20131129Answer Cross-Complaint.pdf

3!ffi*.
DONOVAN E. WALKER
Lead Gounsel
November 29,2013
VIA HAND DELIVERY
Jean D. Jewell, Secretary
!daho 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 - ldaho Power
Company's Answer and Cross-Complaint
Dear Ms. Jewell:
Enclosed forfiling in the above matterare an originaland seven (7) copies of ldaho
Power Company's Answer and Cross-Complaint.
Very truly yours,
Fir tt: fi3
An loAcoRP company
1221 W. ldaho 5t. (83702)
P.O. Box 70
Boise, lD 83707
DEW:csb
Enclosures
DONOVAN E. WALKER (!SB No. 5921)
JULIA A. HILTON (lSB No. 7740)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
ih i lto n@ idahopower. com
Attorneys for ldaho Power Company
IDAHO WIND PARTNERS I, LLC
Complainant,
V.
IDAHO POWER COMPANY,
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CASE NO. |PC-E-13-19
IDAHO POWER COMPANY'S
ANSWER AND CROSS-COMPLAI NT
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Respondent.
COMES NOW, ldaho Power Company ("ldaho Powe/' or "Company") and
pursuant to RP 57 hereby answers the Complaint of ldaho Wind Partners l, LLC ("ldaho
Wind Partners" or "lWP"). Additionally, pursuant to RP 54 and 57, ldaho Power hereby
respectfully lodges its Cross-Complaint against ldaho Wind Partners.
I. INTRODUCTION AND RESPONSE
This case is about much more than simply the meaning of contractual language.
This case involves the ldaho Public Utilities Commission's ("Commission")
determination as to the appropriate avoided cost rates in the state of ldaho and eligibility
IDAHO POWER COMPANY'S ANSWERAND CROSS-COMPLAINT - 1
for the same. lt involves what is required for a Public Utility Regulatory Policies Act of
1978 ("PURPA") qualifying facility ("QF") to be entitled to the full determination of
avoided cost rates determined at the time of contracting, and set for the duration of the
contract versus the full determination of avoided cost rates for energy priced at the time
of delivery.
All of ldaho Wind Partners' contracts that are the subject of this proceeding
contain performance requirements commonly referred to in the shorthand as "90/1 10."
None of these wind QF projects pay a wind integration charge, nor do they pay any
wind forecasting fees. lnstead, they must estimate their own generation amounts in
advance, and then deliver generation within a band of 90 percent to 110 percent of their
own estimation in order to receive the full avoided cost rate in the Firm Energy Sales
Agreement ("FESA"). The QFs are free to change their own estimated energy
deliveries, but, once made, must make those deliveries within the 90/110 performance
band. lf they deliver outside of this band, either above or below, then it is deemed
"Surplus Energy" and does not receive the full Firm Energy Sales Agreement price-it
receives the "Market Energy Cost" -which is set at the avoided cost rate for deliveries
priced as-delivered.
The "Market Energy Cost" from the FESAs uses the exact Ianguage for the
"Purchase Price" from ldaho Power's Tariff Schedule 86, Cogeneration and Small
Power Production Non-Firm Energy. Schedule 86 defines the Purchase Price as "85
percent of the monthly Avoided Energy Cost." Schedule 86, sheet 86-2. Schedule 86
defines Avoided Energy Cost as "the weighted average of the daily on-peak and off-
peak Dow Jones Mid-Columbia Electricity Price lndex (Dow Jones Mid-C lndex) prices
IDAHO POWER COMPANY'S ANSWER AND CROSS-COMPLAINT.2
for nonfirm energy published in the Wall Street Journal." Schedule 86, sheet 86-1. The
alternative price for surplus and shortfall energy deliveries in the FESAs does not
contain the exact language from ldaho Powe/s Schedule 86 simply out of convenience
or because it was an existing reference. lt contains this exact language because that is
how it is supposed to work by design. The Commission expressly chose to define
"firmness" in the FESAs by requiring projects to deliver within the 90/110 band in order
to receive the avoided cost pricing for prices determined at the time of contracting and
set for the duration of the contract. For energy deliveries that deviate outside of 90/110
of the projects' own estimated deliveries, the Commission has determined that they
receive the avoided cost rates, not set at the time of contracting, but set at the time of
delivery.
ln interpreting its own prior Orders regarding retention of the 90/110
requirements and pricing, the Commission stated:
!n our U.S. Geothermal/Lewandowski Orders in Case Nos.
IPC-E-04-09104-10, the Commission stated its belief that a
legally enforceable obligation translates into reciprocal
contractual obligations for both parties; a quid pro quo. !t is
not just a lock-in of avoided cost rates, but is also an
obligation to deliver. Asked to make a decision regarding
eligibility between firm and non-firm resources, we defined
firmness as "predictability on a monthly basis." ln
establishing a 90%fi10% performance band requirement, a
majority of the Commission defined the minimum degree of
predictability required for published rate eligibility. The
Commission found the performance requirement to be
necessary to assure that the Company's customers received
the generation product that they were paying for.
Order No. 30488, p.12.
