20070919amended_notice_order_no_30435.pdf

Office of the Secretary
Service Date
September 19 2007
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. P AC-07-
AMENDED NOTICE OF
SCHED ULIN G
ORDER NO. 30435
On April 23 , 2007, PacifiCorp dba Rocky Mountain Power (PacifiCorp; Company)
filed an Application with the Idaho Public Utilities Commission (Commission) requesting a
change in the Company s PURPA obligations for wind QFs. PacifiCorp proposes restoring the
cap on entitlement to published avoided cost rates for wind-powered small power generation
facilities that are qualifying facilities (QFs) under Sections 201 and 210 of the Public Utility
Regulatory Policies Act of 1978 (PURPA) from the current level of 100 kW to 10 average
megawatts per month (10 aMW), subject to the following conditions:
1. Reducing the published avoided cost rates applicable to purchases by
PacifiCorp of electric power from wind-powered QFs by $5.04 per MWh
which amount represents the inflation-adjusted integration costs of that
wind power, to be applied against published avoided cost rates except in
those circumstances where the QF developer agrees in the power
purchase agreement with PacifiCorp to deliver QF output to PacifiCorp
on a firm hourly schedule;
2. Removing the requirement that the 90%/110% performance band be
applied to purchases from wind-powered QFs;
3. Authorizing PacifiCorp to purchase state-of-the-art wind forecasting
services to provide PacifiCorp with forecasted wind conditions in those
geographic areas in which wind generation resources are located
provided that QFs will reimburse PacifiCorp for their share of the on-
going cost of the wind forecasting service, in proportion to their
percentage share of the wind-generator capability being supplied to
PacifiCorp from that area;
4. Requiring QFs to deliver a "mechanical availability guarantee" to
PacifiCorp to demonstrate montWy, except for scheduled maintenance
and events of force majeure or uncontrollable force, that the QF was
AMENDED NOTICE OF SCHEDULING
ORDER NO. 30435
physically capable and available to generate a full output during 85% of
the hours in a month;
5. ... (Disaggregation issue - separately noticed on June 28, 2007)
6. Clarifying that the cap on entitlement to published avoided cost rates
shall be restored to 10 aMW only until PacifiCorp s renewable targets for
each calendar year in the most recently acknowledged Integrated
Resource Plan are met.
A Notice of Petition in Case No. PAC-07-07 was issued on May 15, 2007. A
Notice of Discussion Regarding Procedure was issued on June 4, 2007. On June 28, 2007, the
Commission issued a Notice establishing an intervention deadline of July 18, 2007. The
following parties requested and were granted intervenor status: Intermountain Wind LLC;
Exergy Development Group of Idaho LLC; Renewable NW Project and NW Energy Coalition;
Idaho Windfarms LLC; A vista Corporation; and INL Biofuels and Renewable Energy
Technologies.
On July 31. and August 10, 2007, Commission Staff sponsored joint settlement
workshops in Case Nos. PAC-07-07 (PacifiCorp), IPC-07-03 (Idaho Power), and A VU-
07-02 (Avista) to explore whether parties of record could agree to a common generic wind
integration adjustment to published rates. IDAPA 31.01.01.272-276.
On August 22, 2007, the Commission being informed that the participants in the joint
settlement workshops in the above dockets were unable to reach a compromise generic
settlement, issued a Notice of Modified Procedure and Comment/Protest Deadline in Case No.
PAC-07-07 establishing an initial comment deadline of Friday, September 21 , 2007 and a
reply deadline of Friday, October 5, 2007.
