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HomeMy WebLinkAbout20200403Motion for Approval of First Amendment.pdfMOTION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT – 1 DONOVAN E. WALKER (ISB No. 5921) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 dwalker@idahopower.com Attorney for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT WITH THE WHITE WATER POWER COMPANY INC, FOR THE SALE AND PURCHASE OF ELECTRIC ENERGY FROM THE WHITE WATER RANCH HYDRO PROJECT. ) ) ) ) ) ) ) ) ) CASE NO. IPC-E-20-13 MOTION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT Idaho Power Company (“Idaho Power” or “Company”), in accordance with RP 56 and the applicable provisions of the Public Utility Regulatory Policies Act of 1978 (“PURPA”), hereby respectfully moves the Idaho Public Utilities Commission (“Commission”) for an order approving the First Amendment to the Energy Sales Agreement for the White Water Ranch hydro project (“Amendment”) between Idaho Power and a PURPA Qualifying Facility (“QF”), dated March 29, 2020, filed herewith as Attachment 1. This Amendment corrects the Nameplate Capacity and Maximum Capacity Amount in Appendix B-1 and B-4, respectively, of the Energy Sales Agreement (“ESA”) RECEIVED 2020 April 3,PM12:15 IDAHO PUBLIC UTILITIES COMMISSION MOTION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT – 2 between Idaho Power Company and White Water Power Company Inc. (“White Water” or “Seller”). In support of this Motion, Idaho Power represents as follows: I. INTRODUCTION and BACKGROUND 1. The Seller currently has a PURPA firm energy sales agreement with Idaho Power for the White Water Ranch hydro QF (“Facility”) that was executed on February 24, 1984. The expiration date of the 1984 energy sales agreement is July 31, 2020. The Company and the Seller (jointly, “Parties”) entered into an ESA on March 2, 2020, under which White Water would sell and Idaho Power would purchase electric energy generated by Facility located near Gooding, Idaho. This ESA is currently pending approval or rejection by the Commission in Case No. IPC-E-20-13. 2. The ESA submitted in Case No. IPC-E-20-13, is a new contract with the same Qualifying Facility (“QF”) for a new term and current terms and conditions. The Nameplate Capacity and Maximum Capacity Amount identified in the ESA is 160 kW. The Seller subsequently provided information to Idaho Power that verifies the Nameplate Capacity of the Facility has totaled 170 kW since 1988 and has operated at the same level of generation output over the term of the 1984 energy sales agreement. The Amendment to the ESA is to correct the Nameplate Capacity and Maximum Capacity Amount identified in Appendix B from 160 kW to 170 kW. See Attachment 1. Because the Facility is an existing QF that is seeking a replacement agreement, has operated under a Nameplate Capacity of 170 kW since 1988, and generation output from the Facility has been included in Idaho Power’s capacity planning during periods when Idaho Power has MOTION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT – 3 acquired capacity resources, the replacement ESA contains capacity payments for the entire term of the Agreement, with no sufficiency period. 3. On a March 24, 2020, phone call, Idaho Power and Commission Staff discussed the need to correct the Nameplate Capacity and agreed the change should be submitted in Case No. IPC-E-20-13. Idaho Power followed up with the Seller, who also agreed and executed the Amendment on March 29, 2020. Idaho Power signed the Amendment on April 3, 2020. The Amendment does not otherwise change any of the terms and obligations of the Parties set forth in the ESA. II. THE AMENDMENT 4. The Amendment provides for the correction of Nameplate Capacity and Maximum Capacity Amount in Appendix B of the ESA. A redlined version of the corrections is attached. See Attachment 2. Appendix B-1 shall now read: B-1 DESCRIPTION OF FACILITY This project consists of two separate plants operating on the same spring fed creek on the same contiguous property. Plant #1 (sometimes referred to as the Upper Plant) is located about 300 feet from the ranch residence at 609 River Road, Bliss, ID. This plant was originally built in 1964 to provide stand-alone power for the ranch. Stoddard Creek was diverted at River Road into a forebay and steel penstock, operating a Francis turbine and synchronous generator under 55 feet of head. This plant was upgraded in 1986 with a concrete diversion structure and forebay, a new 20” diameter steel penstock and thrust block. New switch gear was installed inside the concrete powerhouse. In about 1988, the original Plant #1 synchronous generator was replaced by a 75 HP (55 kW) Lincoln induction motor that is being operated in reverse to