Idaho Power has approximately 33 power sales contracts that utilize this same
language from Schedule 86 regarding non-firm pricing and the Commission's
IDAHO POWER COMPANY'S ANSWERAND CROSS-COMPLAINT - 3
established avoided cost rates determined at the time of delivery. Several of these
contracts, such as the Idaho Wind Partners' contract here, contain a 90/110
performance requirement and the alternative pricing that reflects avoided cost rates for
non-firm deliveries. Others include actual Schedule 86 agreements, and stil! others are
non-firm, non-Schedule 86 agreements. ldaho Power believes that, beyond the mere
interpretation of contract language, the Commission intended and intends for a
consistent application and calculation of one of the two authorized avoided cost rates for
the state of ldaho-the as-delivered, non-firm avoided cost rate-represented by the
consistent language from Schedule 86 across the various power sales agreements.
II. ANSWER
Idaho Power hereby answers ldaho Wind Partners' Complaint as follows. Idaho
Power denies any allegation not specifically admitted and reserves the right to
supplement this Answer if IWP amends its Complaint. The following numbered
paragraphs correspond to the numbered paragraphs from ldaho Wind Partners'
Complaint.
1. Paragraph 1 identifies counsel for ldaho Wind Partners and therefore
requires no response.
2. ldaho Power has insufficient information or knowledge regarding the truth
of the allegations in paragraph 2 of the Complaint, which relates to the identity,
managing member, and address of ldaho Wind Partners and therefore denies the
same.
3. ldaho Power has insufficient information or knowledge regarding the truth
of the allegations in paragraph 3 of the Complaint which relate to the corporate structure
IDAHO POWER COMPANY'S ANSWER AND CROSS-COMPLAINT.4
and assets of ldaho Wind Partners and therefore denies the same. ldaho Power admits
that it entered into FESAs with Oregon Trail Wind Park; Pilgrim Stage Station Wind
Park, LLC; Thousand Springs Wind Park, LLC; Tuana Gulch Wind Park, LLC; Burley
Butte Wind Park; Golden Valley Wind Park; Milner Dam Wind Park; and Salmon Falls
Wind Park ("Projects"), which were subsequently approved by the Commission.
4. ldaho Power acknowledges that the Projects are wind generation projects
that meet the definition of a PURPA QF.
5. ldaho Power admits that it is an ldaho corporation with its principal place
of business at 1221 West ldaho Street, Boise, ldaho 83702. ldaho Power also admits
that it is a public utility subject to the jurisdiction of this Commission, the Public Utility
Commission of Oregon, and the Federal Energy Regulatory Commission.
6. ldaho Power admits the nature of the case as described in the first
sentence of paragraph 6, that this proceeding involves FESAs approved by the
Commission. The remaining allegations are conclusions of law that require no
response; however, ldaho Power acknowledges the Commission's jurisdiction to
interpret and enforce contracts affecting rates, especially as here where the dispute
involves a PURPA QF power sales agreement and both parties agree to submit the
matter to the Commission for determination. However, this issue, as referenced in
footnote 2 to IWP's Complaint, is current under review at the ldaho Supreme Court.
7. Paragraph 7 purports to recite language from fl 22.1 of the FESAs, and
refers to an ldaho Supreme Court case. The FESAs and court case speak for
themselves and require no additiona! admission or denia! from ldaho Power.
IDAHO POWER COMPANY'S ANSWERAND CROSS-COMPLAINT - 5
8. The allegations contained in paragraph 8 are legal conclusions which
require no response.
9. The allegations contained in paragraph 9 are legal conclusions which
require no response.
10. ldaho Power admits the FESAs are binding legal contracts approved by
the Commission.
11. The allegations contained in paragraph 11 are legal conclusions which
require no response.
12. ldaho Power admits that it entered into FESAs with the following entities
on the following dates:
Oregon TrailWind Park on February 18, 2005
Pilgrim Stage Station Wind Park, LLC on February 18, 2005
Thousand Springs Wind Park, LLC on February 18, 2005
Tuana Gulch Wind Park, LLC on February 18, 2005
Burley Butte Wind Park on May 5, 2005
Golden Valley Wind Park on May 5, 2005
Milner Dam Wind Park on October 14,2005
Salmon Falls Wind Park on October 14,2005
13. Idaho Power admits that Section 7.2, the definition of "Market Energy
Cost," and many of the other sections are identical in each FESA.
14. Paragraph 14 purports to recite language from fl 7.2of the FESAS. The
FESAs speak for themselves and require no additional admission or denial from ldaho
Power.
15. Paragraph 15 purports to recite language from fl 1.12 of the FESAS. The
FESAs speak for themselves and require no additional admission or denial from ldaho
Power.
IDAHO POWER COMPANY'S ANSWER AND CROSS-COMPLAINT - 6
16. ldaho Power denies the allegations contained in paragraph 16. The Dow
Jones Mid-C non-firm index is no longer published and has been transitioned to the
Platts non-firm market index. lt is ldaho Power's information and belief that just prior to
its discontinuance in September 2013, that it was formerly published by McGraw Hil!
Financial, and that both ldaho Power and ldaho Wind Partners were subscribers.
17. The Dow Jones Mid-C non-firm index is no longer published. What it
reported speaks for itself and requires no additiona! admission or denial from ldaho
Power.
18. The Dow Jones Mid-C non-firm index is no longer published. What it
reported speaks for itself and requires no additional admission or denial from ldaho
Power.