YOU ARE HEREBY NOTIFIED that on September 14, 2007 , Renewable Northwest
Project and NW Energy Coalition (collectively RNP) filed a Motion to Vacate the September
and October 5, 2007 comment deadlines in Case No. PAC-07-07 (and related Case Nos. IPC-
07-03 and A VU-07-02). RNP in its Motion states that it has conferred with respective
counsel for PacifiCorp, Idaho Power and Avista, and represents to the Commission that the
utilities do not oppose vacation of the comment deadlines. RNP requests an extension for two
reasons. First, good faith settlement negotiations have continued among the parties. RNP has
reached a settlement agreement in principle with two of the three utilities, and believes that an
AMENDED NOTICE OF SCHEDULING
ORDER NO. 30435
agreement in principle can be achieved with the third utility. RNP and the utilities have
discussed the proposed settlement with several other parties; however, because there are a large
number of parties in these cases it will take several days at a minimum to complete these
discussions. The requested vacation of the comment deadlines will allow completion of the
settlement discussions and preparation of settlement documents.
Second, in the event settlement is not achieved, RNP wishes to conduct additional
written discovery in these cases. RNP's requests for production will be significant in scope, it
states, and will likely require the full 28-day time for response, as provided by Rule of Procedure
225.03. The requested vacation of comment deadlines, it states, will allow the development of a
more complete record in this matter.
For the foregoing reasons, RNP requests the Commission vacate the deadlines for
initial and reply comments in Case No. PAC-07-07. If necessary, RNP states it will provide a
status report (including proposed new comment deadlines) for the Commission s consideration
no later than Monday, October 1 2007.
Commission Findings
The Commission has reviewed the filings of record in Case No. PAC-07-
including Renewable Northwest Project/NW Energy Coalition s Motion to Vacate the
established September 21 and October 5, 2007 comment deadlines. RNP represents that it has
achieved an agreement in principle with two of the three utilities with wind integration
adjustment dockets before the Commission and desires additional time to pursue settlement
discussions with the third utility and to solicit support from other intervening parties. We find
that all parties of record were provided with electronic copies of the Motion on September 13
2007 and hard copies by U.S. Mail. We further find that no parties have communicated
opposition to the filed Motion.
The Commission considers RNP's Motion to Vacate in the context of a history of
protracted proceedings that date back to Idaho Power s June 17 2005 petition in Case No. IPC-
05-22 requesting a temporary suspension of the Company s obligation under Sections 201 and
..
210 of the Public Utility Regulatory Policies Act of 1978 (PURPA) and various Commission
Orders to enter into new contracts and purchase energy generated by qualifying wind-powered
small power production facilities (QFs). On August 4, 2005, the Commission reduced the
published rate eligibility cap for non-firm wind projects from 10 aMW to 100 kW. Order No.
AMENDED NOTICE OF SCHEDULING
ORDER NO. 30435
29839. In the interim there have been public workshops, the utilities have conducted wind
integration studies, utility-specific wind integration adjustments have been proposed, and the
parties have engaged in settlement discussions. The Commission believes the time for further
delay has ended. It is now the time for action and bringing this matter to a close.
The Commission appreciates RNP's continued efforts to achieve a proposed
settlement in the three wind integration dockets. IDAPA 31.01.01.271-277 (Settlements). If
agreement is to be reached, however, we find that it must be achieved quickly. Accordingly,
YOU ARE HEREBY NOTIFIED that to provide a small window for the conclusion of
settlement discussion, we find it reasonable to vacate the September 21 , 2007 initial comment
deadline. We maintain the October 5, 2007 date for presentation of settlement documents or the
filing of initial comments. We establish an October 19, 2007 deadline for reply comments in the
event that parties' efforts at settlement have been unsuccessful or that all parties have not joined
in the settlement.
ORDER
In consideration of the foregoing, IT IS HEREBY ORDERED that the Motion to
Vacate of Renewable Northwest Project and NW Energy Coalition is granted in part and the
additional scheduling set forth above is adopted.
AMENDED NOTICE OF SCHEDULING
ORDER NO. 30435
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this /1
day of September 2007.
J.~
MARSHA H. SMITH, COMMISSIONER
NER
ATTEST:
~/O
D. Jewel
Commission Secretary
bls/O:PAC-07-01- sw2
AMENDED NOTICE OF SCHEDULING
ORDER NO. 30435