HomeMy WebLinkAbout20140121Petition to Intervene.pdfGregory M. Adams (ISB No. 7454)
Richardson Adams, PLLC
515 N. 27th Street
Boise, Idaho 83702
Telephone: (208) 938-7900
Fax: (208) 938-7904
gre g@richardsonadams.com
Attomey for Cassia Wind Farm LLC, Hot Springs Windfarm,LLc,
Bennett Creek Windfarm, LLC, Cassia Gulch Wind Park LLC,
Tuana Springs Energy, LLC, and High Mesa Energy, LLC
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF APPLICATION OF
IDAHO POWER COMPANY TO UPDATE ITS )
-ici !r'l /; I,. l
CASE NO. IPC-E-13-22
PETITION TO INTERVENE OF
CASSIA WIND FARM LLC, HOT
SPRINGS WINDFARM,LLC,
BENNETT CREEK WINDFARM,
LLC, CASSIA GULCH WIND
PARK LLC, TUANA SPRINGS
ENERGY, LLC, AND HIGH MESA
ENERGY, LLC
l;: l-. lfi: :i. i.!
WIND INTEGRATION RATES AND
CHARGES.
Pursuant to IDAPA 31.10.01 .071-.074 and the Notice of Application Order No. 32961
issued by the Idaho Public Utilities Commission ('oCommission") on December 31, 2013 Cassia
Wind Farm LLC, Hot Springs Windfarm,LLc, Bennett Creek Windfarm, LLC, Cassia Gulch
Wind Park LLC, Tuana Springs Energy, LLC, and High Mesa Energy, LLC, hereinafter referred
to collectively as "Intervenors" or the "Intervenors' Wind Projects," hereby petition the
Commission for leave to intervene herein and to appear and participate herein as parties, and as
grounds therefore state as follows:
PETITION TO INTERVENE
IPC-E-I3-22
PAGE 1
l. The names and addresses of these Intervenors are:
Cassia Wind Farm, LLC
c/o Exelon Wind, LLC
4601 Westown Parkway, Ste. 300
West Des Moines, Iowa 50266
Hot Springs Windfarm, LLC
c/o Exelon Wind, LLC
4601 Westown Parkway, Ste. 300
West Des Moines, Iowa 50266
Bennett Creek Windfarm, LLC
c/o Exelon Wind, LLC
4601 Westown Parkway, Ste. 300
West Des Moines, Iowa 50266
Cassia Gulch Wind Park LLC
c/o Exelon Wind, LLC
4601 Westown Parkway, Ste. 300
West Des Moines,Iowa 50266
Tuana Springs Energy, LLC
c/o Exelon Wind, LLC
4601 Westown Parkway, Ste. 300
West Des Moines, Iowa 5026
High Mesa Energy, LLC
c/o Exelon Wind, LLC
4601 Westown Parkway, Ste. 300
West Des Moines, lowa 50266
2. These Intervenors will be represented herein by:
Gregory M. Adams (ISB No. 7454)
Richardson Adams, PLLC
515 N. 27s Street
Boise, Idaho 83702
Telephone: (208) 938-7900
Fax: (208) 938-7904
gre g@richardsonadams. com
3. Copies of all pleadings, production requests, production responses, Commission
orders and other documents should be provided to Mr. Adams at the addresses listed above and
to:
Paul Ackerman
Assistant General Counsel
Exelon Business Services Corporation
100 Constellation Way
Baltimore, MD 21202
4. Each of the Intervenors' Wind Projects is qualified to conduct business in the
State of Idaho under applicable provisions of ldaho law. Each is a wholly owned subsidiary of
Continental Wind, LLC which is an indirect wholly owned subsidiary of Exelon Wind, LLC.
PETITION TO INTERVENE
rPC-E-t3-22
PAGE 2
5. Each of the Intervenors' Wind Projects is certified as a qualifying facility ("QF")
under the Public Utility Regulatory Policies Act of 1978 ("PURPA"), and each utilizes wind as
the renewable fuel source.
6. Each of the Intervenors' Wind Projects is interconnected to the Idaho Power
Company ("Idaho Power") electrical system, and each project sells all of its net output to Idaho
Power, pursuant to a long-term PURPA Firm Energy Sales Agreement ("FESA").
