20130530notice_of_application_order_no_32820.pdf

Office of the Secretary
Service Date
May 30,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF PACIFICORP DBA ROCKY MOUNTAIN )CASE NO.PAC-E-13-07
POWER FOR APPROVAL OF A POWER )
PURCHASE AGREEMENT BETWEEN )NOTICE OF APPLICATION
PACIFICORP AND ST.ANTHONY HYDRO,)
LLC )NOTICE OF
)MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.32820
On April 15,2013,PacifiCorp dba Rocky Mountain Power filed an Application for
approval of a Power Purchase Agreement (PPA)between itself and St.Anthony Hydro,LLC.
St.Anthony Hydro (a potential “qualifying facility”(QF))is an Idaho limited liability company
that has made an offer to purchase Rocky Mountain’s hydroelectric facility at St.Anthony in
Fremont County,Idaho.See Case No.PAC-E-1 3-06.The PPA’is contingent on the
Commission’s approval of the utility’s application to sell its existing (but inoperable)
hydroelectric facility to St.Anthony Hydro.PPA at §2.1.The hydro facility is not currently in
operation but St.Anthony Hydro expects to repair the facility and estimates a capacity rating of
700 kW.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Rocky Mountain and St.Anthony Hydro
entered into their PPA on December 20,2012.Application at 1.Under the terms of the
Agreement,St.Anthony Hydro has contracted to sell the output from its hydroelectric facility to
Rocky Mountain for a term of approximately 20 years beginning on or about November 30,
2013.The PPA is structured as a 90-110%banded agreement.Rocky Mountain will pay non
levelized,conforming energy or non-conforming energy prices “for capacity and energy adjusted
When Rocky Mountain initially filed its Application,the PPA was marked confidential and proprietary.AfterdiscussionswithCommissionStaff,on May 17,2013,Rocky Mountain resubmitted the PPA as a non-confidential,public document.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.32820 1
for seasonality and On-Peak/Off-Peak Hours in accordance with Commission Order No.
[323371.2 Id.atJ4.
YOU ARE FURTHER NOTIFIED that Section 2.1 of the PPA provides that the
contract will not become effective until:(1)the Commission has approved the PPA;and (2)the
Commission has approved and the parties have closed on the sale of the hydro facility from
PacifiCorp to St.Anthony.Application at ¶6.
YOU ARE FURTHER NOTIFIED that the parties have agreed that the commercial
operation date for the facility is defined as 180 days after the effective date of the contract.The
parties have further agreed that various requirements will be placed upon the QF in order for
Rocky Mountain to accept energy deliveries from the facility.Id.at ¶7.Rocky Mountain will
monitor compliance with these initial requirements,and additional requirements through the full-
term of the Agreement.The PPA also provides that the renewable energy credits (RECs)will be
split between the parties with Rocky Mountain taking the first 10 years of RECs and the QF
taking the last 10 years.PPA at §4.5.
YOU ARE FURTHER NOTIFIED that by its own terms,the PPA will not become
effective until the Commission has approved all of the terms and conditions and declared that all
payments made by Rocky Mountain to the QF for the purchase of “energy and capacity are just
and reasonable,in the public interest,and that cost incurred by PacifiCorp for purchasing
capacity and energy from [the QF]are legitimate expenses,all of which the Commission will
allow PacifiCorp to recover in rates in Idaho in the event other jurisdictions deny recovery of
their proportional share of said expenses.”Id,at ¶6.
YOU ARE FURTHER NOTIFIED that the utility requests that this Application be
processed under Modified Procedure.Id.at 11.However,the Company stands ready to present
testimony in support of its Application if the Commission determines that a technical hearing is
required.
NOTICE OF MODiFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
2 The Company’s Application references Order No.30480 but the proposed rates contained in the PPA are fromOrderNo.32337.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32820 2
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.
YOU ARE FURTHER NOTIFIED that the Application and PPA have been filed
with the Commission and are available for public inspection during regular business hours at the
Commission offices.The Application and PPA are also available on the Commission’s web site
at by clicking on “File Room”and “Electric Cases,”and then clicking on
the case number,PAC-E-13-07.
YOU ARE FURTHER NOTIFIED that the Commission does not intend to hold a
hearing in this proceeding unless it receives written protests or comments opposing the use of
Modified Procedure.Persons desiring a hearing must specifically request a hearing in their
written comments and state why Modified Procedure is inappropriate in this case.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission
within twenty-one (21)days from the service date of this Notice.The comment must contain
a statement of reasons supporting the comment.Written comments concerning this Application
shall be mailed to the Commission and Rocky Mountain Power at the addresses reflected below:
Commission Secretary Daniel E.Solander
Idaho Public Utilities Commission Senior Counsel
P0 Box 83720 Ted Weston
Boise,ID 83 720-0074 Idaho Regulatory Affairs Manager
Rocky Mountain Power
Street Address for Express Mail:201 S.Main Street,Suite 2300
Salt Lake City,UT 84111
472 W.Washington Street E-Mail:
Boise,ID 83702-591 8 ted.weston(thpacificorp.com
Bruce Griswold
Director,Short-Term Origination
PacifiCorp
825 N.E.Multnomah,Suite 1800
Portland,OR 97232
E-mail:bruce.griswold(pacificorp.corn
These 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”
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32820 3
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 at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §61-502.The Commission may enter any final Order consistent with its authority
under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 ci seq.
ORDER
IT IS HEREBY ORDERED that this matter be processed under our rules of Modified
Procedure,IDAPA 31.01.01.201-204.
IT IS FURTHER ORDERED that persons interested in filing written comments
regarding this matter should do so no later than 21 days of the service date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 3O
day of May 2013.
ATTEST:
bls/O:PAC-E-I 3-O7dh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32820
PAUL KJEL ER,PRESIDENT
MACK A.RE F RD,COMMISSIONER
L it
MARSHA II.SMITH,COMMISSIONER
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