19. ldaho Power denies that this is the proper calculation under the FESAs
and that this is what the Commission intended to be established as the as-delivered
avoided cost rate.
20. ldaho Power denies the allegations contained in paragraph 20 of the
Complaint. ldaho Power's calculation of Market Energy Cost considers daily on-peak
and off-peak prices for non-firm energy.
21. ldaho Power denies the allegations contained in paragraph 21. ldaho
Power admits that its calculation considers and includes all daily on-peak and off-peak
prices reported by the Dow Jones Mid-C lndex ("Dow Jones") (and now Platts). Days
that have zero volume traded have a zero price.
22. ldaho Power denies the allegations contained in paragraph 22, that it uses
a subset of the Dow Jones prices, and denies that its use of Dow Jones prices violates
IDAHO POWER COMPANY'S ANSWERAND CROSS-COMPLAINT - 7
the express agreement and language of the FESAs to use "daily" prices. ldaho Power
uses all daily prices.
23. ldaho Power denies the allegations contained in paragraph 23 of the
Complaint. Idaho Power uses all daily prices. Idaho Power does not use a subset of
data. ldaho Power does not distort the price. ldaho Power did not calculate the Market
Energy Cost for the month of August 2011 using a single off-peak price. ldaho Power
did not disregard the remaining published daily prices. ldaho Power denies that values
resulting in zero were not considered. Each daily price was considered, and many
resulted in zero. ldaho Power denies that the use of prices for actual transactions
distorts the price, it accurately reflects the daily values of the non-firm energy received
and market price reported. The true distortion would be to use prices for which no
volumes were reported, as suggested by ldaho Wind Partners, because prices with no
traded volumes do not reflect the market price as no buyer is willing to pay that price for
non-firm, unscheduled energy.
24. ldaho Power admits that it is possible that there may be months where
there are no reported volumes for on- or off-peak daily prices in the Dow Jones, or
replacement, Mid-C lndex. Market prices can be zero. Market prices can be negative.
Market prices can be positive.
25. ldaho Power denies that if there were no volumes reported for a current
month, there would be no data with which to determine the value of energy for that
month. Idaho Power admits that if there were no volumes reported for a given month,
the Dow Jones indicates that the value of the non-firm energy for the month is zero.
IDAHO POWER COMPANY'S ANSWER AND CROSS-COMPLAINT - 8
26. The Dow Jones Mid-C non-firm index is no longer published. What it
reported speaks for itself and requires no additional admission or denial from ldaho
Power.
27. ldaho Power admits that the parties agreed that the Market Energy Cost,
as defined in the FESAs, is calculated based upon the Dow Jones. The FESAs speak
for themselves and require no additiona! admission or denial from ldaho Power.
28. The definition of Market Energy Cost is contained in the FESAs and
speaks for itself and requires no specific admission or denial from ldaho Power.
Volume is a component reported by Dow Jones and the replacement index.
29. The definition of Market Energy Cost is contained in the FESAs and
speaks for itself and requires no specific admission or denial from ldaho Power.
30. What the Dow Jones reported speaks for itself and requires no additional
admission or denial from ldaho Power.
31. ldaho Power denies the allegations contained in paragraph 31. ldaho
Power properly calculated the avoided cost rate for as-delivered energy, consistent with
the FESAs and with Tariff Schedule 86.
32. ldaho Power denies the allegations in paragraph 32 of the Complaint.
Idaho Power denies that it overpaid or underpaid lWP. ldaho Power denies that it failed
to pay IWP the Market Energy Cost as defined in the FESAS.
33. ldaho Power denies the allegations in paragraph 33 of the Complaint.
ldaho Power properly calculated the avoided cost rate for as-delivered energy,
consistent with the FESAs and with Tariff Schedule 86. Any "damages" suffered by
ldaho Wind Partners were of its own creation.
IDAHO POWER COMPANY'S ANSWER AND CROSS.COMPLAINT . 9
34. ldaho Power admits that it had numerous communications with IWP
regarding the calculation of the avoided cost rate for surplus and shortfall energy,
including several communications and meetings that involved ldaho Power, ldaho Wind
Partners, and Commission Staff. Idaho Wind Partners' pursuit of "informal proceedings"
with Commission Staff concluded with Commission Staff generally supporting the
methodology and rationale of ldaho Power.
35. ldaho Power has insufficient information or knowledge regarding the truth
of the allegations in paragraph 35 of the Complaint and therefore denies the same.
36. ln response to paragraph 36, Idaho Power admits and denies the
allegations in paragraphs 1-36 of the Complaint as set forth in paragraphs 1-36 above.
37. ldaho Power admits the allegations of paragraph 37 of the Complaint.
38. Idaho Power admits the allegations of paragraph 38 of the Complaint.
39. Idaho Power denies the allegations of paragraph 39 of the Complaint.
40. ldaho Power denies the allegations of paragraph 40 of the Complaint.
ldaho Power calculates the avoided cost rate properly.
III. CROSS.COMPLAINT
Idaho Power hereby incorporates the statements made above and further alleges
as follows:
1. On October 14,2013,ldaho sent a notice to ldaho Wind Partners for each
of the wind generation projects managed by ldaho Wind Partners that the publisher of
the Dow Jones Mid-C lndex, McGraw Hill Financial, will transition to Platts effective as
of the close of business on Friday, September 13, 2013. The notices sent to the
IDAHO POWER COMPANY'S ANSWER AND CROSS-COMPLAINT - 1O
Projects by ldaho Power attached copies of the notice received from McGraw Hill
Financial. The letters are attached hereto as Attachment 1.
