20180508notice_of_petition_order_no_34059.pdf

Office of the Secretary
Service Date
May 8,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF )CASE NO.IPC-E-18-07
IDAHYDRO,SHOROCK HYDRO,INC.,)J.R.SIMPLOT COMPANY,AND )NOTICE OF PETITION
RENEWABLE ENERGY COALITION FOR )MODIFICATION OF THE 90/110 )NOTICE OF
PERFORMANCE BAND AND )INTERVENTION DEADLINE
CALCULATION OF OPERATION AND )MAINTENANCE CHARGES FOR PURPA )QUALIFYING FACILITIES )ORDER NO.34059
On April 16,2018,Idahydro ("Idahydro"),Shorock Hydro,Inc.("Shorock"),the J.R.
Simplot Company ("Simplot"),and the Renewable Energy Coalition ("REC")(collectively,"the
Parties")jointly petitioned to the Commission to modify,amend,or stay existing orders or rules,
and to clarify rights and obligations implementing Section 210 of the Public Utility Regulatory
Policies Act of 1978 ("PURPA"),16 U.S.C.§824a-3 et seq.
BACKGROUND
The Petitioners are QualifyingFacilities ("QFs")under PURPA.The Petitionerseither
sell power to Idaho Power Company (the "Company")under Energy Sales Agreements ("ESAs"),
or are attempting to develop new QFs that would sell power to the Company.Application at 1-2.
The Commission approved Petitioner Shorock's ESA with the Company in Order No.33549,
subject to a stipulated motion that the Commission granted in Order No.33918,that that ESA
would be subject to the outcome of this Petition.'
In Case No.IPC-E-04-10,certain QFs complained that the Company had proposed
contract provisions that obviated the Company's requirement to buy all of the output from the QFs
at full avoided cost rates when the output is less than 90%or more than 110%of projected output
(the "90/110 performance band").Order No.29632 at 2-3.Further,the Company proposed
pricing methods for energy deliveries that fell outside the 90/110 performance band.Id.at 14-15.
In Order No.29632,the Commission found that the 90/110 performance band was reasonable.2
I The ESA between Evergreen Energy Inc.,and the Company,currently pending approval or rejection in Case No.
IPC-E-18-04 also contains the 90/110 performance band,pending the outcome of this Petition.
2 The performance band did not apply to energy deliveries that fall below 90%due to forced outages or force
majeure.
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34059 1
Id.at 20.The Commission ordered that energydelivered in excess of 110%of the contract amount
(up to a 10 MW cap)3 should be priced at 85%of the Mid-C market or the contract price,whichever
is less,and that the QF will receive no payment for energy delivered above the 10 MW cap.Id.
The Commission ordered that energy delivered at less than 90%of the monthly commitment
amount should be priced at 85%of the market price,or contract rate,whichever is less.Id.
Since 2004,the 90/110 performance band was an issue in several cases.See generally,
Order Nos.29880,30000 30109,and 30206.In 2007,the Company asked the Commission to
eliminate the 90/110 performance band requirement for ESA's involvingintermittent wind-
powered QFs where certain conditions were met.In Order No.30488,the Commission stated that,
"The wind forecasting and mechanical availabilityguarantee in conjunctionwith other provisions
of the Settlement in this case,we find,make elimination of the 90%/110%performance band
reasonable."Id.at 13.In parallel proceedings,the Commission also established a wind integration
adjustment to published avoided cost rates and eliminated the 90/110 performance band for wind
QFs that agree to provide a mechanical availability guarantee and share in the cost of wind
forecasting services.See Order Nos.30497 and 30500.
NOTICE OF PETITION
YOU ARE HEREBY NOTIFIED that Petitioners request that the Commission revisit
the 90/110 performance band for non-wind QFs because:
1.Changed circumstances have obviated the need for a 90/110 performance band,
including:
a.The variability of hydro QFs in the aggregate is within the range of variability
exhibited by the Company's hydropower facilities.
b.Hydropower and other non-wind and non-solar QFs are sufficiently predictable in
the aggregate that the Company can reasonably incorporate their variability into its
planning and operations.
c.The individual,non-wind and non-solar QF is so small in the Company's system
that any monthlyexcess energy or shortfall energy amounts would be de minimis
(lost in the "noise")of operating the Company's system.
3 The 10 MW cap referred to the maximum monthly generation that qualifies for published rates.Order No.29632
at 20.The cap was set as the total number of hours in the month multiplied by 10 MW.Id.
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34059 2
2.It was not designed to address the unique situation regarding the predictable,
aggregated value of small hydropower,biomass,cogeneration,and baseload QFs.
YOU ARE FURTHER NOTIFIED that the Petition alleges that the Commission should
modify its existing policy and orders approving the 90/110 performance band's applicability to
small hydropower,cogeneration,biomass,and baseload QFs that choose to enter into ESAs or
other enforceable obligations.Petitioners allege that the Commission should instead allow such
QFs to sell energy to Commission-regulated utilities at forecasted,fixed avoided rates calculated
at the time the obligation is incurred,not at the time of delivery.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons who wish to intervene in this matter to
obtain the rights of party (e.g.,to file formal discovery,or present evidence or cross-examine
witnesses at a hearing)must file a Petition to Intervene with the Commission under the
Commission's Rules of Procedure 72 and 73,IDAPA 31.01.01.072 and .073.Persons who wish
to intervene as a party must file a Petition to Intervene no later than 21 days from the service
date of this Order.Such persons shall also provide the Commission Secretary with their
electronic mail address to facilitate further communications.After the intervention deadlineruns,
the Commission Secretary shall issue a Notice of Parties that identifies the parties and assigns
exhibit numbers to each party.Once the Notice of Parties has issued,Commission Staff shall
informally confer with the Petitioners and any other intervening parties about how to further
process this case,and shall then report to the Commission on a proposed case schedule.
YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties'rights of participation and cross-examinationare not requiredto intervenebut may
present their views by submitting written comments to the Commission.
YOU ARE FURTHER NOTIFIED that the following person is designated as
Idahydro's and Shorock's representative in this matter:
C.Tom Arkoosh
Arkoosh Law Offices
802 W.Bannock Street,Suite 900
P.O.Box 2900
Boise,Idaho 83701
E-Mail:ttwn.arkoosh arkositcorn
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34059
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Simplot's representatives in this matter:
Peter J.Richardson
Gregory M.Adams
Richardson Adams,PLLC
515 N.27th Street
Boise,Idaho 83702
YOU ARE FURTHER NOTIFIED that the followingpersons are designated as the
REC's representatives in this matter:
J.Kahle Becker Irion Sanger (pro hac vice motion pending)
Attorney at Law Sanger Law,PC
223 North 6"'Street,#325 1117 SE 53 Avenue
Boise,Idaho 83702 Portland,Oregon 97215
E-Mail:kahkf kab h kylsy gm E-Mail:
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene no later than 21 days from the service date of this Order.Once the deadline
for intervention has passed,the Commission Secretary shall prepare and issue a Notice of Parties.
IT IS FURTHER ORDERED that,after the Notice of Parties has issued,Commission
Staff shall confer with the parties regarding a procedural schedule for this matter.
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34059 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of May 2018.
PAUL KJEECÁN0É;PRESIDENT
KRIS NE R MMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
IPCE1807 ntcofpet ep!
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34059 5