20201123Application.pdf

Y ROCKY MOUNTAIN
POWER
: rtilft!1r.flr-\t 1--!'*i Y t-LJ
,i,?* i;'I't' t3 PH 3: 5l
1407 W. North Temple, Suite 330
Saft Lake City, Utah 84116
November 23,2020
YA ELECTRONIC DELIVERY
Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8 Suite 20lA
Boise,lD 83714
Re:CASE NO. PAC-EAO.fi
IN THE MATTER OF TIIE APPLICATION FOR APPROVAL OR REJECTION
OF THE AMENDED POWBR PURCHASE AGREEMENT BETWEEN
PACIFICORP AI\[D SUNNY BAR RANCH
Dear Ms. Noriyuki:
Please find for filing Rocky Mountain Power's amended Application in the above-referenced
matter.
Informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at (801) 220-
2963.
truly yours,
"^-D
Joelle R. Steward
Vice-President of Regulation
Enclosures
Emily L. Wegener, (pro hac vice)
Rocky Mountain Power
1407 West North Temple, Rm 320
Salt Lake City, Utah 84116
Telephone : [phone]
Email: [e-mail]
Attorneyfor Roclgt Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLTCATION ) cAsE NO. PAC_E-20_17
FORAPPROVAL OR REJECTION OF THE )AMENDED POWER PURCHASE ) APPLICATION OF
AGREEMENT BETWEEN PACIFICORP ) ROCKY MOUNTAIN POWER
AND SUNNYBARRANCH )
Rocky Mountain Power, a division of PacifiCorp, ("Company") respectfully requests,
pursuant to RP 52 and the applicable provisions of the Public Utility Regulatory Policies Act of
1978 ("PURPA"), that the Idaho Public Utilities Commission ("Commission") issue an order
approving or rejecting the amendment to extend for one year the Power Purchase Agreement
("PPA") between PacifiCorp and the Sunny Bar Ranch, ("Seller") dated October 23,2020.|n
support of this Application, Rocky Mountain Power states as follows:
I. INTRODUCTION
l. Rocky Mountain Power provides electric service to retail customers in the states of
Idaho, Wyoming, and Utah. Rocky Mountain Power is a public utility in the state of Idaho and is
subject to the Commission's jurisdiction with respect to its prices and terms of electric service to
retail customers pursuant to Idaho Code 61-129. Rocky Mountain Power provides retail electric
service to approximately 84,000 customers in the state of ldaho.
2. Seller owns, operates, and maintains a small hydro-electric power plant located in
Butte County, Idaho with a nameplate capacity rating of 350 kilowatts ("kW") (the "Facility").
Page I
Seller operates the Facility as a QualiSing Facility ("QF") under the applicable provisions of
PURPA.
3. Sections 201 and 210 of PURPA, and pertinent regulations of the Federal Energy
Regulatory Commission ("FERC") require that regulated electric utilities purchase electricity
produced by co-generators or small power producers that obtain QF status. The rate a QF receives
for the sale of its electricity is generally referred to as the avoided cost and must reflect the
incremental cost to an electric utility of electric energy or capacity or both, which, but for the
purchase from the QR such utility would generate itself or purchase from another source.
4. The Commission has authority under PURPA, Sections 201 and 210 and FERC
regulations, 18 C.F.R.S 292, to set avoided costs, order electric utilities to enter into fixed-term
obligations for the purchase of electricity from QFs, and implement FERC rules.
5. On December 18, 2012, the Commission issued Order No. 32697,1 which
established parameters for published and negotiated avoided cost rate calculations. The
Commission further established and defined numerous contract terms and conditions for standard
PPAs entered into between regulated utilities and QFs.
6. On January 2,2013, the Commission issued anBrrata to Order No. 32697, which
corrected published avoided cost rates to include energy payments not discounted by transmission
and line loss. Subsequently the Commission issued reconsideration Orders Nos. 32737 and32802
on February 5, 2013 and May 5, 2013, respectively, which further clarified certain terms and
conditions of PPAs.
I In the Matter of the Commissionb Review of PURPA QF Contract Provisions Including lhe Surrogate Avoided
Resource (SAR) ond Integrated Resource Planning (IRP) Methodologies for Calculating Avoided Cost Rates, Case
No. GNR-E-Il-03.
Page2
7. The energy service agreement ("ESA") contains published rates for projects of 10
average megawatts ("aMW") or less pursuant to Commission Order No. 34350. The Facility is an
existing QF that is seeking a one-year extension to the agreement ("Amendment"). The ESA
contains capacity payments for the entire term of the Amendment, therefore no sufficiency period
determination is necessary see Order No. 32697 at 2l-22, Order No. 32737 at 5, and Order No.