generate power. Stoddard Creek flows through the ranch’s commercial trout facility and a forebay in the last trout raceway diverts the water into Plant #2. MOTION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT – 4 Plant #2 (also referred to as the Lower Plant) was built in 1985-1986 and includes:  24” diameter, 750 foot long steel penstock  Concrete and cinder block power house  1986 Byron-Jackson vertical Hydro turbine operating under 110 feet of head  1986 U.S. Motors 115 kW vertical induction generator  Control valve and switch gear Water from Plant #2 discharges into the Snake River and electricity generated flows at 480 volts in buried wires approximately 2,000 feet to Plant #1. Just outside Plant #1, the combined electrical production of Plants #1 and #2 flow through Idaho Power owned protection equipment and a single meter, then travels underground about 200 feet to Idaho Power’s transformer pole. Facility Nameplate Capacity: 170 kW Qualifying Facility Category (Small Power Production or Cogeneration): Small Power Production Primary Energy Source (Hydro, Wind, Solar, Biomass, Waste, Geothermal): Hydro Fueled or Non-Fueled Rate (Generator primarily fueled with fossil or non-fossil fuel): Non-Fueled Any modifications to the Facility, including but not limited to the generator or turbine, that (1) increases or decreases the Facility Nameplate Capacity, or (2) changes the Qualifying Facility Category, or (3) changes the Primary Energy Source or (4) changes to the generator fuel and subsequently the Fueled Rate or Non-Fueled Rate, will require a review of the Agreement terms, conditions and pricing and Idaho Power, at its sole determination, may adjust the pricing or terminate the Agreement. If the Agreement is terminated because of said modifications, the Seller will be responsible for any Termination Damages. Appendix B-4 shall now read: B-4 MAXIMUM CAPACITY AMOUNT: The Maximum Capacity Amount is 170 kW which is consistent with the value provided by the Seller to Idaho Power in accordance with the GIA. This value is the maximum generation (kW) that potentially could be delivered by the MOTION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT – 5 Seller’s Facility to the Idaho Power electrical system at any moment in time. Appendix E of the ESA requires a modification as it references Nameplate Capacity and shall now read: APPENDIX E NON-SEASONAL HYDRO FACILITY ENERGY PRICES (Prices based on the Nameplate Capacity Amount of 170 kW, Non-Fueled Rates) 5. The Amendment is subject to the Commission’s approval and shall not be fully effective unless the Commission approves the ESA and this Amendment in Case No. IPC-E-20-13. III. MODIFIED PROCEDURE 6. Idaho Power believes that a hearing is not necessary to consider the issues presented herein and respectfully requests that this Application be processed under Modified Procedure; i.e., by written submissions rather than by hearing. RP 201, et seq. IV. COMMUNICATIONS AND SERVICE OF PLEADINGS 7. Communications and service of pleadings, exhibits, orders, and other documents relating to this proceeding should be sent to the following: Donovan E. Walker Energy Contracts Idaho Power Company Idaho Power Company 1221 West Idaho Street (83702) 1221 West Idaho Street (83702) P.O. Box 70 P.O. Box 70 Boise, Idaho 83707 Boise, Idaho 83707 dwalker@idahopower.com energycontracts@idahopower.com dockets@idahopower.com MOTION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT – 6 VI. REQUEST FOR RELIEF 16. Idaho Power respectfully requests that the Commission issue an order accepting the First Amendment to the Energy Sales Agreement submitted herewith without change or condition. Respectfully submitted this 3rd day of April 2020. DONOVAN E. WALKER Attorney for Idaho Power Company MOTION FOR APPROVAL OF FIRST AMENDMENT TO ENERGY SALES AGREEMENT – 7 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 3rd day of April, 2020, I served a true and correct copy of the within and foregoing MOTION upon the following named parties by the method indicated below, and addressed to the following: Loretta Standal, President White Water Power Company, Inc 609 River Road Bliss, Idaho 83314 208-837-4970 Hand Delivered __ U.S. Mail Overnight Mail FAX X Email standal@rtci.net Idaho Public Utilities Commission Edward Jewell Yao Yin Mike Lewis 11331 West Chinden Blvd., Building 8 Suite 201-A Boise, Idaho 83714 Hand Delivered __ U.S. Mail Overnight Mail FAX X Email edward.jewell@puc.idaho.gov yao.yin@puc.idaho.gov mike.louis@puc.idaho.gov ________________________________ Christy Davenport, Legal Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-20-13 IDAHO POWER COMPANY ATTACHMENT 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-20-13 IDAHO POWER COMPANY ATTACHMENT 2