20120912Comments.pdf

DONALD L. HOWELL, II
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3366
RE CE V ED
?U2SEPI2 AM It: 5
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
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 ) COMMENTS OF THE
TO PROVIDE STATION SERVICE AT THE ) COMMISSION STAFF
POWER COUNTY WIND PARK NORTH
) LLC, LOCATED IN POWER COUNTY,
) IDAHO.
)
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of Record, Donald L. Howell II, Deputy Attorney General, and submits the following
comments in response to Order No. 32623 issued on August 22, 2012.
BACKGROUND
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 developer providing power to Rocky Mountain. 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,
STAFF COMMENTS 1 SEPTEMBER 12, 2012
operating instruments, and other equipment. In this case the wind developer (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(l).
THE APPLICATION
In their Service Area Exception Agreement dated August 14, 2012, the utilities agree to
allow Rocky Mountain to provide "station service" to a wind qualifying facility which is located in
the certificated service territory of Idaho Power in Power County, Idaho. The Application
maintains that the amount of 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 facility. Id. at 2-3. Rather than Idaho Power supplying station service to the wind
facility, 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 this Application under Modified Procedure.
THE ESSA
Idaho Code § 61-333(1) provides that electric suppliers may contract for the purpose of
"allocating 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 § 61-332A(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 § 61-332(2).
'In Order No. 32084 issued October 6, 2010, the Commission approved a Power Purchase Agreement (PPA) between
Rocky Mountain and Power County Wind.
STAFF COMMENTS 2 SEPTEMBER 12, 2012
STAFF REVIEW AND RECOMMENDATION
After reviewing the Application and Agreement, Staff believes that the Agreement is in
conformance with the provisions and purposes of the ESSA. More specifically, the Agreement
will allow the parties to avoid duplication of services and facilities, and promote harmony between
the electric suppliers. Idaho Code § 61-332(2). Because the wind park is interconnected with
Rocky Mountain's network, Rocky Mountain may efficiently provide station service to the wind
park. This avoids the need for Idaho Power to build facilities to serve the wind facility.
Application at 2-3. Staff further notes that station service is typically provided by the public utility
purchasing power from qualifying facilities.
Based upon our review of the Application and the Service Area Agreement, Staff
recommends that the Commission approve the Agreement.
Respectfully submitted this 1 i'~k day of September 2012.
Technical Staff: Rick Sterling
i:umisc:comments/pace 12.1 3dhrps comments
STAFF COMMENTS 3 SEPTEMBER 12, 2012
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 12TH DAY OF SEPTEMBER 2012,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. PAC-E-12-13, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
TED WESTON
DANIEL E SOLANDER
ROCKY MOUNTAIN POWER
201 5 MAIN ST STE 2300
SALT LAKE CITY UT 84111
JULIA HILTON
LISA NORDSTROM
IDAHO POWER COMPANY
P0 BOX 70
BOISE ID 83707-0070
DATA REQUEST RESPONSE CENTER
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CERTIFICATE OF SERVICE