20140225Joint Motion.pdf

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An IDACORP Company
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DONOVAN E. WALKER
Lead Counsel
dwal [e-mail]
February 25,2014
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-13-19
ldaho Wind Partners l, LLC, v. ldaho Power Company - 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 forApproval of Settlement Stipulation and Settlement Stipulation.
DEW:csb
Enclosures
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
Donovan E. Walker
DONOVAN E. WALKER (lSB No. 5921) -
JULIA A. HILTON (lSB No. 7740) li,. r: -: ll i,,, tr: f Sldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70 :.', i
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalker@ida hopower. com
[e-mail]
Attorneys for ldaho Power Company
DEBORAH E. NELSON (lSB No. 571 1)
PRESTON N. CARTER (!SB No. 8462)
Givens Pursley LLP
601 W. Bannock St.
P.O. Box 2720
Boise, Idaho 83701 -2720
Telephone: [phone]
Facsimile: [phone]
Attorneys for ldaho Wind Partners l, LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
)
TDAHO WIND PARTNERS t, LLC ) CASE NO. tpC-E-13-19
)
Complainant and Petitioner, ) JOINT MOTION FOR APPROVAL
) oF SETTLEMENT STTPULATTON
VS.
IDAHO POWER COMPANY,
Respondent.
t. MoTtoN
ldaho Power Company ("ldaho Powe/'or "Company") and ldaho Wind Partners l,
LLC ("ldaho Wind Partners" or "lWP"), referred to herein individually as a "Party" and
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 1
collectively as the "Parties", hereby respectfully move the ldaho Public Utilities
Commission ("Commission") pursuant to ldaho Code S 61-502, RP 56, and RP 274for
an Order approving the Settlement Stipulation executed between ldaho Power and
ldaho Wind Partners. This Motion is based on the following:
I. INTRODUCTION
1. The terms and conditions of the Settlement Stipulation are summarized in
this Motion and fully set forth in the accompanying Settlement Stipulation filed herewith.
The Parties agree that the Settlement Stipulation represents a fair, just, and reasonable
compromise of the dispute(s) between the Parties and that this Settlement Stipulation is
in the public interest. The Parties maintain that the Settlement Stipulation as a whole
and its acceptance by the Commission represent a reasonable resolution of all issues
between the Parties identified herein. Therefore, the Parties request that the
Commission, in accordance with RP 274-76, approve the Settlement Stipulation and all
of its terms and conditions without material change or condition.
II. BACKGROUND
2. On October 29,2013,ldaho Wind Partners filed a Complaint and Petition
for Declaratory Order (IPUC Case No. IPC-E-13-19) with the Commission against ldaho
Power alleging that Idaho Power had failed to properly calculate Market Energy Costs
pursuant to the Firm Energy Sales Agreements ("FESA") between ldaho Power and
several of IWP's wind generation projects. On November 29, 2013, ldaho Power filed
an Answer and Cross-Complaint in this matter asking that the relief requested in IWP's
Complaint be denied and seeking an order directing the use of the Platts non-firm Mid-C
index. On December 20, 2013,ldaho Wind Partners filed an Answer to ldaho Power's
Cross-Complaint.
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 2
3. Idaho Wind Partners has eleven Public Utility Regulatory Policies Act of
1978 ('PURPA') Qualifying Facility ("QF') wind generation projects that have contracts
to se!! their generation to Idaho Power ("Projects"). Eight of the Projects have FESAs
that contain published, non-levelized, avoided cost rates. Three of the Projects have
FESAs that contain published, levelized, avoided cost rates. The eight non-levelized
contracts are the subject of ldaho Wind Partners' Complaint. Those projects are:
Thousand Springs Wind Park, LLC - Case No. IPC-E-05-06; Pilgrim Stage Station
Wind Park, LLC - Case No. IPC-E-05-07; Oregon Trail Wind Park, LLC - Case No.
IPC-E-05-08; Tuana Gulch Wind Park, LLC - Case No. IPC-E-05-09; Golden Valley
Wind Park, LLC - Case No. IPC-E-05-17; Burley Butte Wind Park, LLC - Case No.
!PC-E-05-18; Milner Dam Wind Park LLC - Case No. !PC-E-05-30; and Salmon Falls
Wind Park, LLC - Case No. IPC-E-05-33 ("eight non-levelized contracts"). The three
levelized contracts are: Camp Reed Wind Park, LLC- Case No. IPC-E-09-18; Yahoo
Creek Wind Park, LLC - Case No. IPC-E-09-19; and Payne's Ferry Wind Park, LLC -
Case No. IPC-E-09-20 ("three levelized contracts"). All eleven contracts were approved
by the Commission in each project's respective Case No. listed above.
4. The eight non-levelized contracts were entered into and approved by the
Commission prior to the implementation of a wind integration charge in the state of
ldaho. Consequently, those wind contracts pay no wind integration charge or wind
forecasting fees and contain provisions for a9Oo/o1110% performance requirement. The
three levelized contracts contain wind integration charges and forecasting fees as well
as provisions for Mechanical Availability Guarantee ("MAG").
