20120816Application.pdf

the state of Idaho and is subject to the jurisdiction of the Commission. Rocky Mountain
Power is a public utility in the state of Idaho pursuant to Idaho Code § 61-129.
2.Idaho Power is a corporation incorporated under the laws of the state of Idaho,
and is subject to the jurisdiction of the Commission. Idaho Power is engaged in the business
of generating, purchasing, transmitting, and distributing electric energy and providing retail
electric service in the states of Idaho and Oregon. Idaho Power's principal offices are
situated in Boise, Idaho, and its address is 1221 West Idaho Street, Boise, Idaho, 83702.
3.As provided in the Purchase Power Agreement ("PPA') dated August 10,
2010, between Rocky Mountain Power and Power County Wind Park North, LLC, Rocky
Mountain Power shall purchase generation output of the electric power generation wind
facility ("Wind Facility") located in the certificated service territory of Idaho Power in Power
County, Idaho.
4.Through the existing interconnection between the Wind Facility and Rocky
Mountain Power's system, Rocky Mountain Power serves electric station service
requirements ("Facility Load") to the Wind Facility when generation output is insufficient to
serve the Facility Load, which is located in the certificated service territory of Idaho Power in
Power County, Idaho. Exhibit A shows the location of the Wind Facility located in the
certificated service territory of Idaho Power, and the relative locations of the Rocky
Mountain Power interconnection with the Wind Facility and the location of the nearest Idaho
Power electric facilities located at Sagebrush Estates. In consideration of the existing
interconnection of Rocky Mountain Power and the location of the nearest Idaho Power
facilities located at Sagebrush Estates, approximately 5 miles from that interconnection,
JOINT APPLICATION OF Page 2
ROCKY MOUNTAIN POWER
AND IDAHO POWER
Rocky Mountain Power has agreed to continue to serve the Facility Load, and Idaho Power
has agreed to allow Rocky Mountain Power to serve the Facility Load.
5.Pursuant to terms of the Electric Service Stabilization Act, I.0 § 61-333,
Rocky Mountain Power and Idaho Power have entered in to the Agreement dated August 14,
2012, wherein Rocky Mountain Power agrees to continue to serve the Facility Load, in the
certificated service area of Idaho Power, and Idaho Power agrees to allow Rocky Mountain
Power to serve the Facility Load.
6.The companies hereby jointly petition the Commission for approval of the
Agreement, wherein Rocky Mountain Power agrees to continue to serve the Facility Load, in
the certificated service area of Idaho Power, and Idaho Power agrees to allow Rocky
Mountain Power to serve the Facility Load.
7.Communications regarding this Application should be addressed to:
If to Rocky Mountain Power:
Ted Weston
Daniel E. Solander
201 South Main, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Fax: [phone]
Email: [e-mail]
[e-mail]
If to Idaho Power Company:
Julia Hilton
Lisa Nordstrom
1221 West Idaho Street
Boise, Idaho 83702
Telephone: [phone]
Email: [e-mail]
[e-mail]
JOINT APPLICATION OF Page 3
ROCKY MOUNTAIN POWER
AND IDAHO POWER
In addition, the Company respectfully requests that all data requests regarding this
matter be addressed to one or more of the following:
By e-mail (preferred) [e-mail]
By regular mail Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
WHEREFORE, Rocky Mountain Power and Idaho Power respectfully request that
the Commission process this application under Modified Procedure issuing a final order
approving the Service Area Exception Agreement dated August 14, 2012 between Rocky
Mountain Power and Idaho Power.
DATED this 16th day of August, 2012.
Respectfully submitted,
By
Attorney for Rocky Mountain Power
JOINT APPLICATION OF Page 4
ROCKY MOUNTAIN POWER
AND IDAHO POWER
SERVICE AREA EXCEPTION AGREEMENT
This Service Area Exception Agreement ("Agreement") is entered into by and between
Idaho Power Company ("Idaho Power"), whose address is 1221 West Idaho Street, Boise, Idaho
83702; and Rocky Mountain Power, a division of PacifiCoip, an Oregon corporation whose
address is 201 South Main Street, Suite 2400, Salt Lake City, Utah 84111 (individually referred
to herein as the 'Party' and collectively as the "Parties"). This Agreement shall be effective
upon the date of the last signature affixed hereto.
