20221031Comments.pdf

MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL
TDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11714
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Street Address for Express Mail:
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BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLTC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OF A SECOND AMENDMENT
TO THE ENERGY SALES AGREEMENT
WITH CASSIA WIND FARM, LLC.
CASE NO. IPC-8.22.23
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the [daho Public Utilities Commission, by and through its Attorney of
record, Michael Duval, Deputy Attorney General, submits the following comments.
BACKGROUND
On September l2,2022,Idaho Power Company ("Company" or "Idaho Power") and
Cassia Wind Farm, LLC ("Seller") (collectively, the "Parties"), filed an Application with the
Idaho Public Utilities Commission ("Commission") requesting approval of the Second
Amendment to their Energy Sales Agreement ("Second Amendment") under which the Seller
sells the Company "electric energy generated by Seller's wind generating facility" ("Facility")
located near Hagerman, ldaho. Application at 1. The Facility is a quali$ing facility under the
Public Utility Regulatory Policies Act of 1978 ("PURPA").
On June 30,2006, the Commission approved the Parties' Energy Sales Agreement
("ESA"). Order No. 30086. Under the ESA, the Seller provided electricity to the Company via
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ISTAFF COMMENTS ocroBER 31,2022
"5 Suzlon, model S88 Wind turbines with individual generator ratings of 2.1 [megawatts
("MW")] for each unit, for a total Facility generator rating of 10.5 MW." Application at2. The
Company represents that, on approximately June 8,2019, one of the wind turbines became
inoperable due to a fire. Id. The Company states that the Seller was not able to find a
comparable model or replacement turbine for Tower 5. Id.
The Commission approved the Company's ESA with the Seller on June 30,2006, for the
purchase and sale of energy from the Facility. Order No. 30086. In20l3, the Commission
approved the First Amendment to the ESA, which included additional pricing information
adjusting the term of the agreement. See Order No. 32850.
The Second Amendment deletes Section B-l of the previous ESA and replaces it with the
following language:
The Facility shall consist of four (4) Suzlon model S88 Wind turbines with
individual generator ratings of 2.I MW for each unit, for a total Facility generator
rating of 8.4 MW.
The original ESA provided a Facility generator rating of 10.5 MW with five
Suzlon model S88 units as opposed to four.
In addition, the Second Amendment deletes Section B-4 of the previous ESA and
replaces it with the following language:
B-4 MAXIMUM CAPACITY AMOTINT: 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.
STAFF REVIEW
Staff recommends approval of the Second Amendment, because (l) it reflects the actual
nameplate capacity of the Facility and (2) the update does not affect pricing.
Nameplate Capacity
The Second Amendment reflects the actual nameplate capacity of the Facility of 8.4 MW
after fire damage rendered one of its five turbines inoperable on or around June 8, 2019.
Immediately after the fire, on July 3,2019, the Seller provided notice of revised Net Energy
Amounts based on the remaining four turbines. On September 9,2019, the Company accepted
the Seller's claim of force majeure. Later, the Parties agreed with the revised Net Energy
2STAFF COMMENTS ocroBER 31,2022
Amounts. The Facility has not updated its Net Energy Amounts since then. See Response to
Staff s Production Request No. 1(b).
Staff believes the immediate revision of Net Energy Amounts minimized impacts of the
loss of Tower 5 on the Company's planning process. Staff also agrees with the Company that
the ESA does not contain any obligations tied to the total nameplate capacity. See Response to
Staff s Production Request No. l(a). However, Staff believes it is a good practice to
immediately update the nameplate information in the ESA to ensure the description of the
Facility matches the actual operating parameters, instead of postponing the update until three
years later.
In addition, Staff agrees with the amended Maximum Capacity Amount based on the
current nameplate capacity.
Pricing and Compensation for Avoided Cost
Staff believes that the pricing in the ESA will continue to fairly compensate the Seller for
the costs the Facility avoids in the Company's system. The change to the Facility was a decrease
in the nameplate capacity, which has resulted in a reduction in its total output. Because the
avoided cost rates in the ESA are based on a dollarlkilowatt-hour basis, the reduction in the
amount of output is commensurate with the amount of compensation the Seller is receiving.
STAFF RECOMMENDATIONS
Staff recommends that the Commission approve the Second Amendment of the ESA as
filed.
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Respecttully submitted this , I t*
ou, of october 2022.
Michael Duval
Deputy Attorney General
Technical Staff: Yao Yin
i:umisc/commentsl ipcel2.23mdyy comments
JSTAFF COMMENTS ocroBER 31,2022
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 31ST DAY OF OCTOBER 2022,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO.IPC-E-22-23, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING:
DONOVAN E WALKER
MEGAN GOICOECHEA ALLEN
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: [e-mail]
mso icoecheaal len@idahopower. com
[e-mail]
CASSIA WIND FARM, LLC
C/O CONSTELLATION POWER
ATTN: DAVID DUEKER
E-MAIL: [e-mail]
ENERGY CONTRACTS
IDAHO POWER COMPANY
PO BOX 70
BOISE rD 83707-0070
E-MAIL: [e-mail]
CASSIA WIND FARM, LLC
C/O CONSTELLATION POWER
ATTN: RYON SWANN
E-MAIL : ryon. [e-mail]
.'inr1,M,/SECRETARY
CERTIFICATE OF SERVICE