19960918Amended Application.PDF

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IDIiO IDAHO POWER COMPANY i:r.PIVER BOiSEDAHO837O7
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-“BARTON L.KLINE
n Counsel for Idaho Power0J..j I I U )I
L1 fi-)
i September 18,1996
Mrs.Myrna J.Walters
Secretary
Idaho Public Utilities Commission
P.0.Box 83720
Boise,Idaho 83720-0074
Re:Case No.IPC-E-95-15
Idaho Power Company’s Amended Application
Dear Mrs.Walters:
Please find enclosed the original and seven (7)copies of the Company’s
Amended Application regarding the above-entitled matter.
Very truly yours,
L
Barton L.Kline
BLK:jb
Enclosures
Telephone [phone],Fax [phone]
V
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ORDER REVISING THE RATES,TERMS
AND CONDITIONS UNDER WHICH
IDAHO POWER PURCHASES NON-FIRM
ENERGY FROM QUALIFYING FACILITIES.
1.Procedural Background
On October 5,1995,Idaho Power Company filed an Application to revise its
tariff Schedule 86.Schedule 86 establishes the procedures and prices for purchases of
non-firm energy from qualifying cogenerators and small power producers.
By Notice dated November 20,1995,the Commission provided public notice
of the Application.
On April 17,1996 the Commission issued a Notice of Modified Procedure and
solicited comments from interested parties.The bulk of the comments received by the
C)
BARTON L.KLINE
Idaho Power Company
P.O.Box7O
Boise,Idaho 83707
[phone]
Attorney for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise,Idaho 83702
FAX Telephone No.:[phone]
‘1L
Lu t’;3 2i
c
‘1
)
)CASE NO.IPC-E-95-15
)
)AMENDED APPLICATION
)
)
)
AMENDED APPLICATION,Page 1
C)0
Commission were directed at Idaho Power’s proposal to eliminate the “Option C”from
Schedule 86.Option C provides a procedure whereby QF projects smaller than 100
kilowatts can offset all or a portion of their retail loads by use of their own generation while
at the same time remaining interconnected to the Company for Supplemental and stand-by
service.
Following the receipt of comments,the Commission held a decision meeting.
Following that decision meeting,Idaho Power met informally with Commission Staff
members to discuss the determinations reached by the Commission in their decision
meeting and to attempt to formulate changes to tariff Schedule 86 to implement the
Commission’s determinations.
Based on its discussions with Commission Staff,Idaho Power has revised
Schedule 86.A copy of the revised Schedule 86 is attached as Attachment 4.
2.Offset Against Retail Sales
The only change to Schedule 86 that drew comments from interested parties
was the proposed elimination of “Option C,”the offset against retail sales.In Attachment 4,
the Company proposes to reinstate the retail offset option for smaller QF’s taking retail
service under Idaho Power’s rate Schedules I and 7.In Attachment 4,the provision
dealing with the “Offset Against Retail Sales,”is now “Option “in Paragraph 2 under the
section entitled “Purchase Price.”In the proposed “Option B,”Idaho Power has included
a monthly charge to allow the Company to recover certain non-generation related costs
that would otherwise not be recovered from those customers that elect to sell energy under
Option B.Because the vast majority of comments supporting offset against retail sales
AMENDED APPLICATION,Page 2
0
were from persons or entities desiring to install photovoltaic generation,the proposed
monthly charge under Option B is based on the generating characteristics of a photovoltaic
generating facility.
If in the future a Seller desires to install generating facilities utilizing a
generating technology other than photovoltaic and desires to sell the output of its QF under
Option B,Idaho Power will develop a similar monthly charge consistent with that
generating technology’s characteristics.
Idaho Power’s Rate Schedules I and 7 do not have a demand component.
