20210408Application.pdf

Y ROCKY MOUNTAIN
POvt,ER
I , Lu'1407 W. North Temple, Suite 330
Salt Lake City, Utah 84116
1".' i.i] -8 FH 2: 52
April8,202l
VA ELECTRONIC DELIWRY
Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
I l33l W. Chinden Blvd
Building 8 Suite 20lA
Boise,ID 83714
Re:CASE NO. PAC-EAbfl
IN TIIE MATTER OF TIIT' APPLICATION FOR APPROVAL OR REJECTION
OF TIIE AMENDED POWER PTIRCHASE AGREEMENT BETWEEN
PACIFICORP AIYD GEORGETOWI\I IRRIGATION
Dear Ms. Noriyuki:
Please find for filing Rocky Mountain Power's Application in the above-referenced matter.
Informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at (801) 220-
2963.
Very truly yours,
R.
Vice-President of Regulation
Enclosures
Adam Lowney (ISB#I 0456)
McDowell Rackner Gibson PC
419 SW llftAvenue, Suite 400
Portland, OR 97205
Telephone: [phone]
Fax: [phone]
Email: [e-mail]
Emily Wegener (Idaho Bar application pending)
Rocky Mountain Power
1407 West North Temple, Rm 320
Salt Lake Ciry, Utah 84116
Telephone: [phone]
Email: [e-mail]
Attorneys for Roclry Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) cAsE NO. pAC_E_2u_tt
FOR APPROVAL OR REJECTION OF THE )AMENDED POWER PURCHASE ) APPLICATION OF
AGREEMENT BETWEEN PACIFICORP ) ROCKY MOUNTAIN POWER
AND GEORGETOWN IRRIGATION )
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 Georgetown Irrigation Company, ("Seller") dated March 30,
202l.In 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
Page I
retail customers pursuant to Idaho Code 6l-129. Rocky Mountain Power provides retail electric
service to approximately 84,000 customers in the state of Idaho.
2. Seller owns, operates, and maintains a small hydro-electric power plant located in
Bear Lake County, Idaho with a nameplate capacity rating of 330 kilowatts ("kW") (the
"Facility"). Seller operates the Facility as a Qualiffing 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 QF, such utility would generate itself or purchase from another source.
4. The Commission has authority under PURPA, Sections 201 and 210 and FERC
regulations, l8 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 an Errata to Order No. 32697, which
corrected published avoided cost rates to include energy payments not discounted by transmission
I In the Matter of the Commissionb Review of PURPA QF Contract Provisions Including the Surrogate Avoided
Resource (SAR) and Integrated Resource Planning (IRP) Methodologies for Calculating Avoided Cost Rates, Case
No. GNR-E-ll-03.
Page2
and line loss. Subsequently the Commission issued reconsideration Orders Nos. 32737 and 32802
on February 5, 2013 and May 5, 2013, respectively, which further clarified certain terms and
conditions of PPAs.
7. The Facility is an existing QF that is seeking a one-year extension to the PPA
("Amendment"). The PPA contains energy only payments for the entire term of the Amendment,
as an incentive to encourage the Seller to work towards completing the necessary upgrades to
receive a transmission interconnection agreement.
8. The Seller's original PURPA contract was dated July 2,1984. 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 included provisions that addressed both energy sales and
interconnection requirements. The current contract expired on March 31,2021, 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 Idaho.
10. On January 2, 2020, PacifiCorp sent a letter to the Seller with a transmission
interconnection application. On January 31,2020, the Seller responded to PacifiCorp and another
interconnection application was provided on February 3,2020. An email was sent in March 2020
and the Seller responded in April 2020 stating that they were working on the transmission
interconnection application.
I l. The Company made several attempts to contact the Seller in October 2020, frnally
contacting the Georgetown city clerk on October 20,2020, who identified herself as the Seller's
contact person. A conference call occurred November 5, 2020, with the Company and the Seller
Page 3
and the transmission voluntary contact consent form and transmission interconnection contact
information were emailed to the Seller.
