20160927Petition.pdf

DONOVAN E. WALKER
Lead Counsel
[e-mail]
September 26, 2016
VIA HAND DELIVERY
Jean D. Jewell, Secretary
2016 s-=P 26 PM 4: 54
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re : Case No. IPC-E-16-21
Jackpot Solar -Petition for Declaratory Order
Dear Ms. Jewell:
An IDACORP Company
Enclosed for filing in the above matter please find an original and seven (7)
copies of Idaho Power Company's Petition for Declaratory Order.
DEW:csb
Enclosures
Ve~! yy?d~
Donovan E. Walker
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
Attorney for Idaho Power Company
RE CEIV ED
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S PETITION FOR
DE CLARA TORY ORDER REGARDING
PROPER AVOIDED COST PRICING
FOR JACKPOT SOLAR.
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CASE NO. IPC-E-16-21
PETITION FOR DECLARATORY
ORDER
Idaho Power Company ("Idaho Power" or "Company"), pursuant to RP 101 ,
hereby petitions the Idaho Public Utilities Commission ("IPUC" or "Commission") to
issue an order determining the proper avoided cost pricing to be included in the Public
Utility Regulatory Policies Act of 1978 ("PURPA") contract(s) requested by Jackpot
Solar.1
Idaho Power, a vertically integrated public utility electric service provider
regulated in the state of Idaho by the IPUC, is the petitioner in this matter. PURPA
1 Jackpot Solar initially applied over a period of time from August 2015 through July 2016 for
interconnection of five different 20 MW solar projects at the same location. Jackpot Solar initially
requested PURPA QF pricing on May 20, 2016, via electronic mail for a 20-year contract for an 80 MW
solar QF project. On May 26, 2016, Jackpot Solar modified its request for pricing of a single 80 MW
project and submitted applications pursuant to Tariff Schedule 73 for four separate 20 MW solar QF
projects: Jackpot North , LLC; Jackpot South, LLC; Jackpot East, LLC; and Jackpot West, LLC. These
projects are hereafter referred to collectively as "Jackpot Solar."
PETITION FOR DECLARATORY ORDER -1
--------------------------------------·-· -------
requires Idaho Power, as a public utility, to purchase generation from cogeneration and
small power production facilities that are certified as PURPA qualifying facilities ("QFs"
or "QF") at avoided cost rates determined by the IPUC. Jackpot Solar claims it is
entitled to avoided cost pricing that includes the lock-in of capacity rates determined at
the time of its initial two-year contract that extend to future contracts beyond the two­
year contractual term. Attachments 3, 5, 8, 11. Idaho Power asserts that the
Commission's Order Nos. 33357 and 33419 in Case No. IPC-E-15-01 require avoided
cost rates to be determined at the beginning of each two-year contractual term, and
locks in a capacity deficiency date, but in no way locks in an avoided cost rate
determined at the time of contracting beyond the authorized maximum two-year term of
the contract. Attachments 7, 10.
Idaho Power seeks a declaratory ruling from the Commission that the properly
authorized avoided cost rate for Jackpot Solar when selecting rates determined at the
time of contracting (as opposed to rates determined at the time of delivery) is the
avoided cost determined by the incremental cost Integrated Resource Plan ("IRP")
methodology at the beginning of each two-year contractual term rather than upon its
initial contract, and that the QF is not entitled to lock in an avoided cost rate beyond the
two-year maximum contractual term.
In support of this Petition, Idaho Power states as follows:
I. FACTS
Idaho Power has attached hereto, and incorporates herein by this reference, as
Attachments 1 through 11, correspondence between Idaho Power and Jackpot Solar
regarding Jackpot Solar's request for QF pricing and contracts.
PETITION FOR DECLARATORY ORDER - 2
Jackpot Solar initially contacted Idaho Power by applying for the interconnection
of Jackpot North, 20 megawatts ("MW"), and Jackpot South, 20 MW, on August 10,
2015. Jackpot Solar subsequently applied for the interconnection of Jackpot East, 20
MW, and Jackpot West, 20 MW, on March 15, 2016. Jackpot Solar then applied for the
interconnection of Carter Solar, 20 MW, on July 18, 2016. All projects applied for
interconnection as separate 20 MW solar projects located at the same site. All projects
elected to be studied for interconnection as Energy Resources ("ER"), stating that they
intended to be independent power generators and sell their output either to the market,
to California, to NV Energy, or some other entity other than Idaho Power. Jackpot Solar
was informed that if it desired to sell its output to Idaho Power as a PURPA QF, that it
must be studied as a Network Resource (NR), and Jackpot Solar affirmed its request to
interconnect and be studied as an ER. Jackpot Solar's interconnection request is
currently in the second phase of study, the System Impact Study, as an ER.
At Jackpot Solar's request, Idaho Power held a meeting between Jackpot Solar
and Idaho Power's Transmission Energy Scheduling Leader on May 19, 2016, to
discuss the process and requirements for Jackpot Solar to request and obtain wheeling
service for its generation output on Idaho Power's system pursuant to Idaho Power's
Open Access Transmission Tariff (OATT). The next day, on May 20, 2016, Jackpot
Solar submitted an electronic mail request to counsel for Idaho Power requesting pricing
for a 20-year contract for a single 80 MW Jackpot Solar QF project. Attachment 1.
Idaho Power responded to Jackpot Solar's May 20 request on May 23, 2016.
Attachment 2. In that letter, Idaho Power notified Jackpot Solar that in order to respond
to Jackpot Solar's request, the QF must submit an Application pursuant to Tariff
PETITION FOR DECLARATORY ORDER -3
Schedule 73 and follow the pricing and contracting process established by that tariff
schedule. Id. Additionally, Idaho Power informed Jackpot Solar that because it was an
80 MW solar QF project, it was not eligible for a 20-year contract, and upon receipt of a
complete Application and request for an indicative pricing proposal, Idaho Power would
provide the QF with two-year indicative pricing. Id.
On May 26, 2016, Jackpot Solar sent a cover letter and four Schedule 73
Applications for four separate projects, each at 20 MW: Jackpot North, LLC; Jackpot
South , LLC; Jackpot East, LLC; and Jackpot West, LLC. Attachment 3. Jackpot Solar
again requested indicative pricing for 20 years stating, "The ESA Applications request
20 year pricing pursuant to the Idaho Public Utilities Commission's most recent ruling on
entitlement to such pricing pursuant to the 'IRP' methodology for estimating the
Company's avoided cost rates." Id. Jackpot further stated, "these projects seek to
execute contracts now and lock in calculated avoided capacity and energy costs
projected for the next twenty years as they intend to, and will appropriately obligate
themselves, continuously renew the initial two year contract for the subsequent nine (9)
contract periods." Id., p. 2 (citing to Order No. 33357).
On June 1, 2016, Idaho Power responded to Jackpot Solar's May 26 submission
and request by letter stating that the Applications were incomplete and identifying such
additional information that was required to complete the Applications. Attachment 4.
Regarding the proposed contract term Idaho Power stated, "Your Applications list 20
years under Proposed Contracting Term. For clarification , Idaho Power will assume you
are requesting the maximum contract term available for your proposed projects, which
is 2 years." Id.
PETITION FOR DECLARATORY ORDER -4
On June 3, 2016, Jackpot Solar responded by both electronic mail and by letter.
Attachment 5. Jackpot Solar forwarded generation profile information by e-mail, and
provided responses regarding the remaining incomplete Application items by letter. Id.
Jackpot Solar's letter again stated its belief that Commission Order No. 33357 entitled it
to 20-year contract pricing:
We want to be clear that these projects intend to comply with
the Commission's Order No. 33357 (quoted in our initial
letter requesting indicative pricing) in that, although the
"initial IRP-based contract" term will be for two years, the
contract must have an evergreen provision to allow it [sic]
comply with the Commission's directive that it be allowed to
be in "continuous operation." For these projects, we have
decided to self-limit our "continuous operation" rights to just
nine successive contract renewal periods for a total of twenty
contract years. As the Commission observed, it is only
through the continuous renewal process that "the QF is
considered part of the utility's resource stack and will be
contributing to reducing the utility's need for capacity."
Id., p. 3 (emphasis in original).
On June 6, 2016, Idaho Power sent Jackpot Solar a letter stating that it deemed
its Schedule 73 Applications complete as of June 3, 2016, and would provide indicative
pricing within 20 business days as required by Schedule 73. Attachment 6.
On June 29, 2016, Idaho Power provided four separate indicative pricing
proposals to Jackpot Solar, containing two-year indicative avoided cost pricing.
Attachment 7. In the cover letter accompanying said indicative pricing proposals Idaho
Power stated:
In your letters dated May 26, 2016, and June 3, 2016, you
make reference to IPUC Order No. 33357 and state that
these proposed projects "seek to execute contracts now and
lock in calculated avoided capacity and energy costs
projected for the next twenty years". Order No. 33357 does
not allow this to happen. Order No. 33357 establishes that
PETITION FOR DECLARATORY ORDER - 5
the maximum length of new IRP-based contracts is two
years, and provides that the utility's capacity deficiency is
established at the time of a QF's initial two-year contract,
should that QF remain in continuous operation and enter into
subsequent two-year contracts with the utility. This order
does not provide any authorization or authority for QF
projects to lock in pricing, either for capacity or for energy,
which extends beyond the two-year term of the contract, and
in fact expressly directs that avoided cost pricing is
established anew for each new contract's two-year
maximum term. The Order, and the language you cite to
therefrom, allows the utility's current capacity deficiency
time period to be established at the time of the QF project's
initial two-year contract -which means that for any
subsequent, new, two-year contract with continuous
operation that the utility's capacity deficiency time period
remains the same as that which was established with the
initial contract. As you know, QF projects do not receive the
capacity component of avoided cost rates during the utility's
capacity sufficient time period, and receives only the energy
component of avoided cost rates until the utility's first
capacity deficit. Therefore, Idaho Power has included two
years of pricing in its indicative pricing proposal as required
by Schedule 73 and applicable IPUC orders. Idaho Power's
current first capacity deficiency for avoided cost rates is July
2024 as established by Order No. 33377.
Attachment 7, pp. 1-2 (emphasis in original).
On July 7, 2016, Jackpot Solar responded acknowledging that the contract term
is limited to two years and requesting draft contracts, but continuing to argue that it is
entitled to lock in capacity rates, determined now, for some future contract beyond the
maximum two-year contract term, stating that the Commission's orders require "the
capacity rate for these future contracts be 'calculated at the time' we 'initially enter' our
IRP-based contract." Attachment 8, p. 2 (emphasis in original letter).
On July 20, 2016, Idaho Power's energy contracting group responded to Jackpot
Solar's request for draft contracts by letter identifying additional required information
pursuant to Schedule 73 that was necessary to complete the requested draft contracts.
PETITION FOR DE CLARA TORY ORDER - 6
Attachment 9. Also on July 20, 2016, counsel for Idaho Power sent a letter to Jackpot
Solar regarding the argument put forth by Jackpot Solar concerning its claimed
entitlement to lock in forecasted capacity avoided cost rates beyond its two-year
contract term. Attachment 10. In this letter, Idaho Power again reiterates that Order
No. 33357 does not provide for the lock-in of capacity rates at the time of the QF's initial
contract but does provide for a lock-in of the utility's capacity deficiency time period at
that time. Id., p. 1. Idaho Power emphasizes in this letter that the Commission's Order
No. 33419 upon reconsideration of Order No. 33357 directly addresses and provides
certainty regarding Jackpot Solar's position and argument regarding the proper avoided
cost rate. "The proper avoided cost capacity rate is established at the start of each two­
year contract term. 'A capacity rate calculated at the start of each specified term rather
than upon a QF's initial contract, is a truer reflection of the utility's avoided cost for
capacity."' Id. (footnotes omitted)(quoting Order No. 33419, p. 23). Idaho Power quotes
at length nearly an entire subsection of the Commission's reconsideration Order No.
