20150319Answer to Clearwater and Simplot.pdf

Daniel E. Solander (ISB # 8931)
Yvonne R Hogle (ISB #8930)
201 South Main Street, Suite 2400
Salt Lake ciry, utah 841l1
Telephone No. [phone]
Facsimile No. [phone]
daniel. solander@pacifi corp. com
Attorneys for Roclcy Mountain Power
BEFORE TIIE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TIIE )
APPLICATTON OX'ROCKY ) CASE NO. PAC-E-15-03
MOITNTAIN POWER FOR ) IPC-E-15-01
MODTIIICATION OF TERMS AIID ) AW.E.15-01
coNDrTroNs oF PURPA PURCHASE )
AGREEMENTS AI{D FOR ) ROCr(Y MOTTNTATN POWER'S
MODIFICATION OF ITS AVOTDED ) AI{SWER TO CLEAR}VATER
cosr METTIoD0LOGY ) PAPER CORPORATTON AIYD J.R
) SIMPLOT COMPAIYY'S JOINT
IN Trm MATTER OF IDAHO POWER ) PETTTTON AtrD CROSS-PETTTTON
coMpAlry,s pETrrroN To MoDIF T ) roR cLARrncATroN oF oRDER
TERMS AI\iD CONDITIONS OF ) NO. 33222
PROSPECTIVE PTJRPA ENERGY )
SALES AGREEMENTS )
)
rN Tm MATTER OF AYTSTA )
CORPORATION'S PETITION TO )
MODIFY TERMS AT{D COI\IDITIONS )
oF PROSPECTTyE PURPA )AGREEMENTS )
)
)
)
ROCI(Y MOUNTAIN POWER'S ANSWER TO CLEARWATER
PAPER CORPORATION AND J.R. SIMPLOT COMPAI\TY'S JOINT PETITION
AI\ID CROSS-PETITION FOR CLARTTTCATION OF ORDER NO. 33222
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Comes now, Rocky Mountain Power (or the "Company'') pursuant to Rule 57 of the
Commission's Ruies of Procedure, 31.01.01.57 and the time&ame established in the March 13,
2015, letter from Don Howell to the Idaho Public Utilities Commission (the "Commission')
inforrring the Commission of the outcome of the infonnal prehearing conference in this Case,
and hereby submits its Answer to the Joint Petition and Cross-Petition for Clarification ("Joint
Petition') filed by Clearwater Paper Corporation and J.R Simplot Company f?etitioners") in
this proceeding.
l. On February 25,2015, Petitioners filed their Joint Petition. In the Joint PetitiorU
they recommend that the Commission amend Order No. 33222 to read as follows:
IT IS HEREBY ORDERED ttrat effective February 5,2A15, and pending furttrer order of
the Cornmission, the maximum contactual term for Idaho Power's new intermittent (solar
and wind ppwer) PT RPA contacts shall be five years.r
2. In support of their recommendation, Petitioners claim that Idatro Power's Petition
was "actually narrowly targeted at just wind and solar interrrittent resotrces that exceed the
published rate eligibillty cap of 100 kW.'2 Petitioners also claim that "Idaho Power's Petition is
only about its alleged difficulty in accepting and paying for long-term wind and solar PURPA
QF projects."3
3. Although the Joint Petition was filed prior to Rocky Mountain Power's Petition
for Modification of Telrrs and Conditions of PURPA Purchase Agreements and for Modification
of its Avoided Cost Methodology, the Commission has combined the cases of the three Idatro
utilities and Rocky Mountain Power therefore desires to provide a response to the Joint Petition.
I Joint Petition at 4.
' Joint Petition at 2.3 Joint Petition at 3.
4. Rocky Mountain Power noted in its Petition that it has experienced a significant
increase in QF pricing requests, and has no need for resources until 2028. The Company also
stated that cunent Idaho avoided cost rates are adversely impacting customers and will continue
to do so. There is nothing in Rocky Mountain Power's Petition that differentiates between an
intemrittent (solar or wind) QF resource and a non-interrtittent resource.
5. The Company's continued specific requests for relief in this case axe: (l) an
immediate reduction on a temporary basis, of the maximun contact term for PURPA contracts
between QFs and the Company from 20 years to five years, pending final resolution of this case;
(2) permanent reduction of the maximum contract term for PURPA contracts from 20 years to 3
years to be consistent vnth other Company policies; and (3) modification of the way the
Company implements indicative pricing such that preparation of indicative pricing for QFs
reflects all active QF projects in the pricing queue alread of any newly proposed requests for
indicative pricing. None of the Company's specffic requests for relief differentiate between solar
and wind QFs and non-intermittent resounces.
6. Petitioners' ciaim that "[nJone of ldaho Power's arguments apply to base-ioad
facilities utilizing waste heat, biomass, or industial cogeneration such as Clearwater's base-load
capacity non-intermittent QF project or Simplot's existing base-load industial cogeneration
facility.' Whether or not this claim is upheld by the Commissio& the converse is tue for Rocky
Mountain Power's Petition: the argrrments and evidence incltrded in Rocky Mountain Power's
Petition apply to all resource types and not only to intermitt€nt resourc€s. Each of the claims
with respect to the harm to ratepayers that is occurring apply equally regardless of the resource
qPe.