32871. Pursuant to the Commission's direction in its Reconsideration Order No.32737, the rates
were calculated by Commission Stafffor a QF in the "non-seasonal hydro" category based on the
surrogate avoided resource ("SAR") avoided cost methodology.
II. AMENDED POWER PURCIIASE AGREEMENT
8. The Seller's current PURPA contract is dated Jlur:re 27,1985. That PURPA contract
was entered into prior to PacifiCorp's separation of its energy supply and transmission functions
as required by federal law and regulations.
9. Therefore, the contract includes provisions that address both energy sales and
interconnection requirements. The current contract was scheduled to expire on April 30,2021, and
the Seller expressed a desire to continue to make sales from the Facility to PacifiCorp consistent
with the requirements of PURPA as implemented in the State of ldaho.
10. The Seller has demonstrated to PacifiCorp that the Facility remains a QF as defined
by PURPA and as implemented in the State of Idaho. The Seller and PacifiCorp are in the process
of securing a new stand-alone interconnection agreement that, after all distribution system
upgrades are constructed and in-service, will replace the interconnection provisions in the current
PURPA contract.
I l. During the period that the necessary distribution system upgrades are being
completed, PacifiCorp and the Seller have agreed to a limited one-year extension to the term of
Page 3
the current PURPA contract, with updated pricing for energy sales during the extended term. The
extension of the term is from May 1,2021, through April 30, 2022, and total nameplate capacity
of the facility remains unchanged at 350 kW.
12. The Seller has demonstrated to the Company's reasonable satisfaction that: (l) the
Facility's net energy will equal the energy delivery schedules for the extended term of this
Amendment; and (2) the likelihood that the Facility, under average design conditions, will generate
at no more than 2.5 aMW in any calendar month. The Facility's estimated net output over the
extended term is 219 megawatt-hours.
13. The Amendment submitted herewith, as Attachment 1, complies with the
Commission's previous orders, and except as otherwise indicated, the Company will pay the Seller
the price set forth in ExhibitAto theAmendment.
14. Paragraph 4 of the Amendment provides that the contract will not become effective
until the Commission has approved it and determined that the prices paid for energy and capacity
are just and reasonable, in the public interest, and that costs incurred by the Company for
purchasing energy and capacity are legitimate expenses, all of which the Commission will allow
the Company to recover in Idaho rates in the event other jurisdictions deny recovery of their
proportionate share of said expenses.
III. COMMUNICATIONS
15. Communications regarding this filing should be addressed to:
Ted Weston
Idaho Regulatory Affairs Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
salt Lake city, utah 841l6
Telephone : [phone]
Email: ted.weston@pacifi corp.com
IdahoDockets@pacifi corp.com
Page 4
Emily Wegener
Senior Counsel
Rocky Mountain Power
1407 WestNorth Temple, Suite 320
salt Lake city, utah 84116
Telephone : [phone]
Email: emily.we gener@oac ifi corp.com
In addition, Rocky Mountain Power requests that all data requests regarding this
Application be sent in Microsoft Word to the following:
By email (prefened): datarequest@pacifi corp.com
By regular mail: Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97232
Informal questions may be directed to Ted Weston, Idaho Regulatory Affairs Manager at
(80r)220-2963.
IV. MODINED PROCEDURE
16. The Company believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under Modified
Procedure, i.e., by written submissions rather than by hearing, pursuant to RP 201.
V. REQUEST FOR RELIEF
WHEREFORE, Rocky Mountain Power respectfully requests that the Commission:
(l) Issue an order authorizing that this maffer be processed by Modified Procedure;
(2) Approve or reject the Amendment to the power purchase agreement between Sunny
Bar Ranch and the Company without change or condition; and
(3) Declare that the avoided cost prices set forth in the Amendment are just and
reasonable, in the public interest, and that the Company's incurrence of such costs are
Page 5
legitimate expenses, all of which the Commission will allow Rocky Mountain Power to
recover in rates in Idaho in the event other jurisdictions deny recovery of their
proportionate share of said expenses.
DATED this 23'd day ofNovember, 2020.
Respectfu lly submitted,
ROCKYMOUNTAIN POWER
Emily L.
Attorneyfor Rocky Mountain Power
Page 6
Affachment 1
AMENDMENT
to
POWER PURCHASE AGRf, EMf, NT
between
SUNI\TY BAR RANCH I,LI,P
rnd
PrciliCorp
Ihis AMENDMENT (the "Amendment"), dated October /$_2020, amends that certain
POWER PURCHASE AGREEMENT between PacifiCorp, an Chegon corporation
("PacillCorp"), and Sunny Bar Ranch LLLP, as successor in interesl to Orville Nicholson doing
business as Nicholson Sunny Bar Ranch ("Setler"), dated lune 27, l9E5 (as amended,
supplemented and modified from time to lime, the "PPA"). Capitalized terms used but not
defined in this Amendment shall have the meaning set forth in the PPA.
