20150724notice_of_petition_order_no_33342.pdf

Office of the Secretary
Service Date
July 24,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-15-18
COMPANY’S PETITION TO DETERMINE )
PURPA CONTRACT ELIGIBILITY FOR )NOTICE OF PETITION
TEN DISAGGREGATED 100 KW SOLAR )
PROJECTS )NOTICE OF
)MODIFIED PROCEDURE
)
________________________________
ORDER NO.33342
On June 26,2015,Idaho Power Company filed a Petition with the Commission to
determine the contract-length eligibility for ten solar projects proposed to Idaho Power by Site
Based Energy under the Public Utility Regulatory Policies Act (PURPA).Specifically,the
utility asks the Commission to issue an Order finding that Site Based Energy’s ten 100 kilowatt
(kW)projects are actually a single 1 megawatt (MW)project “disaggregated”into ten 100 kW
projects.The issue of whether this is a single large project or ten smaller projects will determine
which one of two avoided costs methodologies is used to calculate the rate Idaho Power must
pay for power,as well as the appropriate length of the PURPA contract(s).Idaho Power requests
that the Commission find that Site Based Energy’s project is only eligible for a single contract
with a term of five years,or whatever maximum contract term the Commission sets in Case No.
IPC-E-l5-01,for which an Order is pending at the time its Petition was filed in this case.
BACKGROUND
Under PURPA,electric utilities such as Idaho Power must purchase electric energy
from qualifying facilities (QFs)generally located in Idaho at rates approved by this Commission.
16 U.S.C.§824a-3.The purchase or “avoided cost”rate must be ‘just and reasonable to the
electric consumers ...and in the public interest”and “shall not discriminate against [QFs].”16
U.S.C.§824a-3(b);18 C.F.R.§292.304.
The Commission has established two methods of calculating avoided cost,depending
on the size of the QF project:(1)the Surrogate Avoided Resource (SAR)methodology,and (2)
the Integrated Resource Plan (IRP)methodology.See Order No.32697 at 7-8.The SAR
methodology applies to wind and solar QFs with a design capacity of up to 100 kW.In other
words,the ‘eligibility cap”for published rates for wind and solar QFs is set at 100kW.When a
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33342
solar QF project is larger than the 100kW eligibility cap,the avoided cost rates for the project
must be individually negotiated by the QF and the utility using the IRP methodology.Order
Nos.32697 at 2;32176.
Intertwined with the issue of the appropriate avoided cost methodology (SAR or
IRP),is the issue of contract length.The contract length for SAR-based contracts is 20 years.
Order No.33253 at 4.Currently,the contract length for IRP-based contracts is five years while
the Commission investigates the issue.Order Nos.33222,33250.1
NOTICE OF PETITION
YOU ARE HEREBY NOTIFIED that Idaho Power states it received “submissions
for ten 100 kW PURPA solar QF projects,all from the same developer,John Reuter,from Site
Based Energy.”Petition at 2,Atch.Nos.1-10.The utility states,“These ten projects are all
located at the same site,on the same contiguous property,and divided into ten sections.”Id.
According to Idaho Power,“Each Application appears to be nearly identical,except for the
differing Name of Facility (WRCE 1 through 10,respectively)and the corresponding GPS
coordinates for each project.”Id.
YOU ARE FURTHER NOTIFIED that Idaho Power notes that “[ejach Application
requests a contract term of 20 years,requests published avoided cost rates,and states,‘The
facility will be owned by a separate owner than all other facilities within I mile,including other
facilities at the same site.”Id.at 4 (citing Exhibit Nos.1-10,Applications at 2).The utility
claims that it “has not been provided with any evidence of separate ownership,nor was Idaho
Power able to confirm that the proposed entities are registered with the Idaho Secretary of State.”
Id.at4.
YOU ARE FURTHER NOTIFIED that Idaho Power asserts,“Site Based Energy has
specifically designed and proposed its project —disaggregated into 100 kW increments —in an
attempt to avoid application of the Commission’s interim order limiting the maximum contract
term to five years.”Id.at 3.
In January 2015,Idaho Power filed a petition in Case No.IPC-E-15-0l,asking the Commission to reduce the
length of new IRP-based PURPA contracts from 20 years to two years.The Commission granted temporary relief to
Idaho Power and established a contract length of five years while the 15-01 case is under investigation.
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ORDER NO.33342 2
YOU ARE FURTHER NOTIFIED that Idtho Power asks the Commission to “direct
that the five year maximum contract term limitation currently in place for projects over the
published rate eligibility cap be applicable to these ten 100 kW disaggregated solar projects.”Id.
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 Commission’s Rules
of Procedure,IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation
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 Order.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 Application shall be mailed to the
Commission and the Applicant at the addresses reflected below:
Commission Secretary Donovan E.Walker
Idaho Public Utilities Commission Idaho Power Company
P0 Box 83720 1221 West Idaho Street
Boise,ID 83 720-0074 P.O.Box 70
Boise,ID 83707
Street Address for Express Mail:E-Mail:[e-mail]
472 W.Washington Street
Boise,ID 83702-59 18
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 uçidaho.ov.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the front of this document.These comments must also be sent to Idaho Power at the
e-mail address listed above.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,no later than seven (7)days after the deadline for written comments.
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YOU ARE FURTHER NOTIFIED that if no Titten 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 the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices.The Application is 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,”then click on the case number shown on the front of this document.
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 the Public Utility
Regulatory Policies Act of 1978 (PURPA).The Commission has authority under PURPA and
the implementing regulations of the Federal Energy Regulatory Commission (FERC)to set
avoided costs,to order electric utilities to enter into fixed-term obligations for the purchase of
energy from qualified facilities and to implement FERC rules.The Commission may enter any
final Order consistent with its authority under Title 61 and PURPA.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 31.01.01.000,et seq.
ORDER
IT IS HEREBY ORDERED that the Application shall be processed by Modified
Procedure,IDAPA 31.01.01 .201-.204.Persons interested in submitting written comments in this
matter must do so no later than 21 days from the date of this Order.
IT IS FURTHER ORDERED that reply comments by Idaho Power,if any,shall be
due 28 days from the date of this Order.
NOTICE OF PETiTION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33342 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2015.
—/z
PAUL KJELLANDERPRESIDENT
±A
KRI NE RAPER,OMMIS STONER
ATTEST:
Jqn D.Jewell
Cbimission Secretary
O:IPC-E-1 5-l8dh
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33342 5