20190319Reply Comments.pdf

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An IDACORP Company
DONOVAN E. WALKER
Lead Counsel
[e-mail]
March 19,2019
VlA HAND DELIVERY
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
47 2 W est Wash i ngton Street
Boise, ldaho 83702
Re: Case No. !PC-E-19-04
Wood Hydro LLC - Black Canyon #3 Hydro Project
Reply Comments of ldaho Power Company
Dear Ms. Hanian:
Enclosed for filing in the above matter please find an original and seven (7)
copies of the Reply Comments of ldaho Power Company.
Very yours,
c
Donovan E. Walker
DEW:csb
Enclosures
122'l W. ldaho St. (83702)
PO. Box 70
Boise, lD 83707
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalker@id oDower.com
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UT!LIT!ES COMMISSION
APPLICATION OF IDAHO POWER FOR
CONSIDERAT]ON OF AN ENERGY SALES
AGREEMENT WITH WOOD HYDRO
CASE NO. IPC-E-19-04
REPLY COMMENTS OF IDAHO
POWER COMPANY
ldaho Power Company ("ldaho Power") hereby respectfully submits the following
Reply Comments pursuant to the ldaho Public Utilities Commission's ("Commission")
review of the Energy Sales Agreement ('ESA') between ldaho Power and Wood Hydro
LLC ("Wood Hydro") under which Wood Hydro would sell and ldaho Power would
purchase electric energy generated by the BIack Canyon #3 hydro project located near
the city of Gooding, ldaho, pursuant to the Public Utility Regulatory Policies Act of 1978
("PURPA").
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REPLY COMMENTS OF IDAHO POWER COMPANY - 1
As referenced by Commission Staff ("Staff') in its Comments, page 5 of the
Application states:
Wood Hydro is aware of J.R. Simplot Company's request that
the notification of Net Energy Amount monthly adjustments
described in paragraph 6.2.3 be reduced from one-month
advanced notice to five business days' notice prior to the
upcoming month. To expedite the review of this ESA, Wood
Hydro chose to not include this language but respectfully
requests to retain the option to amend the Net Energy Amount
adjustment methods in this ESA should the Commission
accept and approve J.R. Simplot Company's request.
On February 28, 2019, the Commission issued Order No. 34263 approving the
Energy Sales Agreement between ldaho Power and J.R. Simplot Company ("Simplot")
that included a change to the notification of Net Energy Amount monthly adjustments. ln
Order No. 34263, the Commission stated that it would continue to evaluate the
reasonableness of these provisions on a case-by-case basis. After the Commission's
approval of the five-business-day notice from Simplot's contract, Wood Hydro requested
an amendment to its ESA to contain the same language.
On March 13,2019, ldaho Power and Wood Hydro executed the FirstAmendment
to the Energy Sales Agreement Between ldaho Power Company and Wood Hydro, LLC
("Amendment"), attached hereto as Attachment 1. This Amendment deletes Article 6.2.3
in the ESA in its entirety and replaces Article 6.2.3 with the identical language from the
Simplot contract pertaining to notice by the 25th day of the month. Also attached hereto
as Attachment 2 is both a redline and clean version of the replacement page 16 from the
ESA that incorporates the amended language.
Staff recommended approval of the Amendment as long as the officially filed
Replacement Page contains the same wording for Article 6.2.3 as included in the draft
REPLY COMMENTS OF IDAHO POWER COMPANY - 2
Replacement Page that Staff reviewed. With these Reply Comments, ldaho Power
hereby submits the Replacement Page, as well as the Amendment, and affirms that it
contains the same language in Article 6.2.3 as the corresponding language in Simplot's
Energy Sales Agreement.
Accordingly, ldaho Power hereby respectfully requests that the Commission
approve the Amendment, approve the ESA, and declare that all payments for purchases
of energy under the ESA between ldaho Power and Wood Hydro be allowed as prudently
incurred expenses for ratemaking purposes.
Respectfully submitted this 19th day of March 2019.
