point of intennecon Id at ,. 21.22. Mos rently, on Fe1: 24, 2011,
Was Win .me with Ra River Rur Elecc Coopetive and an en fi m
co th prur ne m desgn the prjec an intennecon subon. Id at
'24.
With rega m rn trsiissonm Idao Power's ¡ysBPA ...st.. dl. ..tl
intennoistesín 200 that th . amunt ofcaityWuatch Win could ..Ùìtereønect
(93 MW \lthe/~åSth amOUJtthycould deliverm Ida PO"W betheaplile
triøson li is st and not conn to any other pa of BPA's syst. See Id. at
COMMTS OF GROUSE CREEK WI PAR LLC AN GROUSE CREEK. WI
PAR II, LLC
CASE NOS.IPC-E-l0-1, IPC-E-I0-62
PAGE 9
ExhbitD,pp.J-2. But WaSh Wind undedS tbenteg iftoa PTPsece agetlt
renisubmissonofa substtial non.refmdale de1'sit;i rel1obligating ~ G'ous
Creek QFs m ongoifgtees for inmisson fotth en 20..yea term. lâ.at 133. 1l~ the
GrusCteek QFsinitiated ths pros af theinteconneetion proeeto limtits itevble
ficiai expditu prior to knowig the QFs would obtFESAs.
oi June 30, 2010, the Prjec sutt the ness applicaons for BPA~s2010
NetWork Op Sean("NOS") to aceve the initially projec ()nlitl iiteofJun2012, fora
30 MW and a 21 MW projec. Id at, 27. Due m confsion ín the contacng pros with
Idaho Powe at tht tie, Wastch Wínd baked out of the BPA NOS, whch would have
reui a Performce Asce$194,316 by Aug 18, 2010. ld at .128, Asareul
Wash Witd wa unle to achieve the íntiaiiy prjec otiife da of June 2()12;
On A\lgtt 19, 2010, Wash Wind mae a trtiona triønStçe rel.
("TSR") Qn SPA's OASIS website with a delayed st ii of )uie l,2()13. 1â..at1 2~.Alfor
the oterpneters øftheprøjec renjned tbesae. Id. ASiexpeedaliaion th$pr
ba pred well ínadvance of the prjec otie daan on Mah 18f 201 i, BPAS'
it wîUsend.tw FirPT agments for th 21MW Grus CreiQF anthe21MW (ib$
Creek II QF by the end of the Mah 201 1. Id at 131. At th poínt, the QFs will have 15 days
to obligii themlyes to tb. two 2()yea PTP trsion ageeents oragR. losethir
positioninthClll. Idat." 31..33.
C.Fin Ene.- Sales Agment Negtiatias wi IdåhoPower
Wastch Wind has ben enaged in foim powesaes eot di1.ions wîthIøa
COMM OF GROUSE CREEK WI PAR LLCAN GROUSE CREEK WI
PARII,LLC
CASE NOS,. IPC..E..1 ()1,JPC-E-I0-62
PAGE 10
POW' l~.t 1_tFe~26,201(), wlen it ~eQ .R$y AIlpbipf. ldaø .Powe,ø
debetho pr_ p~ .ththeintennonproswith BPA,(an. tht it
ap ft Idao Powet'! OASIS websitthtadna ttSSòt wæavaihtle on Idåo
POWf'$ systfrlíì ~ MikasubstontOits Tre Vaiiey loacete. /4.. at , 34ian
Eibi A... )d. AIpb ..~.. on Mah 2, 2010, thtprOl" to eKeeuton of a pøwe Såe$
cmtr Wasach Win mus coplet exutn of an intennecon ageeent and rose
fi trssion on bo th BPA an th Ida Powe trsson sys to get the en
frm th prjec m Ida Powe cusme load. Id
As dabe abve, Was Win ha long sin commence th prss nesa
to inte an deliver th outut m Ida Powe's system. But unr th PERC's apved
Op Ae Trasmison Tar ("üATI"), the TSR on Ida Powe's syst m its ow loa
çe would be a reue by Ida Pow's mercha ar m Ida Power's trss an m
desipa gen falities as network resours. See id at Exbit C, pp. 4-5 (deribin th
prs). As suh, Was Win ha no powe m lodge ths reues internly with Ida
Powe, and onc loded Was Win would have no di aces m th Ida Powe's
trsson pennl. Unlike its intennecon an PTP trsson re with BPA for
wh Wash Win ha di acs m th BPA trmion pennl, Ida Power's
PUR A cmtrts adinst would hale th TSR on Ida Pow's sys.