By limiting Option B to Sellers receiving retail service under Rate Schedules I and 7,the
proposed Option B avoids the cost associated with the installation of a second meter to
record generation separate from consumption.Option B as proposed also allows the
Company to utilize its existing computerized customer accounting and billing procedures
thereby avoiding individual hand processing of each monthly bill for each Seller that elects
to sell under Option B.
NOW,THEREFORE,Idaho Power respecifully requests that the Commission
issue its Order:
I.Approving the proposed revisions to Schedule 86 in accordance with
the Sheet Nos.86-I through 86-6 shown on Attachment 4.Upon approval of the revisions,
the Company will file final tariff sheets showing the required effective date.
2.Authorizing Idaho Power to file the computation and supporting
documentation for the monthly Avoided Energy Cost computation with the Commission on
a semi-annual rather than monthly basis.
AMENDED APPLICATION,Page 3
0 0
Respecifully submitted this 18th day of September,1996.
kZ
BARTON L.KLINE
AMENDED APPLICATION,Page 4
0
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 18th day of September,1996,I served a
true and correct copy of the within and foregoing AMENDED APPLICATION upon the
following parties of record by the method indicated below,and addressed to the following:
Brad Purdy )Hand Deliver
Deputy Attorney General
____
U.S.Mail
Idaho Public Utilities Commission
____
Overnight Mail
472 West Washington Street
____
Facsimile
P.0.Box 83720
Boise,Idaho 83720-0074
BARTON L.KLINE
CERTIFICATE OF SERVICE
IDAHO POWER COMPANY (FIRST REVISED SHEET NO.86-
CANCELS
I.P.U.C.NO.26,TARIFF NO.101 ORIGINAL SHEET NO.86-1
SCHEDULE 86
COGENERATION AND SMALL POWER
PRODUC11ON
NON-FIRM ENERGY
AVAILABILITY
Service under this schedule Is available In the Company’s service territory In the State of Idaho.
APPUCABIIJTY
Service under this schedule is applicable to any Seller who owns or operates a Qualifying Facility and desires to sell
Energy to the Company on a non-firm,If,as,and when available basis.
DEFINITIONS
Avoided Energy Cost Is the monthly average per kWh cost of the energy used to serve the Company’s marginal 200
MW of firm load.
Cogeneration Facility means equipment used to produce electric energy and forms of useful thermal energy (such as
heat or steam),used for industrial,commercial,heating,or cooling purposes,through the sequential use of energy.
Designated Dispatch Facility is the Company’s Boise Bench Dispatch Center.
Energy means the non-firm electric energy,expressed in kWh generated by the Qualifying Facility and delivered by
Seller to the Company in accordance with the conditions of this schedule.Energy is measured net of Losses and
Station Use.
Interconnection Facilities are all facilities reasonably required by Prudent Electrical Practices and the National Electric
Safety Code to Interconnect and safely deliver Energy from the Qualifying Facility to the Company’s system,including,
but not limited to,connection,transformation,switching,metering,relaying,communications,disconnection,and safety
equipment.
Losses are the loss of electric energy occurring as a result of the transformation and transmission of electric energy from
the Qualifying Facility to the Point of Delivery.
Point of Delivery is the location where the Company’s and the Seller’s electrical facilities are inter-connected.
Prudent Electrical Practices are those practices,methods and equipment that are commonly used in prudent electrical
engineering and operations to operate electric equipment lawfully and with safety,dependability,efficiency and
economy.
PURPA means the Public Utility Regulatory Policies Act of 1978.
Qualifying Facility Is a cogerieration facility or a small power production facility which meets the PURPA criteria for
qualification set forth in Subpart B of Part 292,Subchapter K,Chapter I,Title 18,of the Code of Federal Regulations.
Schedule 72 is the Company’s service schedule which provides for Interconnection to Non-Utility Generation or its
successor schedule(s)as approved by the Commission.
jj!r is any entity that owns or operates a Qualifying Facility and desires to sell Energy to the Company.
Standby Power is electrical energy or capacity supplied by the Company during an unscheduled outage of a Qualifying
Facility to replace energy consumed by the seller which is ordinarily supplied by the Seller’s Qualifying Facility.
