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Home My WebLink About20071009First Amendment to Settlement.pdf~ ~~~o ~OUNTAIN RECf: 10nl OCT -9 Mi 9: \ 0 October 5, 2007 IDAHO PqB . \. UTILITIES COfiM1USSIOi . VIA EMAIL AND OVERNIGHT DELIVERY 201 South Main, Suite 2300 Salt Lake City, Utah 84111 Idaho Public Utilities Commission 472 West Washington Boise, ill 83702-5983 Attention:Jean D. Jewell Commission Secretary Re:Case No. P AC-07- In the Matter of the Petition of Rocky Mountain Power of Rocky Mountain Power for an Order Revising Certain Obligations to Enter into Contracts to Purchase Energy Generated by Wind-Powered Small Power Generation Qualifying Facilities PacifiCorp (d.a. Rocky Mountain Power) hereby submits for filing an original and seven (7) copies of: (1) First Amendment to Settlement Stipulation and Joint Motion; (2) signature page to First Amendment to Settlement Stipulation and Joint Motion of William Eddie; (3) signature page to Settlement Stipulation of Kelly Norwood; and (3) signature page to Settlement Stipulation of Glenn Ikemoto. Please note that the above mentioned documents included in this filing as is an exact duplicate of the original. Service of pleadings, exhibits, orders and other documents relating to this proceeding should be served on the following: Brian Dickman Manager, Idaho Regulatory Affairs PacifiCorp One Utah Center, Suite 2300 201 South Main Salt Lake City, UT 84111 brian. dickmanCfYpacificorp. com It is respectfully requested that all formal correspondence and Staff requests regarding this material be addressed to: Bye-mail (preferred):datarequestCfYpacificorp. com Idaho Public Utilities Commission October 5 , 2007 Page 2 By regular mail:Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 2000 Portland, Oregon, 97232 By fax:(503) 813-6060 Sincerely, Jdf:JJ -~rey K. L sen Vice President, Regulation ~/ 1J/ Enclosures cc: Service List CERTIFICATE OF SERVICE I hereby certify that on this 5th day of October, 2007, I caused to be served, via US. Mail, a true and correct copy of the foregoing First Amendment to Settlement Stipulation and Joint Motion in Case No. PAC-07-07. Copies of this Amendment were provided to the following parties: Peter 1. Richardson Richardson & O'Leary PLLC 515 N. 27th Street O. Box 7218 Boise, Idaho 83702 peter(fYrichardsonandoleary. com David Oler 1110 East 97 North Idaho Falls, Idaho 83404 Dr. Don Reading 6070 Hill Road Boise, ill 83703 dreading(fYmindspring. com R. Blair Strong Jerry K. Boyd Paine Hamblen LLP 717 W. Sprague, Suite 120 Spokane, W A 99220 r. blair. strong(fYpainehamblen.com Michael G. Andrea Staff Attorney A vista Corporation 1411 E. Mission Avenue, MSC- Spokane, W A 99202 Michael. andrea(fYavistacorp. com Glenn Ikemoto Idaho Windfarms, LLC 672 Blair Avenue Piedmont, CA 94611 glenni(fYpacbell.net William M. Eddie Advocates for the West 610 SW Alder Street, Suite 910 Portland, OR 97205 beddie(fYadvocateswest. orB Ken Dragoon Renewable Northwest Project 917 SW Oak Street, Suite 303 Portland, OR 97205 ken(fYrnp.org Dean J. Miller McDevitt & Miller LLP PO Box 2564 Boise, ill 83701-2564 (fYmcdevitt - miller. co m Stephen E. Martin Intermountain Wind LLC 425 S. Homes PO Box 3189 Idaho Falls, ill 83403-3189 Gary Seifert, P. Kurt Myers, P. INL Biofuels and Renewable Energy Technologies 2525 S. Fremont Avenue PO Box 1625, MS 3810 Idaho Falls, ill 83415-3810 Gary. seifert(fYinl. gov Kurt.myers(fYini. gOY Coordinator, Administrative Services GEI' Jordan A. White Rocky Mountain Power 201 South Main , Suite 2300 Salt Lake City, Utah 84111 Tel: (801) 220-4640 Fax: (801) 220-3299 iordan. whiteaD. pacificorp. com Attorney for Rocky Mountain Power iUh 1 OCT - 9 /\I"i 9: I 0 i"~Qi;rto rUStic!' I Ii j n,-. ~.... nbll),'v '- "-v rd,'IO Vv lJi. William M. Eddie (ISB #5800) ADVOCATES FOR THE WEST 610 SW Alder St , Suite 910 Portland, OR 97205Ph: (503) 542-5245 Fax: (503) 225-0276 bedd ie(gtadvocateswestorg Attorney for Renewable Northwest Project and NW Energy Coalition BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE PETITION OF ROCKY MOUNTAIN POWER FOR AN ORDER REVISING CERTAIN OBLIGATIONS TO ENTER INTO CONTRACTS TO PURCHASE ENERGY GENERATED BY WIND-POWERED SMALL POWER GENERATION QUALIFYING FACILITIES CASE NO.PAC-07- (Reference related cases nos. IPC-07-03 and A VU-07 - Pursuant to RP 66 , Rocky Mountain Power ("Rocky Mountain Power" or the Company ) and Renewable Northwest Project and Northwest Energy Coalition Renewable Coalition ), hereinafter Party or collectively "Parties " submit this First Amendment to correct and supply omissions to that certain Settlement Stipulation filed October 2, 2007 ("Stipulation ) and accompanying Joint Motion to Approve Settlement Stipulation ("Joint Motion ) as follows: PAC-07-07 FIRST AMENDMENT TO SETTLEMENT STIPULATION AND JOINT MOTION - Section III (a) of the Stipulation is deleted in its entirety and replaced with the following: (a) Rocky Mountain Power's published avoided cost rates for Wind QFs will be adjusted to recognize an assumed cost of integrating the energy generated by Wind QFs as a part of the Company s generatingresource portfolio. The integration charge will be equivalent to thecalculated cost of wind integration on a per MWh basis provided in the Company s most recent Commission-acknowledged Integrated Resource Plan ("I RP"). The Company s current estimated cost of wind integration in the 2005 IRP is $5.04/MWh. The estimated cost of wind integration in the 2007 