2. The FESAs between ldaho Wind Partners and ldaho Power state, "lf the
Dow Jones Mid-Columbia lndex price is discontinued by the reporting agency, both
Parties will mutually agree upon a replacement index, which is similar to the Dow Jones
Mid-Columbia lndex. The selected replacement index will be consistent with other
similar agreements and a commonly used index by the electrica! industry."
3. There is no other existing non-firm Mid-C electric price index available for
use.
4. On November 25, 2013, ldaho Wind Partners sent ldaho Power a letter
acknowledging receipt of the above-referenced letters from ldaho Power and advising
that it does not agree to use Platts as a replacement index. This letter is attached
hereto as Attachment2.
5. On October 24, 2013, ldaho Power filed Tariff Advice No. 13-05,
requesting revisions to Schedule 86, Cogeneration and Small Power Production Non-
Firm Energy, representing a change in the referenced index from Dow Jones to Platts
and insertion of "volume" before the words "weighted average" in order to provide
additional clarity to the proper calculation of avoided cost rates for as-delivered, non-
firm energy. This Tariff Advice filing is attached hereto as Attachment 3.
IV. PRAYER FOR RELIEF
WHEREFORE, ldaho Power respectfully requests that the Commission:
1. lssue an Order denying the relief sought by ldaho Wind Partners in its
Prayer for Relief, confirming that ldaho Power's calculation of non-firm avoided cost
IDAHO POWER COMPANY'S ANSWERAND CROSS-COMPLAINT - 11
rates represented by the alternative energy price for surplus and shortfall energy
deliveries outside of the 901110 band in ldaho Wind Partners' various power sales
agreements is correct and aligned with the Commission's authorized avoided cost rates
in the state of ldaho, and dismissing ldaho Wind Partners' Complaint.
2. lssue Notice of ldaho Powe/s Tariff Advice 13-05 filing and open the
matter as a case proceeding with a Notice of lntervention Deadline asking interested
parties to intervene in the proceeding.
3. lssue an Order authorizing the proposed changes to Schedule 86
regarding insertion of the word "volume" and changing the reference from the Dow
Jones non-firm index to the Platts non-firm index.
4. lssue an Order directing ldaho Wind Partners that the Platts non-firm
index will be used as a replacement for the Dow Jones non-firm index in the
determination of avoided cost rates in its QF projects' various power sales agreements.
DONOVAN E. WALKER
Attomey for ldaho Power Company
5. lssue an Order granting any other relief the Commission deems proper.
Respectfully submitted this 29th day of November 2013.
IDAHO POWER COMPANY'S ANSWER AND CROSS-COMPLAINT - 12
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 29th day of November 20131 served a true and
correct copy of IDAHO POWER COMPANY'S ANSWER AND CROSS-COMPLAINT
upon the following named parties by the method indicated below, and addressed to the
following:
Commission Staff
Kristine A. Sasser
Deputy Attomey General
ldaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
ldaho Wind Partnerc l, LLC
Deborah E. Nelson
Preston N. Carter
GIVENS PURSLEY LLP
601 West Bannock Street (83702)
P.O. Box 2720
Boise, ldaho 83701 -2720
X Hand Delivered
U.S. Mail
Overnight Mail
FAXX Emai! [e-mail]
Hand DeliveredX U.S. Mail
Overnight Mail
FAXX Email [e-mail]
presto nca rte r@ g ive nspu rslev. co m
IDAHO POWER COMPANY'S ANSWER AND CROSS-COMPLAINT - 13
BEFORE THE
IDAHO PUBLIC UTILITIES GOMMISSION
CASE NO. IPC-E-13-19
IDAHO POWER COMPANY
ATTACHMENT 1
KEm*
An IDACORP CompanY
October 14,2013
Pilgrim Stage Station Wind Park, LLC - Attn: Steven Eisenberg
c/o Idaho Wind Partners I,LLC
c/o RP Wind ID LLC
P.O. Box 2049,82 Elm Street
Manchester Center, VT 05255-
Re: Pilgrim Stage Station Wind Park
Project Number: 3 13 15045
NON.FIRM N{ID C ELECTRICITY INDEX
PLEASE BE ADVISED: The energy sales agreement between your generation project and Idaho
Power Company provides that in some circumstances the Non-Firm Mid C elecricity index energy
values are used to calculate the energy payments for your project. Historically these Non-Firm Mid C
index values have been provided by Dow Jones. Idaho Power received notice regarding its
subscription to the Dow Jones index from McGraw Hill Financial that as of close of business on
Friday, September 13,2013, the Dow Jones index will transition to Platts. Platts now provides the
Non-Firm Mid C electricity index information that was previously provided by Dow Jones. (See
attached notice)
Should you have any questions please contact:
Randy Allphin
Energy Contracts Leader
Idaho Power Company
[phone]
E-mail: [e-mail]
PO. Box 70 (83707)
1221 W. ldaho 51.
Boise. lD 83702
3Im.