7. Each of the Intervenors' Wind Projects elected to execute and obligate itself to a
FESA containing fixed avoided cost rates for the duration of a 2}-year contract term, as provided
by federal law and regulation. See 18 C.F.R. 5292.304(dx2xii).
8. Cassia Wind Farm, LLC owns and operates a wind generation facility with a
maximum nameplate capacity of 10.5 megawatts ("MW") that is designed to produce an average
net output of less than 10 MW per month. Cassia Wind Farm, LLC sells its entire net output to
Idaho Power under a2}-year FESA executed on April 7,2006, and approved by the Commission
on June 30,2006. See IPUC Order No. 30086. Among the negotiated terms and conditions of
the agreement, Cassia Wind Farm, LLC's FESA contains the Commission-approved9}%olll|Yo
band provision intended to improve performance of the QF. See generallyIPUC Order No.
29632. Cassia Wind Farm, LLC also agreed to certain curtailment provisions (referred to as
"Cassia redispatch") in a separate Commission-approved agreement with Idaho Power related to
transmission upgrades. See IPUC Order No. 30414.
9. Hot Springs Windfarm, LLC and Bennett Creek Windfarm, LLC each own and
operate a wind generation facility with a maximum nameplate capacity of 21 MW that is
designed to produce an average net output of less than 10 MW per month. Hot Springs
Windfarm, LLC and Bennett Creek Windfarm, LLC sell their entire net output to Idaho Power
PETITION TO INTERVENE
rPC-E-13-22
PAGE 3
under two separat e, 2D-year FESAs, each of which was executed on Decemb er 20, 2006,
amended J:uly 2,2007, and approved by the Commission on February 20,2007, and August 8,
2007, respectively. See IPUC Order Nos. 30245 ,30246,30398, 30399. Among the negotiated
terms and conditions of the FESAs, the Hot Springs Windfarm, LLC and Bennett Creek
Windfarm, LLC FESAs each contain the Commission-approved90o/olll0%bandprovision
intended to improve the performance of the QF. See generally IPUC Order No. 29632.
10. Cassia Gulch Wind Park LLC owns and operates a wind generation facility with
maximum nameplate capacity of 18.9 MW, and Tuana Springs Energy, LLC owns and operates
a wind generation facility with maximum nameplate capacity of 16.8 MW, which is adjacent to
and was constructed as an expansion of Cassia Gulch Wind Park LLC. These two projects sell
their entire net output of the combined nameplate capacity of 35.7 MW to Idaho Power under a
single, 2}-year FESA, which was executed on August 5,2009, and approved by the Commission
on October 5,2OOg. See IPUC Order No. 30917.r This FESA contains negotiated rates
generated, in part, from Idaho Power's AURORA economic dispatch model. The negotiated
rates incorporate the wind integration charge contained in IPUC Order No. 30488, reducing the
fixed avoided cost rates in the FESA, calculated at the time a wind QF project achieves its
Operation Date that "will remain fixed throughout the term of the contract." IPUC Order No.
30488 at 8.
11. High Mesa Energy, LLC owns and operates a wind generation facility with
maximum nameplate capacity of 40 MW, and sells its entire net output to ldaho Power under a
20-year FESA that was executed on November 16,2011, and approved by the Commission on
' Previously, Cassia Gulch Wind Park LLC sold its entire net output pursuant to a FESA executed in2006,
but that FESA was terminated once Tuana Springs Energy, LLC achieved online status.
PETITION TO INTERVENE
[PC-E-I3-22
PAGE 4
February 17,2012. See IPUC OrderNo.32462. The High Mesa Energy, LLC FESA contains
fixed rates generated in Idaho Power's AURORA economic dispatch model and contains the
wind integration charge from IPUC Order No. 30488, reducing the fixed avoided cost rates in the
FESA, calculated at the time a wind QF project achieves its Operation Date that "will remain
fixed throughout the term of the contract." IPUC Order No. 30488 at 8.