IDAHO Issued by IDAHO POWER COMPANY
Issued -D.H.Jackson,Vice President,Retail Services
Effective -1221 West Idaho Street,Boise,Idaho
IDAHO POWER COMPANY ,N,FiRST REViSED SHEET NO.86-
CANCELI -.
I.P.U.C.NO.26.TARIFF NO.101 ORIGINAL SHEET NO.86-2
SCHEDULE 86
COGENERATION AND SMALL POWER
PRODUCTiON
NON-FIRM ENERGY
(Continued)
DEFINITIONS (Continued)
Station Use Is electric energy used to operate the Qualifying Facility which is auxiliary to or directly related to the
generation of electricity and which,but for the generation of electricity,would not be consumed by the Seller.
Supplementary Power is electric energy or capacity supplied by the Company which is regularly used by a Seller in
addition to the Energy and Capacity which the Qualifying Facility usually supplies to the Seller.
PURCHASE PRICE
1.Option A -Under this option,The Company will pay the Seller monthly,for each kWh of Energy delivered and
accepted at the Point of Delivery during the preceding calendar month,an amount equal to the Avoided Energy Cost per kWh
for that month.The Avoided Energy Cost will be determined at the end of each calendar month,and will be filed with the
Commission on a semi-annual basis.
2.Option B -Offset Aqalnst Retail Sales -Rate Schedules 1 and 7 Only -Facilities Under 100 kW Only Where
such an arrangement can be established in accordance with Prudent Electrical Practices,the Company will offset Energy supplied
by the Seller against the Company’s retail sales of electric energy to the Seller under Rate Schedules 1 and 7.
A.To allow the Company to recover certain non-generation costs,the Company will compute a charge
to be added to the Seller’s monthly retail billing.That additional charge (Monthly Charge)will be computed
as follows:
For PhotoVoltaic (PV)Generation Facilities
Monthly Charge =Net PhotoVoltaic Charge (NPVC)=PVO *(CCER -PVCR)
Where:
Definitions
AEC means monthly Avoided Energy Costs (computed on a five year rolling average basis)
AHS means monthly Average Hours of Sunlight
PVCR means PhotoVoltaic Credit Rate
PVO means PhotoVoltaic Output (a 1000 watt solar unit with a 25%capacity factor has a PVO of 0.25 kW)
CER means Customer Energy Rate (from rate class schedule)
CCER means Converted Customer Energy Rate in mills per kilowatt
NPVC means Net PhotoVoftaic Charge
Equations
PVCR =Average of (AEC *AHS)(units are mills per kilowatt)
CCER =Average of (CER *AHS)(units are mills per kilowatt)
NPVC =PVO *(CCER -PVCR)
Seller will provide Company with the expected PVO for Seller’s PV facility.Upon request,Seller will
provide data to support the expected PVC.
B.The methodology for determining the Monthly Charge for generation technologies other than PV will
be determined as required.
IDAHO Issued by IDAHO POWER COMPANY
Issued -D.H.Jackson,Vice President,Retail Services
Effective -1221 West Idaho Street,Boise,Idaho
IDAHO POWER COMPANY FIRST REVISED SHEET NO.8&
CANCELS
I.P.U.C.NO.26.TARIFF NO.101 ORIGINAL SHEET NO.86-3
SCHEDULE 86
COGENERATION AND SMALL POWER
PRODUCTiON
NON-FIRM ENERGY
(Continued)
CONDONS OF PURCHASE AND SALE
The conditions listed below shall apply to all transactions under this schedule.
1.The Company shall purchase Energy from any Seller that offers to sell Energy to the Company.
2.As a condition of interconnection with the Company,the Seller shall:
A.Submit proof to the Company that all licenses,permits,or approvals necessary for the Seller’s
operations under this schedule have been obtained from applicable Federal,State,or local
authorities.
