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HomeMy WebLinkAbout20220614Application.pdfsm.,...,..,. .. i i *L/ .'.,-. :. , ,1, F'i !: 20 , , i'a ::: ! ri-ti-'!r ,,, i :"1':ii'.lilililCf{ An lO CORPCompily DONOVAN E. WALKER Lead Gounsel dwalker@ida hopowe r.com June 14, 2022 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-22-21 Orchard Ranch Solar, LLC ldaho Power Company's Application re the Second Amendment to the Energy Sales Agreement Dear Ms. Noriyuki: Attached forelectronicfiling is ldaho PowerCompany'sApplication forApprovalof Second Amendment to Energy Sales Agreement in the above entitled matter. lf you have any questions about the attached documents, please do not hesitate to contact me. Very truly yours, Zdalt --Donovan E. Walker DEW:cld Enclosures DONOVAN E. WALKER (lSB No. 5921) MEGAN GOICOECHEA ALLEN (lSB No. 7623) ldaho Power Company 1221 West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 dwalker@idahopower.com mqoicoecheaa!!en@ ida hopower. com Attorneys for ldaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF A SECOND AMENDMENT TO THE ENERGY SALES AGREEMENT WITH ORCHARD RANCH SOLAR, LLC FOR THE SALE AND PURCHASE OF ELECTR]C ENERGY. CASE NO. |PC-E-22-21 APPLICATION FOR APPROVAL OF SECOND AMENDMENT TO ENERGY SALES AGREEMENT ldaho Power Company ("ldaho Powe/'), 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 the Second Amendment ("Amendment") to the Energy Sales Agreement fESA") between ldaho Power and Orchard Ranch Solar, LLC ("Selle/') under which Seller sells and ldaho Power purchases electric energy generated by the Seller's 20 megawaft solar photovoltaic project ("Facility") located in Ada County, ldaho, which is a PURPA Qualiffing Facility. APPLICATION - 1 ln support of this Application, ldaho Power represents as follows: I. INTRODUCTION AND BACKGROUND 1. ldaho Power and the Seller (jointly, "Parties") entered into an ESA on October 13,2014, forthe purchase and sale of energy produced by the Facility. This ESA was approved by the Commission in Order No. 33202 in Case No. IPC-E-14-36 on December 29,2014. 2. Section 6.2.2 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 approval 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 6.2.2so 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 6.2.2, Seller's Adjustment of Estimated Net Energy Amounts, and replacement with a new Section 6.2.2 set forth in the Amendment as follows: 6.2.2 Seller's Adiustment of Estimated Net Enerqy Amounts Afterthe Operation Date -Afterthe Operation Date, the Seller may revise any future monthly Estimated Net Energy Amounts by providing written notice no later than 5 PM Mountain Prevailing 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 written notice must be received on the last business day prior to the 25h day of the month. For example, if the Seller would Iike 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 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, 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 modiff the NEA adjustment period was executed by the Parties on June 9, 2022. 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. 5. The Commission has previously approved several amendments for the same five-day advanced notice revisions to monthly generation estimates for existing projects utilizing the SAR methodology for avoided cost rates (i.e., Case Nos. IPC-E-19- 01, lPc-E-19-03, lPc-E-19-04, IPC-E-19-07, tpC-E-19-12, IPC-E-21-05, IPC-E-21-23, IPC-E-21-27,IPC-E-21-28,IPC-E-21-29, IPC-E-21-31,IPC-E-22-03, and IPC-E-22-04). The Commission has also approved the same five-day generation estimate revision for new projects under the SAR (i.e., IPC-E-20-27); and for existing projects under the ICIRP methodology (i.e., IPC-E-20-38).1 1 The preceding case lists are known examples and may not be all-inclusive of every such case. APPLICATION - 3 III. PROCEDURE 6. Because this is a matter that has been previously found to be just and reasonable and approved by the Commission on numerous occasions, ldaho Power believes the Commission can issue its Order approving the Second Amendment here with no further process or procedure. Alternatively, 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 7. Communications and service of pleadings, exhibits, orders, and other documents relating to this proceeding should be sent to the following: Energy Contracts ldaho Power Company 1221 West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 e n erqycontracts@ id a hopowe r. com V. REQUEST FOR RELIEF 8. ldaho Power respectfully requests that the Commission issue an order: (1) authorizing that this matter may be processed by Modified Procedure, and (2) accepting the Amendment between ldaho Power and the Seller. Respectfully submifted this 14th day of June 2022. Donovan E. Walker Megan Goicoechea Allen IPC Dockets 1221 West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 dwalker@idahopower.com mooicoecheaallen@idahopower. com