12. As evidenced by the Commission's orders approving the [ntervenors' Wind
Projects' FESAs, each of the FESAs comports with the orders and requirements of the
Commission in effect at the time of execution and approval of the FESAs. Some of the FESAs
contain the wind integration charge in effect at the time of execution, while others contain other
contractual terms approved by the Commission to account for estimated value of the energy and
capacity supplied by intermittent generation. However, each FESA contains fixed avoided cost
rates based upon the estimated avoided costs to Idaho Power at the time the lntervenors' Wind
Projects obligated themselves to sell net output to Idaho Power over a 2l-year term. See 18
c.F.R. S 2e2.304(dx2xii).
13. The Intervenors' Wind Projects are gravely concemed with Idaho Power's
proposal in this docket with regard to wind integration charges. Specifically, the Intervenors'
Wind Projects would suffer adverse and unlawful economic harm if the Commission were to
entertain, let alone adopt, tdaho Power's proposal in this docket to apply an adjustable wind
integration tariff to existing projects with FESAs containing long-term, fixed avoided cost rates,
or otherwise modify the fixed avoided cost rates in existing FESAs to account for larger-than-
expected wind integration costs. Any change to the Commission's wind integration policies with
respect to existing QFs with FESAs containing long-term, fixed avoided cost rates could impact
the Intervenors' Wind Projects.
PETITION TO INTERVENE
rPC-E-13-22
PAGE 5
14. In fact, it is well-established that federal law prohibits the Commission from
subjecting QFs with long-term, fixed avoided cost rate FESAs to ongoing utility-type regulation,
such as Idaho Power's proposed reexamination of the fixed rates in existing Idaho wind QFs'
FESAs. See 16 U.S.C. 824a-3(e). The adjudication of such a request by Idaho Power subjects
the Intervenors' Wind Projects to ongoing utility-type regulation in violation of federal law, and
threatens to impose on the Intervenors' Wind Projects substantial intemal and external costs,
such as retention of legal counsel and possibly expert witnesses necessary to protect their
interests.
15. Therefore, each of the lntervenors' Wind Projects claims a direct and substantial
interest in this proceeding because Idaho Power's Application recommends that the Commission
investigate and adopt policies that would have an adverse and unlawful economic impact on the
Intervenors' Wind Projects.
16. The Intervenors' Wind Projects intend to participate herein as parties, to file
pleadings responding to Idaho Power's Application, and if necessary, to introduce evidence,
cross-examine witnesses, call and examine witnesses, and be heard in argument. The nature and
quality of pleadings and evidence which the Intervenors' Wind Projects will submit and
introduce is dependent upon the nature and effect of other filings and evidence in this
proceeding.
17. Without the opportunity to intervene herein, the Intervenors' Wind Projects would
be without any means of participation in this proceeding, which may have severe economic
consequences for the Intervenors' Wind Projects.
18. Granting this Petition to Intervene will not unduly broaden the issues, nor will it
prejudice any party to this case.
PETITION TO INTERVENE
IPC-F.-|3-22
PAGE 6
WHEREFORE, Cassia Wind Farm LLC, Hot Springs Windfarm,LLc, Bennett Creek
Windfarm, LLC, Cassia Gulch Wind Park LLC, Tuana Springs Energy, LLC, and High Mesa
Energy, LLC respectfully request that this Commission grant their Petition to Intervene in these
proceedings and to appear and participate in all matters as may be necessary and appropriate.
={-DATED this 2t' day of January,2Ol4.
RICHARDSON ADAMS, PLLC
Attomey for Cassia Wind Farm LLC, Hot
Springs Windfarm, LLC, Bennett Creek
Windfarm, LLC, Cassia Gulch Wind Park
LLC, Tuana Springs Energy, LLC, and High
Mesa Energy, LLC
PETITION TO INTERVENE
IPC-E-I3-22
PAGE 7
CERTIFICATE OX' SERYICE
I HEREBY CERTIFY that on the _ day of January,z0l4, a true and correct copy of
the within and foregoing PETITION TO INTERVENE Case No. IPC-E-13-22, was served by
hand delivery, to:
Donovan Walker
Julia A. Hilton
Idaho Power Company
1221 West Idaho Steet ($7AD
PO Box 70
Boise, Idaho 83707 -0070
dwalker@i dahopower. com
ibilton@idahopower. cor4
PETITION TO INTERVENE
IPC-E-L3-22
PAGE 8