20051025Petitiion for reconsideration or amend.pdf

Dean 1. Miller ISB #1968
McDEVITI & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ill 83702
Tel: [phone]
Fax: [phone]
oe~mcdevitt -miller .com
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Attorneys for Schwendiman Wind LLC,
ORIGINAL
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application of Pacificorp
for the Approval of a Power Purchase Sale
Agreement for the Sale and Purchase of
Electric Energy Between PacifiCorp and
Schwendiman Wind LLC
Case No. PAC-O5-
PETITION FOR RECONSIDERATION
OR, ALTERNATIVELY, PETITION
TO AMEND
COMES NOW Schwendiman Wind LLC ("Schwendiman ), pursuant to IPUCRP 331-
340, and respectfully Petitions the Commission to reconsider Order No. 29880 for the reasons set
forth below. Alternatively, pursuant to IPUCRP 326, Schwendiman respectfully Petitions the
Commission to Amend Order No. 29880 for the reasons set forth below.
PETITION FOR RECONSIDERATION
Order No. 29880 is unreasonable because it requires Schwendiman to accept a purchase
power agreement containing a clause-the 90-110 performance band-which impairs the
commercial viability of the proposed project. At the time the performance band concept was
adopted in Order No. 29632 it may have been difficult to predict with certainty to financial
consequences for the discounted pricing scheme associated with the performance band. With the
passage of time and the opportunity for more extensive analysis, it has become apparent to
Schwendiman that the discounted pricing scheme severely jeopardizes the commercial viability
of the proposed project.
PETITION FOR RECONSIDERATION OR, AL TERNATIVEL Y, PETITION TO AMEND -
Schwendiman requests reconsideration by evidentiary hearing on the issue of impairment
of commercial viability. Schwendiman would present expert testimony analyzing the financial
effect on the proposed project of the discounted pricing scheme under various scenarios and
demonstrating that the discounted pricing scheme creates financial risks of an unacceptable
magnitude.
Parenthetically, Schwendiman notes the fact that other persons have signed agreements
containing a 90-110 clause is not particularly relevant. It is not known whether developers of
other projects performed an appropriate financial risk analysis or whether the other projects have
some special features that mitigate the risk of the discounted pricing scheme.
MOTION TO AMEND
Alternatively, Schwendiman respectfully Petitions the Commission to amend Order No.
29880 by removing the "Final Order" paragraph and thereby allow the order to remain
interlocutory for a period of time.
Subsequent to the issuance of Order No. 29880 Schwendiman has continued discussions
with PacifiCorp aimed at developing an agreement acceptable to the parties and the Commission.
In this regard, Schwendiman is awaiting receipt from PacifiCorp of alternative pricing proposals
which have been promised by the end of October. Additionally, Schwendiman, through its
counsel, has had preliminary discussion with Staff regarding possible alternatives to the
discounted pricing scheme. Schwendiman intends to pursue those discussions further. These
facts constitute new information within the meaning of IPUCRP 326(b).
By removing the "Final Order" paragraph from Order No. 29880 the Commission would
allow for the possibility that an amended purchase power agreement could be filed in this docket
thus avoiding the expense and effort associated with the opening and processing of a new
PETITION FOR RECONSIDERATION OR, ALTERNATIVELY, PETITION TO AMEND - 2
separate application. Schwendiman would keep the Commission advised as to the status of
discussions so that it can be determined whether an amended agreement will be submitted within
a reasonable time or whether this case should be closed.
DATED this 1.~day of October, 2005.
Respectfully submitted
r cDEvm
& MILLER LLP
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McDevitt & Miller LLP
420 W. Bannock
Boise, ID 83702
Phone: [phone]Fax: [phone]
Attorneys for Schwendiman Wind LLC
PETITION FOR RECONSIDERATION OR, ALTERNATIVELY, PETITION TO AMEND - 3
CERTIFICATE OF SERVICE
I hereby certify that on the ttaay of October, 2005, I caused to be served, via the
methodes) indicated below, true and correct copies of the foregoing document, upon:
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
O. Box 83720
Boise, ID 83720-0074
ij ewell(ippuc. state.id. us
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S. Mail
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Lisa Nordstrom
Dean Brockbank
PacifiCorp
825 N.E. Multnomah, Stet 1800
Portland, OR 97232
Ii sa. nordstrom~pacifi corp. com
Hand Delivered
S. Mail
Fax
Fed. Express
Email
PETITION FOR RECONSIDERATION OR, AL TERNATIVEL Y, PETITION TO AMEND - 4