Wasa Win reue tht Ida Pow prvide it with a PURP A contrt for a prject
up m 65 MW in Ap 2010, an on Jun 2. 2010, Idao Power prvided prcin it st it bad
COMMNT OF GROUSE CREEK WI PAR, LLC AN GROUSE CREEK WI
PARll,LLC
CASE NOS. IP..E-l 0-1, IPC-E- i 0..62
PAGE 11
gener with its AUROA modL. Id at'i 35-36 an Exhbit B.4 On June 11,2010, Wasch
'Wìnd sìgieda leter or undertadig prvided by Idao Powe., wbeh s~ Idí4oPower
would not execte a powe saes contr pnor m when the Prject reived coiicm tl th
reults of the intial Idao Powe trmission capaity applieaon forttssion mitsloa
çete at k:owoan the Projec sets the rests.. Idaf' 37 ard EXhbit C, p. 3. Tlbn1Y
other reuiements m obta a powe purha agt involved íntenntion, and Wasch
Wind ha aly met those intennection i:uients. Id
Wasch Wínd wa under the impresion th Mr~ Allphi wa workng with hi te to
mae the necsa TSR on Idao Powe's syste. Id at 1 39. On June 25, 2010, WàSch
Wín agai respnded to Mr. Alphin th ba on stdies and convertions with BPA, th
were 93 MW available on th neessa BPA líne to th Minidoka subson, an therfo
inteonnection and tnission of 65 MW m Idao P~wer would no be a problem. Id at"
40,42.
In.th .Tune 25, 2010 enl. Wash Wind also índicaiedtht due to federal pemitl
4
Thecont prices provided in Idao . Powe's .Tune 2, 2010 let appe tQhave be
based entily on the AURORA modl. Rectly, Idao Power sted in defen of its
iiPleneníâÛQn.oftJIRMet()logyfor proj~tsiit entitledw piibnsheda.yoiçl;cost1',
tht it fi generaan avoided cost of energy withAURO~and.thnd.acapáCity (fied) cost
crt. uSíng aCCC'l isadde to thevaliiof energycaC'latedin. the . AURORA mol.~' 144m
Power's Anser to. HIPPO's Petiliøn f.orReconsir#ratiti, Cas No.GNR-E..iO..4, .1ip'iH
(Marh 7, 2011), Ã1tho~Mr.Allphin's lettr sent Jun 2, 2010
prvide
a. deed nite cha
titled .'Con~t Ptce." itmáCe. no reference manY ~edcost ad(ltion t() the AURORA rat
calculated for th . proposed 65. MW GruseCrekprject.A.fdØtof.Chisline Mibtll,at
Exhibit 1). p. 3. Ths evidence.. of Idao j)ower's iider..esaton ofavpide cost ratetwJ its
implementaon of the lR Metodology calls in questQl1 anyargutIda Powertly rase
tl thes two QFs wer impropely udisaegate" to obta published rat beau, as note
aboVe, eah QF isentitleal'esseat the iitilty'sfilavoideçost,
COMMNTS OF GROUSE CREEK WI PAR LLC AN GROUSE CREEK WI
PAR II, LLC
CASE NOS.lPC-E..I0-61, IPC-E-10-62
PAGE 12
is Wash Wind inde m re.its over footpt an wi to disc powe sa
~ fo tw íigle 10 aMW prjects, in of th large 65 MW projec. ld at, 43. On
July 14, 2010, Was Wmd submtt a for rees for tw 10 aMW PURA cont. to
Mr..A ld at " 44 45 and Exbit D. Wasoh Win explai th maty of th
Prjec in de, inlud th Intion Agrent whch aly ha progr to th
Faces Stuy stge, tw year of wi dat suprtng outut prjections, fi la lea,
an oxainein de th BPA ba st trsson would be avale m Ida Powe's
Micl suèQ.. 14 at Exhbit D. WJSh Win iiifot Mr.AUplth on Jui 30,
2010, WasWinsliiinto SPA's NOS an th by Augut 18,~01O, .B:PA would
reui W~h Wit topQstth seurty Ofåproxìly $300,00 torths NOStrssÌol1
p~. 14. EKbitl), p.2. Ths July 14, 2()10 lette$.so ""tie$ .tblda P()we
inv~ avaUtyoftrsmiiiioi on its .sy to its load .ee ...pr'VØe cøniWe
Tra Caity Applica Quon for each prjec. ld at Exhbit D, pp. 2-13.
