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.
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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