20210323Application.pdf

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DONOVAN E. WALKER
Lead Gounsel
[e-mail]
March 23,2021
VIA ELECTRONIC MAIL
Jan Noriyuki, Secretary
ldaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 201-A
Boise, ldaho 83714
Re Case No. IPC-E-21-05
Evergreen Energy, lnc.
ldaho Power Company's Application re the First Amendment to the Energy
SalesAgreement
Dear Ms. Noriyuki:
Attached for electronic filing is ldaho Power Company's Application in the above
entitled matter. lf you have any questions about the aftached documents, please do not
hesitate to contact me.
Very truly yours,
2ildll\-
Donovan E. Walker
DEW:cld
Enclosures
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221 West ldaho Street (83702')
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwa lker@idahopowe r.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 A FIRST
AMENDMENT TO THE ENERGY SALES
AGREEMENT FOR THE SALE AND
PURCHASE OF ELECTRIC ENERGY WITH
EVERGREEN ENERGY, INC.
CASE NO. !PC-E-21-05
APPLICATION FOR APPROVAL
OF FIRST AMENDMENT TO
ENERGY SALES AGREEMENT
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ldaho Power Company ("ldaho Power"), in accordance with RP 52 and the
applicable provisions of the Public Utility Regulatory Policies Act of 1978 ("PURPA'),
hereby respectfully applies to the ldaho Public Utilities Commission ("Commission") for
an order accepting or rejecting the First Amendment ("Amendment") to the Energy Sales
Agreement ("ESA") between ldaho Power and Evergreen Energy, lnc. ("Sellef) under
which Seller sells and Idaho Power purchases electric energy generated by the 6.25 MW
Tamarack CSPP project ("Facility") which is a PURPA Qualifying Facility.
APPLICATION - 1
ln support of this Application, ldaho Power represents as follows:
I. INTRODUCTION AND BACKGROUND
1. ldaho Power and the Seller fiointly, "Parties") entered into an ESA on March
27, 2018, for the purchase and sale of energy produced by the Facility. This ESA was
approved by the Commission in Order No. 34075, Case No. IPC-E-18-04, on May 30,
2018.
2. Section 6.2.3 of the ESA provides the Seller with the option to adjust the
monthly estimated Net Energy Amounts ("NEA') within a specified time period. After the
execution and approva! of the ESA, the Seller requested a change to the time period for
making the NEA adjustments. The Seller would like to change the NEA adjustment time
period in Section 6.2.3 so that they can make adjustments by the 25th day of the preceding
month in which a change is requested, similar to other such 25th day of the month
provisions previously approved by the Commission.
II. THE AMENDMENT
3. The Amendment provides for the deletion of Section 6.2.3, Seller's
Adjustment of Estimated Net Energy Amounts After the Operation Date, and replaces it
with a new Section 6.2.3 set forth in the Amendment as follows:
6.2.2 Seller's Adiustment of Estimated Net Enerqv 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. lf the 25th day of the month
falls on a weekend or holiday, then wriften 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.
APPLICATION -2
a.) This revision must be submitted using the electronic
portal provided by ldaho Power if available. lf the electronic
portal is not available, then written notice must be provided
to ldaho Power by electronic notice (electronic mail) as
agreed by both parties.
b.) lf the Seller does not update the electronic porta! or
provide written notice of changes to the Estimated Net
Energy Amounts, then it wil! be deemed to be an election of
no change from the most recently provided monthly
Estimated Net Energy Amounts. Except as otherwise
provided in this Agreement, ldaho Power is unable to accept
any requested changes to the Estimated Net Energy
Amounts if the date and time that ldaho Power receives the
requested change is after the deadline.
4. The Amendment to the ESA to modifit the NEA adjustment period was
executed by the Parties on March 2,2021 and March 10,2021. The Amendment does
not otherwise change any of the obligations of the Parties set forth in the ESA. A copy of
the Amendment is attached to this Application as Attachment 1 and is subject to the
Commission's approval.