14,2013
Salmon Falls Wind Park, LLC - Attn: Steven Eisenberg
c/o Idaho Wind Partners l, LLC
c/o RP Wind ID LLC
P.O. Box 2049,82 Elm Street
Manchester Center, VT 05255-
Re: Salmon Falls Wind
Project Number: 3 1618 100
NON.FIRM MID C ELECTRICITY INDEX
PLEASE BE ADVISED: The energy sales agreement between your generation project and ldaho
Power Company provides that in some circumstances the Non-Firm Mid C electricity index energy
values are used to calculate the energy payments for your project. Historically these Non-Firm Mid C
index values have been provided by Dow Jones. Idaho Power received notice regarding its
subscription to the Dow Jones index from McGraw Hill Financial that as of close of business on
Friday, September 13,2013, the Dow Jones index will transition to Platts. Platts now provides the
Non-Firm Mid C electricity index information that was previously provided by Dow Jones. (See
attached notice)
Should you have any questions please contact:
Randy Allphin
Energy Contracts Leader
Idaho Power Company
[phone]
E-mail: [e-mail]
PO. Bor 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
TTIIEryPNPO,UER
An IDACORP CompanY
October 14,2013
Oregon Trail Wind Park, LLC - Attn: Steven Eisenberg
c/o Idaho Wind Partrers l, LLC
c/o RP Wind ID LLC
P.O. Box 2049,82 Elm Street
Manchester City, VT 05255-
Re: Oregon Trail Wind Park
Project Number: 3 I 3 15075
NON.FIRM MID C ELECTRICITY INDEX
PLEASE BE ADVISED: The energy sales agreement between your generation project and Idaho
Power Company provides that in some circumstances the Non-Firm Mid C electricity index energy
values are used to calculate the energy payments for your project. Historically these Non-Firm Mid C
index values have been provided by Dow Jones. Idaho Power received notice regarding its
subscription to the Dow Jones index from McGraw Hill Financial that as of close of business on
Friday, September 13,2013, the Dow Jones index will transition to Platts. Platts now provides the
Non-Firm Mid C electricity index information that was previously provided by Dow Jones. (See
attached notice)
Should you have any questions please contact:
Randy Allphin
Energy Contracts Leader
Idaho Power Company
[phone]
E-mail: [e-mail]
PO. Bor 70 (83707)
122'l W' ldaho 51.
8oise. lD 83702
fi!ffi**
An IDACORP ComoanY
October 14,2013
Thousand Springs Wind Park, LLC - Attn Steven Eisenberg
c/o Idaho Wind Partners l, LLC
c/o RP Wind ID LLC
P.O. Box 2049,82 Elm Street
Manchester Center, VT 05255-
Re: Thousand Springs Wind Park
Project Number: 31315055
NON-FIRM MID C ELECTRICITY INDEX
PLEASE BE ADVISED: The energy sales agreement between your generation project and Idaho
Power Company provides that in some circumstances the Non-Firm Mid C electricity index energy
values are used to calculate the energy payments for your project. Historically these Non-Firm Mid C
index values have been provided by Dow Jones. Idaho Power received notice regarding its
subscription to the Dow Jones index from McGraw Hill Financial that as of close of business on
Friday, September 13,2013, the Dow Jones index will transition to Platts. Platts now provides the
Non-Firm Mid C electricity index information that was previously provided by Dow Jones. (See
attached notice)
Should you have any questions please contact:
Randy Allphin
Energy Contracts Leader
Idaho Power Company
[phone]
E-mail: [e-mail]
PO. Box 70 (83707)
1221 W. ldaho St.
Boire, lO 83702
reffi*.
14,2013
Tuana Gulch Wind Park LLC - Attn: Steven Eisenberg
c/o Idaho Wind Partners I,LLC
c/o RP Wind ID LLC
P.O. Box 2049,82 Elm Street
Manchester, VT 05255-
Re: Tuana Gulch Wind Park
Project Number: 3 I 3 15065
NON.FIRM IVIID C ELECTRICITY INDEX
PLEASE BE ADVISED: The energy sales agreement between your generation project and Idaho
Power Company provides that in some circumstances the Non-Firm Mid C electricity index energy
values are used to calculate the energy payments for your project. Historically these Non-Firm Mid C
index values have been provided by Dow Jones. Idaho Power received notice regarding its
subscription to the Dow Jones index from McGraw Hill Financial that as of close of business on
Friday, September 13,2013, the Dow Jones index will transition to Platts. Platts now provides the
Non-Firm Mid C electricity index information that was previously provided by Dow Jones. (See
attached notice)
Should you have any questions please contact:
Randy Allphin
Energy Contracts Leader
Idaho Power Company
[phone]
E-mail: [e-mail]
PO. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
S5ffi*.
