20220912Application.pdf

sEm.
An IDACORPComBTy
'- n",1.'t':i- ..;',-.,J
MEGAL GOICOECHEA.ALLEN
Corporate Gounse!
[e-mail]
September 12,2022
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-22-23
Cassia Wind Farm, LLC
ldaho Power Company's Application re the Second Amendment to the
Energy Sales Agreement
Dear Ms. Noriyuki
Attached for electronic filing is ldaho Power Company's Application forApproval of
Second Amendment to Energy Sales Agreement in the above entitled matter. If you have
any questions about the attached documents, please do not hesitate to contact me.
Very truly yours,
WT.udu^fiill,,r
Megan Goicoechea-Allen
MGA:cld
Enclosures
DONOVAN E. WALKER (lSB No. 5921)
MEGAN GOICOECHEA ALLEN (lSB No. 7623)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwa [e-mail]
mqoicoecheaallen@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
W|TH CASSIA WND FARM, LLC.
CASE NO. IPC-E-22-23
APPLICATION
ldaho Power Company ("ldaho Powe/'), in accordance with ldaho Public Utilities
Commissions ("Commission") Rule of Procedurel 52 and the applicable provisions of
the Public Utility Regulatory Policies Act of 1978 ("PURPA'), hereby respectfully applies
to the Commission for an order accepting the Second Amendment ('Second
Amendment") to the Energy Sales Agreement ('Agreement") between ldaho Power and
Cassia \Mnd Farm, LLC ("Sellef) under which Seller sells and ldaho Power purchases
electric energy generated by the Selle/s wind generating facility ('Facility") located near
Hagerman, ldaho, which is a PURPA Qualifuing Facility.
1 Hereinafter cited as RP
)
)
)
)
)
)
)
)
)
APPLICATION - 1
!n support of this Application, ldaho Power represents as follows:
I. INTRODUCTION AND BACKGROUND
1. ldaho Power and Seller (ointly, "Parties") entered into an Agreement on
April 7, 2006, for the purchase and sale of energy produced by the Facility, which was
described in Appendix B of the Agreement as consisting of "5 Suzlon, model S88 Wind
turbines with individual generator ratings of 2.1 MW for each unit, for a total Facility
generator rating of 10.5 MW.' This Agreement was approved by the Commission on June
30, 2006 in Order No. 30086 in Case No. !PC-E-06-10.
2. On or about June 8, 2019, one of the Facility's Suzlon model S88 Wind
Turbines ("Tower 5") was damaged due to a fire and rendered inoperable as a result.
Subsequently, Seller researched the possibility of replacing Tower 5 but determined that
the Suzlon model S88 was no longer in production or otherwise available from Suzlon,
and Seller was ultimately unable to find a turbine, from either Suzlon or another souroe,
with the same electrical and physical characteristics as Tower 5 that would be consistent
with what was engineered, studied, and permitted for the Facility.
3. Despite the loss of the Tower 5 turbine, the Seller has continued to deliver
generation. The Seller has remained compliant with the Mechanical Availability
Guarantee and has adjusted its estimated net energy deliveries pursuant to the terms of
the contract. However, with the loss and non-replacement of Tower 5, Appendix B to the
Agreement contains information reflecting the existence of five (5) 2.1 MW turbine units
that is no longer accurate based on the loss of Tower 5 and the corresponding reduction
in the total Facility generator rating. Accordingly, the Parties desire to modifo Appendix
B, specifically Sections B-1, Description of Facility, and 84, Maximum Capacity Amount,
to reflect more current and accurate information.
APPLICATION -2
II. THE SECOND AMENDMENT
4. The Second Amendment provides for the deletion of Section B-1,
Description of Facility, and replacement with a new Section B-1 as follows:
B-1 DESCRIPTION OF FACILITY
The Facility shall consist of four (4) Suzlon model S88 Wind turbines with individual
generator ratings of 2.1 MW for each unit, for a total Facility generator rating of 8.4
MW.
5. The Second Amendment also provides for the deletion of Section B..4,
Maximum Capacity Amount, and replacement with a new Section B-4 as follows:
84 MAXIMUM CAPACITY AMOUNT: This value will be 8.4 MW which is the
maximum energy (MW that potentially could be delivered by the Selle/s
Facility to the ldaho Power electrical system at any moment in time.
6. The Second Amendment is intended to correct and update information in
the Agreement and does not otherwise change any of the obligations of the Parties. A
copy of the Second Amendment dated September 2,2022, is attached to this Application
as Aftachment 1 and is subject to the Commission's approval.
III. MODIFIED PROCEDURE
7. ldaho Power believes that a technical 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. lf, however, the Commission determines that a technical hearing is required, the
Company stands ready to prepare and present its testimony in such hearing.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
8. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
APPLICATION - 3
Donovan E. Walker
Megan Goicoechea Allen
IPC Dockets
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
[e-mail]
[e-mail]
dockets@ ida hopower. com
Energy Contracts
ldaho Power Company
1221 West ldaho Street (837021
P.O. Box 70
Boise, ldaho 83707
e nerovcontra cts@ id a hopowe r. com
V. REQUEST FOR RELIEF
9. ldaho Power respectfutly requests that the Commission issue an order: (1)
authorizing that this matter may be processed by Modified Procedure, and (2) accepting
the Second Amendment between ldaho Power and Seller.
