20110916Reply Comments.pdf

Peter J. Richardson
ISB No. 3195
Gregory Adams
ISB No. 7454
Richardson & O'Lear
515 N. 27th Street
P.O. Box 7218
Boise, Idaho 83702
Telephone: [phone] Tel
Fax: [phone] Fax
peterCirichardsonandolear .com
gregCirichardsonandolear .com
Attorneys for Grand View PV Solar Two
RECEIV
LOLL SEP '6 PH 4: 51
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTR OF THE APPLICATION OF )
IDAHO POWER COMPANY FOR A )
DETERMINATION REGARDING THE FIRM )
ENERGY SALES AGREEMENT WITH )
INTERCONNECT SOLAR DEVELOPMENT, )
LLC, FOR THE SALE AND PURCHASE OF )ELECTRIC ENERGY )
)
)
)
)
CASE NO. IPC-E-II-I0
GRAND VIEW PV SOLAR TWO'S
REPLY TO COMMENTS OF THE
COMMISSION STAFF
COMES NOW, Grand View PV Solar Two, hereinafter referred to as "Grand View,"
pursuat to this Commission's Order permitting reply comments in the above captioned docket
(Order No. 32347) and hereby lodges its Reply to the initial comments of the Commission Sta.
GRAND VIEW'S INTERESTS IN THIS DOCKET
Grand View has a power purchase agreement with Idaho Power that contains IRP rates
that are essentially identical to the rates contained in Interconnect Solar's power purchase
agreement that is at issue in this docket. Grand view is ready and willng to execute that
agreement but for the fact that Idaho Power is attempting to coerce Grand View to give, without
compensation, its Green Tags to the power company. Grand View has a direct and substantial
interest in maintaining the integrty of the methodology under which the rates in its power
purchase agreement have been calculated.
GRAD VIEW WAS PREVENTED FROM PARTICIPATING IN THIS DOCKET BECAUSE
THE IRP METHODOLOGY WAS DEEMED TO BE OFF LIMITS AND IRRLEVANT TO A
'MERE CONTRACT APPROVAL' CASE
In order to protect its direct and substatial interest in the integrity of the IRP
methodology, Grand View lodged a petition to intervene in this docket stating:
This Intervenor understads that discovery is curently tang place between the Staff of
the Commission and Idaho Power that indicates changes in the maner in which Idaho
Power calculates avoided cost rates for solar projects that are larger than 100 kw may be
considered. Grand View PV Solar Two has a draft contract offer from Idaho Power with
similar rates to those found in Interconnect Solar's pending contract for approval before
this Commission. i
Recognizing that it is somewhat unusua for thrd par to intervene in a PUR A contract
approval docket, Grand View assured the Commssion that:
Grand View PV Solar Two recognizes that the Commission has issued a Notice of
Modified Procedure that did not invite petitions for intervention to be fied. The
Commssion subsequently modified the deadline in the Notice of Modified Procedure for
comments to accommodate Staff s need for additional time to review the rates contained
in Interconnect Solar's power purchase agreement. The new dates are September 29 for
initial comments and October 6 for reply comments. Grand View Solar may file
comments; however, without status as a pary, Grand View Solar will not have access to,
or rights of, discovery, including access to confdential Idaho Power models. Grand
View PV Solar Two will adhere to the existing schedule and its paricipation as a pary
wil not delay ths proceeding nor broaden the issues herein.2
i Grand View Petition to Intervene at p. 1.
2Id.
Reply Comments Grand View PV Solar Two - IPC-E-II-I 0 2
Grand View's sole interest in petitioning to intervene was to attempt to prevent this docket from
becoming something more than a simple contract approval case in which the Commission
assures itself that its PURP A implementation policies have been faithflly adhered to.
Idaho Power objected to Grand View's Petition to Intervene arguing that Grand View:
has been a pary to and is aware of the General Investigation docket that is proceeding
before this Commission to address various issues regarding the Public Utilty Regulatory
Policies Act of 1978 and avoided cost related issues. In fact, the present phase of the
Commission's investigation is designed for analrzing and exploring the Integrated
Resource Plan and Surogate Avoided Resource based avoided cost pricing
methodologies, as well as other avoided cost issues.4
All ofIdaho Power's assertions above are correct. However, while recognzing that there is a
docket opened for the purose of investigating the IRP and SAR based avoided cost pricing
methodologies, Idaho Power did not object to discovery questions from Staff implicating those,
supposedly not relevant issues. Hence, Grand View was concerned that Sta might file
comments recommending changes to the methodology with Idaho Power's tacit support.