But th letr also exla "Per your sugeson (Wash Wind) went ah an co
on OASIS to th be of our abilty th the is caity form Mindoka Substion m Tre
Val for Ida Pøwe m obtn Netrk Sece on beha of our Quaifng Faciles." Id. at
Exhbit D, p. 2.
Ray Alph st on July 21,2010 in an e-mal, "I have no be able m sut the
TSR. Be getg buy ín ft varous pele, looks like I will probably be filin th TSR
so ne we" kl at 1 46 an Exbit E, p. 1; see also id at Exbi E, p. 2 (M.
Al's Jun 29, 2010 eml stng his routne pro wa to "nt delop a dr ag
COMM OF GR.OUSE CREEK WI PAR LLC AN GROUSE CREEK WI
PARn,LLC
CASE NOS. IPCE-I0-61, IP-E-I0-62
PAGE 13
for R parcul project until the íntennecon an trsson is pied down"); AfSoø
moreunucssfu communcations, Wash Wín be frte with the lack ()fpt~,
aiddecided mreta atorneys masistinthenegotia.oii. Jd at" 47-48..
WåSatcWind sentIdaho Power an email on AUgt 11.20l0'è ínwlen itclaed th it
wa forally reuesng two power saes contrac for PUR A projecs. and explaied th eah
af theP1Jects would be physicaly lite suh th eah Wøuld geiemcno rtore th io
averagemegawattína singleinonth. ld at " 49..,Oand Exhbit F.Tb~lalsøijçluded,
yet ag the two completd Trassion Caity App1icatol) ~. fói ~.two
separte projects. Id at ExhbitF, l). 5..16. Ths Augst 17th erla.søStedthWash
Wínd did "not believe the sty pross should delay th subsson of execution rey powe
purJiagents. With the subSti delay seurty beig reuiinJ:t I~ Pow
PPAs,the risk of 0ll prjec's fai m come on line due to ~ssiøn cø~ts is
completely mitigated. " ld at Exhbit F. p. 1; see also id. at Eidbít.Ap.i (h. AlphiR's~h
ZOlOemldescbingthe delay. securty claus). From emaílsandatelepiie\eøv~onin
lat Aug Wash Wmd undetooth to be.a:queSÛótas mwheter Idao Powwowd
agre to submt a reuest to its trsmission pennl for both Grus Crek QFs at the sae
time. ld at' 51.