WHEREFORE, Rocky Moutain Power respectfully requests thx the Commission: (1)
deny Petitioners Request to Cladry Onder No.33222W adding'@
rc!)" to the ordering paragnpb and (2) clarifr that the requested interim relief of five-year
morimum leagth contacts does not apply to PLTRPA Qf projests eligible for published rdes.
DATED this 19m day of lvlarch 2015.
Respectfirlly submitto4
ROCKYMOI.'NTAIN POWER
Attorneyfor Rochy Mountain Paryer
Daniel E. Solander
CERTIFICATE OF SERVICE
I hereby c€rtify that on this l9e of lvlarch 2015, I oaused to be serve( via e-mait a tnrc
and conect copy of fte foregorng dooument iu Case Nos. PAC-E-I543/IPC-E-15-
01/AW-81541 to the following:
Donovan E. Walkcr
Idaho PortrC.ompany
l22l W.Idaho St (837t2)
F0 Box 70
Boise,ID 837fi-4070
RicfrEd llalmgren
Seniu Assistant Gcncnl Counsel
MiqmTcchnologr, Inc.
8@ 5. Fodcral Way
Boisc,ID E3716
[e-mail]
P€erJ. Richadson
GrcgoryM.Adms
RichmdsonAdams, PIIC
515 N.27t SEct
Boisc, ID t3702
eqtcdArichrdsolgdarts,c,om
[e-mail]
lvIUVosp
Idrho Coarervatirm Lcague, Sicrra Club
85 Socotrd Succt Zd fho
Sm Franoisoo, CA 94105
Mffi .ve+a4Psicrmclub.ort
DemJ.Millcr
Mclhwit& MillcrLLP
*mW. B@ocI( St
Boisc,ID t3702
[e-mail]
MichelG. ArfroE
Avista Corporation
l4l I East Mission Avr. - MSC-23
Spokme WAW202
Irion Smgcr
SmgaLawP.C
1l17 SW 53dAvmus
Pdtle{OR.97215
irion(dsmmr-law.com
DorddL. Howall, II
DapheHumg
Idrho Pnblic Utilitics Cmmissim
4TlW,Washingtm ($7A2)
P0 Box E3720
Boirc,ID E3720il74
donhouell@pnc. ideho.qov
daphc-humg@prc. idaho.mv
FredcrickJ. Schlrd{t
MioonTechnolory, Ino.
377 S, Ncvsds Stncct
Cmon City, NV t9701
Echmidt@hollandbutcom
Don Rflding
6070 HillRosd
Boisc, ID &1703
LcifElgcthm, PE, LEED AP
Infsromtain Encrry Paftncffi, LLC
PtO Bq 7354
Boisc,ID 83707
hif@sitobascdsDrrst/.com
KelseyJrcNurcz
Snrko RivaAlliancc
POBox 173t
Boicc,ID E3701
ClintKalich
Ardste Corportion
t41 I Erst Misrion Avc. - MSC-23
Spolrmc,WA992V2
CtinlKalich@avisaco+.com
r inf daqcrvairfOavr stam,rp.com
ScomDalc Bliclcnstatr
Amdgun$ed Sugar Corpany
19515. S&rm Way, Suite 100
Boir€, ID t3702
C. Tom Artoosh
ArtooshLawOffices
802 W. Bamock St., StE.900 (E3702)
P0 Box29flI
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ttro.atoosbfAa*oostLcom
Eric L Olsen
Rlcine, Obon, Nyc, Budge & Bailcy, Chartaed
201 E Ccffir
P0Box 1391
Pocdcllo, ID E3204-139 I
clo@irrinclaw-nst
&otrDslc Blickenstaff
Ihc &algamaEd SugrCo LLC
l95l S. Safirn $ray, Suib 100
Boise,ID E37(D
sblir*f ostafr 6iamalsurar.com
Ted Weston
Rocky MounEin Powcr
201 S. MEiD SEeet Suib 2300
Salt Iake City, IJT 841 I I
Yvonne Hogle
RoclcyMomAin Porwr
201 S. Mah Slrcct, Suitg 2300
SeltLskc City, Utah Mlll
l-vome.hoeicrfu acificorp.cm
Erin Cccil
Arkooeh LEw Offices - Electonic Copies Only
Erincccil@Ca*oosh.corn
Anthony Yankel
29t14 lrke Road
BayVillagc, OH44l/t0
[e-mail]
Data RequostRcryonse CenE- Electronic Copies
Only
PrcifiCorp
dueqrrstrODaciftorp.com
Daniel Solmder
Roclcy Moutain Po*tr
201 S. I\rlain Suecr, Suite Zi00
Selt lrbCity, urah 84111
Danicl. Sohndcr@oacifi com. com
Superrrisor, Regulatory Opcrations