20120921final_order_no_32646.pdf

Office of the Secretary
Service Date
September21,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
FOR APPROVAL OF A SERVICE AREA )CASE NO.PAC-E-12-13
EXCEPTION AGREEMENT BETWEEN )
PACIFICORP DBA ROCKY MOUNTAIN )
POWER AND IDAHO POWER COMPANY )
TO PROVIDE STATION SERVICE AT THE )
POWER COUNTY WIND PARK NORTH )ORDER NO.32646
LLC LOCATED IN POWER COUNTY,)
IDAHO )
On August 16,2012,PacifiCorp dba Rocky Mountain Power filed a “Joint
Application”seeking the Commission’s approval of a “Service Area Exception Agreement”
between itself and Idaho Power Company.Under the terms of the Agreement,Rocky Mountain
will be allowed to provide “station service”to a wind generating project providing power to
Rocky Mountain.In this case the wind project (Power County Wind Park North)is located in
Idaho Power’s service territory.’The utilities have executed their Agreement pursuant to the
provisions of the Electric Supplier Stabilization Act (“ESSA”)and specifically Idaho Code §61-
333(1).
On August 22,2012,the Commission issued a Notice of Modified Procedure
requesting public comment on the parties’Allocation Agreement.Order No.32623.The only
comments submitted were from the Commission Staff and it recommended approval of the
Agreement.In this Order,the Commission grants the Application and approves the Agreement.
THE APPLICATION AND AGREEMENT
In their Service Area Exception Agreement dated August 14,2012,the utilities agree
to allow Rocky Mountain to provide “station service”to the wind qualifying facility which is
located in the certificated service territory of Idaho Power in Power County,Idaho.The term
“station service”typically refers to the electric service provided to a generating facility when the
facility is not generating sufficient power to meet its own electric requirements for lighting,heat,
operating instruments,and other equipment.The Application maintains that the amount of
In Order No.32084 issued October 6,2010,the Commission approved a Power Purchase Agreement (PPA)
between Rocky Mountain and Power County Wind.
ORDER NO.32646 1
electric power generated by Power County Wind is insufficient to serve the Facility.”
Application at 2.The Application further states that the nearest Idaho Power facilities are
approximately five miles from the point where Rocky Mountain interconnects with the wind
project.Id.at 2-3.Rather than Idaho Power supplying station service to the wind project
delivering generation to Rocky Mountain,the utilities have agreed to allow Rocky Mountain to
provide such service.The utilities contemplate no changes in their certificated service territories.
Agreement at §2.2.The utilities also requested that the Commission process the Application
under Modified Procedure.
THE ESSA
Idaho Code §6 1-333(1)provides that electric suppliers may contract for the purpose
of al1ocating territories,consumers,and future consumers ...and designating which territories
and consumers are to be served by which contracting electric supplier.”Under the ESSA,both
Rocky Mountain and Idaho Power are defined as electric suppliers.Idaho Code §6l-332A(4).
After notice and opportunity for hearing,the Commission may approve agreements allocating
service territories and/or customers between electric suppliers only upon finding that the
allocation is in conformance with the purposes of the ESSA.Idaho Code §61-333(1).The
purposes of the ESSA are to:(1)discourage duplication of facilities;(2)prohibit ‘pirating”of
consumers;(3)stabilize electric suppliers’service territories and consumers:and (4)promote
harmony between electric suppliers.Idaho Code §6 1-332(2).
STAFF COMMENTS
In its comments,Staff noted that the Agreement will allow the parties to avoid
duplication of services and facilities,and promote harmony between the utilities.Because the
wind park is interconnected with Rocky Mountain’s network,Rocky Mountain may efficiently
provide station service to the wind park.Consequently,there is no need for Idaho Power to build
facilities to serve the wind project.Comments at 3.Staff also noted that station service is
typically provided by the public utility purchasing power from the QF.Based upon its review of
the Application and Agreement.Staff recommended that the Commission approve the
Agreement.Id
COMMISSION FINDINGS
Based upon our review of the Application and the comments,we find that the
Application for approval of a customer exchange agreement should granted.We further find that
ORDER NO.32646 2
the Agreement is consistent with the purposes of the ESSA by avoiding the unnecessary
duplication of facilities while providing the wind project with station service.Further,both
electric suppliers support the Agreement.Therefore,we find it is appropriate for the
Commission to issue this Order approving the Application and Agreement.Idaho Code §61-
333(1).
ORDER
IT IS HEREBY ORDERED that the Joint Application submitted by PaciliCorp dba
Rocky Mountain Power and Idaho Power Company seeking approval of a “Service Area
Exception Agreement”is granted.The Commission also approves the Agreement to allocate the
wind project customer to Rocky Mountain for purposes of providing station service.
THIS IS A FINAL ORDER.Any person interested in this Order (or in issues finally
decided by this Order)or in interlocutory Orders previously issued in this Case No.PAC-E-12-
13 may petition for reconsideration within twenty-one (21)days of the service date of this Order
with regard to any matter decided in this Order or in interlocutory Orders previously issued in
this case.Within seven (7)days after any person has petitioned for reconsideration,any other
person may cross-petition for reconsideration.See Idaho Code §6 1-626.
ORDER NO.32646 3
DONE by Order of the Idaho Public Utilities Commission at Boise.Idaho this /
day of September 2012.
ATTEST:
Jean D.Jewell
Commission Secretary
bls/O:PAC-E-12-I 3dh2
MACK A.REDFORD,COMMISSIONER
/.)
/
MARSHA H.SMITH.COMMISSIONER
ORDER NO.32646 4