33419, claiming that the Commission directly and expressly addressed Jackpot Solar's
arguments, which were considered and rejected by the Commission on reconsideration.
Attachment 10.
On September 1, 2016, Jackpot Solar responded to Idaho Power's July 20, 2016,
letter again stating its position and arguments that it is entitled to lock in avoided cost
capacity rates determined at the time of its initial two-year contract for subsequent
contract term(s). Attachment 11 . Jackpot Solar claims that the Commission's orders
clearly support its position and arguments and threatens legal action against Idaho
Power. Id.
PETITION FOR DECLARATORY ORDER - 7
II. DISCUSSION
The Commission has recognized its role when considering a petition for
declaratory ruling.
Declaratory rulings are appropriate regarding the
applicability of any statutory provision or of any rule or order
of this Commission. See IDAPA 31 .01.01 .101 ; Uniform
Declaratory Judgment Act, Idaho Code 10-1201 et seq. A
declaratory ruling contemplates the resolution of prospective
problems. The rights sought to be protected by a
declaratory judgment may invoke either remedial or
preventive relief; it may relate to a right that is only yet in
dispute or a status undisturbed but threatened or
endangered ; but in either event it must involve actual and
existing facts. Idaho Supreme Court in Harris v. Cassia
County, 106 Idaho 513, 516-517 , 618 P.2d 988 (1984).
Order No. 29580 , p. 16. Additionally, the Commission may clarify any order on its own
motion. RP 325.
The Commission has directly addressed the arguments put forth by Jackpot
Solar in a dedicated subsection of its order on reconsideration. Order No. 33419,
pp. 22-23 (subsection C.2). The same argument insisted upon now by Jackpot Solar
was put forth in the Petition for Reconsideration of Order No. 33357 by counsel for
Jackpot Solar, who was at that time counsel for Clearwater Paper Corporation and J.R.
Simplot Company.
The Commission's orders are clear. The utility's capacity deficiency is
established at the time of the QF's initial contract. Order No. 33357, pp. 25-26
(assuming continuous operation and subsequent two-year contracts). The proper
avoided cost capacity rate is established at the start of each two-year contract term.
Order No. 33419, p. 23. "A capacity rate calculated at the start of each specified term
PETITION FOR DECLARATORY ORDER - 8
rather than upon a QF's initial contract, is a truer reflection of the utility's avoided cost
for capacity." Id.
It is clear from review of the Commission 's Order No. 33357, in its entirety and in
particular pages 25 and 26, as well as from the Commission's Order No. 33419,
pp . 20-23, on reconsideration of Order No. 33357, that the capacity rate is calculated at
the start of each specified two-year contract term, and not locked in at the QF's initial
contract. In fact, the Commission directly addressed this particular issue on
reconsideration in response to Jackpot Solar counsel's arguments in that docket. Order
No. 33419, pp. 22-23. In rejecting those arguments made on behalf of Clearwater
Paper Corporation and J.R. Simplot Company in its Petition for Reconsideration of
Order No. 33357, the Commission stated:
If the utility has a capacity surplus, then a first-time QF
entering into its two-year IRP contract is not eligible to
receive any payment for capacity. However, if the
purchasing utility has a capacity deficit in the initial or
subsequent two-year contract, then the QF is eligible to
receive capacity payments from that point forward.
Order No. 33419, p. 21 . The Commission then went on to address, and reject, the
same argument that Jackpot Solar is now attempting to make again .
2. Forecasted Capacity Rates. The Petitioners also argue
that PURPA's implementing regulations entitle them to a
forecasted capacity rate when they enter into their
contract/obligation. For example, if Clearwater or Simplot
enters into a contract for their unbuilt and speculative
facilities to be effective in 2015 but the utility has a capacity
surplus until 2024, the Petitioners argue they are entitled to a
future capacity rate for 2024, when the utility is capacity
deficient .... They assert the capacity adjustment does not
comply with section 292.304(b) which "requires that the QF
be provided a fixed price to sell that capacity at the time of
commencement of the [contract or] obligation -not a rate
calculated ... several years from now." Petition at 14.
PETITION FOR DE CLARA TORY ORDER - 9
Commission Findings: We find Petitioners misunderstand
our Order and FERG regulations. The regulations provide
that a QF has the option to either provide energy or capacity
as available, or at avoided cost rates calculated "over [the]
specified term." 18 C.F.R. § 292.304(d)(1 ), (2). If the QF
chooses to sell power to the utility over a specified term , the
QF may have the rates calculated for the term at either "the
time of delivery; or ... at the time the obligation is incurred."
18 C.F.R. § 292.304(d)(2)(1-11). In Order No. 33357, we
determined that "the specified term" for new standard IRP­
based contracts is two years. Thus, Clearwater and Simplot
are entitled to receive avoided cost capacity rates for the
specified term calculated at either the time of delivery or at
the time they enter into their contract/obligation .
We also directed the Utilities to establish their capacity
deficiency date when a QF's initial IRP-based contract is
signed . Order No. 33357 at 25-26. This capacity
adjustment mechanism recognizes that if a QF continues to
provide energy to a utility through when the utility would
otherwise experience a capacity deficiency, the QF will be
paid for its capacity contribution. But until a QF enters into a
contract during which that capacity deficit date occurs, the
avoided cost capacity rate is zero.
As Mr. Wenner opined , a QF "is entitled to receive [capacity]
rates based on the capacity cost that the utility can avoid as
a result of its obtaining capacity from the [QF]." Tr. at 586,
quoting 45 Fed.Reg . at 12,225. A capacity rate calculated at
the start of each specified term rather than upon a QF's
initial contract, is a truer reflection of the utility's avoided cost
for capacity. The capacity adjustment mechanism thus
ensures the QF receives the full avoided cost of the utility,
consistent with FERG regulations .
Order No. 33419, pp. 22-23 (emphasis in original).
Consequently, as stated previously, the utility's capacity deficiency is established
at the time of the QF's initial contract. The proper avoided cost capacity rate is
established at the start of each two-year contract term. Idaho Power is currently
capacity sufficient through July of 2024 for purposes of PURPA avoided cost
determinations. Case No. IPC-E-15-20, Order No. 33377. Thus, the proposed Jackpot
PETITION FOR DECLARATORY ORDER -10
Solar QF projects receive an avoided cost capacity price of zero, unless and until they
continuously enter into two-year term contracts that reach the July 2024 first capacity
deficit. If that occurs, then the projects would receive a capacity payment from that
point forward. Assuming Jackpot Solar was entering into its initial contract now, the first
deficit of July 2024 would be set at this time, the time of Jackpot Solar's initial contract.
However, the price is set with the two-year contract that is entered into during which the
capacity deficit date occurs. Inputs to avoided cost rates are updated at least annually,
and sometimes more frequently. The capacity deficiency for avoided cost pricing is set
every other year by a dedicated case proceeding filed at the same time the utility files its
IRP. If Jackpot Solar were entering into its initial contract now, it may be entitled to non­
zero capacity payments starting in July of 2024 , if it remains in continual operation and
enters into consecutive two-year contracts that reach that first deficit date. However,
the specific capacity rate will be determined at such time as if, and when , the contract is
entered into during which that capacity deficit date occurs.
Jackpot Solar characterizes the above-quoted language from subsection C.2 of
Order No . 33419 as "dicta" that suggests Idaho Power's "understanding may be
accurate." Attachment 11 , p. 1 ("You do note in your letter several passages from the
Commission's order that suggest, in dicta, that your understanding may be accurate.").
The Commission's discussion and findings in subsection C.2 on pages 22-23 of Order
No. 33419 are well beyond mere dicta. In direct response to the issue raised on
reconsideration seeking a determination that a QF is entitled to have capacity rates
determined and forecasted at the initial time of contracting for a future date and
potential contract beyond the maximum term of the present contract, the Commission
PETITION FOR DECLARATORY ORDER -11
stated in its "Commission Findings" section, "A capacity rate calculated at the start of
each specified term rather than upon a QF's initial contract, is a truer reflection of the
utility's avoided cost for capacity." Order No. 33419, p. 23 . This is the Commission's
finding . It is not a recitation of background, facts, or of a particular party's position. It is
the Commission 's own words, its findings, in its rejection of Clearwater Paper
Corporation and J.R. Simplot Company's argument that they were entitled to capacity
rates in future contracts, that are determined now, rather than at the start of the term of
that particular contract.
No party appealed the Commission's order on reconsideration, Order No. 33419,
to the Idaho Supreme Court; thus, that Order became final, conclusive, and protected
from collateral attack and attempts to reargue issues finally decided by that Order.
Jackpot Solar's arguments here are impermissible collateral attacks of issues
addressed and settled by final Commission order.
Contrary to the express, decisive, and on-point Commission finding that a
capacity rate is to be calculated at the start of each specified term rather than upon a
QF's initial contract, Jackpot Solar argues that one can interpret what the Commission
meant from the inclusion of the bracketed word "rates" into a quotation of a passage
from Order No. 33357 which appears in the "Background" section of the Commission's
order on reconsideration, Order No. 33419. Attachment 11 , p. 2. One does not need to
divine an interpretation of what the Commission meant from the inclusion in a
background recitation of "[rates]" into a quotation. The Commission dedicated an entire
subsection to directly addressing the issue raised, and in its "Commission Findings"
rejecting Jackpot Solar's interpretation, the Commission finds, or rules, that capacity
PETITION FOR DECLARATORY ORDER -12
rates calculated at the start of each contract term, rather than upon the QF's initial
contract, is a truer reflection of the utility's avoided cost for capacity. Order No. 33419,
p. 23.
The Commission's findings that capacity rates are determined at the start of each
contractual term, rather than at the QF's initial contract, makes perfect sense when
viewed in the larger context of the Commission's determination in Order No. 33357, to
limit the maximum contractual term of IRP-based contracts to two years, and its
rejection of the arguments upon reconsideration to change that determination. A main
driver of the limitation of the contract term to two years is the ability to determine and
refresh the avoided cost rate on a more frequent basis. Order No. 33357, p. 23; Order
No. 33419, pp. 8, 16-17, 18, 20-21 .
In summary, the Commission has directly addressed the issue raised by Jackpot
Solar and has made express, direct, and on-point Commission Findings that resolve the
current issue between Jackpot Solar and Idaho Power regarding the proper avoided
cost pricing for Jackpot Solar's proposed projects. The Commission's orders are clear.
The utility's capacity deficiency is established at the time of the QF's initial contract, and
the proper avoided cost capacity rate is established at the start of each two-year
contract term. Order No. 33357, pp. 25-26; Order No. 33419, p. 23. "A capacity rate
calculated at the start of each specified term rather than upon a QF's initial contract, is a
truer reflection of the utility's avoided cost for capacity." Id.
Ill. CONCLUSION
Idaho Power respectfully requests that the Commission issue a declaratory order
finding that under the facts of Jackpot Solar's proposed PURPA QF transactions, the
PETITION FOR DECLARATORY ORDER -13
proper avoided cost rates are determined at the start of each specified contract term
rather than upon a QF's initial contract. More specifically, Idaho Power seeks a
declaratory ruling from the Commission that the proper authorized avoided cost rate for
a QF, such as Jackpot Solar, when selecting rates determined at the time of contracting
(as opposed to rates determined at the time of delivery) is the avoided cost determined
by the incremental cost IRP methodology at the beginning of each two-year contractual
term rather than upon a QF's initial contract and that the QF is not entitled to lock in an
avoided cost rate beyond the two-year maximum contractual term.