On Ocobe 1, 2010, counl for Wash Wín sent a let to Idao Power for eah
Grouse Cree QF. eJprssingWasch Wind's intt to obligatbeQFsto.twpowe~es
agents for the two QF projects. . ld at' 52-57 an Exhbit G. These le list se
stdadte applicale thugh Commssion order, inclug th daly an senaity loa
COMMENTS OF GROUSE CREEK WI PARK LLC AN GROUSE CREEK WI
PARII,LLC
CASE NOS. IPC-E-10-61, IP-E-l0-Z
PAGE 14
sh pr adus (Ol No. 3(415), as well as th wi inon ch, in
avilab pa an wi fo an co sh prviio (Or No. 30488). Id at
Ext G. Th OÐ 1st le objec to any fu delay in submttng both TSIl on
Jcl Powe's syst Id Th Oc 1st let expr Wastc Win's co aJ with
th i.ty of th high $4SIk de liqudæ daes se prvision Ida Po ha be
~ an st th QFs woul &¡ "to any amunt deed renale by the Commsson
if Idao Powe in on a prviion røui Wastc to post a delay default liquda
da sety." ld at Exhbit 0, pp. 3, i 1. Th Ocmbe 1st let prvi ver deed
pr inon for eKh of th Gr Crek QFs, an stte tht both prjec would now
be siz at 21 MW of maum caity an agai stte they would gener unde 10 aM.
Ill at Exbit G. Ida Power did DOt re by Ocbe 21, 2010, an col for Was
Wiø Jet a foUow up let to Ida Powe on th sa date, reg Ida Powe th it ha
stl _ even prvi dr cont Ill at 1 58 and Exhbit H.
Ot Novembe 1, 2010, Ida Powe repo with a le fr Mr. Alphn, st
th be ha no yet subtt th TSRs m Id Power's trission pel. Ill at" 59-
an Exbit I. Mr. Alphi st Ida Powe would fie TSRs for Grus Crk Win Par i
for nala rag of 21 MW and Grus Cr Win Par II for naepla ra of 21 MW.
Ill at 1 61 and Exhbit i.s Id Mr. Alphi's Novembe i st lett also exprss Ida Powe's
5 Althug Mr. Allphi's Novembe 1, 2010 lett semed to imply tht he ba withld
th TSRs on acunt of cha in th prjec ~ the sae chaes did DOt compr
Was Wín's abilty m procee thugh th innnction an PTP trmission prse
with Ra Rive Ru Elec Coove an BP A. See id at" 22, 23, 30.
COMMTS OF GROUSE CREK WI PAR LLC AN GROUSE CREEK WI
PARII,LLC
CASE NOS. IPC-E- i 0-6 i, IPC-E- i 0-62
PAGE iS
pøsìti()ii th th Prjec niust .åg. tó a$451k delay $èU1ty aIount an. fòrthfitì
provided a dn st&tFESA for th Prjee. Iif ni~.FEACóñta;tle$45Ikdelay
seurtyclaus. 14 It also reuid înSecon 5.1,tit prit to~~M of tleFlS,AWith
regard to the TSR for Idlo Power's sys "Rets of th intial trssonçapaçity :iuest
ar knoWDand acceptale mthe Seller," and tht "Seller must prvide evdece tht th Selbtt
ha acui fi trsmsson C8ptity frm all rel. tttt entiesm deliver th
Facilty's ener to an accepble point of deliver on th Idaho Power elecca sym." Ii at
Exhbit I, pp. 16-17.
The QFs had not met thes trssion reuients, In th ca of th TS oI) Ida
Powe's syst, Mr. Alphi ha not ye even intiat th pr deite rep reue m
do so since at lea June 2010. In th ca of BP A, compliane with Ida Powe's reuiemt
would have reui th QFs to obligat thlves to longte PT wh agen pnr
defmt,and (thteah.QF)reni(ed) cottm...sua ptoVion~~e.by...th
Commsion/' Complaints, Ca Nôs.IP-E..io-29 ån -3Q. at' 9. Fui,tlQFsal~th
COMM OF GROUSE CREEK WI PAR Ltc ANOROuSBCR.EK.Wl
PA.II. LLC
CASE NOS. IP..E-I0-61, IP..E-I0--2
PAGE 16
with thH~ to suh a prvision, ida Powe's ùioncopletonof th
pr inieon an tron press pror m execut a PPA is wile."
Jd
Af th Co did no grt th immedat reueon in th publish ra
elili ca, on Novem 19, 2010, Ida Powe an th QFs aa tD sty th copl
prng an exec st QF wi cont continios the publish ra. ld at 1 70.