12. Beginning again on January 12,2021 the Company made several unsuccessful
attempts through email, phone and text messages to contact the Seller to ascertain the status of the
transmission interconnection application, no response was received. Finally, the Company's
Regional Business Manager contacted the County Commissioner, a former Company employee,
and resident of Georgetown to arrange a meeting with the Georgetown Irrigation Company's board
members. On January 27,2021the Company met with the Seller's board and again explained the
requirement for the transmission interconnection application. On February 25,2021, the Company
contacted the Seller and was advised that an engineer had been hired to assist with the transmission
interconnection application.
13. During this time, the Company contacted Commission staffto discuss its concerns
about the lack of progress and possible next steps. Based on prior experience, the Company knew
that the Commission did not like to approve QF contract extensions. During this meeting the
Company and Staff discussed alternatives that might incent the Seller to work more expediently
to finalize the transmission interconnection agreement. One alternative discussed was to offer
"energy only rates" for the period of the extension when response was lacking from the Facility
owner.
14. The Company prepared the one-year extension to the PPA and emailed the PPA
with energy only rates to the Seller on March 5,2021. At that time the Seller still had not filed a
transmission interconnection application. On March 17,2021, the Seller submitted an incomplete
transmission interconnection application.
Page 4
15. On March 23,2021, the Company sent the extension agreement with the energy
only quali$ing facility rate to the Seller. On March 24,2021, after working with the Company the
Seller submitted a complete transmission interconnection application. On March 25,2021, the
Seller provided a signed copy of the extension agreement The Company executed the agreement
on March 30,2021.
II. AMENDED POWER PURCHASE AGREEMENT
16. 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 expired PURPA PPA.
17. 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 0.33 aMW in any calendar month. The Facility's estimated net output over the
one-year term is 2,038 megawatt-hours.
18. Until the Seller acquires a transmission interconnection agreement and a new PPA
is signed, the Company and the Seller have agreed to a limited one-year PPA, with energy only
rates. All other terms of the PPA remain unchanged, the PPA covers April I ,2021, through March
31,2022. The PPA can be terminated earlier if the Seller is able to secure the required transmission
interconnection agreement and negotiate a new long-term PPA prior to the end of this period.
19. The Amendment, submitted herewith as Attachment l, complies with the
Commission's previous orders, and except as otherwise indicated, the Company will pay the Seller
the price set forth in Exhibit A to the Amendment.
Page 5
20. The Amendment provides that the PPA 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.
III. COMMUNICATIONS
21. 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 84116
Telephone : [phone]
Email: ted.weston@pacifi corp.conr
IdahoDockets@pac ifi corp.conr
Emily Wegener
Senior Counsel
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake city, utah 84116
Telephone : [phone]
Email: emi ly. wesener@nacifi corp.corn
In addition, Rocky Mountain Power requests that all data requests regarding this
Application be sent in Microsoft Word to the following
By email (prefened) : datareq uest@pac i fl corp.conr
By regular mail: Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97232
lnformal questions may be directed to Ted Weston, ldaho Regulatory Affairs Manager at
[phone].
Page 6
IV. MODIFIED PROCEDURE
22. 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. REOUEST FOR RELIEF
WHEREFORE, Rocky Mountain Power respectfully requests that the Commission:
(l) Issue an order authorizing that this matter be processed by Modified Procedure; (2) Approve
or reject the Amendment to the power purchase agreement between Georgetown Irrigation
Company 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 legitimate expenses.
DAIED this 8ft day ofApril,z\zL
Respectfu lly submitted,
ROCKY MOI.JNTAIN POWER
Adam Lowney 104s6)
McDowell Rackner Gibson PC
419 SW llftAvenue, Suite 400
Portland, OR 97205
Telephone: [phone]
Fax: [phone]
Email: adam(@mrg-law.com
Emily L. Wegener (Idaho Bar admission pending)
1407 West North Temple, Suite 320
Salt Lake Ciry, Utah 84116
Telephone No. [phone]
Mobile No. [phone]
Email: [e-mail]
Attorneys for Roclcy Mountain P ower
Page 7
Attachment 1
AMENDMENT
to
POWER PURCEASE AGREEMENT
between
GEORGETOWN IRRIGATION COMPAhIY and
PacifiCorp
This AMENDMENT (the "Amendment"), dated Marcn$ ZOZL, amends that certain
POWER PURCHASE AGREEMENT between PacifiCorp, an Oregon corporation
('PacifiCorp"), and Georgetown Inigation Company ("Seller"), dated July 2,1984 (as amended,
supplemented and modified from time to timq the "PPA"). Capitalized terms used but not defined
in this Amendment shall have the meaning set forth in the PPA.