Respectfully submitted this 25th day of September 2016.
~tf!!C!A___
Attorney for Idaho Power Company
PETITION FOR DECLARATORY ORDER-14
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 25th day of September 2016 I served a true and
correct copy of the within and foregoing PETITION FOR DE CLARA TORY ORDER upon
the following named parties by the method indicated below, and addressed to the
following:
Jackpot Solar
Peter J. Richardson
RICHARDSON ADAMS, PLLC
515 North 2ih Street (83702)
P.O. Box 7218
Boise, Idaho 83707
PETITION FOR DECLARATORY ORDER -15
__ Hand Delivered
_lL U.S. Mail
__ Overnight Mail
__ FAX
_x_ Email [e-mail]
Christa Bearry, Legal Assistant
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 1
---------------------------------------------··-------
Darrington, Michael
Subject:
Attachments:
FW: Jackpot Solar QF Pricing
Energy -Jackpot -80MW.XLSX
From: Peter Richardson [mailto:[e-mail]]
Sent: Friday, May 20, 2016 10:10 AM
To: Walker, Donovan
Subject: [EXTERNAL] Jackpot Solar QF Pricing
Donovan,
Attached is the 20X7 output data for the Jackpot 80 MW solar QF project. We would like for
you to run the IRP methodology to arrive at a QF pricing matrix for a twenty year contract with
a commercial operation date of December 1, 2017.
Please give me a call if you have any questions.
Thanks, Pete.
Peter Richardson
Richardson Adams, PLLC
515 N. 27th Street
Boise, Idaho 83 702
[phone] office
[phone] cell
[e-mail]
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 2
May 23, 2016
Jackpot Solar
Peter Richardson
Richardson Adams, PLLC
515 N. 27th Street
Boise, ID 83702
VIA: Email Only [e-mail]
RE: Jackpot Solar QF Pricing
Mr. Richardson,
An IDACORP Company
Your May 20, 2016, email requesting pricing for a proposed Jackpot Solar QF project was forwarded to me for
response. Idaho Power's tariff Schedule 73 describes the Qualifying Facility Energy Sales Agreement Application
("Application") process and information required for all requests for a PURPA Qualifying Facility Energy Sales
Agreement. Schedule 73 is available on the Idaho Power website at
www .idahopower.corn/ AboutUs!RatesRegulatorytrariffs. In order for Idaho Power to proceed with any indicative
pricing proposal, an Application must be received and deemed complete by Idaho Power.
The generation profile you have submitted with your email, based on an 80 MW solar project, appears consistent
with one of the Application items that is required, but your emailed request for pricing is not a complete Application.
Therefore, Idaho Power is unable to perform any indicative pricing analysis until a complete Application is received.
Your email requests "a pricing matrix for a twenty year contract". Because the proposed project is 80 MW, it is not
eligible for a 20-year contract nor for published rates. As described in Schedule 73, an 80 MW project is eligible for
Rates Determined at the Time of Delivery per Schedule 86 or Integrated Resource Plan ("IRP") Based Rates. Upon
receipt of a complete Application and request for an IRP based rate indicative pricing proposal, Idaho Power will
provide two years of indicative pricing based on the anticipated commencement date of energy deliveries specified in
the Application.
If you have any questions, please do not hesitate to contact me.
Sincerely,
~~
Cc: Randy Allphin (TPC)
Donovan Walker (IPC)
Michael Darrington
Senior Energy Contract Coordinator
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 3
RICHARDSON ADAMS, PLLC
ATTOllNKYS AT LAW
Peter J. Richardson
Tel: [phone] Fax: [phone]
percr@richard5on adams . com
P.O. Box 7218 Boise. ID 83707 -515 N. 27rh Sr. Boise. ID 83702
May 26, 2016
Michael Darrington
Senior Energy Contract Coordinator
Idaho Power Company
1221 West Idaho Street
Boise, Idaho 83702
HAND DELIVERY
Re: Jackpot Solar West, East, North and South LLCs Qualifying Facility Energy Sales
Agreement Applications -Indicative Pricing Request
Dear Mr. Darrington:
Thank you for your letter of May 23, 2016, regarding the Jackpot Solar QF avoided cost
pricing request. Pursuant to your letter we have formalized our indicative pricing request
for the Jackpot Solar projects referenced above pursuant to the requirements in Idaho
Power's Tariff Schedule 73. Accordingly, enclosed you will find four separate
"Qualifying Facility Energy Sales Agreement Applications" (ESA Applications) for the
four separate Jackpot Solar projects. The ESA Applications request 20 year pricing
pursuant to the Idaho Public Utilities Commission's most recent ruling on entitlement to
such pricing pursuant to the "IRP" methodology for estimating the Company's avoided
cost rates.
SCHEDULE 73 ESAAPPLICATION ATTACHMENTS
Schedule 73 requires that the following Attachments accompany the ESA Application:
1. Map of Facility Including Proposed Interconnection Point. Attached you
will find the request map that is also attached to the Company's Feasibility Study Report.
2. Hourly Estimated Energy Deliveries. The 24X7 hourly estimates have
been provided to you previously in an excel format spreadsheet. Please let me know if
you need a hard copy printed out as well.
3. List of Acquired and Outstanding Qualifying Facility Permits. The
projects have self-certified as Qualifying Facilities pursuant to the Federal Energy
Regulatory Commission's requirements. Please reference FERC Docket Nos. QF15-604
(North); QFIS-605 (South); QF16-726 (East) and QF16-727 (West). There are no other
"Outstanding Qualifying Facility Permits" required.
4. There are no fuel transportation requirements for these solar PV facilities.
5. The facilities will be directly interconnecting with [daho Power's system.
CONTACT RA TES PURSUANT TO IPUC ORDER NO. 33357
It is my understanding that these IPR-calculated avoided cost rate contracts will
be governed by the rate setting requirements found in the recent IPUC order referenced
above. While that order does limit IRP-based contracts to two years, it makes specific
findings relative to the ability of the QF to lock in avoided capacity when the initial "IRP­
based contract is signed."1 According to the avoided cost methodology established by the
Commission, these projects are entitled to a calculation of the avoided cost rates using a
capacity deficiency established "at the time the initial !RP-based contract is signed."2 It
is the intent of these projects, and they will accordingly obligate themselves, to (as the
Commission requires) renew their "contract[s] and continuously sell power to the
utility."3 Although the Commission references the ability of the QF to "continuously sell
power to the utility" we have decided to voluntarily limit these four projects to just nine
(9) contract renewals which (including the initial two year contract term) provide for a
total of twenty years of avoided energy and capacity payments.
To further aid in your provision of a twenty year stream of avoided costs rates, via
a contract to be renewed every two years, the Commission explained:
For example, if the QF comes on-line in 2017 and the utility is capacity deficit in
2020, the QF would be entitled for capacity payments in the second year of its
second contract and thereafter if in continuous operation. This adjustment
recognizes that in ensuing contract periods, the QF is considered part of the
utility's resource stack and will be contributing to reducing the utility's need for
• 4 capacity.
To summarize, these projects seek to execute contracts now and lock in calculated
avoided capacity and energy costs projected for the next twenty years as they intend to,
and will appropriately obligate themselves, continuously renew the initial two year
contract for the subsequent nine (9) contact periods.
1 Order No. 33357 at page 25.
2 Id.
3 Id.
4 Id. at page 26.
We are looking forward to receipt of your indicative pricing proposal within twenty
business days (ten if you determine the attached application is deficient) pursuant to
Section 1 (b) or ( c) of Schedule 73 .
Very truly yofilS}
p--[)ffe~
Peter J. Richardson
Richardson Adams, PLLC
Cc: Donovan Walker
Idaho Power Company
1221 West Idaho Street
Boise, Idaho 83 702
QUALIFYING FACILITY ENERGY SALES AGREEMENT APPLICATION
Idaho Power Qualifying Facility (QF) contact information:
Mailing Address:
Physical Address:
Telephone number:
Attn: Energy Contracts, PO Box 70 Boise, ID 83702
1221 W Idaho Street, Boise, ID 83703
208-388-6070
E-Mail Address: [e-mail]
Preamble and Instructions
All generation faclllties that qualify pursuant to Idaho Power Company Schedule 73 for a QF Energy
Sales Agreement and wish to sell energy from their facility to Idaho Power must complete the
following information and submit this Application by hand delivery, mail or E-Mail to Idaho Power.
Upon receipt of a complete Application, Idaho Power shall process this request for a QF Energy
Sales Agreement pursuant to Idaho Power Company Schedule 73.
Quallfylng Faclllty Information
Proposed Project
Name of Facility: Jackpot West, LLC
Resource Type: (i.e. wind, solar, hydro, etc): -=So=l=a"--r..,_PV-=---------------
Facility Location: GPS Coordinates :_.....,1...,1.._4 ..... 5=9...,5..__,_W,___4...,2 ..... 1=8 .... 2 ........ N _________ _
Nearest City or landmark: __....,Ja..,c....,k""o=ot ... ,-'-'N ... V __________ _
County and State Twin Falls, ID
Map of Facility, including proposed interconnection point.
Anticipated commencement date of energy deliveries to Idaho Power: 12/1/18
Facility Nameplate Capacity Rating (kW): 25.545 kW DC
Facility Maximum Output Capacity (kW): 20.000 kW AC
Station Service Requirements (kW): 5,545 kW DC
Facility Net Delivery to Idaho Power (kW): 20,000 kW AC
Facility interconnection status:
Proposed Contracting Term ( cannot exceed 20 years):
Requested Rate Option (details provided in Schedule 73):
Does the Facility have the ability to respond to dispatch
Orders from Idaho Power Company (Yes or No):
Feasibility Study
20 years (see attached
letter)
Non-Levelized Non-Fueled
No
Please include the following attachments:
./ Hourly estimated energy deliveries (kW) to Idaho Power for every hour of a one year
period .
./ List of acquired and outstanding Qualifying Facility permits, Including a description of
the status and timeline for acquisition of any outstanding permits.
• At the minimum a FERC issued QF certificate/self-certification is required
and/or evidence that Facility will be able to obtain a Qualifying Facility
certificate .
./ If the Facility will require fuel be transported to the Facility (i.e. natural gas pipelines,
railroad transportation, etc), evidence of ability to obtain sufficient transportation
rights to operate the Facility at the state Maximum Output Amount .
./ If the Facility will not be interconnecting directly to the Idaho Power electrical system,
evidence that the Facility will not be able to interconnect to another utility's electrical
system and evidence that the Facility will be able to obtain transmission rights over all
required transmission providers to deliver the Facility's energy to Idaho Power.
Owner Information
Owner/ Company Name:_~J=a=c,..k.._po,..t .... W ....... e ... st ... , .... LL=C=---------------
Contact Person:_ ...,R .... o""'be,...rt ............ P ... a.,,,_u"---1 ----------------
Address : ____ _.,.5=1=5_._N..__2.._7ttt__,..s'""'tr..,,e,.,.e~t --------------
City: Boise State:_~I-D ______ Zip: 83702
Telephone: [phone]
E-mail: [e-mail]
Applicant Signature
I hereby certify that, to the best of my knowledge, all information provided in this
Qualifying Facility Energy Sales Agreement application is true and correct.
pdo,~
Signature
Peter Richardson
Print Name
Date
:;_ r;
; ,
APPENDIX B. PROJECT LOCATION
345 kV
To Twin Falls
To Wood River
To Kinport
F---~ To Borah
To Hunt
1~1WI
..---'-----. ~ Gl#S02
~(20MW)
l!iMllu
Idaho
Nevada
Humboldt ........ __ ,......._. ~101 Miles
(NV Energy)
To Valmy
20 MW Jackpot Solar North Project
Feasibility Study Report
To Gonder
II
OFFICIAL USE ONLY
This report contains Idaho Power Company Critical Energy Infrastructure Information
(CEIi). Distribution of this report must be limited to parties that have entered into a non­
disclosure agreement with Idaho Power Company and have a need to know.
