20110803Answer to Staff Motion to Extend.pdf

WILLIAMS · BRADBURY
ATTORNEYS AT LAW
August 3, 2011
RECEIVED
lOll AUG -3 PM 3: 3'
Ms. Jean Jewell
Commission Secretar
Idaho Public Utilties Commission
472 W. Washington
Boise,ID 83702
Re: IPC-E-11-10
Dear Ms. Jewell:
Please find enclosed an original and seven copies of Interconnect Solar Development,
LLC's Answer to Staffs Motion for Extension of Time for filing in the above referenced
case.
Than you for your assistance in this matter. Pleasefeel free to give me a call should
you have any questions.
Sincerely,
X~W~
Ronald L. Wiliams
RLW/jr
Enclosures
1015 W. Hays Street - Boise, ID 83702
Phone: [phone] - Fax: [phone] - ww.wiamsbradbur.com
Ronald L. Wiliams, ISB No. 3034
Wiliams Bradbur, P.C.
1015 W. Hays St.
Boise,ID 83702
Telephone: [phone]
Fax: [phone]
ron(Ðwillamsbradbury.com
RECEIVED
io" AUG -3 PH 3: 3'
UTn.
Attorneys for Interconnect Solar
BEFORE THE IDAHO PUBLIC UTILITES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
IDAHO POWER COMPANY FOR A )
DETERMINATION REGARING THE FIRM )
ENERGY SALES AGREEMENT WITH )
INTERCONNECT SOLAR DEVELOPMENT, )
LLC, FOR THE SALE AND PURCHASE OF )ELECTRIC ENERGY. )
)
Case No. IPC-E-II-I0
ANSWER TO STAFF'S MOTION
TO EXTEND DEADLINE FOR
FILING COMMENTS
COMES NOW, Interconnect Solar Development, LLC, by and through its
counsel of record, Wiliams Bradbur, PC, and fies this Answer in response to Staffs
Motion to Extend Deadline for Filng Comments in the above referenced docket.
1. Interconnect Solar Development (ISD) received a copy of Staffs Motion
on Friday, July 29, by regular maiL. Counsel for ISD was out of town on Friday July 29
through Monday, August 1, and not able to review Stafs Motion until Tuesday,
August 2. The Commission granted Stafs Motion on Monday, August 1, two days after
the Motion was fied and without the opportunity for ISD to respond thereto.
2. ISD does not object to Staffs need for a limited amount of additional time
to review the Murhy Flats Solar Firm Energy Sales Agreement ("FESA"); recognzing
ANSWER TO STAFF'S MOTION FOR EXTENSION OF TIM, Page 1
that the Application fied in this case was filed on June 17,2010, approximately 45 days
ago. ISD does object however to the schedule laid out by the Stafs Motion and
Commission Order No. 32308 for the reason that if the schedule is followed, the Murhy
Flats Solar Project ("Project"): (i) wil no longer be commercial viable and (ii) will be
forced into default in its contractual obligation to Idaho Power.
3. In order for ISD to meet its contractu Scheduled First Energy Date of
June 1, 2012, and to comply with the Section 1603 renewable energy ta credit
requirements that constrction commencement prior to year end 20111, it is imperative
that ISD commence constrction in the fall of 20 11 before the ground freezes.
4. Over 1,000 steel poles necessar to support the solar panels must be
drven into the ground prior to the ground freezing, so that follow-on solar panel
installation activities can proceed during the 2011-2012 winter. In addition, certn
concrete pours will be necessary in advance of the winter months. These are the
constrction activities that must occur in 2011 in order for the Project to quaify for the
Section 1603 tax credits.
5. Prior to commencing constrction ISD needs to close constrction
financing on the Project. Constrction financial closing canot occur until after a
Commission Order approving the contract, plus 21 days. For scheduling puroses, ths
means ISD needs, if at all possible, a Commission Order approving its contract in early
September.
i Section 1603 of the American Recovery and Reinvestment Tax Act of2009 (Section 1603), Public Law
111-5; as extended by Section 707 of the Tax Relief, Unemployment Insurance Reauthorization and Job
Creation Act of201O. In order to be eligible for the direct Treasur Deparent payments in lieu of tax
credits a renewable energy facilty must either be placed in service by year end 201 1, or placed in service
before year end 2012, provided constrction of the propert has commenced in 201 1 .
ANSWER TO STAFF'S MOTION FOR EXTENSION OF TIME, Page 2
6. Order No. 32308 extends the date for comments due by Staf and other
interested paries until September 29, 2011, with reply comments by Idaho Power and
ISD on October 6, 2011. ISD assumes that a Commission Order will follow, at the
earliest, approximately one month later.
7. Such a schedule is fatal to the Project. If Commission approval does not
occur by approximately October 1, 2011, Project constrction canot likely commence
until the ground thaws the following spring. This would mean that ISD would loose
access to section 1603 tax credits. Without the section 1603 tax credits the project is not
economically viable.
8. Even more critical - ISD could not hope to complete Project constrction
by June 1, 20122 if it could not sta constrction until March, 2012. In essence, the
Project would be in contract default on its FESA with Idaho Power.
9. ISD has discussed the proposed schedule with Idaho Power and Idaho
Power has informed ISD that it is willing to expedite responses to Staff s additional
discovery requests. ISD makes the same commitment to the Staf - should Staf have
any questions ofISD, it will immediately respond thereto.
WHREFORE, ISD requests that Staff, Idaho Power and ISD discuss and agree
among themselves on a schedule that can accommodate both Staffs need for additional
discovery and lSD's need to commence Project constrction on or before October 1,
2011. Such a proposed schedule revision - agreed to by these three paries - can be
submitted to the Commission by stipulation for approval and form the basis for a
subsequent amendment or errata to Order No. 32308.
2 The project's Scheduled First Energy Date.
ANSWER TO STAFF'S MOTION FOR EXTENSION OF TIME, Page 3
DATED: This J day of August, 2011.
fl aJ l (J AM
Ronald L. Wiliams
Willams Bradbur P.C.
Attorneys for Interconnect Solar
Development, LLC
ANSWER TO STAFF'S MOTION FOR EXTENSION OF TIME, Page 4
CERTIFICATE OF SERVICE
I hereby certify that on this ~ day of August, 2011, a tre and correct copy of
the foregoing was served by the method indicated below, and addressed to the following:
Donovan E. Walker D US Mail
Lead Counsel D Facsimile
Idaho Power Company D Hand Delivery
PO Box 70 D Overnght Mail
Boise,ID 83707-0070 ~E-Mail Address
E-Mail: dwalker(Ðidahopower.com
Randy C. Allphin D US Mail
Energy Contract Admin.D Facsimile
Idaho Power Company D Hand Delivery
PO Box 70 D Overnght Mail
Boise,ID 83707-0070 ~E-Mail Address
E-Mail: rallphin(Ðidahopower.com
Kristine A. Sasser D US Mail
Deputy Attorney General D Facsimile
Idaho Public Utilties Commission D Hand Delivery
PO Box 83720 D Overnight Mail
Boise,ID 83720-0074 ~E-Mail Address
E-Mail: krs.sasser(Ðpuc.idaho.gov
Randy Hemmer, Manager D US Mail
Interconnect Solar Development, LLC D Facsimile
3777 Twilight Drive D Hand Delivery
Boise,ID 83703 D Overnight Mail
E-Mail: randyhemmer(Ðclearre.net ~E-Mail Address
J?4ll,~
Ronald L. Wiliams
ANSWER TO STAFF'S MOTION FOR EXTENSION OF TIME, Page 5