IRP, which is now pending Commission review, is $5.10/MWh.Rocky Mountain Power shall hereafter file notice with the Commission ofany changes to its wind integration charge as reflected in subsequent changes to its IRP. The integration charge will remain fixed throughout the term of the contract and will be applied as a decrement to the applicablepublished rate. The term "applicable published rate" means the applicable avoided costrate approved by the IPUC and updated periodically for purchases ofpower from QFs producing less than 10 aMW/month , for the relevant contract year and time period of energy generation. Section III (e) of the Stipulation is replaced in its entirety and replaced with the following: (e) Rocky Mountain Power will have the option to include the specific Wind QF project in its existing contract with a qualified wind energy production forecasting vendor. The cost of adding the QF project to this forecasting service will be attributed to the individual Wind QF and will be shared equally between Rocky Mountain Power and the Wind QF, with an annual cap on the Wind QFs maximum liability for such costs set at 0.1 % of the total energy payments Rocky Mountain Power made to the Wind QF under the applicable FESA during the previous Contract Year. During the first Contract Year, the cap will be set at 0.1 % of the Wind QFs estimated total energy payments based on the Wind QF's original estimate of energy production in their FESA. Rocky Mountain Power will deduct the Wind QFs calculated share during the first eleven months of each year and subsequently refund any overpayment (payments that exceed the cap) in the December invoice. Rocky Mountain Power will consult with Wind QFs in setting up the protocols for the wind energy forecasting program. It is Rocky Mountain Power's intent that the wind energy forecasting program be practical and cost effective. PAC-O7-07 FIRST AMENDMENT TO SETTLEMENT STIPULATION AND JOINT MOTION - Section 15 of the Joint Motion is replaced in its entirety and replaced with the following: Wind Enerav Production Forecastina During the workshops undertaken in this case, a lot of time and effort was devoted to trying to understand how the use of state-of-the-art wind energy production forecasting could be used to reduce the cost of integrating intermittent wind resources on utility systems. There seems to be general consensus that wind energy production forecasting will be useful in achieving that goal. To that end, in the Stipulation the Parties have agreed that Rocky Mountain Power will have the option of adding the specific Wind OF project to its contract with a nationally recognized wind energy production forecasting vendor that produces wind energy production forecasts for the Company service area. The cost of this wind energy production forecasting service for the specific Wind QF will be attributable to the individual Wind QF and will be shared equally between Rocky Mountain Power and the Wind OF, with an annual cap on the Wind OFs maximumliability for such costs set at 0.1 % of the total energy payments Rocky Mountain Power made to the Wind QF under the applicable FESA during the previous Contract Year. During the first Contract Year, the cap will be set at 0.1 % of the Wind QFs estimated total energy payments based on the Wind OF's original estimate of energy production in their FESA. Rocky Mountain Power will deduct the Wind OF's calculated share during the first eleven months of each year and subsequently refund any overpayment (payments that exceed the cap) in the December invoice. Rocky Mountain Power will consult with Wind OFs in setting up the protocols for the wind energy forecasting program. It is Rocky Mountain Power's intent that the wind energy forecasting program be practical and cost effective. Except as specifically amended herein , all other provisions of the Stipulation shall remain in full force and effect as originally set forth therein. This First Amendment may be executed in counterparts and each signed counterpart shall constitute an original document The signatories hereto represent that they have been authorized to enter into this Stipulation on behalf of the Party for whom they sign. PAC-O7-07 FIRST AMENDMENT TO SETTLEMENT STIPULATION AND JOINT MOTION- Rocky Mountain Power and Renewable Coalition have conferred with Avista and Idaho Windfarms , who do not object to the foregoing amendments. Respectfully submitted this 5th day of October 2007. ROCKY MOUNTAIN POWER JORDAN A. 9---- Attorney for Rocky Mountain Power RENEWABLE NORTHWEST PROJECT AND NW ENERGY COALITION WILLIAM M. EDDIE PAC-07-07 FIRST AMENDMENT TO SETTLEMENT STIPULATION AND JOINT MOTION - Rocky Mountain Power and Renewable Coalition have conferred with Avista and Idaho Windfarms, who do not object to the foregoing amendments. Respectfully submitted this 5th day of October 2007. ROCKY MOUNTAIN POWER JORDAN A WHITE Attorney for Rocky Mountain Power RENEWABLE NORTHVVEST PROJECT AND NW ENERGY COALITION WILLIAM M. EDDIE PAC-O7-07 FIRST AMENDMENT TO SETTLEMENT STIPULATION AND JOINT MOTION- IDAHO PUBLIC UTILITIES COMMISSION STAFF SCOTT WOODBURY PAC-07-07 FIRST AMENDMENT TO SETTLEMENT STIPULATION AND JOINT MOTION - Respectfully submitted this ~ay of October 2007. VISTA CORPORATION ~~ J~~ KELL NORWOOD Vice President, State and Federal Regulation IPUC DOCKET NO. PAC-E-O7-07-SETTLEMENT STIPULATION IDAHO WINDFARMS LLC =-b ENN IK Authorized Manager PAC-O7-07 SETTLEMENT STIPULATION -