QUALIFYING FACILITY ENERGY SALES AGREEMENT APPLICATION
Idaho Power Qualifying Facility (QF) contact information:
Mailing Address:
Physical Address:
Telephone number:
Attn: Energy Contracts, PO Box 70 Boise, ID 83702
1221 W Idaho Street, Boise, ID 83703
208-388-6070
E-Mail Address: [e-mail]
Preamble and Instructions
All generation facilities that qualify pursuant to Idaho Power Company Schedule 73 for a QF Energy
Sales Agreement and wish to sell energy from their facility to Idaho Power must complete the
following information and submit this Application by hand delivery, mail or E-Mail to Idaho Power.
Upon receipt of a complete Application, Idaho Power shall process this request for a QF Energy
Sales Agreement pursuant to Idaho Power Company Schedule 73.
Qualifying Facility Information
Proposed Project
Name of Facility: Jackpot East, LLC
Resource Type: (i.e. wind, solar, hydro, etc): ~S=ol=a~r~P~V ___________ _
Facility Location: GPS Coordinates : __ 1-1 .... 4 ......... S ..... 9.._5 ..... W..__4...,2..,..=18=2"'""'""'N _________ _
Nearest City or landmark: _..,._,Ja=c=k=p=ot,,._1-'-'N,__,V'------------
County and State Twin Falls. ID
Map of Facility, including proposed interconnection point.
Anticipated commencement date of energy deliveries to Idaho Power: -~1=2~/=1/~1=8 __ _
Facility Nameplate Capacity Rating (kW): 25,545 kW DC
Facility Maximum Output Capacity (kW):
Station Service Requirements (kW):
Facility Net Delivery to Idaho Power (kW):
Facility interconnection status:
Proposed Contracting Term ( cannot exceed 20 years):
Requested Rate Option (details provided in Schedule 73):
Does the Facility have the ability to respond to dispatch
Orders from Idaho Power Company (Yes or No):
20,000 kW AC
5.545 kW DC
20.000 kW AC
Feasibility study
20 years (see attached
letter)
Non-Levelized Non-Fueled
No
Please include the following attachments:
./ Hourly estimated energy deliveries (kW) to Idaho Power for every hour of a one year
period .
./ List of acquired and outstanding Qualifying Facility permits, including a description of
the status and timeline for acquisition of any outstanding permits.
• At the minimum a FERC issued QF certificate/self-certification is required
and/or evidence that Facility will be able to obtain a Qualifying Facility
certificate .
./ If the Facility will require fuel be transported to the Facility (i.e. natural gas pipelines,
railroad transportation, etc), evidence of ability to obtain sufficient transportation
rights to operate the Facility at the state Maximum Output Amount .
./ If the Facility will not be interconnecting directly to the Idaho Power electrical system,
evidence that the Facility will not be able to interconnect to another utility's electrical
system and evidence that the Facility will be able to obtain transmission rights over all
required transmission providers to deliver the Facility's energy to Idaho Power.
Owner Information
Owner/ Company Name:_....,J=a,...c...,kp'""'o...,t...,E..,a .... s""'t,....,L .. L..,.C.__ ____________ _
Contact Person:_ -B-ob=e=rt~P=a=ul~---------------
Address: ____ ~5=1=5_,_N..__2,_7tti____.s ..... tr ..... ee ........ t _____________ _
City: Boise State: _ __..I ..... D ______ Zip: 83702
Telephone: [phone]
E-mail: [e-mail]
Applicant Signature
I hereby certify that, to the best of my knowledge, all information provided in this
Qualifying Facility Energy Sales Agreement application Is true and correct.
Signature
{lf(J,~ ,
Peter Richardson
Print Name
)o(C
Date
APPENDIX B. PROJECT LOCATION
345 kV
To Twin Falls
To Wood River
To Kinport
s::.---To Borah
t"·'""
.------''-'------. C______uT\ Gl#S02 t rl\61 {20 MW)
15MilH
Idaho
Nevada
Humboldt ---.-.......-__.. <E-101 M1111s.
(NV Energy)
To Valmy
20 MW Jackpot Solar North Project
Feasibility Study Report
To Gonder
11
OFFICIAL USE ONLY
This report contains Idaho Power Company Critical Energy [nfrastructure Information
(CEIi). Distribution of this report must be limited to parties that have entered into a non­
disclosure agreement with Idaho Power Company and have a need to know.
QUALIFYING FACILITY ENERGY SALES AGREEMENT APPLICATION
Idaho Power Qualifying Facility (QF) contact Information:
Mailing Address:
Physical Address:
Telephone number:
Attn : Energy Contracts, PO Box 70 Boise, ID 83702
1221 W Idaho Street, Boise, ID 83703
208-388-6070
E-Mail Address: [e-mail]
Preamble and Instructions
All generation facilities that qualify pursuant to Idaho Power Company Schedule 73 for a QF Energy
Sales Agreement and wish to sell energy from their facility to Idaho Power must complete the
following information and submit this Application by hand dellvery, mail or E-Mail to Idaho Power.
Upon receipt of a complete Application, Idaho Power shall process this request for a QF Energy
Sales Agreement pursuant to Idaho Power Company Schedule 73.
Qualifying Faclllty Information
Proposed Project
Name of Facility: Jackpot South, LLC
Resource Type: (i.e. wind, solar, hydro, etc): ---"'-So""l""a.,_r_,_PV..__ __________ _
Facility Location: GPS Coordinates:_~1...,1.._4!...!.._....59~5=<.....!.W.__4 ..... 2,_,_.l,,,.,8,!..!2=...l..1N _________ _
Nearest City or landmark: -=Ja=c=k~po=t,.._,..,_,N,_.,V __________ _
County and State Twin Falls, ID
Map of Facility, including proposed interconnection point.
Anticipated commencement date of energy deliveries to Idaho Power: 12/1/18
Facility Nameplate Capacity Rating (kW): 25,545 kW DC
Facility Maximum Output Capacity (kW): 20,000 kW AC
Station Service Requirements (kW): 5,545 kW DC
Facility Net Delivery to Idaho Power (kW): 20,000 kW AC
Facility interconnection status:
Proposed Contracting Term (cannot exceed 20 years):
Requested Rate Option (details provided in Schedule 73):
Does the Facility have the ability to respond to dispatch
Orders from Idaho Power Company (Yes or No):
Feasibility study
20 years <see attached
letter)
Non-Levelized Non-Fueled
No
Please include the following attachments:
./ Hourly estimated energy deliveries (kW) to Idaho Power for every hour of a one year
period .
./ List of acquired and outstanding Qualifying Facility permits, including a description of
the status and timeline for acquisition of any outstanding permits.
• At the minimum a FERC issued QF certificate/self-certification is required
and/or evidence that Facility will be able to obtain a Qualifying Facility
certificate .
./ If the Facility will require fuel be transported to the Facility (i.e. natural gas pipelines,
railroad transportation, etc), evidence of ability to obtain sufficient transportation
rights to operate the Facility at the state Maximum Output Amount .
./ If the Facility will not be interconnecting directly to the Idaho Power electrical system,
evidence· that the Facility will not be able to interconnect to another utility's electrical
system and evidence that the Facility will be able to obtain transmission rights over all
required transmission providers to deliver the Facility's energy to Idaho Power.
Owner Information
Owner I Company Name:_....,J..,.a,.,.c=kp.,..o .... t .... S .... o...,u....,th ..... ,'-'L""L .... C.__ ___________ _
Contact Person:_ ..... R.,..obe......,,rtJ.:..P-au .. l.___ ______________ _
Address: ____ .... 5..,.15......,N.....,2..,7'-th--'5=t,.,_r=ee..,t.__ ____________ _
City: Boise State: __ ID....._ _____ Zip: 83702
Telephone: [phone]
E-mail: robertapau![e-mail]
Applicant Signature
I hereby certify that, to the best of my knowledge, all information provided in this
Qualifying Facility Energy Sales Agreement application Is true and correct.
edl~
Signature
Peter Richardson
Print Name ~
)-C
j ~of r
Date
APPENDIX B. PROJECT LOCATION
345 kV
To Wood River
To Twin Falls
t"·'""
---''-'----L___uT\ Gl#502
("""1'6/ (20 MW)
f 1SMiles
Humboldt .__-~~__,sE---101 MIies
(NV Energy)
ToValmy
20 MW Jackpot Solar North Project
Feasibility Study Report
To Gonder
II
OFFICIAL USE ONLY
To Kinport
To Borah
Idaho
Nevada
This report contains Idaho Power Company Critical Energy Infrastructure lnfonnation
(CEIi). Distribution of this report must be limited to parties that have entered into a non­
disclosure agreement with Idaho Power Company and have a need to know.
QUALIFYING FACILITY ENERGY SALES AGREEMENT APPLICATION
Idaho Power Qualifying Facility (QF) contact information:
Mailing Address:
Physical Address:
Telephone number:
Attn: Energy Contracts, PO Box 70 Boise, ID 83702
1221 W Idaho Street, Boise, ID 83703
208-388-6070
E-Mail Address: [e-mail]
Preamble and Instructions
All generation facilities that qualify pursuant to Idaho Power Company Schedule 73 for a QF Energy
Sales Agreement and wish to sell energy from their facility to Idaho Power must complete the
following information and submit this Application by hand delivery, mall or E-Mail to Idaho Power.
Upon receipt of a complete Application, Idaho Power shall process this request for a QF Energy
Sales Agreement pursuant to Idaho Power Company Schedule 73.
Qualifying Facility Information
Proposed Project
Name of Facility: Jackpot North. LLC
Resource Type: (i.e. wind, solar, hydro, etc): ~S=ol=a~r~PV~------------
Facility Location: GPS Coordinates: __ 1=1~4~·=5~95~W~4~2 ....... 18~2 ....... N _________ _
Nearest City or landmark: ~Ja...,c=k=po=t,.._."""N....,V __________ _
County and State Twin Falls ID
Map of Facility, Including proposed interconnection point.
Anticipated commencement date of energy deliveries to Idaho Power: 12/1/18
Facility Nameplate Capacity Rating (kW): 25,545 kW DC
Facility Maximum Output Capacity (kW):
Station Service Requirements (kW):
Facility Net Delivery to Idaho Power (kW):
Facility interconnection status:
Proposed Contracting Term (cannot exceed 20 years):
Requested Rate Option (details provided in Schedule 73):
Does the Facility have the ability to respond to dispatch
Orders from Idaho Power Company (Yes or No):
20.000 kW AC
5,545 kW DC
20,000 kW AC
Feasibility Study
20 years (see attached
letter}
Non-Levelized Non-Fueled
No
Please include the following attachments:
./ Hourly estimated energy deliveries (kW) to Idaho Power for every hour of a one year
period .
./ List of acquired and outstanding Qualifying Facility permits, including a description of
the status and timeline for acquisition of any outstanding permits.
• At the minimum a FERC Issued QF certificate/self-certification is required
and/or evidence that Facility will be able to obtain a Qualifying Facility
certificate .
./ If the Facility will require fuel be transported to the Facility (i.e. natural gas pipelines,
railroad transportation, etc), evidence of ability to obtain sufficient transportation
rights to operate the Facility at the state Maximum Output Amount .