RECITALS
A. The PPA was entered into prior to PacifiCorp's separation of its energy supply and
transmission functions as required by federal law and regulations. For this reason, the
PPA includes provisions that address both energy sales and interconnection requirements.
B. The PPA is scheduled to expire by its terms on March 31,2021, and Seller has expressed
a desire to continue to make sales from the Facility to PacifiCorp consistent with the
requirements of the federal Public Utility Regulatory Policies Act ('PURPA"), as
implemented in the State of ldaho.
C. Seller has demonstrated to PacifiCorp that the Facility remains a "Quali$ing Facility" as
defined by PURPA and as implemented in the State of Idaho.
D. Seller and PacifiCorp are in the process of securing a new stand-alone interconnection
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 that the necessary distribution system upgrades are being completed,
PacifiCorp and Seller have agreed to a limited extension to the term of the PPA, with
updated pricing for energy sales during the extended term ofthe PPA as described below
AGREEMENT
PacifiCorp and Seller agree as follows.
Article I of the PPA is amended and restated to read as follows
"Unless terminated earlier pursuant to the terms of this Apyeement, this Agreement
shall expire upon the earlier of (i) the ffictive date of a new power purchase
ag{reement between PacrfiCorp and Seller pertaining to the Facility; or (ii) March
3/,,2022."
1
2.
3
6
7
4
5.
Notrrithstanding any provision in the PPA to the contrary, for the period beginning
April l, 2021 through the end of the term of the PPd PacifiCorp shall pay Seller as
provided in Exhibit A to this Amendment for the energy otrtput of the Facility delivered
to the Point of Delivery as adjusted for Losses.
Notwithstanding any provision in the PPA to the contrary, PacifiCorp shall not be
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
Pacifi Corp' s transmission function.
This Amendment shall be effective once signed and delivered by both PacifiCorp and
Seller and approved by the Idaho Public Utilities Commission.
All other terms and provisions of the PPA shall remain unchanged. Each party hereby
ratifies and confrrms that except as expressly amended hereby, all of the terms,
conditions, cov€nants, representations, warranties and all ctrer provisions of the PPA
remain in full force and effect and are binding on zuch party, including Seller as
suc,cessor in interest under the PPA.
This Amendment shall be governed by and constnred in accordance with the laws of
the State of Idaho (without reference to its choice of law doctrine).
ThisAmendment may be executed in multiple counterparts, each of which when so
orecuted and delivered shall be deemed to be an original and all of which taken
together shall constitute but one and the same instnrment. Delivery of an executed
counterpart of this Amendment by electronic transmission (in .pdf form) shall be
equally as effective as delivery of a manually executed counterpart.
I sigruture page follow sJ
IN WIINESS WHEREOF, the partier below have carsed thig Ameodmem to be exocubd in their
res@vc names.
PaciflCora
By:
. i lIgft.rysEn dbyBruc.
tsruce Gnswologts,ddDak 2021.0130 12:1142 4rO$
Name: Bruce Griswoldlltle: March 3O,2AZL
Ccorgcbmtrrlgr,ton
lltle:
By:
EXEIBIT A
Ener8y Rate
Enerry Purchase Price: Energy Annual Rate * Monthly Peak Multiplier
Table l: Energr Annual Rates
Year
Energr Annurl Rate
$tMwh
2021 $23.83
2022 $23.90
Teble 2: Monthly On-Peek/(Xf-Peak Multipliers
Month (h-Perk
Hours
Off-Peak
Hours
Januarv l03o/o 94%
Februanr l05o/"97o/"
March 95o/o 80%
Aoril 95o/o 76Yo
Mav 92o/o 630/o
June 94o/o 650/o
Julv 12lYo 92o/o
Aucust L2lo/o l060/o
Seotember L09o/"99o/o
October L15%t05%
November ll0o/"960/"
December 129"/o 120%
Where:
"Off-Peak Hours" means all hours that are not On-Peak Hours
"On'Peak Hours" means all hours ending 07:00:00 through 22:00:00 MPT,
Monday through Sahrrday, excluding NERC designated holidays.