I
DO E. WALKE
Attorney for ldaho Power Company
REPLY COMMENTS OF IDAHO POWER COMPANY - 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 19th day of March 20191 served a true and correct
copy of the within and foregoing REPLY COMMENTS OF IDAHO POWER COMPANY
upon the following named parties by the method indicated below, and addressed to the
following:
Commission Staff
Edward Jewe!!
Deputy Attorney General
ldaho Public Utilities Commission
47 2 W estWash i ngton Street (837 02)
P.O. Box 83720
Boise, Idaho 83720-007 4
Wood Hydro LLC
Ted Sorenson
Wood Hydro LLC
1032 Grand View Drive
lvins, Utah 84738
X Hand Delivered
_U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
Hand DeliveredX U.S. Mail
Overnight Mail
_ FAXX Email [e-mail]
a Assistant
REPLY COMMENTS OF IDAHO POWER COMPANY - 4
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-I9-04
IDAHO POWER COMPANY
ATTACHMENT 1
BEFORE THE
FIRST AMENDMENT
TO THE
ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
wooD HYDRO, LLC
ThirFirst Amendment of the Energy Sales Agreement ("First Amendment") is entered into
on this E%ut of March, 2019, by and between Idaho Power Company, an Idaho corporation
("Idaho Power"), and Wood Hydro LLC, ("Seller") (individually a "Party" and collectively the
"Parties").
WHEREAS, Idaho Power and Seller entered into an Energy Sales Agreement ("ESA") on
January 30,2019, (the "Agreement") for the purchase and sale of generation produced by the
Seller's Black Canyon #3 Hydro PURPA Qualifying Facility that is subject to the Idaho Public
Utility Commission's ("IPUC") approval in Case No. IPC-E-19-04;
WHEREAS, the Application to the IPUC in Case No. IPC-E-19-04 states, "Wood Hydro
is aware of J.R. Simplot Company's request that the notification of Net Energy Amount monthly
adjustments described in paragraph 6.2.3 be reduced from one-month advanced notice to five
business days'notice prior to the upcoming month (See Case No. IPC-E-19-01). To expedite the
review of this ESA, Wood Hydro chose to not include this language but respectfully requests to
retain the option to amend the Net Energy Amount adjustment methods in this ESA should the
Commission accept and approve J.R. Simplot Company's request";
WHEREAS, on February 28,2019, the IPUC issued Order No. 34263 approving the ESA
between Idaho Power and J.R. Simplot Company that included a change to the notification of Net
Energy Amount monthly adjustments. In Order No. 34263, the Commission stated that they would
continue to evaluate the reasonableness ofthese provisions on a case-by-case basis; and
WHEREAS, Seller and Idaho Power desire to amend Article 6.2.3 of the Agreement to
include a change to the notification of Net Energy Amount monthly adjustments from one-month
advanced notice to the 25th day of the month that is prior to the month to be revised. If the 25th day
of the month falls on a weekend or holiday, then written notice must be received on the last
business day prior to the 25th day of the month;
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, the Parties hereto agree as follows:
l. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part of
this Agreement by this reference to the same extent as if these recitals were set forth in full at this
point.
2. Definitions. Article 6.2.3 shall be deleted in its entirety and the following section shall be
substituted in its stead:
Energy Sales Agreement
Project: 3 l4l 5070 Black Canyon #3 Hydro
First Amendment - Page 1 of 3
6.2.3 Seller's Adjustment of Estimated Net Enerey Amounts After the Operation Date - After
the Operation Date, the Seller may revise any future monthly Estimated Net Energy
Amounts by providing written notice no later than 5 PM Mountain Standard time on the
25th day of the month that is prior to the month to be revised. If the 25th day of the month
falls on a weekend or holiday, then written notice must be received on the last business
day prior to the 25th day of the month. For example, if the Seller would like to revise the
Estimated Net Energy Amount for October, they would need to submit a revised schedule
no later than September 25th or the last business day prior to September 25th.
a.) This written notice must be provided to Idaho Power in accordance with
paragraph 25.1 or by electronic notice as agreed to by both parties.
b.) Failure to provide timely written notice of changes to the Estimated Net
Energy Amounts will be deemed to be an election of no change from the
most recently provided Estimated Net Energy Amounts.