./ If the Facility will not be interconnecting directly to the Idaho Power electrical system,
evidence that the Facility will not be able to interconnect to another utility's electrical
system and evidence that the Facility will be able to obtain transmission rights over all
required transmission providers to deliver the Facility's energy to Idaho Power.
Owner Information
Owner/ Company Name:_....,J=a=c,...kp""'o""'t..,.N...,o.._rt .... h...,,...,LL=.xC ____________ _
Contact Person:_ .,_,R"""ob""e...,rt..,,__,_P..._au...,I,__ ______________ _
Address: ____ _..5'""'1_...5...,_N......._27<-th__...S .... tr.,,,e""'et.__ ____________ _
City: Boise State: _ ____,.ID=-------Zip: 83702
Telephone: [phone]
E-mail: [e-mail]
Applicant Signature
I hereby certify that, to the best of my knowledge, all information provided in this
Qualifying Facility Energy Sales Agreement application Is true and correct.
Signature
Peter Richardson
Print Name
Date
APPENDIX B. PROJECT LOCATION
To Wood River
345 kV
To Twin Falls
r-"·'"" ,____.________, LJ/T\ Gl#502
't [""1\61 (20 MW)
lSMllas
Humboldt .____,.-.--~~101 Mile
(NV Energy)
To Valmy
20 MW Jackpot Solar North Project
Feasibility Study Report
To Gonder
11
OFFICIAL USE ONLY
To Kinport
To Hunt
Idaho
Nevada
This report contains Idaho Power Company Critical Energy Infrastructure lnfonnation
(CE[I). Distribution of this report must be limited to parties that have entered into a non­
disclosure agreement with Idaho Power Company and have a need to know.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 4
June 1, 2016
Jackpot Solar
Peter Richardson
Richardson Adams, PLLC
515 N. 27th Street
Boise, ID 83702
VIA: Email [e-mail]
An IDACORP Company
RE: Jackpot Solar North, South, East and West Energy Sales Agreement Applications
Mr. Richardson,
Idaho Power is in receipt your Schedule 73 Energy Sales Agreement Applications ("Applications") for
the proposed Jackpot Solar North, Jackpot Solar South, Jackpot Solar East and Jackpot Solar West projects.
As of the date of this letter, the Applications are not complete and the following information is required in
order to complete the Applications.
Schedule 73 -Contracting Procedures lists the information required to obtain an indicative pricing
proposal for a proposed Qualifying Facility (QF). In addition to the information you have already provided,
Section Contracting Procedures l.(a.)(i.). requires the QF owner's organizational structure and chart.
Hourly Estimated Energy Deliveries -The Applications you submitted were for 4 separate 20 MW
solar projects. The generation profile previously submitted was for a single 80 MW project. Please provide
the hourly estimated energy deliveries for each project that you are requesting an Energy Sales Agreement,
in the format of the attached 12 X 24 template.
Please also specify the order in which you would like the proposed projects to be priced.
Proposed Contracting Term: Your Applications list 20 years under Proposed Contracting Term. For
clarification, Idaho Power will assume you are requesting the maximum contract term available for your
proposed projects, which is 2 years.
Requested Rate Option: Based on the Schedule 73 Rates Options definitions, please confirm if you are
seeking Rate Option 5: Rates Determined at the Time of Delivery or Rate Option 6: IRP Based Rates. Your
Applications stated Rate Option 4: Non-Levelized Non-Fueled Rates, which do not apply to a 20 MW solar
project.
1221 W Idaho St (83702)
P.O. Box 70
Boise, ID 83707
Jackpot Solar N, S, E & W Page 2 of2 June 1, 2016
Other Information: Additionally, please complete the attached "Authority of Agents for execution and
correspondence'' form that will identify the individuals Idaho Power is authorized to communicate and
conduct business with regarding your proposed projects.
Idaho Power is unable to begin any preparation of indicative pricing proposals for your projects until
the Application information identified above is received and the Applications have been deemed complete.
If you have any questions, please do not hesitate to contact me.
Cc: Randy Allphin (IPC)
Donovan Walker (IPC)
Robert Paul (Jackpot)
Sincerely,
Michael Darrington
Senior Energy Contract Coordinator
Phone: [phone]
Email: [e-mail]
------------------------
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 5
Darrington, Michael
From:
Sent:
To:
Cc:
Subject:
Attachments:
Peter Richardson <[e-mail]>
Friday, June 03, 2016 8:41 AM
Darrington, Michael; Walker, Donovan; Allphin , Randy
Robert Paul
[EXTERNAL] FW: Jackpot Solar West, East, North and South Indicative Pricing Applciations
PURPA Project Generation Form -Jackpot West.xlsx; PURPA Project Generation Form -Jackpot
North.xlsx; PURPA Project Generation Form -Jackpot South.xlsx; PURPA Project Generation Form
-Jackpot East.xlsx
Michael we will be providing you a written response to your letter requesting additional
information on the Jackpot Solar North, South, East and West projects today. Here are the
24X7 spreadsheets for each project separately presented on its own spreadsheet. Please let me k
now if you need these on a disc or in some other format. Also please give me a call if you have
any difficulty opening the attached ..
-Pete
Peter Richardson
Richardson Adams, PLLC
515 N. 27th Street
Boise, Idaho 83702
(208) 93 8-7901 office
[phone] cell
[e-mail]
RICHARDSON AD.AMS, PLLC
ATTORNEYS AT LAW
Peter J. Richardson
Tel: [phone] Fax: [phone]
pc.re [e-mail] nadam s. com
P.O. Box 7218 Boise. ID 83707 -515 N. 27th St. Boise. IO 83702
June 3. 2016
Michael Darrington
Senior Energy Contract Coordinator
Idaho Power Company
1221 West Idaho Street
Boise, Idaho 83 702
HAND AND ELECTRONIC DELIVERY
Re: Jackpot Solar West, East. North and South LLCs Qualifying Facility Energy Sales
Agreement Applications -Additional Information Response
Dear Mr. Darrington:
Thank you for your letter of June 1, 2016, regarding Idaho Power's request for additional
information in order to make our Applications for Indicative Pricing complete. The
additional information is provided herein. We are looking forward to your response
within twenty business days (ten if you determine that the applications are deficient)
pursuant to Section 1 (b) or ( c) of Schedule 73.
Schedule 73: Contracting Procedures l.(a).(i). The OF owner's organizational structure
and chart:
There is no organizational chart as the organizational structure is very flat. Each of the
four projects is an LLC that is wholly owned by Alternative Power Development
Northwest, LLC, (APD), and Idaho limited liability company. APD is a stand-alone LLC
with no parent organization.
Hourly Estimated Energy Deliveries:
As you note, we provided you with a single 24X7 generation profile for an 80 MW
project. Because all four of the projects are essentially located at the same geographic
coordinates we had mistakenly assmned the gross generation from all four would be
sufficient. However, in order to accommodate your request, via electronic mail as of this
date, we have forwarded you four separate 24X7 generation profiles, one for each of the
projects.
Proposed Contracting Term:
You expressed an assumption as to the "maximum contract term available for [the]
proposed projects" of two years. We want to be clear that these projects intend to
comply with the Commission's Order No. 33357 (quoted in our initial letter requesting
indicative pricing) in that, although the "initial IRP-based contract" term will be for two
years, the contract must have an evergreen provision to allow it comply with the
Commission's directive that it be allowed to be in "continuous operation." For these
projects, we have decided to self-limit our "continuous operation" rights to just nine
successive contract renewal periods for a total of twenty contract years. As the
Commission observed, it is only through the continuous renewal process that "the QF is
considered part of the utility's resource stack and will be contributing to reaucing the
utility's need for capacity."
Requested Rate Option/Order of Pricing:
Thank you for your clarification that these projects are not entitled to the Non-Levelized
Non-Fueled Rates. We intended to ask for, and now do so explicitly, the IRP Based
Rates. We understand you will have to run separate IRP model runs for each project in
succession. Please follow this order when doing so, Jackpot Solar North ... South ... East
and finally, West. As to the time period to run the models, please provide pricing for the
full expected twenty years over which each project intends to "continuous[ly ]" provide
energy and capacity to Idaho Power. It is only through such a twenty year model run that
the projects will be able to comply with the Commission's directive that they are entitled
to be compensated for "reducing the utility's need for capacity" via pricing set "at the
time the initial IRP-based contract is signed."
Other Information:
Attached you will find a completed "Certificate of Authority for Agents" for each of the
projects. As you will see Robert A. Paul and Peter J. Richardson are empowered to
execute instruments/documents for each of the companies, Jackpot Solar North, South,
West and East. Also Elizabeth Woolstenhulme and Scott Reynolds are duly authorized
as agents of the Company.
Very truly yours,
fU{}~
Peter J. Richardson
Richardson Adams, PLLC
Cc: Donovan Walker
Idaho Power Company
CERTIFICATION OF AUTHORI1Y FOR AGENTS
I, Robert A. Paul, th!:! duly authorized and appointed Manager of Alternative Power
Development. NW, LLC, Jackpot Solar North, LLC; Jackpot Solar South, LLC; Jackpot Solar
East, LLC; and Jackpot Solar West, LLC ("Company''), HEREBY REPRESENT, WARRANT,
AND CERTIFY to Idaho Power Company the following:
1. That the following persons are authorized and empowered, for and on behalf
of the Company, to execute instrwnents, agreements, certificates, and other documents
(collectively "Documents'') anp to take actions on behalf of the Company, and that Idaho Power
Company and its directors, officers, employees, and agents (collectively, the ''Idaho Power
Company Parties") are entitled to consider and deal with such persons as agents of the Company
for all purposes, until such time as an authorized officer of the Company shall have delivered
to Idaho Power Company a notice in writing stating that such person is and shall not longer be
an agent on behalf of the Company:
Company 1:
Name of Company:
Name of Projects:
Name
Peter Richardson
Robert A. Paul
Company 2:
Name of Company:
Name of Project:
Name
Same as above
Jackpot Solar North ... South ... East and West, LLCs.
Title
Member
Managing Member
Title
Any Documents executed by the foregoing persons shall be deemed duly authorized by the
Company for all purposes.
2. That the following are authorized and empowered, for and on behalf of the
Company, to correspond direqtly with the Idaho Power Company Parties and the Idaho Power
Company Parties are entitled to consider and deal with such persons as agents of the Company
for such limited correspondence purposes, until such time as an authorized officer of the
Company shall have delivered to Idaho Power Company a notice in writing stating that such
person is and shall not longer be an agent on behalf of the Company:
Company 1:
Name of Company:
Name of Projects:
Name
Elizabeth
Woolstenhulme
Scott Reynolds
Company 2:
Name of Company:
Name of Project:
Name
Same as above.
Same as above.
Title
Sr. V.P., Development
Electrical Engineer
Title
Notwithstanding the foregoing, only upon the express authorization of those
identified in Paragraph l shall the persons identified in this paragraph 2 be authorized or
empowered, for and on behalf of the Company. to execute any Documents or otherwise
legally bind the Company.
Title: Managing Member
I, Peter J. Richardson
____ , HEREBY CERTIFY, that Robert A. Paul is
the du! y elected and actng Manager of the Company arrl tmt the signature appearing above is
Ju/her signature.
~/' ---J<_; l t IN WITNESS W H ER.1;:0 F, I have hereunto signed my name this~ day of -11.",,1.( / 941µ~ .