Id Powe set a let da Novembe 24,2010, acknwledgi Wastê Win's agt
to ac th $4SJ sety cla an highlighng some prvion of th Novembe 1 st
FBSA, inlud th rega culment for syst reliabilty purse. Id at 171 and
Exhibit 1. Ida Powe's Novembe 24th let reue th the QFs fill in prjec-spc
inoron ìn th Noveibe 1 sf FESA and "return th dr m Ida Power so th th Copay
ca th irti th Sabas-Oxey coni apva pr an gcer an execle dr
fo si." Jd
OnJ)be2, 20iO,Wås Win se.. a let aid verionsofthIaapowe's
Nov'- 1st CóìU fot eahproec conta.ailprjêCt spifcs. ldat, 72 an Bxhit
K.6 w~ WWd'sDebet 2lÎ let conted th paes' agt th thPESAs
wouJ no cotan th onerus trsisson reuients in Seon 5.7, but would cota th
$4S/k dey se cla. ld at Exhbit K, p. 1. The let al con1 th QFs
un the prvisions of the Noveibe 1st FESA highghte in Idao Power's Novembe
6 The AJft of Chrtine Mikell cotains a ty ref m Ida Powe's dr FESA
prvide Novem 1 st as "Ida Power's Novebe 30th contrt." See id at iI'2.
COMM OF GROUSE CREEK WI PAR LtC AN GROUSE CRE WI
PAR II LLC
CASE NOS. !P-E-l 0.1, IPCo.E.. 1 0-62
PAGE 17
24th let. 1d Nodiputèreamedregarg the.te .atd provion8 of the FEAs.
Id~ho PQwet eotiedreeipt on Debe "2010. Idåt'r 14.Qn ~be9,2010,
counl. tQr Waswh Win reue thug emat() IdaoPoweri that th~ læSA~n.tà
omme dåtes of a Fir Enegy Dat of June 2013 an a Comiercl QninePate OfI)~IDbeJ:
2013, taerth the dates filled ín by the QFs in contr prvideøiiPebe:r, whch
were Fir Energy in Dembe 2012 an Commercial Onne Dat June 2013. ld. at' 7S.Tls
change wa consist with the delay necsa ín the wheeling argements over BPA's syst
caus when Wastc Wind decided notm submt the $194;396 for the 2010 NOS, an in
proceed thugh the trtiona TSR on OASIS ín Augu 2010. See id. at" 21-29.
Idao Power next conta the QFs on Dember 14,2010, but it only respde m as
for clarcation for the cagrhic seons with whch for the QFs we loced an for the
identity of th trttg entity, whch ite ha intl be omtt :fm blan sp
ín the contr Wastch Win provide on Deember 2,2010. 1d at 116. However, th Grus
Crek QFs previously prvide the cagrhic seons in the Ocbe 1st let. See id. at
Exhibit G, pp. 5, 13. And Wastch Win ba st th BPA would be the trtt entity on
multiple occaions. See id. at Exhbit A, p. 2 (Febn 26, 2010), Exhbit C, p. 9 (Jun 17,
2010); Exhbit D, pp. 1~2, 5, 7, 11, 13 (July 14, 2010); Exhbit E, p. 1, 7, 9, 13, 15 (Augu i 1,
2010); Exhbit G, pp. 1,6,9, 15 (Ocbe 1, 2010); Complaints, Cas Nos. IPC..E-I0-29 an -30,
at'r 7 (Novembe 8, 2010).
