20060308Comments of Energy Vision.pdf

ENergy
VI S I ON LLC "Envisioning a sustainable future"
672 Blair Avenue
Piedmont,CA,USA 94611
[phone] :TGlennS.Ikemoto [phone] :[e-mail] :E
VIA EMAIL
March 8,2006
President Paul Kjellander
Commissioner Dennis Hansen
Commissioner Marsha SmithIdahoPublicUtilitiesCommission472WestWashingtonStreet
PO Box 83720
Boise,ID 83720-0074
Re:Comments on PAC-E-05-09
Dear Commissioners:
In late December,the developers of the Schwendiman Wind Project asked me if I wouldhelpthemnegotiateacompromise90/110 mechanism,as directed by the Commission.That effort resulted in the contract you are now being asked to approve.I believe the newmechanismisfarmoreeconomicallyefficientthanthepriorversion.That is,delivering adollarofsavingstotheratepayerwillcosttheprojectadollar.Because of price volatility,there is a much larger cost to the projects than associated benefit to the ratepayers underthepriormechanism.In the long run,this loss is not in either party's interest.
My real purpose in writing this letter is to commend the efforts of PacifiCorp'srepresentativesandtheCommission's Staff.I have negotiated power contracts from boththeutilityanddevelopersidesofthetableforover25years.This negotiation was one ofthemostpositiveandreasonableIhaveeverbeeninvolvedwith.I would like toparticularlyhighlighttheeffortsofBruceGriswoldofPacifiCorp.He was extremelyresponsiveandgaveupmanyhoursonnightsandweekendstomeetaverytightschedule.He conducted himself in good faith and effectively focused the resources of hiscompanyonsolvingproblemsassoonastheyarose.
Your Staff also provided critical support at key times during the negotiation.While theymadeitclearthattheywouldnotdictateanoutcomeorprejudgeanyresults,theyunfailinglyurgedthepartiestoseekcompromise.Without this moral support,I don'tbelievewewouldhavesucceeded.You can be justifiably proud of their professionalism.
The Schwendiman project deserves to go forward.The development team has investedyearsofeffortbringingtheprojecttothispoint.This time and money was invested in thereasonablebeliefthatamarketforcleanenergyexistedinIdaho.For the developers,thefinalformofthecontractdoesnotreallyrepresentacompromise,it is a pure concession.The new 90/110 mechanism will resu\t in an unavoidable reduction in project revenuecomparedtotheoriginalcontract.There was on\y a small overlap between therequirementsoftheproject's financiers and the Commission's directions.I hope we havesucceededinfindingit.
Glenn Ikemoto
Principal