Print Name: Peter J. Richardson
Title: Member
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 6
June 6, 2016
Jackpot Solar
Peter Richardson
Richardson Adams, PLLC
515 N. 271h Street
Boise, ID 83702
An IDACORP Company
SENT VIA: Email Only [e-mail]
SUBJECT: Jackpot Solar North, South, East and West Energy Sales Agreement Applications
Mr. Richardson,
Idaho Power is in receipt of your Schedule 73 Energy Sales Agreement Applications ("Applications") for
the proposed Jackpot Solar North, Jackpot Solar South, Jackpot Solar East and Jackpot Solar West projects.
Idaho Power has reviewed the information provided with the Applications and finds that they are complete
as of June 3, 2016. In accordance with the Schedule 73 Contracting Procedures Le., an indicative pricing
proposal will be provided for each proposed project within 20 business days.
If you have any questions, please do not hesitate to contact me.
Cc: Randy Allphin (IPC)
Donovan Walker (IPC)
Robert Paul (Jackpot)
Sincerely,
Michael Darrington
Senior Energy Contract Coordinator
Phone: [phone]
Email: [e-mail]
1221 W. Idaho St (83702)
P.0 Box 70
Boise, ID 83707
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 7
June 29, 2016
Jackpot Solar
Peter Richardson
Richardson Adams, PLLC
515 N. 27th Street
Boise, ID 83702
SENT VIA: Email Only [e-mail]
An IDACORP Company
SUBJECT: Jackpot Solar North, South, East and West Indicative Pricing Proposals
Mr. Richardson,
Pursuant to your Idaho Power tariff Schedule 73 Qualifying Facility Energy Sales Agreement
Applications ("Applications") for the proposed Jackpot Solar North, Jackpot Solar South, Jackpot Solar East
and Jackpot Solar West projects, and in accordance with the Schedule 73 Contracting Procedures, please find
attached an indicative pricing proposal for each of your proposed projects. As described in Schedule 73, if
you desire to proceed with contracting your QFs with Idaho Power ("Company") after reviewing the
indicative pricing proposal, please provide a written request that the Company prepare a draft Energy Sales
Agreement ("ESA") to serve as the basis for negotiations between the parties. The Company is under no
obligation to purchase energy from these projects until the projects have successfully completed the
Schedule 73 contracting process, both parties have agreed to all terms and conditions of an ESA, the ESA
has been executed by both parties, and the ESA has been approved by the Idaho Public Utilities Commission
("IPUC").
In your letters dated May 26, 2016, and June 3, 2016, you make reference to IPUC Order No. 33357 and
state that these proposed projects "seek to execute contracts now and lock in calculated avoided capacity and
energy costs projected for the next twenty years". Order No. 33357 does not allow this to happen. Order
No. 33357 establishes that the maximum length of new !RP-based contracts is two years, and provides that
the utility's capacity deficiency is established at the time of a QF's initial two-year contract, should that QF
remain in continuous operation and enter into subsequent two-year contracts with the utility. This order does
not provide any authorization or authority for QF projects to lock in pricing, either for capacity or for energy,
which extends beyond the two-year term of the contract, and in fact expressly directs that avoided cost
pricing is established anew for each new contract's two-year maximum term. The Order, and the language
you cite to therefrom, allows the utility's current capacity deficiency time period to be established at the time
of the QF project's initial two-year contract -which means that for any subsequent, new, two-year contract
with continuous operation that the utility's capacity deficiency time period remains the same as that which
was established with the initial contract. As you know, QF projects do not receive the capacity component
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
Jackpot Solar N, S, E & W Page 2 of2 June 29, 2016
of avoided cost rates during the utility's capacity sufficient time period, and receives only the energy
component of avoided cost rates until the utility's first capacity deficit. Therefore, Idaho Power has included
two years of pricing in its indicative pricing proposal as required by Schedule 73 and applicable IPUC
orders. Idaho Power's current first capacity deficiency for avoided cost rates is July 2024 as established by
Order No. 33377.
In addition to proposed contract prices, the indicative pricing proposal contains solar integration charges
in accordance with Idaho Power's currently approved tariff Schedule 87,301 -400 MW Solar Capacity
Penetration Level.
In response to your June 9, 2016, inquiry regarding the security deposit, you are correct that the current
contractual language is the same standard provision requiring $45 per kW Nameplate Capacity of the project
to be posted within 30 days of a Commission Order approving a fully executed contract.
If you have any questions, please do not hesitate to contact me.
Cc: Randy Allphin (IPC)
Donovan Walker (IPC)
Robert Paul (Jackpot)
Sincerely,
Michael Darrington
Senior Energy Contract Coordinator
Phone: [phone]
Email: [e-mail]
CONFIDENTIAL
Idaho Power Company
PURP A Indicative Pricing Proposal
June 29, 2016
Proposed Project:
Nameplate Capacity (MW):
Estimated Online Date:
Jackpot North, LLC
20
December I, 2018
~IDAHO S'I POVVER.
An IDACORP COmpany
In response to your Schedule 73 Qualifying Facility Energy Sales Agreement Application ("Application") and in
accordance with Idaho Public Utilities Commission ("IPUC") Order No 33357, attached are two years of proposed
indicative energy prices for the project specified above. These proposed indicative energy prices have been
calculated using the incremental cost integrated resource plan ("ICIRP") avoided cost methodology in accordance
with IPUC Order No. 32697, all other applicable IPUC rules and regulations and the hourly energy estimates
provided by the project. Solar Integration Charges are also included with these proposed indicative energy prices as
provided by IPUC Order No. 33227 and Idaho Power tariff Schedule 87.
As specified in Idaho Power tariff Schedule 73, if the project desires to proceed with contracting its proposed
Qualifying Facility with Idaho Power Company ("Company") after reviewing the indicative pricing proposal, it
shall request in writing that the Company prepare a draft Energy Sales Agreement ("ESA") to serve as the basis for
negotiations between the parties. The draft ESA will contain provisions that the project deliver energy consistent
with the hourly and monthly energy estimates provided by the project and other performance requirements. The
draft ESA will also require that Environmental Attributes ("Renewable Energy Certificates") be equally split
between the project and the Company.
The Company is under no obligation to purchase energy from this project until the project has successfully
completed the Schedule 73 contracting process, both parties have agreed to all terms and conditions of an ESA, the
ESA has been executed by both parties, and the ESA has been approved by the IPUC.
At any time prior to both parties executing an ESA, all terms and conditions contained within the draft ESA, the
proposed indicative energy pricing provided within this document, or Schedule 73 may be modified to reflect
current contracting rules and regulations, contracting standards, energy pricing modifications and any other
circumstances that require a change in the draft ESA, pricing or process.
Definitions:
Heavy Load Hours: The daily hours from hour ending 0700 -2200 Mountain Time, (16 hours) excluding all hours
on all Sundays, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
Light Load Hours: The daily hours from hour ending 2300 -0600 Mountain Time (8 hours), plus all other hours on
all Sundays, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
CONFIDENTIAL
An tDACOl!P ~
INDICATIVE PRICING PROPOSAL
Base Energy Heavy Base Energy Light Integration
Load Price Load Price Charge
Month-Year (Mills/kWh) (Mills/kWh) (Mills/kWh)
Dec-18 $45.50 $45.51 $2.79
Jan-19 $37.92 $34.40 $2.87
Feb-19 $37.82 $31.11 $2.87
Mar-19 $32.04 $30.22 $2.87
Apr-19 $28.74 $29.68 $2.87
May-19 $30.14 $31.02 $2.87
Jun-19 $38.21 $34.79 $2.87
Jul-19 $51.24 $46.67 $2.87
Aug-19 $52.81 $45.97 $2.87
Sep-19 $40.15 $37.96 $2.87
Oct-19 $37.58 $31.l 1 $2.87
Nov-19 $41.80 $30.79 $2.87
Dec-19 $40.97 $41.86 $2.87
Jan-20 $36.97 $34.45 $2.96
Feb-20 $39.21 $32.00 $2.96
Mar-20 $32.58 $32.65 $2.96
Apr-20 $33.24 $32.00 $2.96
May-20 $33.04 $32.11 $2.96
Jun-20 $54.28 $48.65 $2.96
Jul-20 $69.97 $63.98 $2.96
Aug-20 $69.66 $54.12 $2.96
Sep-20 $77.11 $63.63 $2.96
Oct-20 $53.80 $56.95 $2.96
Nov-20 $50.42 $46.41 $2.96
Jackpot North, LLC 2
CONFIDENTIAL
Idaho Power Company
PURP A Indicative Pricing Proposal
June 29, 2016
Proposed Project:
Nameplate Capacity (MW):
Estimated Online Date:
Jackpot South, LLC
20
December l, 2018
An IDACORP c.omi:,any
In response to your Schedule 73 Qualifying Facility Energy Sales Agreement Application ("Application") and in
accordance with Idaho Public Utilities Commission ("!PUC") Order No 33357, attached are two years of proposed
indicative energy prices for the project specified above. These proposed indicative energy prices have been
calculated using the incremental cost integrated resource plan ("ICIRP") avoided cost methodology in accordance
with !PUC Order No. 32697, all other applicable !PUC rules and regulations and the hourly energy estimates
provided by the project. Solar Integration Charges are also included with these proposed indicative energy prices as
provided by !PUC Order No. 33227 and Idaho Power tariff Schedule 87.
As specified in Idaho Power tariff Schedule 73, if the project desires to proceed with contracting its proposed
Qualifying Facility with Idaho Power Company ("Company") after reviewing the indicative pricing proposal, it
shall request in writing that the Company prepare a draft Energy Sales Agreement ("ESA") to serve as the basis for
negotiations between the parties. The draft ESA will contain provisions that the project deliver energy consistent
with the hourly and monthly energy estimates provided by the project and other performance requirements. The
draft ESA will also require that Environmental Attributes ("Renewable Energy Certificates") be equally split
between the project and the Company.
The Company is under no obligation to purchase energy from this project until the project has successfully
completed the Schedule 73 contracting process, both parties have agreed to all terms and conditions of an ESA, the
ESA has been executed by both parties, and the ESA has been approved by the !PUC.
At any time prior to both parties executing an ESA, all terms and conditions contained within the draft ESA, the
proposed indicative energy pricing provided within this document, or Schedule 73 may be modified to reflect
current contracting rules and regulations, contracting standards, energy pricing modifications and any other
circumstances that require a change in the draft ESA, pricing or process.
Definitions:
Heavy Load Hours: The daily hours from hour ending 0700 -2200 Mountain Time, (16 hours) excluding all hours
on all Sundays, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
Light Load Hours: The daily hours from hour ending 2300 -0600 Mountain Time (8 hours), plus all other hours on
all Sundays, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
---------------------------------------
CONFIDENTIAL
AnlOACORPCOll'll),lftV
INDICATIVE PRICING PROPOSAL
Base Energy Heavy Base Energy Light Integration
Load Price Load Price Char2e
Month-Year (Mills/kWh) (Mills/kWh) (Mills/kWh)
Dec-18 $43.21 $41 .06 $2.79
Jan-19 $38.76 $35.64 $2.87
Feb-19 $37.69 $31.11 $2.87
Mar-19 $31.96 $30.49 $2.87
Apr-19 $29.29 $29.08 $2.87
May-19 $29.26 $24.21 $2.87
Jun-19 $38.73 $35.17 $2.87
Jul-19 $50.83 $46.64 $2.87
Aug-19 $52.56 $44.53 $2.87
Sep-19 $40.36 $34.43 $2.87
Oct-19 $36.89 $31.11 $2.87
Nov-19 $42.30 $30.64 $2.87
Dec-19 $40.97 $41.86 $2.87
Jan-20 $37.58 $33.00 $2.96
Feb-20 $39.18 $32.95 $2.96
Mar-20 $32.59 $33 .19 $2.96
Apr-20 $32.48 $32.00 $2.96
May-20 $32.30 $32.60 $2.96
Jun-20 $54.89 $53.17 $2.96
Jul-20 $70.92 $65.33 $2.96
Aug-20 $68.56 $57.43 $2.96
Sep-20 $76.70 $61.16 $2.96
Oct-20 $52.54 $61.83 $2.96
Nov-20 $48.36 $49.90 $2.96
Jackpot South, LLC 2
CONFIDENTIAL
Idaho Power Company
PURP A Indicative Pricing Proposal
June 29, 2016
Proposed Project:
Nameplate Capacity (MW):
Estimated Online Date:
Jackpot East, LLC
20
December I, 2018
An IDACOIIP CCfflPlftV
In response to your Schedule 73 Qualifying Facility Energy Sales Agreement Application ("Application") and in
accordance with Idaho Public Utilities Commission ("!PUC") Order No 33357, attached are two years of proposed
indicative energy prices for the project specified above. These proposed indicative energy prices have been
calculated using the incremental cost integrated resource plan ("ICIRP") avoided cost methodology in accordance
with !PUC Order No. 32697, all other applicable !PUC rules and regulations and the hourly energy estimates
provided by the project. Solar Integration Charges are also included with these proposed indicative energy prices as
provided by IPUC Order No. 33227 and Idaho Power tariff Schedule 87.