On Debe 15,2010, Idao Power st th th onlíne da provide Debe cj
would be inluded ín the contts, an lar th day counl for the QFs prvìde th
COMMS OF GROUSE CREEK WI PAR LtC AN GROUSE CREEK WI
PARß,LLC
CASE NOS. IPC-E-I0-1, IPC~E-I0-62
PAGE 18
iiti re th trttn¡ enty an th seons consist with the pror
co. A/it of Christne Milæll, at 1 ". On Debe 16, 20 i 0, Ida Power
prvi th exle FEAl, wh col for Wash Win set by oveøht deliver to
Wa8lch Win, whch is not loe in Bois. Ill at 1 18. Th verons of th FESAs we
COltt with th paes' aøcmt, well ín advan of Deembe 14, 2010, to reve th
~ in aecm S.1 for competon of trssion prs. Id On Debe 21,
2010, _ Gr Crek QF an th Gr Crk II QF execut th PE&, an set th by
ovoah deliver to Ida Power. Id. at 11 79. Ida Powe exec th FEAs on Debe
28,2010, an filO th for Con deuùnaon th ne day.
COMM
A. TI Gr Cr Q" ea sati *arclth tests.
Th 0r Cre QFs ea entitled thlves m lon te coni with ra se at
th puJiI avoide co in Or No. 31025 beus ea QF saed th Commissi's
~ to""or ~be 14,2010.
EaQF .sasñC$evcmtlmø$t$tÎDent~. ~. t'er )Jby .th.Couisiøs
~...êlWa im~oohû on.fie at ti.CoinmnonNovebe.g, 1010. ..s,e.
Â.W;.1lown(J;. l1l., 121 ld at8i6..1&~ 828 P.2d at 845..7. EaQF'sCmplait á1lged
Ida Powe's insstce on completn of the prtr trsson pr pror m
exec a PPA wa umoae beus th QFs ha exp wilJtless to ag m a
delay de liuida dama¡ sety prvision rely cacu m offse Ida
Powe's ac daes in th evt~f a delay default.
COMMNT OF GROUSE CRE WI PAR LLC AN GROUSE CRE WI
PARn,LLC
CASE NOS.IPC-E-l0-1, IPC-E-1Q-62
PAGE 19
The allegaons ín th COmplaits wer metoou be Idao Power ag to
execut stda PURA contrts without regard m the sttu of the trssion pr.7
Depite diIìgert .efIott for i:y i:ont pror m fiin. thecoplails,tle QEs4ic:no1 e.Ye
obtan a dr contractuntil Novembe 1,2010, appntly.due to Ida Power'spositioni.thit
doe not evêlprvide dr contts until af ineron and transmlssion ar ~~
down." A.fttø/CJrristineMikell, Exhbit E' p. 2, EVeith,thêdrCO~QÖl1ta th
onerus reqents tht the QFs seur fi trssion m Ida Power and pm though
Idaho Powe's ínte TSR prs pror to executon. Th QFs diligeny intiate an have
now essetially complete the intecoecon and trsson prs on BPA's syst.
But th QFs had no power to be Ida Power's in TSR pros, and Ida Power did
not begi tht prss until Novembe 4, 2010, deite rete re th it do so ealier.
Tht Wastch Wind reuc th capaity of th QFs ca no prblem in th intennon
and trssion procses with Ra River Rur Elecc Copeve an BP A, an shuld not
have bee a problem for Ida Power's tron pennl's prg eith, if Idao
Power ha intiate its TSR pross wh intialy reue
Additionaly, the lage sus of money and tie spt on developin th projects an the
advaned ste of their matuty evdence their íntent to obligat thlves to the FEAs. See
In the Mater a/Casia Wind to Determine Exempton Stat, Cas No. IPC-E-05-35, Or No.
29954. pp. 2-4 (200) (fidi wi QF entitled m grater ra ba on maty of
Fur,th QFs' positiOtorithe liquida daesprWSioriwa en'tlYQÖ1l$tt
with Idao law and Comiion order. See Magic Valley 1'ck JJOk~t$f Inc. v,Mey; 13:l
Idao 110, 111,982 P.2d945,952 (Ct. App. 199); Or No. 3060S.
7
COMM OF GROUSE CREEK WI PAR LLC AN GROUSE CREEK WIPARll,LLC .