ARTICLE 1.
RECITALS AND BACKGROUND
1.1 Rocky Mountain Power is a provider of wholesale and retail electric service in the state
of Idaho. Rocky Mountain Power's retail certificated service territory encompasses portions of
the state of Idaho, including portions of Oneida, Bannock, Franklin, Caribou, and Bear Lake
Counties.
1.2 Idaho Power is a provider of retail electric service in the state of Idaho. Idaho Power's
retail certificated service territory encompasses portions of the state of Idaho, including areas
within Power County.
1.3 As provided in the Power Purchase Agreement between Rocky Mountain Power and
Power County Wind Park North, LLC, Rocky Mountain Power shall purchase generation output
of the electric power generation wind facility ("Wind Facility") located in the certificated service
territory of Idaho Power in Power County, Idaho. Through the interconnection between the
Rocky Mountain Power electric system and the Wind Facility Rocky Mountain Power also
serves electric station service requirements ("Facility Load") to the Wind Facility when the
generation output is insufficient to serve the Facility Load.
1.4 In accordance with the terms and conditions of this Agreement and as authorized by the
Electric Service Stabilization Act, I.C. § 61-333, Rocky Mountain Power agrees to continue to
serve the Facility Load, in the certificated service area of Idaho Power, and Idaho Power agrees
to allow Rocky Mountain Power to serve the Facility Load.
WHEREAS, the Parties agree that in consideration of the established interconnection
between Rocky Mountain Power and the Wind Facility, Idaho Power consents to Rocky
Mountain Power serving the Facility Load that is located within Idaho Power's service territory
in Power County, Idaho, subject to the other terms and conditions of this Agreement The
Parties acknowledge and agree that such service provided by Rocky Mountain Power shall be
provided subject to the tariffs, rules, and regulations of the Idaho Public Utilities Commission
("Commission").
ARTICLE 2.
LIMITATIONS
2.1 The Parties agree that, except as noted in this Article, this Agreement applies only to the
Facility Load.
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21 The Parties agree that as a result of this Agreement, the certificated service territory of
Rocky Mountain Power and Idaho Power shall remain unchanged and that certificated territory is
neither given up nor acquired by either utility as a result of this Agreement. Rocky Mountain
Power and Idaho Power will each at all times retain all legal and regulatory rights to serve loads
in the geographic location identified in its respective certificate of public convenience and
necessity. Further, the Parties agree that no certificated territory shall become dually certificated
by Rocky Mountain Power or Idaho Power as a result of this Agreement, and the Parties
acknowledge that any such change would require the approval of the Commission.
2.3 In the event the Wind Facility, or any subsequent owner of the Wind Facility expands
further into the Idaho Power service territory in either a contiguous or non-contiguous fashion,
Idaho Power will retain legal and regulatory rights to serve the Facility Load in its territory as
afforded in its certificate of public convenience and necessity, and Rocky Mountain Power will
not seek authority to serve in a permanent or temporary capacity the Facility Load through dual
certification or expansion of its certificate to serve without the consent of Idaho Power.
2.4 The Parties agree that regardless of the size of the Facility Load, Rocky Mountain
Power's service to the Facility Load within the Idaho Power service territory may be temporary
and is subject to termination of this Agreement as further provided for in Article 4.
ARTICLE 3.
IMPLEMENTATION
3.1 The Parties agree that Rocky Mountain Power may continue service to the Facility Load
in the Idaho Power service territory in accordance with this Agreement immediately coincident
with the Commission Order approving this Agreement
ARTICLE 4.
TERMINATION
4.1 This Agreement shall terminate upon the occurrence of any of the following
4.1.1 Idaho Power provides Rocky Mountain Power six-months written notice of Idaho
Power's intent to terminate this Agreement and to begin serving the Facility Load.
4.1.2 Rocky Mountain Power provides Idaho Power six-months written notice of Rocky
Mountain Power's intent to terminate this Agreement and to cease serving the Facility
Load.