3. Commission Approval. The obligations of the Parties under this First Amendment are subject
to the IPUC's approval of this First Amendment and such approval being upheld on appeal, if any,
by a court of competent jurisdiction. The Parties will submit this First Amendment to the IPUC
and request approval or rejection in its entirety pursuant to RP 274.
4. Effect of Amendment. Except as expressly amended by this First Amendment, the Agreement
shall remain in full force and effect.
5. Capitalized Terms. All capitalized terms used in this First Amendment and not defined herein
shall have the same meaning as used in the Agreement.
6. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit
of the Parties hereto, and their respective heirs, executors, administrators, successors, and assigns,
who are obligated to take any action which may be necessary or proper to carry out the purpose
and intent thereof.
7. Authority. Each Party represents and warrants that (i) it is validly existing and in good
standing in the state in which it is organized, (ii) it is the proper party to amend the Agreement,
and (iii) it has the requisite authority to execute this First Amendment.
8. Counterparts. This First Amendment may be executed in any number of counterparts, each
of which shall be deemed an original and all of which taken together shall constitute a single
instrument.
Energy Sales Agreement
Project: 3 l4l 5070 Black Canyon #3 Hydro
First Amendment - Page 2 of 3
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be duly
executed as of the date above written.
WOOD HYDRO LLC IDAHO POWER COMPANY
By:
Name:
Title:,hanaauu
Energy Sales Agreement
Project: 31415070 Black Canyon #3 Hydro
First Amendment - Page 3 of 3
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC.E.I9.O4
IDAHO POWER COMPANY
ATTACHMENT 2
Season 3
REPLACEMENT PAGE 16
(Redline)
June
September
October
January
February
70,560
74,160
28,421
0
0
6.2.2 Seller's Adjustment of Estimated Net Energy Amounts - Prior to the Operation Date, the
Seller may revise all of the previously provided monthly Estimated Net Energy Amounts
by providing written notice to Idaho Power in accordance with paragraph 25.1 .
the eperatien Date; the Seller may revise any fotnre menthly Estimated Net Energy
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6.2.3 Seller's Adiustment of Estimated Net Enersv Amounts After the Operation Date - After
the Operation Date, the Seller may revise any future monthly Estimated Net Energy
Amounts by providing written notice no later than 5 PM Mountain Standard time on the
25th day of the month that is prior to the month to be revised. If the 25th day of the month
falls on a weekend or holiday, then written notice must be received on the last business
day prior to the 25th day of the month. For example, if the Seller would like to revise the
Estimated Net Energy Amount for October, they would need to submit a revised schedule
no later than September 25th or the last business day prior to Septemb er 25th.
a.) This written notice must be provided to Idaho Power in accordance with
paragraph 25.1 or by electronic notice as agreed to by both parties.
b.) Failure to provide timely written notice of changes to the Estimated Net
Energy Amounts will be deemed to be an election of no change from the
most recently provided Estimated Net Energy Amounts.
REPLACEMENT PAGE 16
(Clean)
June
September
October
January
February
70,560
74,160
28,421
0
0
6.2.2
6.2.3
Season 3
Seller's Adjustment of Estimated Net Energy Amounts - Prior to the Operation Date, the
Seller may revise all of the previously provided monthly Estimated Net Energy Amounts
by providing written notice to Idaho Power in accordance with paragraph25.l.
Seller's Adjustment of Estimated Net Enerey Amounts After the Operation Date - After
the Operation Date, the Seller may revise any future monthly Estimated Net Energy
Amounts by providing written notice no later than 5 PM Mountain Standard time on the
25th day of the month that is prior to the month to be revised. If the 25th day of the month
falls on a weekend or holiday, then written notice must be received on the last business
day prior to the 25th day of the month. For example, if the Seller would like to revise the
Estimated Net Energy Amount for October, they would need to submit a revised schedule
no later than September 25th or the last business day prior to Septemb er 25th.
a.) This written notice must be provided to Idaho Power in accordance with
paragraph 25.1 or by electronic notice as agreed to by both parties.
b.) Failure to provide timely written notice of changes to the Estimated Net
Energy Amounts will be deemed to be an election of no change from the
most recently provided Estimated Net Energy Amounts.
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