CASE NOS. IPC-E-IO-61, IPC-E-I0-62
PAGE 20
~lapmt ofprjee.whm jtbaDl~IY suUe a colet epljcaOl1 tò
~OJatY.inh. th IlIieale fee, an ha perfoi wistuea. ..Côtm
ptlimilU ,eUïan licesin acvitieš an ma effor toseme$Îte top1ø
tum.). Prr to th ra chge da. th Orus Cre QFs ha ente into an
I~on A¡t an pro m th Facilties Stuy st, ha obt all
ne re prpe ri for th sits, collecte over two yea of wi da cote
exve widle an veg stues and neoti vaous as of th prjec with
Ida Power for alos a yea.
Finaly, the QFs' deDlons knwlede of th coir te fu evidece th
int of th QFs in ths ca to obligae thlves pror m the etIve da. See In the Maer
of the Application of IdQ Power Comp for Appova of a Firm Energy Saes Agreem
with YellowstOM Power Comp, Ca No. IP-~10-22, Orr 32104, p. 12 (2010) (ap
of gr rat despite "t appt lac of any wrinen doentaon . . . evideci
th th te of a powe puha agent we maally complet (bfor th rate changer'
in pa be th QF ha "famliarty with PUR A projec an th std te of Idabo
Powe's powe pu agen"). Th Orus Crek QFs ha obt an reew a
dr PURA FEA fr Ida Pòw on Novembe 1, 2010, a month an a ha pror to rate
ch da, an let exchage beee th paes on Novembe 24, 2010, and Debe 2,
2010, co th ri unng of th te in the fi FESAs. All maer te an
prec sp we well se~ by Debe 14,2010.
COMM OF GROUSE CRE WI PAR LLC AN GROUSE CREEK WI
PARn,LLC
CASENOS.IP-E-10-61, IPC-E-I0-62
PAGE 21
B. TheCøntract term and Ici Power's mot-errt wi iøtetlnsñlcl ."'y
the toneems ra ii Idabo Power's Application rerdgsystenirtlibiland
cost.
ldao Power ased in eacb of its Applicaons tht "te retlstín ths Applicaon.. .is
ni~..Witht.e speCific teSeatón ofnghts .and ineorptaon of tle iivets se foì'in.tl
Join Petition and th Compay's comments regarg th possble negatve effec m th (sic)
both the utlity an its cusmmer of additiona and uneted PUR A QF generon on Sy
reliabilty, utlity opeons, and cost of íncorpra and íntegitíg suh a large peon
level of PURPA QF geneon ínto th utlity's syste." Applicaon, at p. 3.8 Bec the
tes of the FESAs in ths cae and the cunen wi ingron chge prte 1'yers an
be the projects obligat themseves prior to th effecve da of th eligibity ca
reuction, the QFs submit th Ida Powe's coce should not prlud Commssion
aproval of the contr.
Fir, the Comssion.sbould coidt th sysem reliality..andwid inteaton
di$Cussioninthe NØì'wes ...å1IntemiountmPowePrucè COalôfi'$ ("NC'l
Comments in GNR~E~iO-04. See Hippe Opening Commnts, Ca No. GN-E-1(), pp. 13-
16 (I.22, 2010). In thse Comts NIPC poin out tl. deldap~owcns
stmen in the .Joint Motion rega 1 i 00 MW be nealdaoPowe'sm.um loa,
Idao Power' sown wi inteon st coclude 1h ev at 1200 MW of wi cait on
Beus Idao Power's Applications in ca Nos. IP~'EIQ.1,IPC;.E..r()2 át
substpaJly the sae, these COnielts Will refer to ~m inteeå1;ly.. tl ~'A~li~øn."
8
COMM OF GROUSE CREEK WI PAR LLC AN GROUSE CREK WI
PARII,LLC
CASE NOS. IPC-E-lO--l, IPC..E-io-62
PAGE 22
th CompY's sy wi would reh ony 80% of its load an it would do so only for a
few ho pe yea. $Ie EMrn', Ida Power 2007 Wind St, Ca No. lP-E--03, p. 34
(Feb 6, 2007). Th seent th rete af colusion of th wi inon sty
.. lb avoid çO ra avaie to wi developers at a ra relØ by $6.501 for
pi eoia oniDe wh Ida Powe's cuulatve wi powe is "SOL MW and abve."