4.1.3 In the event of termination under this Article 4.1, the Parties will negotiate in
good faith for Idaho Power to purchase from Rocky Mountain Power any of the
functioning and in-service electric distribution facilities owned by Rocky Mountain
Power and used solely to serve the Facility Load, whether in the service territory of
Rocky Mountain Power or Idaho Power whether or not useful to Idaho Power in serving
the Facility Load or other customers of Idaho Power, at Rocky Mountain Power's
depreciated book value. If, subject to good faith negotiations, Idaho Power purchases any
of the functioning and in-service electric distribution facilities owned by Rocky Mountain
Power, whether in the service territory of Rocky Mountain Power or Idaho Power, that
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are not useful to Idaho Power in providing service to its customers, Idaho Power will
remove such facilities at its own expense.
4.2 Notwithstanding anything to the contrary herein, service provided to the Wind Facility
shall be subject to conditions and term of service as approved by the Commission in Rocky
Mountain Power's tariffs.
ARTICLE 5.
NOTICE
5.1 Any notice required to be given hereunder shall be deemed to have been given when it is
sent, with postage prepaid, by registered or certified mail, return receipt requested, to the Parties
hereto at their respective addresses as follows:
To Idaho Power:
Idaho Power Company
General Counsel
1221 West Idaho Street
P.O. Box 70
Boise, Idaho 83707
To Rocky Mountain Power:
Rocky Mountain Power
Attn: Manager, Service Area
201 South Main Street, Suite 2300
Salt Lake City, Utah 84111
With a copy to:
Rocky Mountain Power
Attn: Senior Vice President and General Counsel
201 South Main Street, Suite 2400
Salt Lake City, Utah 84111
ARTICLE 6.
COVENANTS, REPRESENTATIONS, AND CONDITIONS
6.1 The Parties agree that this Agreement reflects unique circumstances relevant to the
Facility Load and therefore should not be considered by the Commission in any pending or
future deliberation, decision, or order regarding which utility should provide service to the Wind
Facility and that no Party shall request such consideration.
6.2 The above-stated recitals are incorporated into this Agreement and made a part of it by
this reference to the same extent as if the recitals were set forth in full at this point
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63 The Parties agree that this Agreement represents a compromise in the positions of all
Parties. As such, evidence of conduct or statements made in the negotiations and discussions
held in connection with this Agreement shall not be admissible as evidence in any proceeding
before the Commission or a court of competent jurisdiction.
6A This Agreement is conditioned upon Commission review and approval. In the event that
the Commission rejects or materially modifies this Agreement, or otherwise refuses to endorse
and approve the provisions of this Agreement, or should this Agreement or any of its provisions
be disapproved by any court of competent jurisdiction, then no Party shall be bound by the terms
of this Agreement Rather, in that event, each of the Parties shall be entitled to present in
pleadings, applications, testimony, and exhibits the positions that they determine best represent
their individual interests.
63 The Parties agree that the Agreement is in the public interest and that the terms and
conditions set forth herein are reasonable and just, and the Parties agree to advocate in good
faith, subject to any conditions set forth herein, and that the Commission approve this Agreement
in its entirety.
6.6 All negotiations relating to this Agreement are privileged and confidential.
6.7 To the fullest extent permitted bylaw, each of the Parties hereto waives any right it may
have to a trial by jury in respect to litigation directly or indirectly arising out of under, or in
connection with this Agreement Each Party further waives any right to consolidate any action in
which a jury trial has been waived with any other action in which a jury trial cannot be or has not
been waived.
6.8 Execution of this Agreement shall not be deemed to constitute an acknowledgment by
any of the Parties of the validity, or invalidity, of any particular method, theory, or principle of
regulation. The Agreement shall not be admissible as evidence in any other proceeding and no
Party shall be deemed to have agreed that any principle, method, or theory of regulation
employed in arriving at this Agreement is appropriate for resolving any issue in any other
proceedin&
SIGNATURE PAGE FOLLOWS
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IN WITNESS WHEREOF, the Parties have duly executed this Agreement on the dates
below.
IDAHO POWER COMPANY
a4-fo'~
Rex Blackburn
General Counsel
Dated this dayof 2012
ROCKY MOUNTAIN POWER
Senior Vice President and General Counsel
Dated this 1* day of 2012
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