B.Make payment to the Company In accordance with Schedule 72.
C.Obtain written acceptance from the Company as provided in paragraph 5.
D.Submit proof to the Company of all insurance required by paragraph 16.
E.Demonstrate to the Company’s satisfaction that the Seller’s Qualifying Facility has been completed,
and that all features and equipment of the Qualifying Facility are capable of operating safely to
commence deliveries of Energy Into the Company’s system.
F.Submit to the Company a certification from a professional engineer licensed in the State of Idaho
stating that the design of and equipment in the Qualifying Facility and Seller-furnished
Interconnection Facilities (1)comply with the standards of this schedule and applicable electric and
building codes and (2)will operate to safely deliver Energy to the Point of Delivery.
G.Obtain written confirmation from the Company that all conditions to interconnection have been
fulfilled.Such confirmation shall not be unreasonably withheld by the Company.
3.The Seller and the Company shall each indemnify the other,their respective officers,agents,and employees
against all loss,damage,expense,and liability to third persons for injury to or death of person or Injury to
property,proximately caused by the indemnifying party’s construction,ownership,operation or maintenance
of,or by failure of,any of such party’s works or facilities used In connection with purchases under this
schedule.The indemnifying party shall,on the other party’s request,defend any suit asserting a claim
covered by this indemnity.The Indemnifying party shall pay all costs that may be incurred by the other party
in enforcing this indemnity.
4.The Company shall offer to provide Standby Power and Supplementary Power to the Seller.Charges for
Supplementary and Standby Power will be in accordance with the Company’s Schedule 7 as that schedule
is modified from time to time by the Commission.
5.Construction and operation of Interconnection Facilities will be in accordance with Schedule 72.To assure
that the Qualifying Facility and Seller-furnished Interconnection Facilities are compatible with the Company’s
system,the Seller shall submit the designs,plans,specifications,and performance data for the Qualifying
Facility and Seller-furnished Interconnection Facilities to the Company for review.The Company’s acceptance
shall not be construed as confirming or endorsing the design,or as a warranty of safety,durability,or
reliability of the qualifying Interconnection Facility or Seller Furnished Interconnection Facilities.
IDAHO Issued by IDAHO POWER COMPANY
Issued -D.H.Jackson,Vice President,Retail Services
Effective -1221 West Idaho Street,Boise,Idaho
IDAHO POWER COMPANY ,‘FIRST REVISED SHEET NO.
CANCELL
I.P.U.C.NO.26.TAIRIFF NO.101 ORIGINAL SHEET NO.86-4
SCHEDULE 86
COGENERATION AND SMALL POWER
PRODUCTION
NON-FIRM ENERGY
(Continued)
CONDITIONS OF PURCHASE AND SALE (Continued)
5.Construction and operation of Interconnection Facilities will be in accordance with Schedule 72.To
assurethat the Qualifying Facility and Seller-furnished Interconnection Facilities are compatible with the Company’s system,
the Seller shall submit the designs,plans,specifications and performance data for the Qualifying Facility and Seller-
furnished Interconnection Facilities to the Company for review.The Company’s acceptance shall not be construed as
confirming or endorsing the design,or as a warranty of safety,durability,or reliability of the Qualifying Interconnection
Facility or Seller Furnished interconnection Facilities.
6.The Company will establish the settings of disconnection equipment to disconnect the Qualifying Facility
for the protection of the Company’s system and personnel consistent with Prudent Electrical Practices.Except as
otherwise required by Prudent Electrical Practices,disconnection equipment will be designed so that the closure of any
breaker or other disconnecting device which connects the Qualifying Facility to the Company’s system shall be controlled
by equipment which will perform the following:
A.Automatically monitor the status of the electrical system on the Company’s side of the
disconnecting device;as to voltage and frequency;and
B.Prohibit closure or reconnection until voltage and frequency have been within approved limits
for a continuous period of not less than 5 minutes;and
C.Operate so that if the Company’s system is de-energized within 10 seconds after the initial
closure of the disconnecting device,the disconnecting device will immediately open and not
close again until the Company has been satisfied that the Company can safely reclose the
disconnecting equipment.
