20110310notice_of_application_order_no_32202.pdf

Office of the Secretary
Service Date
March 10 2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
ACIFICORP DBA ROCKY MOUNTAIN
POWER FOR APPROVAL OF A FIRM
ENERGY SALES AGREEMENT BETWEEN
IDAHO POWER AND CARGILL, INc.
) CASE NO. PAC-11-
) NOTICE OF APPLICATION
) NOTICE OF
) MODIFIED PROCEDURE
) ORDER NO. 32202
On February 16, 2011 , PacifiCorp dba Rocky Mountain Power filed an Application
requesting approval of a 10-year Firm Energy Sales Agreement (Agreement) between Rocky
Mountain Power and Cargill, Inc. The project (Facility) is located in Jefferson County, Idaho.
The project will be a "qualifying facility" (QF) under the applicable provisions of the federal
PURP A.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that, on February 8 , 2011 , Rocky Mountain Power
and Cargill entered into an Agreement. Cargill intends to own, operate and maintain a biogas-
fueled digester generating facility for the generation of electric power. Under the terms of the
Agreement, the Facility agrees to sell electric energy to Rocky Mountain Power for a 10-year
term using the current non-Ievelized published avoided cost rates as currently established by the
Commission in Order No. 31025 for energy deliveries of less than 10 aMW. Application at 2.
The nameplate rating of the Facility is 1.696 MW. Under normal and/or average conditions, the
Facility will not exceed 10 aMW on a monthly basis. Should the Facility exceed 10 aMW on a
monthly basis, Rocky Mountain Power will accept the energy, but will not purchase or pay for
the inadvertent energy. Agreement ~ 6.
A. The Agreement
YOU ARE FURTHER NOTIFIED that the Facility has selected seven days from the
service date of the Commission s Order approving the Agreement as its Scheduled Commercial
Operation Date. Application at 3. Rocky Mountain Power asserts that various requirements
have been placed upon the Facility in order for Rocky Mountain Power to accept the Facility
energy deliveries. Rocky Mountain Power states that it will monitor the Facility s compliance
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32202
with initial and ongoing requirements through the term of the Agreement. The parties have
agreed to delay liquidated damages and security provisions. Agreement ~~ 2.4., 10.1. Rocky
Mountain Power states that the Facility has also been made aware of and accepted the provisions
in the Agreement regarding curtailment or disconnection of the Facility should certain operating
conditions develop on Rocky Mountain Power s system. Agreement ~ 6.
YOU ARE FURTHER NOTIFIED that, by its own terms, the Agreement will not
become effective until the Commission has approved all of the terms and conditions and declares
that all payments made by Rocky Mountain Power to the Facility for purchases of energy "are
just and reasonable, in the public interest, and that the costs incurred by (Rocky Mountain
Power) for purchases of capacity and energy from (Cargill) are legitimate expenses, all of which
the Commission will allow (Rocky Mountain Power) to recover in rates in Idaho in the event
other jurisdictions deny recovery of their proportionate share of said expenses." Agreement
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing for this Application and will proceed under
Modified Procedure pursuant to Rules 20 I through 204 of the Idaho Public Utilities
Commission s Rules of Procedure, IDAPA 31.01.01.201 through .204. The Commission notes
that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on the
Application may file a written comment in support or opposition with the Commission no later
than April 7, 2011. The comment must contain a statement of reasons supporting the comment.
Persons desiring a hearing must specifically request a hearing in their written comments.
Written comments concerning the Application shall be mailed to the Commission and Rocky
Mountain Power at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32202
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Daniel E. Solander
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, UT 84111
Mail: danie1.solander~pacificorp.com
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
Ted Weston
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, UT 84111
Mail: ted.weston~pacificorp.com
Comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov.Click the "Comments and Questions
icon and complete the comment form using the case number as it appears on the front of this
document. These comments must also be sent to Rocky Mountain Power at the e-mail addresses
listed above.
YOU ARE FURTHER NOTIFIED that Rocky Mountain Power may file reply
comments (if necessary) no later than April 14, 2011.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider the Application on its merits and
enter an Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices. The Application is also available on the Commission s web site at
www.puc.idaho.gov by clicking on "File Room" and then "Electric Cases.
YOU ARE FURTHER NOTIFIED that all proceedings in these cases will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and the Public Utility
Regulatory Policies Act of 1978 (PURP A). The Commission has authority under PURP A and
the implementing regulations of the Federal Energy Regulatory Commission (FERC) to set
avoided costs, to order electric utilities to enter into fixed-term obligations for the purchase of
energy from qualified facilities and to implement FERC rules.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDUREORDER NO. 32202
YOU ARE FURTHER NOTIFIED that all proceedings regarding the Application
will be conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000
seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than April 7, 2011.
IT IS FURTHER ORDERED that Rocky Mountain Power may file reply comments
no later than April 14, 2011.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
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day of March 2011.
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. KEMPTON, P SIDENT
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFO
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ATTEST:
f#~~MD. Jewel
Commission Secretary
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NOTICE OF APPLICA nON
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32202