20150428notice_of_application_order_no_33290.pdf

Office of the Secretary
Service Date
April 28,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-15-09
COMPANY’S APPLICATION TO APPROVE )
FIRST AMENDMENT TO POWER )NOTICE OF APPLICATION
PURCHASE AGREEMENT WITH )
TELOCASET WIND POWER PARTNERS,)NOTICE OF
LLC )MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33290
On April 1,2015,Idaho Power Company filed an Application asking the Commission
to approve the First Amendment to its Power Purchase Agreement (PPA)with Telocaset Wind
Power Partners,LLC.The PPA is not a contract under the Public Utility Regulatory Policies Act
(PURPA),but includes many provisions similar to those in PURPA contracts.See Order No.
30259 at 2.
The proposed Amendment deletes and replaces the PPA’s Section 12.1 and Appendix
J.The new Section 12.1 changes the nature of financial statements Telocaset must provide,
following administrative changes implemented by Telocaset’s new parent organization.
Application at 2-3.The amended Appendix J resolves the parties’conflicting interpretations of
the PPA’s provisions regarding assumption of “curtailment risk.”Id.at 6.Idaho Power asks that
its Application for approval of the Amendment to its PPA with Telocaset be processed under
Modified Procedure.Id.at 9.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED the Commission approved Idaho Power’s PPA with
Telocaset in 2007.Order o.30259.Under the PPA,Idaho Power purchases energy generated
by Telocaset’s 100.65 megawatt (MW)Elkhom Wind Park facility,located in eastern Oregon
between Baker City and La Grande.Application at 2.The facility is connected directly to Idaho
Power’s La Grande-Brownlee 230 kilovolt transmission line.Id.at 2.
YOU ARE FURTHER NOTIFIED that under PPA Section 9.2 and Appendix J,Idaho
Power could —on notice to Telocaset —elect to pay lower prices (“Post-Operation Date
Alternative Pricing”)for energy deliveries,but in exchange,Idaho Power would accept more
financial risk for possible transmission curtailment.Id.at 4.In December 2011,Idaho Power
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33290 1
gave notice to Telocaset that it would use the Post-Operation Date Alternative Pricing.Id.In
August 2012,Telocaset sent its first invoice to Idaho Power requesting payment for “Lost
Outpuf’related to transmission curtailments from March through July 2012;this was followed
by additional monthly invoices for Lost Output.Id.at 4-5.On review of its documented
curtailments and the applicable provisions of the PPA,Idaho Power disagreed with Telocaset’s
Lost Output calculations.Id.at 5.
YOU ARE FURTHER NOTIFIED that on December 31,2012,Idaho Power paid
Telocaset the undisputed Lost Output amount of $485,985.33 for the period from January 2012
through September 2012.Id.at 6.On May 21,2013,Idaho Power paid Telocaset an additional
undisputed Lost Output amount of $52,544.05,for the period from October 2012 through
December 2012.Id.The remaining disputed balance is $145,378.97.Id.In essence,the
remaining dispute concerned the parties’disagreement about how Appendix J applies to the
PPA.Id.
YOU ARE FURTHER NOTIFIED that throughout 2013 and 2014,the parties
engaged in meetings and discussions about their interpretations of Appendix J.Id.at 7.Under
Telocaset’s interpretation of Appendix J,Idaho Power “assumed curtailment risk for the full
100.65 [megawatt (MW)]nameplate rating of the Facility.”Id.at 6.Under Idaho Power’s
interpretation of Appendix J,Idaho Power “only accepted curtailment risk for the 66 MW of the
Facility’s nameplate rating,as the Facility elected to only secure 66 MW of network
transmission capacity for its output”under Section 6.8 of the PPA.Id.On December 19,2014,
the parties agreed to and signed the First Amendment for which they now seek the Commission’s
approval.Id.at 7.
PROPOSED AMENDMENT
YOU ARE FURTHER NOTIFIED that,as noted in the Application,“as part of the
Amendment,each party agreed to settle and release any and all claims arising under or pursuant
to Appendix J ...including,but not limited to,the disputed Lost Output payment claim of
$145,378.97.”Id.at 8.The parties also agreed to amend the language in the PPA that led to the
parties’disparate interpretations.To this end,the parties have “mutually resolved and agreed to
[language]...memorialized in the Amended Appendix J.”Id.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33290 2
YOU ARE FURTHER NOTIFIED that,the parties also agreed to replace Section
12.1,which requires Telocaset to provide audited financial statements to Idaho Power,with a
new Section 12.1,that requires Telocaset to provide unaudited financial statements.Id.at 7.
This amendment accommodates administrative changes implemented by Telocaset’s new parent
organization.Id.at 3.Because Telocaset is already required “to post $10 million of
Performance Assurance”under an existing (and unaltered)provision in the PPA,“Idaho Power
believes there is little to no impact by accepting the proposed change in financial reporting
requirements.”Id.at 3.
YOU ARE FURTHER NOTIFIED that the Application and a copy of the PPA have
been filed with the Commission and are available for public inspection during regular business
hours at the Commission offices.The Application and PPA are also available on the
Commission’s web site at www.puc.idaho.gov.Click on the “File Room”tab at the top of the
page,scroll down to “Open Electric Cases,”and then click on the case number as shown on the
front of this document.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commissions Rules
of Procedure,IDAPA 3 1.01.01.201 through .204.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21)days from the date of this Notice.The comment must contain a statement of
reasons supporting the comment.Persons desiring a hearing must specifically request a hearing
in their written comments.Written comments concerning this case shall be mailed to the
Commission and the Applicant at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33290 3
Commission Secretary Donovan E.Walker,Lead Counsel
Idaho Public Utilities Commission Regulatory Dockets
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 1221 W.Idaho St.
P0 Box 70
Street Address for Express Mail:Boise,ID 83707
E-IVail:dwalkeridahopower.com
472 W.Washington St.docketsiilidahopower.corn
Boise.ID 83702-5918
Randy C.Aliphin
Energy Contract Administrator
Idaho Power Company
1221 W.Idaho St.
P0 Box 70
Boise,ID 83707
E-mail:ra][e-mail]
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www.puc.idaho.gov.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the form using the case number as it appears on
the front of this document.These comments must also be sent to the Company at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,no later than May 28,2015.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code,and specifically
Idaho Code §61-502 and 61-503.The Commission may enter any final Order consistent with
its authority under Title 61.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33290 4
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commissions Rules of Procedure,IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that Idaho Power’s Application be processed under Modified
Procedure,Rules 201-204,IDAPA 31.01.01.201 -.204.Persons interested in submitting written
comments must do so within 21 days of the date of this Order.The Company may file a reply no
later than May 28,2015.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 2
day of April 2015.
KPAUL LLANth,PRESIDENT
MACK A.REDFORD,COMMISSIONER
2&LLA
TINE RAPER,CGMMISSIONER
ATTEST:
/1_/1i4J&
J&n D.JewellU
Commission Secretary
O:IPC-E-1 5-09_djh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33290 5