In response to Idaho Power's opposition, Grand View pointed out that:
Idaho Power has not objected to Staffs discovery related to major changes in the
calculation of avoided cost rates for solar projects. Clearly such questions are irrelevant
to whether the power company has properly calculated the avoided cost rates using the
curent IRP methodology. Because Idaho Power has not objected to Staffs discovery, it
is apparent that both Staf and Idao Power believe that this docket is the proper docket
to investigate changes in the avoided cost methodology for solar projects. Hence, Grand
View has not only a direct and substatial interest, it has a compelling and immediate
interest in the subject matter of this docket. 5
The Commission ruled on Grand View's Petition to Intervene in Order No. 32350 stating:
"The Commission's consideration of a power purchase agreement between Idaho Power and
Interconnect Solar is not the appropriate foru for Grand View Solar to debate generally about
3 Referred to herein as "SAR". Footnote not in original.
4 Idao Power Coi:pany's Motion in Opposition to Grand View PV Solar Two's Petition to
Intervene at p. 3.5 Grand View's Answer to Idao Power's Motion at p. 4.
Reply Comments Grand View PV Solar Two - IPC-E-I I - I 0 3
how avoided costs are calculated.,,6 Unfortately, if Staffs Comments are considered by this
Commission in its decision to approve or reject the Interconnect Solar contract, the
Commission's finding will prove false.
THE COMMISSION STAFF'S COMMENTS AR IRRLEVANT AND CONSTITUTE AN
AFFRONT TO COMMISSION ORDER NO. 32350
Right out of the box the Sta declares that it intends to do exactly what the Commission
deemed to be inappropriate for this case, to wit: "debate generally about how avoided costs are
calculated.,,7 Staf declared that, ''torough review of this Agreement entails far more than just
going though a checklist to ensure the methodology has been properly followed and the utilty's
avoided cost have been properly calculated."
Staf is engaging in a "debate generally about how avoided costs are calculated" by
arguing to change the basic resource used in the IRP methodology from a CCCT to an SSST.
Staf Comments at p. 3. Staf is engaging in a "debate generally about how avoided costs are
calculated" by arguing that Idao Power's AURORA model captues capacity values. Id. at 6.
Staf is engaging in a "debate generally about how avoided costs are calculated" by argung that
the avoided cost rates should be reduced due to a hypothetical surlus period when Idaho Power
actully needs new capacity. Id. Staf is engaging in a "debate generally about how avoided
costs are calculated" by arguing that price shapes used in AURORA should be used in place of
the established hourly and seasonal adjustment factors that are curently used. Id. at 7. Staffis
engaging in a "debate generally about how avoided costs are calculated" by arguing that IRP
assumptions not yet finalized be used in calculating avoided cost rates. Id. at 8. Sta is engaging
in a "debate generally about how avoided costs are calculated" by arguing that integration costs
6 At page 2.7Id.
Reply Comments Grand View PV Solar Two- IPC-E-II-IO 4
be applied to this solar project that were designed to cover integration costs for wind. Id. Sta is
engaging in a "debate generally about how avoided costs are calculated" by argug to change
the cost of capital figure used in the existing avoided cost methodology. Id. at 9.
THE COMMISSION SHOULD, ON ITS OWN MOTION, STRIKE STAFF'S COMMENTS
FROM THE RECORD
The QF industr in general, and Grand View in paricular, have been sandbagged by the
Stas Comments. Sta is attempting to, in ths mere contract approval case, radically and alter
years of Commission precedent without the benefit of a modicum of due process and no public
paricipation - indeed, in spite of the public's (Grand View) thwared attempt to paricipate.
If Staff s Comments are allowed to instrct ths Commssion in its decision as to whether
to approve or disapprove the Interconnect Solar contract, all minimum notions of due process
will have been thown out the widow. Stafhas overreached. Their detailed recommendations
regarding significant Commission approved PURP A implementation policies, that have been
litigated and debated before this Commission for literally decades, must not be allowed to be
heard in this, a mere contract approval case.
WHREFORE, Grand View PV Solar Two respectfuly requests that ths Commission
approve the Interconnect Solar contract and disregard Staff s irrelevant comments.
DATED this 16th day of September, 2011.
Reply Comments Grand View PV Solar Two - !PC-E- I 1-10 5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 16th day of September, 2011, a true and correct copy
of the withn and foregoing RERPLY COMMENTS OF GRAND VIEW PV SOLAR TWI
was served in the maner shown to:
Ms. Jean Jewell
Commission Secreta
Idaho Public Utilties Commission
472 W. Washington (83702)
PO Box 83720
Boise,ID 83720-0074
x. Hand Delivery
_U.S. Mail, postage pre-paid
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Lisa Nordstrom
Donovan Walker
Idaho Power Company
PO Box 70
Boise, Idaho 83707-0070
InordstromCiidahopower .com
bklineCiidahopower .com
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Krss Sasser
Deputy Attorney General
Idaho Public Utilties Commission
472 W. Washigton
Boise ID 83702
Scott. woodbury(ßpuc.idaho.gov
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Ronald Wiliams
Wiliams Bradbur P.C.
1015 W. Hays St
Boise ID 83702
ron(ßwillamsbradbur.com
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Reply Comments Grad View PV Solar Two - !PC-E. i 1.1 0 6