An IDAC0RP Company
October 14,2013
Milner Dam Wind Park, LLC - Attn: Steven Eisenberg
c/o Idaho Wind Partnen l, LLC
c/o RP Wind ID LLC
P.O. Box 2049 82 Elm Street
Manchester Center, VT 05255-
Re: Milner Dam Wind
Project Number: 31720190
NON.FIRM MID C ELECTRICITY INDEX
PLEASE BE ADVISED: The energy sales agreement between your generation project and Idaho
Power Company provides that in some circumstances the Non-Firm Mid C electricity index energy
values are used to calculate the energy payments for your project. Historically these Non-Firm Mid C
index values have been provided by Dow Jones. Idaho Power received notice regarding its
subscription to the Dow Jones index from McGraw Hill Financial that as of close of business on
Friday, September 13,2013, the Dow Jones index will transition to Platts. Platts now provides the
Non-Firm Mid C electricity index information that was previously provided by Dow Jones. (See
attached notice)
Should you have any questions please contact:
Randy Allphin
Energy Contracts Leader
Idaho Power Company
[phone]
E-mail: [e-mail]
PO. Box 70 (83707)
122'l W. ldaho 5t.
Boire. lD 83702
38ffi*.
An IDACORP ComDanv
October 14,2013
Golden Valley Wind Park, LLC
c/o Idaho Wind Partners l, LLC
c/o RP Wind ID LLC
P.O. Box 2049 82 Elm Street
Manchester Center, VT 05255-
Re: Golden Valley Wind Park
Project Number: 317 65160
Attn: Steven Eisenberg
NON.FIRM MID C ELECTRICITY INDEX
PLEASE BE ADVISED: The energy sales agreement between your generation project and Idaho
Power Company provides that in some circumstances the Non-Firm Mid C electricity index energy
values are used to calculate the energy payments for your project. Historically these Non-Firm Mid C
index values have been provided by Dow Jones. Idaho Power received notice regarding its
subscription to the Dow Jones index from McGraw Hill Financial that as of close of business on
Friday, September 13,2013, the Dow Jones index will transition to Platts. Platts now provides the
Non-Firm Mid C electricity index information that was previously provided by Dow Jones. (See
attached notice)
Should you have any questions please contact:
Randy Allphin
Energy Contracts Leader
Idaho Power Company
[phone]
E-mail: [e-mail]
PO. Box 70 (83707)
1221 W ldaho 5t.
Boise, lD 83702
8Iffi*.
An IDACORP ComDany
October 14,2013
Burley Butte Wind Park, LLC - Attn: Steven Eisenberg
c/o Idaho Wind Partners I,LLC
c/o RP Wind ID LLC
P.O. Box 2049 82 E1m Street
Manchester Center, VT 05255-
Re: Burley Butte Wind Park
Project Number: 317 65170
NON.FIRM MID C ELECTRICITY INDEX
PLEASE BE ADVISED: The energy sales agreement between your generation project and Idaho
Power Company provides that in some circumstances the Non-Firm Mid C electricity index energy
values are used to calculate the energy payments for your project. Histortcally these Non-Fim Mid C
index values have been provided by Dow Jones. Idaho Power received notice regarding its
subscription to the Dow Jones index from McGraw Hill Financial that as of close of business on
Friday, September 13,2013, the Dow Jones index will transition to Platts. Platts now provides the
Non-Firm Mid C electricity index information that was previously provided by Dow Jones. (See
attached notice)
Should you have any questions please contact:
Randy Allphin
Energy Contracts Leader
Idaho Power Company
[phone]
E-mail: [e-mail]
PO. Box 70 (83707)
1221 W. ldaho St.
Boise, lO 83702
.. s&P 00wJ0NEs'J INDICeS
I{cGRAW HILt FINANCIAT ', r.Lffl,,?,,,^,.,0..
TRANSITION OF THE
DOW JONES U.S. ELECTRICITY INDICES
Transition Highlights
Effective after the close of business on Fridan September 13, 2013, Plafts, a leading global provider of energy,
petrochemicals, metals and agriculture information, and a premier source of benchmark price assessments for those
commodity markets, will begin providing you with price data that will replace the U.S. electricity prices you currently
receive from S&P Dow Jones lndices.
As a result, the calculation and dissemination of the Dow Jones U.S. Electricity lndices will transition to Platts. The
following table highlights the changes that will take place as a result of this transition. The full Platts Methodology Guide
is available here.
l!.P Oow tones Indlces Calcqlatlon
MethodologV Platts Calculation Methodologp
Dates Prices published on flow date.Prices published on trade date.
Calculation
Weighted average index.
Weighted average price assessment with high
correlation to the Dow Jones U.S. Electricity
lndices.
Both firm and non-firm liquidated damages
are calculated.
Both firm and non-firm liquidated damages
will be calculated.
Contributors There is substantial overlap between the contributors to Platts and Dow Jones Electricity
lndices; this ensures ongoing continuity in pricing.
Distribution
o Files will be delivered via the Platts FTP feed in comma separated value (.csv) format
beginning September L3,201-3. There will be no change to file formats.
r Email delivery will continue from September 13 through October 30, 2013 in .csv format.
Email delivery will cease on October 37,2013.
Reminder: as previously announced, effective after the close of business on Friday, August 30, 2013, S&P Dow Jones
lndices will no longer calculate the Dow Jones U.S. Hourly Electricity lndices.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPC-E-13-19
IDAHO POWER COMPANY
ATTACHMENT 2
MIIDAHO\.lIND
FAR I\' R: 1
November 25.2013
Randy Allphin
Energy Contracts Leader
ldaho Power Company
l22l W Idaho Street
Boise, ID 83702
Dear Mr. Allphin:
We are in receipt of your October 14,2013letters directed to Idaho Wind
Partners' projects advising us of the change from the Dow Jones Mid-C [ndex to the
Platts Mid-C Index.