dockets@idahopower.com h,*edattu DONOVAN E. WALKER Attorney for ldaho Power Company APPLICATION -4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this l4thday of June2022. I served a true and correct copy of the within and foregoing APPLICATION upon the following named parties by the method indicated below, and addressed to the following: Orchard Ranch Solar, LLG c/o Arevon Energy, lnc. ATTN: Justin Johnson 8800 N. Gainey Center Drive, Suite 250 Scoftsdale, Arizona 85258 _Hand Delivered _U.S. Mail Overnight Mail -Fax X Email: jjohnson@arevonenergy.com Christy Davenport, Legal Assistant APPLICATION - 5 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-22-21 IDAHO POWER COMPANY ATTACHMENT 1 DocuSign Envelope lD: C4,0D6051-EFB1-4109-885A-43549695A8DF SECOND AMENDMENT TO THE ENERGY SALES AGREEMENT FOR THE ORCHARD RANCH SOLAR, LLC PROJECT This Second Amendment of the Energy Sales Agreement ("Second Amendment") is entered into on this _ day of 6/9/2022 ,2022, by and between Idaho Power Company, an Idaho corporation ("ldaho Power") and Orchard Ranch Solar, LLC,aDelaware limited liability company ("Seller"), (individually a "ParQ/" and collectively the "Parties"). WHEREAS,Idaho Power entered into the Energy Sales Agreement on October 13,2014, (the "ESA") for the purchase and sale of energy from the Orchard Ranch Solar, LLC Project (the "Project") with Orchard Ranch Solar, LLC approved by the Idaho Public Utilities Commission ("the Commission") in OrderNo. 33202, Case No. IPC-E-14-36 WI{EREAS, the Parties executed the First Amendment of the ESA on December 1,2016, (the "First Amendment") to delete Article 3.3 "Solar Project Qualification", correct a clerical error in Article 7.4 of the ESA, and update Appendix B-1, Description of Facility, and Appendix B-2, Location of Facility, with more accurate information, approved by the Idaho Public Utilities Commission ("the Commission") in OrderNo. 33695, Case No. IPC-E-16-37 WHEREAS, Seller and Idaho Power desire to amend Article 6.2.2 of the Agreement as amended, to include a change to the notification ofNet Energy Amount monthly adjustments from one-month advanced notice to the 25h day of the month that is prior to the month to be revised. If the 25ft day of the month falls on a weekend or holiday, then written notice must be received on the last business day prior to the 25ft 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, as amended, by this reference to the same extent as if these recitals were set forth in full at this point. 2. Definitions. Article 6.2.2 shall be deleted in its entirety and the following section shall be substituted in its stead: 6.2.2 Seller's Adjustment of Estimated Net Energ), Amounts After the Operation Date - After the Operation Date, the Seller may revise any future monthly Estimated Net Energy Amounts by providing wriffen notice no later than 5 PM Mountain Prevailing Time on the 25s day of the month that is prior to the month to be revised. If the 25n day of the month falls on a weekend or holiday, then written notice must be received on the last Project Number 25573998 - Orchard Ranch Solar, LLC Second Amendment Page I of3 DocuSign Envelope lD: C44D6051-EFB1-0109-885A-43549695A8DF business day prior to the 25h 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 25ft or the last business day prior to September 25!J... a.) This revision must be submitted using the electronic portal provided by Idaho Power if available. If the electronic portal is not available, then written notice must be 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 Second Amendment are subject to the IPUC's approval of this Second Amendment and such approval being upheld on appeal, if any, by a court of competent jurisdiction. The Parties will submit this Second Amendment to the IPUC and request approval or rejection in its entirety pursuant toRP 274. 4. Effect of Amendment. Except as expressly amended by this Second Amendment, the Agreement shall remain in full force and effect. 5. Capitalized Terms. All capitalized terms used in this Second Amendment and not defined herein shall have the same meaning as used in the Agreement. 6. Scope of Amendment. This Second 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, (iD it is the proper party to amend the Agreement, and (iii) it has the requisite authority to execute this Second Amendment. 8. Counterparts. This Second 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. Project Number 25573998 - Orchard Ranch Solar, LLC Second Amendment Page2 of 3 DocrE|gn Envdopo lD C44D6061€F814100485A.4{}8[MI]F IN WITNESS WHEREOF, the Parties hercto have oaused this Second Amendment to be duly execu&d as ofthe date above written. IDAHO POWER COMPA}IY ORCHARD RA}ICH SOLA& LLC By:€f N. lrd".*By:-t.*t" Jr{raln" Name: nyan N. ldelnan Name::ustin tohnson Title: YP, Pox€r Supply Title: luthorized Signatory Project Number 25573998 - Orchard Rarrch Solar, LLC Second Amendment Page 3 of3