5. The Parties met on December 19, 2013, for confidential settlement
discussions and reached agreement resolving all issues between the Parties identified
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 3
herein. Based upon the settlement discussions, as a compromise of the respective
positions of the parties, and for other consideration as set forth below, the Parties
agreed to the following terms set forth more fully in the Settlement Stipulation filed
herewith:
III. TERMS OF THE SETTLEMENT STIPULATION
6. Performance Requirements of the FESAs. The Parties agreed that the
eight non-levelized contracts shall be amended to remove the g0%/110% performance
requirement and to replace such requirement and provisions with provisions for a MAG.
All eight contracts contain identica! language and provisions and thus wi!! all be
amended in the same way. Attached as Attachment 1 to the Settlement Stipulation are
the eight Amendments to each of the eight non-levelized contracts. Also attached as
Attachment 2 to the Settlement Stipulation is a red-lined version of one of the identical
eight non-levelized contracts showing the insertions and deletions in red-line format for
everyone's convenience. With this Motion the Parties seek Commission approval of the
Settlement Stipulation and each of the eight Amendments to the FESAs as submitted
with the Settlement Stipulation.
7. Wind lnteoration Charoe and Wind Forecastino Fees. The Parties agreed
that the eight non-levelized contracts will be amended to include a $6.50 Mills/kWh wind
integration charge and the current wind forecasting fees for the remaining term of those
contracts. See Attachment 1 and 2.
8. ldaho Wind Partners' Complaint. The Parties agreed to dismiss Idaho
Wind Partners' pending Complaint and ldaho Power's pending Cross-Complaint in
IPUC Case No. IPC-E-13-19, and to fully, finally, and forever release, discharge, and
not sue each other for any and all claims and causes of action arising from or relating to
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 4
the allegations in the Complaint and Cross-Complaint in IPUC Case No. IPC-E-13-19 as
more fully set forth in the Settlement Stipulation.
9. Chanoe in the Wind lnteoration Charoes. ldaho Power agreed not to
seek, support, or take any action that would change or impose any similar such wind
integration charge to be assessed to the eight non-levelized contracts pursuant to this
Settlement Stipulation or to the currently assessed wind integration charge for the three
levelized contracts, either as part of the current case seeking to update ldaho Power's
wind integration rates and charges, IPUC Case No. IPC-E-13-22, or any other
subsequent case or proceeding. The Parties agreed that the current and stated wind
integration charge for IWP's eleven existing and amended contracts remain fixed for the
remaining term of those respective agreements.
10. Effective Date. The Parties agreed that the effective date for the
Settlement Stipulation and for the amended eight non-levelized contracts sha!! be
January 1,2014. Unless and until the Commission approves the Settlement Stipulation
and the amendments to each contract, the Parties agreed to continue operating and
abiding by the terms and conditions contained in the FESAs without the proposed
amended terms and conditions, however, such agreement is merely for the
convenience of the Parties pending approval of this Settlement Stipulation and shal! not
be deemed acceptance of, or a waiver of any rights or arguments as to, the payments
due or other terms related to the FESAS. Within thirty (30) days of Commission
approval and the expiration of any appeal period or resolution of any appeal, the Parties
will make any accounting adjustments and payments necessary to have the amended
terms and conditions take effect on January 1,2014.
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 5
11. The Settlement Stipulation 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.
12. The Settlement Stipulation is a fair, equitable, and final resolution to this
matter, and others between the Parties, and is in the public interest. The Parties
respectfully requests that the Commission grant this Motion and approve the Settlement
Stipulation in its entirety, without material change or condition, pursuantto RP 274.
III. PROCEDURE
13. Pursuant to RP 274, the Commission has discretion to determine the
manner with which it considers a proposed settlement. ln this matter, the two Parties to
the FESA have reached agreement on how to resolve their private dispute. The
Settlement Stipulation is reasonable and in the public interest. The Parties request that
the Commission approve the Settlement Stipulation without further proceedings.
14. ln the alternative, should the Commission determine that further
proceedings are required to consider the Settlement Stipulation, pursuant to RP 201,
the parties believe the public interest does not require a hearing to consider the issues
presented by this Motion and request it be processed as expeditiously as possible by
Modified Procedure.
IV. REQUESTED RELIEF
NOW, THEREFORE, the Parties respectfully request that the Commission enter
its Order approving the Settlement Stipulation without material change or condition, and
without further proceed i ngs.
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 6
Respectfutly submitte d thiililhay of February 2014.D;
DONOVAN E. WALKER
Attomey for ldaho Power Company
DEBORAH E. NELSON
Attomey for ldaho Wind Partners I, LLC
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 7
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 25th day of February 20141 served a true and
correct copy of the JOINT MOTION FOR APPROVAL OF SETTLEMENT
STIPULATION upon the following named parties by the method indicated below, and
addressed to the following:
Commission Staff
Kristine A. Sasser
Deputy Attomey General
Idaho Public Utilities Commission
472 W estWashington (83702)
P.O. Box 83720
Boise, ldaho 83720-001 4
ldaho Wind Partners I, LLC
Deborah E. Nelson
Preston N. Carter
GIVENS PURSLEY LLP
601 West Bannock Street (83702)
P.O. Box 2720
Boise, ldaho 83701 -2720
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Christa Bearry, Legal Assistant
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULAT]ON - 8