Respectfully submitted this 12th day of September 2022.
v4rrrrx,r|ituhr"00lo,r
MEGAN GOICOECHEA ALLEN
Attorney for ldaho Power Company
APPLICATION -4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 12th day of Septembe r 2022, 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:
IPUC Secretary
ldaho Public Utilities Commission
11331 West Chinden BIvd., Building 8
Suite 201-A
Boise, ldaho 83714
Cassia Wnd Farm, LLC
do Constellation Power
ATTN: David Dueker
Cassia Wnd Farm, LLC
do Constellation Power
ATTN: Ryon Swann
_Hand Delivered
_U.S. Mail
_Overnight Mail
_FaxX Email: [e-mail]
_Hand Delivered
_U.S. Mail
Overnight Mail
_FaxX Email: [e-mail]
_Hand Delivered
_U.S. Mail
Overnight Mail
_FaxX Email: [e-mail]
Christy Davenport, Legal Assistant
APPLICATION.5
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPC-E-22-23
IDAHO POWER COMPANY
ATTACHMENT 1
DocuSign Envelope lD: EDCDC91 4-1282443D-9E84-BD7D7E37DE1 3
SECOI\ID AMENDMENT
TO TIIE
ENERGY SALES AGREEMENT
FOR THE
CASSIA WII\D FARM, LLC PROJECT
This Second Amendment of the Energy Sales Agreement ("Second Amendment") is
entered into on 9/2/2022 by and between ldaho Power Company, an Idaho corporation
("Idaho Power"), and Cassia Wind Farm, LLC, an ldaho limited liability company ("Seller"),
(individually a"Pafi" and collectively the "Partieso').
WHEREAS, Idaho Power and Seller entered into the Energy Sales Agreement on AprilT,
2006, (the "ESA") for the purchase and sale of energy from the Cassia Wind Farm located near
Hagerman, Idaho (the "Project"), which when constructed and declared operational in March 2009,
consisted of five (5) Suzlon model S88 Wind Turbines with individual generator ratings of 2.1
MW for each unit. The ESA was approved by the ldaho Public Utilities Commission ("the
Commission") in Order No. 30086, Case No. IPC-E-06-10;
WHEREAS, the Parties executed the First Amendment to the ESA on MLay 12,2014, (the
"First Amendment") to amend Article l.l2 ("Market Energy Cost") in the ESA as agreed to in the
stipulation entered into by the Parties and others in Case No. IPC-E-13-25;
WHEREAS, one of the Project's Suzlon model S88 Wind Turbines ("Tower 5") was
damaged due to a fire on or about June 8, 2019, and rendered inoperable as a result. Subsequently,
Seller researched the possibility of replacing Tower 5, but determined that the Suzlon model S88
was no longer in production or otherwise available from Suzlon, and Seller was ultimately unable
to find a turbine, from either Suzlon or another source, with the same electrical and physical
characteristics as Tower 5 that would be consistent with what was engineered, studied and
permitted for the Project;
WHEREAS, Appendix B of the ESA, Sections B-1, Description of Facility, and 84,
Maximum Capacity Amount, contain information reflecting the existence of five (5) 2.1 MW
turbine units that is no longer accurate based on the loss of Tower 5 and the corresponding
reduction in the Project's total Facility generator rating;
WHEREAS, Seller and Idaho Power desire to amend Appendix B of the ESA as set forth
herein to reflect more current and accurate information based on the Seller's loss of and inability
to replace Tower 5 despite best efforts to do so, as described above;
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:
Project Number 31318100 - Cassia Wind Farm, LLC
Second Amendment Page I of3
DocuSign Envelope lD: EDCDC91 4-128243D-SEWBD7D7E37DE1 3
l. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part of
this ESA, as amended, by this reference to the same extent as if these recitals were set forth in full
at this point.
2. Changes to Appendix B. APPENDIX B, FACILITY AND POINT OF DELIVERY, is
amended as follows:
2.1. Section B-l (DESCRIPTION OF FACILITY) is deleted in its entirety and replaced with
the following:
B.I DESCRIPTION OF FACILITY
The Facility shall consist of four (4) Suzlon model S88 Wind turbines with individual
generator ratings of 2.1 MW for each unit, for a total Facility generator rating of 8.4 MW.
2.2. Section B-4 (MAXIMUM CAPACITY AMOUNT) is deleted in its entirety and replaced
with the following:
B-4 MAXIMUM CAPACITY AMOUNT: This value will be 8.4 MW which is the
maximum energy (MW) that potentially could be delivered by the Seller's Facility
to the Idaho Power electrical system at any moment in time.
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 toR-P 274.
4. Effect of Amendment. Except as expressly amended by this Second Amendment, the ESA
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 ESA.
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, (ii) it is the proper party to amend the ESA, 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 313 I 8100 - Cassia Wind Farm, LLC
Second Amendment Page 2 of3
OoilS$r Enrnlopc lD: EDCDCOI+l2Brl4ltD4EBa-BD7D:7Etl7DEr3
IN WITTIESS WHEREOF, the Partics heroto have caused this Second Amendment to be
duly executed as of the datc above writren.
IDAHO POWERCOMPA}TY CASSIA WIND FARM, LLC
By "T
N. fah..By W
Namc:Ryan N. Adclnan Namc: RYon Swann
Titlc: vP, Pounr Supply Titlc: tlanrger
Project Numbcr 31318100 - Cassia Wind Farrr, LLC
Second Amcndrrent Page 3 of3