As specified in Idaho Power tariff Schedule 73, if the project desires to proceed with contracting its proposed
Qualifying Facility with Idaho Power Company ("Company") after reviewing the indicative pricing proposal, it
shall request in writing that the Company prepare a draft Energy Sales Agreement ("ESA") to serve as the basis for
negotiations between the parties. The draft ESA will contain provisions that the project deliver energy consistent
with the hourly and monthly energy estimates provided by the project and other performance requirements. The
draft ESA will also require that Environmental Attributes ("Renewable Energy Certificates") be equally split
between the project and the Company.
The Company is under no obligation to purchase energy from this project until the project has successfully
completed the Schedule 73 contracting process, both parties have agreed to all terms and conditions of an ESA, the
ESA has been executed by both parties, and the ESA has been approved by the !PUC.
At any time prior to both parties executing an ESA, all terms and conditions contained within the draft ESA, the
proposed indicative energy pricing provided within this document, or Schedule 73 may be modified to reflect
current contracting rules and regulations, contracting standards, energy pricing modifications and any other
circumstances that require a change in the draft ESA, pricing or process.
Definitions:
Heavy Load Hours: The daily hours from hour ending 0700 -2200 Mountain Time, (16 hours) excluding all hours
on all Sundays, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
Light Load Hours: The daily hours from hour ending 2300 -0600 Mountain Time (8 hours), plus all other hours on
all Sundays, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
CONFIDENTIAL
Month-Year
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Jackpot East, LLC
INDICATIVE PRICING PROPOSAL
Base Energy Heavy Base Energy Light
Load Price Load Price
(Mills/kWh) (Mills/kWh)
$43.28 $41.11
$38.02 $30.86
$38.60 $31.11
$31.18 $30.56
$28.56 $29.70
$29.11 $27.34
$37.90 $32.50
$50.19 $46.34
$52.47 $44.54
$40.38 $37.15
$36.47 $31.11
$39.99 $30.57
$40.97 $41.86
$36.09 $38.02
$39.25 $32.40
$33.26 $32.82
$33.33 $32.00
$32.06 $32.33
$54.34 $52.77
$68.90 $60.26
$67.89 $54.29
$68.99 $58.43
$54.46 $62.17
$49.62 $43.02
~IDAHO ~POUVER.
N1 IDACORP co,,_-,y
Integration
Charge
(Mills/kWh)
$2.79
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
$2 .96
$2.96
2
CONFIDENTIAL
Idaho Power Company
PURP A Indicative Pricing Proposal
June 29, 2016
Proposed Project:
Nameplate Capacity (MW):
Estimated Online Date:
Jackpot West, LLC
20
December 1, 2018
~IDAHO ,..aPOUVER.
An IOACORP COfflllal'IY
In response to your Schedule 73 Qualifying Facility Energy Sales Agreement Application ("Application") and in
accordance with Idaho Public Utilities Commission ("!PUC") Order No 33357, attached are two years of proposed
indicative energy prices for the project specified above. These proposed indicative energy prices have been
calculated using the incremental cost integrated resource plan ("ICIRP") avoided cost methodology in accordance
with !PUC Order No. 32697, all other applicable !PUC rules and regulations and the hourly energy estimates
provided by the project. Solar Integration Charges are also included with these proposed indicative energy prices as
provided by !PUC Order No. 33227 and Idaho Power tariff Schedule 87.
As specified in Idaho Power tariff Schedule 73, if the project desires to proceed with contracting its proposed
Qualifying Facility with Idaho Power Company ("Company") after reviewing the indicative pricing proposal, it
shall request in writing that the Company prepare a draft Energy Sales Agreement ("ESA") to serve as the basis for
negotiations between the parties. The draft ESA will contain provisions that the project deliver energy consistent
with the hourly and monthly energy estimates provided by the project and other performance requirements. The
draft ESA will also require that Environmental Attributes ("Renewable Energy Certificates") be equally split
between the project and the Company.
The Company is under no obligation to purchase energy from this project until the project has successfully
completed the Schedule 73 contracting process, both parties have agreed to all terms and conditions of an ESA, the
ESA has been executed by both parties, and the ESA has been approved by the !PUC.
At any time prior to both parties executing an ESA, all terms and conditions contained within the draft ESA, the
proposed indicative energy pricing provided within this document, or Schedule 73 may be modified to reflect
current contracting rules and regulations, contracting standards, energy pricing modifications and any other
circumstances that require a change in the draft ESA, pricing or process.
Definitions:
Heavy Load Hours: The daily hours from hour ending 0700-2200 Mountain Time, (16 hours) excluding all hours
on all Sundays, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
Light Load Hours: The daily hours from hour ending 2300 -0600 Mountain Time (8 hours), plus all other hours on
all Sundays, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
CONFIDENTIAL
Month-Year
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Jackpot West, LLC
INDICATIVE PRICING PROPOSAL
Base Energy Heavy Base Energy Light
Load Price Load Price
(Mills/kWh) (Mills/kWh)
$43.67 $43.81
$38.73 $35.53
$39.46 $31.11
$31.76 $30.28
$28.55 $30.29
$30.85 $29.79
$37.77 $34.07
$50.49 $46.64
$51 .96 $44.68
$39.45 $33.87
$36.90 $31.11
$41.47 $34.27
$41 .66 $41.86
$36.98 $35.24
$39.38 $32.39
$32.16 $32.61
$30.87 $32.27
$31.33 $32.56
$53.93 $50.26
$71.06 $62.91
$70.22 $59.28
$69.93 $57.90
$52.58 $57.26
$50.07 $43.95
IDAHO POWER.
An IDACOIIP COffllllnV
Integration
Chare:e
(Mills/kWh)
$2.79
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.87
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
$2.96
2
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 8
RICHARDSON ADAMS9 PLLC
ATTORNEYS AT LAW
Peter J. Richardson
Tel: [phone] Fu: 208-938-7904
[e-mail]
P.O. Box 7218 Boise. ID 83707 -S 15 N. 27th Sc. Boise. ID 83702
July 7, 2016
Michael Darrington
Senior Energy Contract Coordinator
Idaho Power Company
1221 West Idaho Street
Boise, Idaho 83702
HAND AND ELECTRONIC DELIVERY
Re: Jackpot Solar West, East, North and South LLCs Qualifying Facility Energy Sales
Agreement Applications -Contract Request and Follow-up Indicative Pricing
Request
Dear Mr. Darrington:
Thank you for your letter of June 29, 2016, regarding the Jackpot Solar projects. We
appreciate receipt of the two year energy rate for the initial two-year contract period and
we ask that you now send appropriate contracts for our review and execution.
As to the question of capacity payments, there is apparently some confusion as to Idaho
Power's understanding of our request. For that I apologize for any lack of clarity in our
initial request. I believe we both understand that the contract term we are entitled to
under Order No. 33357 is limited to two years. We also both seem to understand that
Idaho Power's current capacity deficiency time period is to be established at the time of
the initial two-year contract. You have provided that information and indicated that the
first deficit year for these projects will be 2024. Thank you.
What is missing from your letter is the calculation of the capacity price these projects will
be entitled to beginning in year 2024, assuming, of course, they continuously renew up to
and through that year. Because, as you clearly acknowledge in your letter, "the utility's
[Idaho Power's] capacity deficiency time period remains the same as that which was
established with the initial contract," the rate associated with that fixed deficit period
should be readily ascertainable when you run your IRP power cost model. Order No.
33357 clearly contemplated the requirement that the utility run this calculation when it
declared that, "QFs will continue to be compensated for capacity calculated at the time
they initially enter their IRP-based contract." While we are clear that we are not entitled
to capacity payments at the time we initially enter into our IPR-based contracts, we are
also clear in our understanding that such future payments are to be "calculated at the time
[we] initially enter [our] IRP-based contract."
I understand that you already have the 24X7 production estimates for each of the four
projects, indeed your avoided energy rates were calculated using the first two years of
that data. We therefore ask that you also calculate the avoided capacity rate applicable to
these projects beginning in year 2024 extending through 2037. Again, we want to be
clear that we are not asking for these rates to be inserted in our initial two-year !RP-based
contract. We are only asking that the Company comply with the clear instructions in the
Commission order in that the capacity rate for these future contracts be "calculated at the
time" we "initially enter" our IRP-based contract. It certainly is prudent to do so now,
while the information necessary to make this calculation is current. Waiting seven years
to run this calculation would invite the risk of stale, lost or misplaced data and would
make such a retrospective calculation of the rates most difficult, if not impossible.
Thank you for your continued prompt attention to this matter, and please feel free to give
me a call if you have any questions.
Very truly yours,
(($/J--
Peter J. Richardson
Richardson Adams, PLLC
Cc: Donovan Walker
Idaho Power Company
....------------------
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 9
July 20, 2016
Jackpot Solar
Peter Richardson
Richardson Adams, PLLC
515 N. 27th Street
Boise, ID 83 702
SENT VIA: Email Only [e-mail]
An IDACORP Company
SUBJECT: Jackpot Solar North, South, East and West Energy Sales Agreement Request
Mr. Richardson,
Idaho Power received your letter on July 7, 2016, in which you have requested draft Energy Sales
Agreements ("ESAs") for the proposed Jackpot North, Jackpot South, Jackpot East and Jackpot West
projects.
Pursuant to Idaho Power tariff Schedule 73, Contracting Procedures, Section 1. (e.) please provide:
1. Any updated information from Section l .a.
11. Evidence of site control for the entire contracting term.
111. Anticipated timelines for completion of key Qualifying Facility milestones, to include:
a. Licenses, permits, and other necessary approvals;
b. Funding;
c. Qualifying Facility engineering and drawings;
d. Significant equipment purchases;
e. Construction agreement(s);
f. Interconnection agreement(s)
g. Signing of third-party Transmission Agreements, where applicable.
As you are aware, any project selling electricity to Idaho Power as a PURP A QF must be an Idaho
Power designated network resource. Therefore, it will be required that the project(s) be studied and
interconnected as a network resource ("NR"). It is my understanding that the Jackpot Solar projects have
currently applied for interconnection as an energy resource ("ER") which would not result in the projects
being Idaho Power network resources. Please provide confirmation that your projects have applied for
interconnection as an Idaho Power NR.
1221 W Idaho St. (83702)
P.O Box 70
Boise. ID 83707
Jackpot Solar N, S, E & W Page 2 of2
If you have any questions, please do not hesitate to contact me.