If the Seller attempts to modify,adjust or otherwise interfere with the disconnection equipment or its settings as
established by the Company,such action may be grounds for the Company’s refusal to continue purchases from the Seller
under this schedule.
7.The Company shall procure,install,own,and maintain metering equipment to record power flows to the
Company.All acquisition,installation,maintenance,inspection and testing costs relating to meters installed to measure
the Seller’s generation shall be borne by the Seller.Any metering costs incurred by the Company for load research or
other purposes shall be borne by the Company.
8.Metering will be provided for recording net output of the Qualifying Facility and will be separate from
metering of the Seller’s load.
9.The Seller shall use its best efforts to minimize voltage swings and to maintain voltage levels acceptable
to the Company.
10.The Seller shall maintain the Qualifying Facility or such other location mutually acceptable to the Company
and the Seller,adequate metering and related power production records,in a form and content recommended by the
Company.
IDAHO Issued by IDAHO POWER COMPANY
Issued -D.H.Jackson,Vice President,Retail Services
Effective -1221 West Idaho Street,Boise,Idaho
IDAHO POWER COMPANY FIRST REVISED SHEET NO.86-r
CANCELS /
I.P.U.C.NO.26,TARIFF NO.101 ORIGINAL SHEET NO.86-5
SCHEDULE 86
COGENERATION AND SMALL POWER
PRODUC11ON
NON-FIRM ENERGY
(Continued)
CONDON OF PURCHASE AND SALE (Continued)
Either the Seller or the Company after reasonable notice to the other party,shall have the right,during normal
business hours,to inspect and audit any or all such metering and related power production records pertaining
to the Seller’s account.
11.If,in the reasonable opinion of the Company,the Seller’s operation of the Qualifying Facility or
Interconnection Facilities is unsafe or may otherwise adversely affect the Company’s equipment,personnel,or service to
its customers,the Company may physically Interrupt the flow of Energy from the Qualifying Facility or take such other
reasonable steps as the Company deems appropriate.The Seller shall provide and maintain adequate protective
equipment sufficient to prevent damage to the Qualifying Facility and Seller-Furnished Facilities.
12.During a period of shortage of energy on the Company’s system,the Seller shall,at the Company’s
request and within the limits of reasonable safety requirements as determined by the Seller,use its best efforts to provide
requested Energy,and shall,if necessary,delay any scheduled shutdown of the Qualifying Facility.
13.The Company and the Seller shall maintain appropriate operating communications through the Designated
Dispatch Facility.
14.The Company shall not be obligated to accept,and the Company may require the Seller to curtail,
interrupt or reduce deliveries of Energy if the Company,consistent with Prudent Electrical Practices,determines that
curtailment,interruption or reduction is necessary because of line construction or maintenance requirements,emergencies,
or other critical operating conditions on its system.
15.If the Company is required by the Commission to institute curtailment of deliveries of electricity to its
Customers,the Company may require the Seller to curtail its consumption of electricity in the same manner and to the
same degree as other Customers within the same Customer class who do not own Facilities.
16.The Seller shall secure and continuously carry liability insurance coverage for both bodily injury and
property damage liability in the amount of not less than $1 ,000,000 each occurrence combined single limit.
Such insurance shall include an endorsement naming the Company as an additional insured insofar as liability
arising out of operations under this schedule and a provision that such liability policies shall not be canceled or their limits
of liability reduced without 30 days’written notice to the Company.The Seller shall furnish the Company with certificates
of insurance together with the endorsements required herein.The Company shall have the right to inspect the original
policies of such insurance.