I!I. PROCEDURE
5. ldaho 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, ef seg.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
6. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
Donovan E. Walker
Lead Counsel
ldaho Power Company
1221West Idaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
dwalke [e-mail]
dockets@idah opower.com
Energy Contracts
ldaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
enerovcontracts idahopower.com
APPLICATION - 3
V. REQUEST FOR RELIEF
7. ldaho Power respectfully requests that the Commission issue an order: (1)
authorizing that this matter may be processed by Modified Procedure and (2) accepting
or rejecting the Amendment between ldaho Power and the Seller.
Respectfully submitted this 23d day of March 2021.
Mzilat4-
DONOVAN E. WALKER
Attorney for ldaho Power Company
APPLICATION -4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 23rd day of March 2021 I served a true and correct
copy of the within and foregoing APPLICATION FOR APPROVAL OF FIRST
AMENDMENT TO ENERGY SALES AGREEMENT upon the following named parties by
the method indicated below, and addressed to the following:
Evergreen Energy, lnc.
Attn: Rodney Krogh
P.O. Box H
New Meadows, ID 83654
_Hand Delivered
_U.S. Mail
_Overnight Mail
_ FAXX Email - [e-mail]
wallvkbcl @omail.com
Christy Davenport, Legal Assistant
APPLICATION - 5
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-2l-05
IDAHO POWER COMPANY
ATTACHMENT 1
rIRST AMENDMENT
TOTITE
ENERGY SALES AGREEMENT
BETWEEN
IDAIIO POWER COMPAIYY
ANI)
EVERGREEN ENERGY, INC.
This First Amendmqnt of the Energy Sales Agreement ("First Amendment") is entered into
on this ldary of iltzA 202l,by rnd bet*eenldaho PowerCompany, an ldaho corpomlion
("ldaho'Power"), add Evergreen Energy, Inc, ("Seller") (individually a"Party" and collectively
the "Parties").
WHEREAS, Idaho Power and the Seller entered into an Energy Sales Agreement ("ESA")
on March 27,2018 (the "Agreement') for the purchase and sale of generation produced by the
Tamarack CSPP PURPA Quali$ing Facility with a Maximum Capacity Amount of 6.25 MW that
was approyed by the Idaho Public Utilities Commission's ('IPUC") in Order No . 3407 5 issued on
May 30, 2018; 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 adjustrnents 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 aoknowledged, and intending to be
legally bound, the Parties hereto agree asi follows:
I . Incorporation of Recitals. The above-stated recitals are incorporated into and made a part of
this Agreement, as amended, by this rcference 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:
6.2.3 Seller's Adiustment of Estimated Net Enersv Amounts After the Ooeration Date - After
the Operation Date, the Seller may revise any future monthly Estimated Net Energy
Amounl.s 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 25tl',
a.) This revision must be submitted using the electronic portal provided by
Idaho Power if available. If the electronic portal is not available, then
Energy Sales Agrcement
Project ll7 66004 Tamarack CSPP
First Amendment - Page I of 3
written notice must b€ provided to Idaho Power by electronic notice
(electronic mail) as agreed by both Parties.
b.) If the Seller does not update the electronic portal or provide written notice
of changes to the Estimated Net Energy Amounts, then it will be deemed to
be an election of no change from the most recently provided monthly
Estimated Net Energy Amounts. Except as otherwise provided in the
Agreement, Idaho Power is unable to accept any requested changes to the
Estimated Net Energy Amounts if the date and time that Idaho Power
receives the requested change is after the deadline.
3. Commission Approval. The obligations of the Parties under this First Arnendment 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 fullforce 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, eaoh
of which shall be deemed an original and all of which taken together shall constitute a single
instrument.
Energy Sales Agreement
Project: I 17 66004 Tamarack CSPP
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.
EVERGREEN ENERGY, TNC.IDAHO COMPANY
By:
Name:Name:
Title:Title:t-Y
Dstet 07-o9 -2all Date:lu,
Energy Salcs Agrccmcnt
Prcject 11766004 Tamaraok CSPP
First Amendment - Page 3 of 3