Cc: Randy Allphin (IPC)
Donovan Walker (IPC)
Robert Paul (Jackpot)
Sincerely,
Michael Darrington
Senior Energy Contract Coordinator
Phone: [phone]
Email: [e-mail]
July 20, 2016
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 10
DONOVAN E. WALKER
Lead Counsel
[e-mail]
July 20, 2016
VIA E-MAIL ONLY
Peter J. Richardson
Richardson Adams, PLLC
515 N. 27'h St.
P.O. Box 7218
Boise, ID 83702
E-mail: [e-mail]
An IDACORP company
Re: Jackpot Solar North, South, East, and West-Two-Year Contract Pricing
Peter:
I write to address your continued insistence that your proposed projects are
entitled to capacity rates, determined at the time of the QF's initial contract, to be
applied to a potential future contract when Idaho Power's current capacity deficiency
occurs in July of 2024. You know better than most that this is not correct.
You stated in your July 7, 2016, letter to Mr. Darrington that, "As to the question
of capacity payments, there is apparently some confusion as to Idaho Power's
understanding of our request." There is no confusion on the part of Idaho Power. The
Commission's orders are clear. It was in fact the Commission's rejection of your
previous arguments that provides clarity as to those same arguments you are making
now.
Mr. Darrington politely, and correctly, pointed out in his letter of June 29, 2016,
that your quoted language and misplaced argument for a lock-in of capacity rates is
taken from the Commission's order and language addressing -not the proper capacity
rate -but the proper capacity deficiency time period. The utility's capacity deficiency
is established at the time of the QF's initial contract.1 The proper avoided cost capacity
rate is established at the start of each two-yea r contract term .2 "A capacity rate
calculated at the start of each specified term rather than upon a QF's initial contract, is a
truer reflection of the utility's avoided cost for capacity. "3
1 Assuming continuous operation and subsequent two-year contracts. Order No. 33357, p. 25-26
2 Order No. 33419, p. 23.
3 Id.
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
Peter J. Richardson
Jackpot Solar
July 20, 2016
Page 2 of 4
It is exceedingly clear from review of the Commission's Order No. 33357, in its
entirety and in particular pages 25 and 26, as well as from the Commission's Order No.
33419, p. 20-23, on reconsideration of Order No. 33357, that the capacity rate is
calculated at the start of each specified two-year contract term, and not at the QF's
initial contract. In fact, the Commission directly addressed this particular issue4 on
reconsideration in response to your arguments in that docket.5 In rejecting your
arguments made on behalf of Clearwater Paper Corporation and J.R. Simplot Company
in your Petition for Reconsideration of Order No. 33357, the Commission stated:
If the utility has a capacity surplus, then a first-time QF
entering into its two-year IRP contract is not eligible to
receive any payment for capacity. However, if the
purchasing utility has a capacity deficit in the initial or
subsequent two-year contract, then the QF is eligible to
receive capacity payments from that point forward.
Order No. 33419, p. 21. The Commission then went on to address, and reject, the
same argument you are attempting to now make again on behalf of Jackpot Solar.
2. Forecasted Capacity Rates. The Petitioners also argue
that PURPA's implementing regulations entitle them to a
forecasted capacity rate when they enter into their
contract/obligation. For example, if Clearwater or Simplot
enters into a contract for their unbuilt and speculative
facilities to be effective in 2015 but the utility has a capacity
surplus until 2024, the Petitioners argue they are entitled to a
future capacity rate for 2024, when the utility is capacity
deficient. . . . They assert the capacity adjustment does not
comply with section 292.304(b) which "requires that the QF
be provided a fixed price to sell that capacity at the time of
commencement of the [ contract or] obligation -not a rate
calculated ... several years from now." Petition at 14.
Commission Findings: We find Petitioners misunderstand
our Order and FERC regulations. The regulations provide
that a QF has the option to either provide energy or capacity
as available, or at avoided cost rates calculated "over [the]
specified term." 18 C.F.R. § 292.304(d)(1), (2). If the QF
chooses to sell power to the utility over a specified term, the
4 Order No. 33419, p. 22-23.
5 Case No. IPC-E-15-01
Peter J. Richardson
Jackpot Solar
July 20, 2016
Page 3 of 4
QF may have the rates calculated for the term at either "the
time of delivery; or ... at the time the obligation is incurred."
18 C.F.R. § 292.304(d)(2)(1-11). In Order No. 33357, we
determined that "the specified term" for new standard I RP­
based contracts is two years. Thus, Clearwater and Simplot
are entitled to receive avoided cost capacity rates for the
specified term calculated at either the time of delivery or at
the time they enter into their contract/obligation .
We also directed the Utilities to establish their capacity
deficiency date when a QF's initial !RP-based contract is
signed. Order No. 33357 at 25-26. This capacity
adjustment mechanism recognizes that if a QF continues to
provide energy to a utility through when the utility would
otherwise experience a capacity deficiency, the QF will be
paid for its capacity contribution. But until a QF enters into a
contract during which that capacity deficit date occurs, the
avoided cost capacity rate is zero.
As Mr. Wenner opined , a QF "is entitled to receive [capacity]
rates based on the capacity cost that the utility can avoid as
a result of its obtaining capacity from the [QF]." Tr. at 586,
quoting 45 Fed.Reg. at 12,225. A capacity rate calculated at
the start of each specified term rather than upon a QF's
initial contract, is a truer reflection of the utility's avoided cost
for capacity. The capacity adjustment mechanism thus
ensures the QF receives the full avoided cost of the utility,
consistent with FERC regulations.
Order No. 33419, p. 22-23 (emphasis in original).
Consequently, as stated previously, the utility's capacity deficiency is established
at the time of the QF's initial contract. The proper avoided cost capacity rate is
established at the start of each two-year contract term. Idaho Power is currently
capacity sufficient through July of 2024 for purposes of PURPA avoided cost
determinations . Case No. IPC-E-15-20, Order No. 33377. Thus, your proposed
Jackpot Solar QF projects receive an avoided cost capacity price of zero, unless and
until they continuously enter into two-year term contracts that reach the July 2024 first
capacity deficit. If that occurs, then the projects receive a capacity payment from that
point forward . The first deficit of July 2024 is set now, at the time of Jackpot Solar's
initial contract. However, the price is set with the two-year contract that is entered into
during which the capacity deficit date occurs. As you know the inputs to avoided cost
rates are updated at least annually, and sometimes more frequently than annually.
Peter J. Richardson
Jackpot Solar
July 20, 2016
Page 4 of 4
Jackpot Solar may be entitled to non-zero capacity payments starting in July of 2024, if
they remain in continual operation and enter into consecutive two-year contracts that
reach that first deficit date. However, the specific capacity rate will be determined at
such time as if, and when, the contract is entered into during which that capacity deficit
date occurs.
cc: Randy Allphin
Michael Darrington
Sincerely,
&:ew~
Donovan E. Walker
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-16-21
IDAHO POWER COMPANY
ATTACHMENT 11
RICHARDSON ADAMS9 PJLLC
ATTORNEYS AT LAW
Peter J. Richardson
Tel: [phone] Fax: [phone]
[e-mail] m
P.O. Box 7218 Boise. ID 83707 • 515 N. 27th Sr. Boise. ID 83702
September l, 2016
Donovan Walker
Lead Counsel
Idaho Power Company
1221 West Idaho Street
Boise, Idaho 83702
HAND DELIVERY
Re: Jackpot Solar West, East, North and South LLCs Qualifying Facility Energy Sales
Agreement Applications -Two Year Pricing
Dear Mr. Walker:
Thank you for your letter of July 20, 2016, regarding the Jackpot Solar QFs (referenced
above) avoided cost pricing requests, (herein collectively either "Jackpot" or "Jackpot
Solar") I do note the fervor with which Idaho Power asserts its interpretation of the Idaho
Commission's ruling on capacity pricing for IRP-based QF contracts. Nevertheless,
regardless of how strongly you assert your position that capacity prices are only
calculated at the beginning of the two-year contract term in which the capacity deficit
occurs, the simple fact is that the Commission's order on reconsideration explicitly belies
such an interpretation.
You do note in your letter several passages from the Commission's order that suggest, in
dicta, that your understanding may be accurate. Of course, you neglect to cite other
passages, also in dicta, that support our understanding of the Commission's decision.
That said, I believe the Commission's recitation of its original ordering paragraph should
be sufficient to put the matter to rest. At page 9 from the order on reconsideration [No.
33419] the Commission quoted at length from its original final ordering paragraph [No.
33357] in the following passage:
Because each utility's capacity deficiency date is updated and reset every two
years as part of the IRP methodology, the Commission was concerned that new
two-year IRP-based contacts "would be unlikely to reach a capacity deficiency
date." Order No. 33357 at 25. In other words, under the two-year term, a
contracting QF might never reach a point where its capacity is contributing to the
utility's system and would, therefore, never receive capacity payments.
To remedy this concern, the Commission found it
Reasonable for utilities to establish capacity deficiency at the time the
initial IRP-based contract is signed. As long as the QF renews its contract
and continuously sells power to the utility, the QF is entitled to capacity
[rates] based on the capacity deficiency date established at the time of its
initial contract.
It is significant that the bracketed word "rates" was inserted by the Commission in its
order on reconsideration. It is also significant that the square bracketed word "rates" is
not a parenthetical, but rather a Commission drafted and Commission insert editorial
correction to complete the meaning of the sentence. 1 With the Commission's
clarification, there is simply no other way to understand the Commission order other than
as we explained in or prior letters to you, to wit: the QF is "entitled to capacity rates
based on the capacity deficiency date established at the time of its initial contract." To
parse this phrase to mean only that the deficiency date is established at the time of the
initial contract eviscerates the Order's clarity and obfuscates its meaning. The subject of
the sentence is "capacity rates" which are based on the capacity deficiency date that is
established at the time of the initial contract. There is simply no other logical way to read
the Commission's ultimate ruling on this question.
Your interpretation would make most of the phrase superfluous. You simply cast a blind
eye to the fact that the Commission went out of its way to rule that the deficiency date
AND the capacity rate are both calculated at the time of the initial contract. Had the
Conunission intended for only the capacity deficiency date to be calculated at the time of
the initial contract it would not have gone out of its way to insert the word "rate" into its
original ordering language on reconsideration.
Given the simple clarity of the Commission's ruling, it is becoming frustrating for
Jackpot Solar to continue this dialogue. The arguments are becoming repetitive. You
should be aware that continued delay by Idaho Power in complying with the
Commission's clear directive is resulting in significant financial hann to Jackpot Solar.
Without an initial and clear understanding of the future capacity payment stream it will
be entitled to, Idaho Power is preventing Jackpot from successfully moving forward with
its potential investors. We have repeatedly tried, but it turns out that it is simply
impossible to move forward without an initial understanding of that future pricing stream.
I probably do not need to remind you, but nevertheless wil1 refresh your memory, that a
utility's failure to comply with "any order or decision of the commission" is actionable
for "all loss, damage or injury" by "any person" and that jurisdiction will lie with "any
court of competent" jurisdiction. Idaho Code Section 61-702. In other words, Jackpot
1 Square bracketed inserts are commonly used by editors, in this case the Commission itself, to clarify
meaning and/or intent and are not used to alter or change the meaning of the original text.
has several options open to it to remedy Idaho Power's continued refusal to comply with
the Commission's order --options to which we hope we will not have to avail ourselves.
Thank you, again, for your prompt attention to this matter. I remain available at your
earliest convenience to discuss, but be assured; Jackpot's patience has just about reached
its limit.
Very truly yours,
Peter J. Richardson
Richardson Adams, PLLC