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HomeMy WebLinkAbout20230322Reply Comments.pdf DONOVAN WALKER Lead Counsel dwalker@idahopower.com March 22, 2023 VIA ELECTRONIC FILING Jan Noriyuki, Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A (83714) PO Box 83720 Boise, Idaho 83720-0074 Re: Case No. IPC-E-22-29 In the Matter of Idaho Power Company’s Application for Approval of a Power Purchase Agreement with Pleasant Valley Solar, LLC Dear Ms. Noriyuki: Attached for electronic filing, please find Idaho Power Company’s Redacted Reply Comments in the above matter. The confidential version will be provided separately via an encrypted email to parties who sign the protective agreement. Please feel free to contact me directly with any questions you might have about this filing. Very truly yours, Donovan E. Walker DEW:sg Enclosures RECEIVED 2023 March, 22 4:44PM IDAHO PUBLIC UTILITIES COMMISSION CERTIFICATE OF ATTORNEY ASSERTION THAT INFORMATION CONTAINED IN AN IDAHO PUBLIC UTILITIES COMMISSION FILING IS PROTECTED FROM PUBLIC INSPECTION Case No. IPC-E-22-29 Idaho Power Company’s Application for Approval of a Power Purchase Agreement with Pleasant Valley Solar, LLC The undersigned attorney, in accordance with RP 67, believes that the Idaho Power Company’s Confidential Reply Comments dated March 22, 2023, may contain information that Idaho Power Company or a third party claims is confidential as described in Idaho Code § 74-101, et seq., and § 48-801, et seq., and as such is exempt from public inspection, examination, or copying. DATED this 22nd day of March 2023. Donavan Walker Counsel for Idaho Power Company IDAHO POWER COMPANY’S REPLY COMMENTS - 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 IDAHO POWER COMPANY’S APPLICATION FOR APPROVAL OF A POWER PURCHASE AGREEMENT WITH PLEASANT VALLEY SOLAR, LLC. ) ) ) ) ) CASE NO. IPC-E-22-29 IDAHO POWER COMPANY’S REPLY COMMENTS COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and hereby respectfully submits the following Reply Comments in response to Comments of the Commission (“IPUC or Commission”) Staff dated March 8, 2023. I. REPLY COMMENTS A. Background - On November 14, 2022, Idaho Power filed an Application seeking approval of a 20-year Power Purchase Agreement (“PPA”) entered into with Pleasant Valley Solar, LLC (“Pleasant Valley Solar” or “Seller”). The PPA was entered into for the purchase and sale of energy and Green Tags for the benefit of Brisbie, LLC (“Brisbie” or “Customer”) pursuant to a Special Contract between Idaho Power and Bribie (“Special Contract”). The Special Contract between Idaho Power and Brisbie was also filed for review and approval with the Commission on December 22, 2021, Case No. IPC- IDAHO POWER COMPANY’S REPLY COMMENTS - 2 E-21-42. Section 3.1 of the PPA requires Commission approval of both the PPA and the Special Contract or the PPA may be terminated. B. Staff Comments - Staff filed its Comments regarding the PPA in this matter on March 8, 2023, Case No. IPC-E-22-29, recommending approval of the PPA conditioned upon the Parties updating the PPA to reflect the following: (1) Correcting the degradation factors in Section 1.35; (2) Ensuring the term Expected Energy is used correctly in the PPA; (3) Modifying Section 23 to reflect significance of Commission approval; and (4) Including transmission-related costs in calculating Liquidated Damages for Output Shortfall. C. Reply Comments - Filed herewith and included herein as Attachment 1 is the fully executed Frist Amendment to the Power Purchase Agreement Between Pleasant Valley Solar, LLC and Idaho Power Company (“First Amendment”). Idaho Power and Pleasant Valley Solar entered into the attached First Amendment to incorporate all of Staff’s recommended changes from Staff’s March 8 Comments. The First Amendment addresses all the issues identified by Staff: (1) Section 1.35 is amended to correct the degradation factor starting time; (2) Section 7.12.1 and 7.12.2.2 are both amended to replace “Expected Energy” with “Estimated Net Output Amount”; (3) Section 23 is amended to add language recognizing and requiring Commission approval of any PPA modification(s); and (4) Section 7.12.2.3 is amended to include transmission related costs into the liquidated damages for Output Shortfall. Idaho Power believes the attached and executed First Amendment makes the necessary changes to the PPA required to implement Staff’s recommendations. The PPA contains provisions in Section 3.1 that require it to be approved by the Commission. IDAHO POWER COMPANY’S REPLY COMMENTS - 3 Additionally, there are provisions that provide for a day-for-day extension of the Scheduled Commercial Operation Date and the Guaranteed Commercial Operation Date if not approved prior to May 11, 2023, (six months after filing for approval with the Commission). Additionally, the PPA is also conditioned upon the Commission’s approval of the Special Contract between Brisbie and Idaho Power, of which this PPA is intended to support. II. CONCLUSION Idaho Power appreciates Staff’s review and consideration of the issues in this case and the opportunity to offer these Reply Comments to address Staff’s recommendations. Idaho Power respectfully requests that the Commission approve the PPA, the First Amendment thereto, and the Special Contract submitted in Case No. IPC-E-21-42 on or before May 11, 2023. Respectfully submitted this 22nd day of March 2023. DONOVAN E. WALKER Attorney for Idaho Power Company IDAHO POWER COMPANY’S REPLY COMMENTS - 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 22ND day of March 2023, I served a true and correct copy of the foregoing Idaho Power Company’s Reply Comments upon the following named parties by the method indicated below, and addressed to the following: Chris Burdin Idaho Public Utilities Commission P.O. Box 83720 11331 West Chinden Blvd, Bldg 8 Suite 201-A Boise ID 83714 Emailed to: chris.burdin@puc.idaho.gov Darrell Early Ed Jewell Wil Gehl Boise City Attorney’s Office 150 N. Capitol Blvd. P.O. Box 500 Boise, Idaho 83701-0500 Emailed to: BoiseCityAttorney@cityofboise.org dearly@cityofboise.org ejewell@cityofboise.org wgehl@cityofboise.org ________________________________ Stacy Gust, Regulatory Administrative Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-22-29 IDAHO POWER COMPANY ATTACHMENT 1 First Amendment to the Power Purchase Agreement REDACTED