We are writing to notifr Idaho Power Company that Idaho Wind Partners does
not agree to use Platts as a replacement index (per Section l.l2 of the FESAs) for the
eight projects listed in the attached schedule
Platts certainly appears to be using a different methodology than Dow Jones as to
whether to report transaction volumes on a given day. Since Plafts began publishing the
index with daily on-peak and off-peak pricing, no transaction volumes have been
reported. This change in methodology is only relevant due to Idaho Power's method of
calculation of Surplus Energy using only those daily prices accompanied by a reported
volume (which calculation method as you know we strongly disagree with).
On November 2l,20l3,Idaho Power notified us that it would pay $0 for Surplus
Energy during the month of October. Consequently, Idaho Wind Partners received no
payment for any of the 6,226,534 kWh of Surplus Energy the eight projects delivered to
Idaho Power during October 2013. This occrurence, and the possibility that this
occurrence will be the norm under the Platts index, has significant financial consequences
to Idaho Wind Partners.
We request an opportunity to meet as soon as possible to discuss an acceptable
replacement index. In addition we look forward to discussing a potential win-win
solution in regards the power purchase agreements namely the conversion to the MAG
PPA structure without the 90/l l0 provisions.
Sincerelyr.,,4l //e?4{rly/-
SIeven I. Eisenbe"rg
Managing Director, RP Wind ID, LLC, its Managing Member
Cc: Donovan Walker,Idaho Power Company
Deborah Nelson, Givens Pursley
mlIDAHOWINDPARINEIS '
LIST OF PROJECTS
Tuana Gulch Wind Park, LLC
Golden Valley Wind Park, LLC
MilnerDam Wind Park, LLC
Oregon Trail Wind Park, LLC
Salmon Falls Wind Park, LLC
Thousand Springs Wind Park, LLC
Burley Butte Wind Park, LLC
Pilgrim Stage Station Wind Park, LLC.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPC-E-13-19
IDAHO POWER COMPANY
ATTACHMENT 3
SEffiM.
An loAcoRP companY
Donovan Walker
Lead Counsel
October 24,2013
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, ldaho 83720-007 4
Re: Tariff Advice No. 13-05
Revisions to Schedule 86 - Cogeneration and Small Power Production
Non-Firm Energy
Dear Ms. Jewell:
ldaho Power Company ("ldaho Powe/') herewith transmits for filing the First
Revised Sheet No. 86-1. This tariff revision updates Schedule 86 to reflect that the Mid-
Columbia Electricity Price lndex ("Mid-C lndex") previously provided by Dow Jones is now
provided by Platts. This tariff revision also updates Schedule 86 to clarify that the
Avoided Energy Cost is the volume-weighted average of the daily on-peak and off-peak
Mid-C lndex prices for non-firm energy. Also transmitted is a copy of Schedule 86 in
legislative format.
ldaho Power received notice (see attached) regarding its subscription to the Dow
Jones index from McGraw Hill Financial that as of close of business on Friday, September
13, 2013, the Dow Jones index has transitioned to Platts. Platts now provides the Non-
Firm Mid-C electricity index information that was previously provided by Dow Jones. This
tariff advice replaces "Dow Jones'with "Platts" in Schedule 86 and removes the language
'published in the Wall Street Joumal."
ln addition, this tariff advice adds the word "volume" before the words "weighted
average" to provide additional clarity. This calculation has always used the volume-
weighted avemge of the daily on-peak and off-peak Mid-C Index prices for non-firm energy
to determine the Avoided Energy Cost. This tariff advice clarifies that the weighted
average used to determine the Avoided Energy Cost is the volume-weighted average and
inserts the term "volume" before 'weighted average" to add clarity to Schedule 86.
PO. Box 70 (83707)
1221 W. ldaho 5t.
goise, lD 83702
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
October 24,2013
Page 2
lf you have any questions regarding this filing, please contact Mike Youngblood at
388-2882.
LDN:kkt
Enclosure
cc w/ encl: Greg Said
RA File
Legal File
S&P OOWJONES
INDICES
t{cGRAW Hltt Fl[ANCIAI
r, r,t*rL?,,,^*,,n..
TRANSITION OF THE
DOW JONES U.S. ELECTRICIW INDICES
lransition Highlights
Effective after the close of business on Friday, September Ll,2OL3, Plafts, a leading global provider of energy,
petrochemicals, metals and agriculture information, and a premier source of benchmark price assessments for those
commodity markets, will begin providing you with price data that will replace the U.S. electricity prices you currently
receive from S&P Dow Jones lndices.
As a result, the calculation and dissemination of the Dow Jones U,S. Electricity lndices willtransition to Platts. The
following table highlights the changes that will take place as a result of this transition. The full Platts Methodology Guide
is available here.
S&P Dow ron6 lndices Calculatlon
Methodolocy Platts CalculaUon Me$odoloEy
Dates Prices published on flow date.Prices published on trade date.
Calculation
Weighted average index.
Weighted average price assessment with high
correlation to the Dow Jones U.S. Electricity
lndices.
Both firm and non-firm liquidated damages
are calculated.
Both firm and non-firm liquidated damages
will be calculated.