811 Or No. 304, at p. 8. Th is no up ca contaed ín th orer, and Ida Powe ha
no availed it of th oppty si m up its wi integrtion sty. Furer, Ida
Powe's wi ingrn sty di not conside th fu abilty of any of the Compa's 744
I ' , .
QF ..sl.. in the cost of wid foreg. ¡d. The FESAsalsoprvid, for a. ~tateat
tis of the day and mont of the yea when the engy is wort lestø ldaoPoWødu Î(
demandåndtegiotil maèt òonditio1l.SeeOter No. 30415.
EåhQFhåSselêctè December t, 2013, áS ìts SChec:ii.è(tOponDa, anseon
5.3.2 and 5.8. i of eah FESA contans a liquda daagèa: sety provision of$4Spe'k
ofnaeplae . caacity for failur to achieve th date. Th wire~ thè QFstoèåhpøt
$945,00 as delay defa sety afr Coinon apval of th oont.
Th QFs have ac the provisions in ea FESAan Idah Power's apve
Scheule 72 regarng non-compeed curlment or discnnon of th QF for sysm
reliabilty puses.. Ths prvides Idah Powe the right to exerise "non-cin
curlment" at ties "wn th geeron beg provide by th Faclity in cen opeg
condìtions exceor apaches the mium loa levsof(Idao Po~'s)syst suhtht
it may have a detrenta efect upn (Idao Powe's) abity to mae its ther, hYdr,and
othteSó\l in orer mmèètitso'bli~tiol1.mtelibly see1~Olits~." A.ppliCatOiJ
at p. 7. Thus, even if th were evidece th syte reliabity issue may evolve in the fu,
the col1t.a110w Idao Power m tae renable st to en..sy ~ty.
CONCLUSION
For th rensse fort abve, Grus Crek Wind. pat LLC .and.OTol* Cre Win
Par II, LLC, reaply.reuetht the .Conissionlpprvethe Fin El1etgy S8..
Agter.
COMMS OF GROUSE CREK WI PARK, !LC AN GROUSE CREEK WI
PAR II, LLC
CASE NOS. IPC.&I0-I, IPC-E-l0-2
PAGE 24
~y suue ib 24~i day of Mah 2011,
RICHASON & O'LEAY, PLLC
Cu
P . Richa
Grory M. AdaAttrns for Gr Crk Win Par
LLC and Grus Cre Win Par II, LLC
COMM OF GROUSE CRE WI P ~ LL AN GROUSE CREEK WI
PARn,LLC
CASE NOS. IPC-E-I0-61, IP-E-10-62
PAGE 25
CERTICATE OF SERVICE
I HEREBY CERTIY th on the 24th day of Marh, 2011, a tr and cGrr co:py oftle
wítlin.and foregoíng COMMNTS OF THE GROUSE CREEK WiNDPAR~~
GROUSE CREK WI PAR ß, LLC an the AFDAVI OF CHRSTIMlLL
wa se asshowntotlefonQwigparies:
Lisa Nords
Donovan Waler
Idao Powe Company
PO Box 10
Boisel Idaho 83707
dwalker(ßidaopower .com
Inordstrom(ßidaopower .com
( ) U.S. Maill Pose Prd
(x) Hand Deliver
( ) Overght Mail
( ) Facsie
( ) Elecc Ma
Rady Allphi
Idaho Power Compay
PO Box 70
Boise, ID 83707
ralphiniãidaopower.com-
( ) U.S. Mal, Pose Prd
(x) Han Delivèred
( ) Overght Mail
( ) Facsimile
( ) Elecnic Mal
~-¡~ryAda
COMMS OF GROUSE CREEK WI PAR LLC AN GROUSE CREEK WI
PARII,LLC
CASE NOS. IPC-E-lO-61, IPC-E-IO-62
PAGE 26