RTCI'IALS
A. The PPA was entered into prior to PacifiCorp's separation of its eneryy supply and
transmission functions as required by federal law and regulations. For this reason, the
PPA includes provisions that address both eneryy sales and inlerconnection requirements.
B. I'he PPA is scheduled to expire by its terms on April 30,2021, and Seller has expressed a
desire to conlinue to make sales from the Facility to PacifiCorp consislent with the
requirements of the federal Public tftility Regulatory Policies Act ("P[IRPA"), as
implemented in the State of ldaho.
C. Seller has demonstrated to PacifiCorp that the Facility remains a "Qualiffing Facility" as
defined by PURPA and as implemented in the State of ldaho.
D. Seller and PacifiCorp are in the pR)cess of securing a new stand-alone inlerconnection
agreement that, once executed and all distribution system upgrades are constructed and
in-service, will replace the interconnection provisions in the PPA.
E. During the period thal the necessary distribution system upgrades are being completed,
Pacificorp and seller have ageed to a limited extension to the term of the ppA, with
updated pricing lor energy sales during lhe exl.ended term ofthe PPA as described below.
AGRTEMLNI'
PacifiCorp and Seller agree as follows.
L Article I of the PPA is amended and restated to read as follows:
"Unless terminated earlier pursuanl to the lerms of this Agreement, lhis
Agreement shall expire upon lhe earlier o/ (i) the e/fective date of a new power
purchase agreement between PaciliCorp and Seller pertaining lo the Facility; or
(ii) April 30, 2022."
2. Notwithstsnding any provision in the PPA to the contrary, Iirr the period beginning May l,
2021 through the end oI'the tenn of the PPA, PacifiCorp shall pay Scller as provided
in Exhibit A to this Amendment for the energy output of the Facility delivered to the
Point of Delivery as adjusted for l-osses.
3. Notwithstanding any provision in the PPA to the contrary, PacifiCorp shall nol tre
responsible to purchase the output of the Facility during periods that the Facility is
curtailed due to construction and completion of the distribution system upgrades
called for in the final, new stand-alone interconnection agreement between Seller and
PacifiCorp's transmission function.
4. This Amendment shall be effective once signed and delivered by both PacifiC--orp and
Seller and approved by the Idaho Public Utilities Commission.
5. All other terms and provisions of the PPA shall remain unchanged. Each party hereby
ratifies and confirms that except as expressly amended hereby, all of the terms,
conditions, covenanls, represenlations, warranlies and all other provisions ofthe PPA
rcmain in full force and elfect and are binding on such party, including Seller as
successor in interest under the PPA.
6. This Amendment shall be govemed by and construed in accordance with the laws of the
State of Idaho (without reference to its choice of law doctrine).
7. This Amendment may be executed in multiple counterparls, each of which when so
execuled and delivered shall be deemed to be an original and all of which taken
together shall constitute but one and the sarne instrument. Delivery of an executed
counterpart of this Amendment by electnrnic transmission (in .pdf form) shall be
equally as effective as delivery ofa manually executed counterpart.
I s i gnat ure page fo I I ow s J
IN WITNESS WHEREOI the parties below have caused this Amendment to be executed in
their respective names.
PaciliCorp
By Bruce Griswold *llXHfifii,iff *ffi!'
Name: Bruce Griswold
Title: Director, Short-termOrigination
Sunny Brr Rrnch LLLP
'litle:Partner
tlv:
Title: (ieneral Partner and l,imited Partner
f,XHIBTTA
Essrsvjsls
Energy Purchese Prlce = Eneryy Annual Rate * Monthly peak Multiplier
Table l: f,nergy Annurl Retos
Ycar
Encrgy Annual Rrte
$/lr{wh
2021 $51.1I
2022 $5 r .5E
Te ble 2 : Monthly On-Peak/Off-Peek Multipllert
Month On-Pork
Houm
Off-Pcrk
IIours
Ianuary l03o/o 94o/o
Feb,ruary l05o/o 97o/o
March 95o/o 8@/o
April 91Yo 760/o
Mav 92o/o 630/o
Iune 94o/o 650/o
Iuly l2lo/o 92o/o
August 12lo/o 1060/o
Septembcr 109/o Wo
Octobq llSo/o lOSo/o
November ll09o 960/o
Dcrrmber 1294/o l2v/o
Where:
"OfrPeak Hours" means all hours that are nol On-peak llours.
"on'Peak I{ours" means all hourc ending 07:00:00 rhrough 22:00:00 MplMonday through Saturday, excluding NERC designated holidays.