17.The Seller will grant to the Company all necessary rights of way and easements to install,operate,
maintain,replace,and remove the Company’s metering and other Interconnection Facilities including adequate and
continuing access rights to the property of the Seller.The Seller warrants that it has procured sufficient easements and
rights of way from third parties as are necessary to provide the Company with the access described above.The Seller
will execute such other grants,deeds,or documents as the Company may require to enable it to record such rights of
way and easements.
18.Depending on the size and location of the Seller’s Qualifying Facility,it may be necessary for the
Company to establish additional requirements for operation of the Qualifying Facility.These requirements may include,
but are not limited to,voltage,reactive,or operating requirements.
IDAHO Issued by IDAHO POWER COMPANY
Issued -0.H.Jackson,Vice President,Retail Services
Effective -1221 West Idaho Street,Boise,Idaho
c IDAHO POWER COMPANY fl (1
I.P.U.C.NO.26.TARIFF NO.101 ORIGINAL SHEET NO.86-6
IDAHO POWER COMPANY
SCHEDULE 86
UNIFORM AGREEMENT
For the Purchase of Non-Firm Energy From Qualifying Facilities
THIS AGREEMENT Made this
________
day of ,19
_________
between
________________________________________whose
mailing address is
____________________________________________________________________________hereinafter
called Seller and IDAHO POWER COMPANY,
a corporation with its principal office located at 1221 West Idaho Street,Boise,Idaho hereinafter called Company’.
NOW,THEREFORE,The parties agree as follows:
1.Company shall purchase Energy produced by the Seller’s Qualifying Facility located at or near —
____________________________________
County of
_____________________________,
State of Idaho,located in
the
________
of Section
___________,
Township
__________,
Range
___________,
BM,in the form of three phase
60 Hz and at a nominal phase to phase potential of
__________
volts,subject to emergency operating conditions of
the Company.Purchases under this Agreement are subject to the Company’s applicable Tariff provisions,including
but not limited to Schedules 86 and 72 approved by and as may be hereafter modified by the Idaho Public Utilities
Commission rCommission)and the provisions of this Agreement.
2.Seller shall pay Company for all costs of Interconnection Facilities as provided for in Exhibit A of this
Agreement and Schedule 72.
3.In addition to the charges provided under Paragraph 2,Seller shall pay to the Company the monthly
Operation &Maintenance Charge specified in Schedule 72 on the investment by the Company in Interconnection
Facilities which investment is set forth in Exhibit A,attached hereto and made a part hereof.As such investment
changes,in order to provide facilities to serve Sellers’s requirements,Company shall notify Seller in writing of additions
or deletions of facilities by forwarding a dated revised Exhibit A,which shall become part of this Agreement.The
monthly Operation &Maintenance Charge will be adjusted to correspond to the Revised Exhibit A.
4.The initial date of acceptance of Energy under this Agreement is subject to the Company’s ability to
obtain required labor,materials,equipment,satisfactory rights of way,and comply with governmental regulations.
5.The term of this Agreement shall become effective on the date first above written,and shall continue
to full force and effect until canceled by Seller upon sixty (60)days prior written notice.
6.This Agreement and the rates,terms,and conditions of service set forth or incorporated herein,and
the respective rights and obligations of the parties hereunder,shall be subject to valid laws and to the regulatory
authority and orders,rules,and regulations of the Commission and such other administrative bodies having
jurisdiction.
7.Nothing herein shall be construed as limiting the Commission from changing any rates,charges,
classification or service,or any rules,regulation or conditions relating to service under this Agreement,or construed
as affecting the right of the Company or the Seller to unilaterally make application to the Commission for any such
change.
8.This Agreement shall not become effective until the Commission approves all terms and provisions
hereof without change or condition and declares that all payments to be made hereunder shall be allowed as prudently
incurred expenses for ratemaking purposes.
(APPROPRIATE SIGNATURES)
IDAHO Issued by IDAHO POWER COMPANY
Issued -D.H.Jackson,Vice President,Retail Services
Effective -1221 West Idaho Street,Boise,Idaho