Contributors There is substantial overlap between the contributors to Platts and Dow Jones Electricity
lndices; this ensures ongoing continuity in pricing.
Distribution
r Files will be delivered via the Platts FTP feed in comma separated value (.csv) format
beginning September 13, 2013. There will be no change to file formats.
r Email delivery will continue from September 13 through October 30, 2013 in .csv format.
Email delivery will cease on October 31,2073.
Reminder: as previously announced, effective after the close of business on Friday, August 30, 2013, S&P Dow Jones
lndices will no longer calculate the Dow Jones U.S. Hourly Electricity lndices.
ldaho Power Company First Revised Sheet No. 86-1
Cancels
I.P.U.C. No. 29. Tariff No. 101 Orioinal Sheet No. 86-1
SCHEDULE 86
COGENERATION AND SMALL
POWER PRODUCTION NON.FIRM
ENERGY
AVAILABILITY
Service under this schedule is available throughout the Company's service territory within the
State of ldaho.
APPLICABILITY
Service under this schedule is applicable to any Seller that:
1. Owns or operates a Qualifying Facility with a nameplate capacity rating of less than 10
MW and desires to sell Energy generated by the Qualifying Facility to the Company on a non-firm, if, as,
and when available basis;
2. Meets all applicable requirements of the Company's Schedule 72 and the Generation
I nterconnection Process,
DEFINITIONS
@isthevolume-weightedaVerageofthedailyon-peakandoff-peakPlatts
Mid-Columbia Electricity Price lndex (Platts Mid-C lndex) prices for non-firm energy. lf the Dow Jones
Mid-C lndex prices are not reported for a particular day or days, the average of the immediately preceding
and following reporting periods or days will be used.
Desionated Disoatch Facilitv is the Company's Boise Bench Dispatch Center.
Enerov means the non-firm electric energy, expressed in kWh, generated by the Qualifying
Facility and delivered by the Seller to the Company in accordance with the conditions of this schedule.
Energy is measured net of Losses and Station Use.
Generation Facilitv means equipment used to produce electric energy at a specific physical
location, which meets the requirements to be a Qualifying Facility.
Generation lnterconnection Process is the Company's generation interconnection application and
engineering review process developed to ensure a safe and reliable generation interconnection.
lnterconnection Facilities are all facilities reasonably required by Prudent Electrical Practices and
the National Electric Safety Code to interconnect and safely deliver Energy from the Qualifying Facility to
the Company's system, including, but not limited to, connection, transformation, switching, metering,
relaying, communications, disconnection, and safety equipment.
Losses are the loss of electric energy occurring as a result of the transformation and transmission
of electric energy from the Qualifying Facility to the Point of Delivery.
IDAHO
lssued - October 24,2013
Etfective - November 24,2013
lssued by IDAHO POWER COMPANY
Gregory W. Said, Vice President, Regulatory Affairs
1221West ldaho Street, Boise, ldaho
ldaho Power Company First Revised Sheet No. 86-1
Cancels
|.P.U.C. No. 29. Tariff No. 101 OrioinalSheet No. 86-1
SCHEDULE 86
COGENERATION AND SMALL
POWER PRODUCTION NON.FI RM
ENERGY
AVAILABILITY
Service under this schedule is available throughout the Company's service tenitory within the
State of ldaho.
APPLICABILITY
Service under this schedule is applicable to any Seller that:
1. Owns or operates a Qualifying Facility with a nameplate capacity rating of less than 10
MW and desires to sell Energy generated by the Qualifying Facility to the Company on a non-firm, if, as,
and when available basis;
2. Meets all applicable requirements of the Company's Schedule 72 and the Generation
I nterconnection Process.
DEFINITIONS
Avoided Enerov Cost is the volume-weighted average of the daily on-peak and off-peak Det*
Jon€sElatts Mid-Columbia Electricity Price lndex (Oew;enesPlatts Mid-C lndex) prices for non;firmenergy.lftheDowJonesMid-clndexpricesarenotreportedfora
particular day or days, the average of the immediately preceding and following reporting periods or days
will be used.
Desionated Disoatch Facilitv is the Company's Boise Bench Dispatch Center.
Enerqv means the non-firm electric energy, expressed in kWh, generated by the Qualifying
Facility and delivered by the Seller to the Company in accordance with the conditions of this schedule.
Energy is measured net of Losses and Station Use.
Generation Facilltv means equipment used to produce electric energy at a specific physical
location, which meets the requirements to be a Qualifying Facility.
Generation lnterconnection Process is the Company's generation interconnection application and
engineering review process developed to ensure a safe and reliable generation interconnection.
lnterconnection Facilities are all facilities reasonably required by Prudent Electrical Practices and
the National Electric Safety Code to interconnect and safely deliver Energy from the Qualifying Facility to
the Company's system, including, but not limited to, connection, transformation, switching, metering,
relaying, communications, disconnection, and safety equipment.
Losses are the loss of electric energy occurring as a result of the transformation and transmission
of electric energy from the Qualifoing Facility to the Point of Delivery.
IDAHO lssued by IDAHO POWER COMPANY
lssued - @ctober 24. 2013Jehn*=€aleGreoorv W. Said, Vice President, Regulatory Affairs
Effective -1221 West ldaho Street, Boise, ldaho