20050914Exergy reply comments.pdf

Peter J. Richardson
ISB No. 3195
Richardson & O'Leary
515 N. 2ih Street
O. Box 7218
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter~ri chardsonando I eary. com
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Attorneys for Exergy Development Group of Idaho, Inc.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
ACIFICORP FOR APPROVAL OF A POWER)
PURCHASE AGREEMENT FOR THE SALE
AND PURCHASE OF ELECTRIC ENERGYBETWEEN P ACIFICORP AND SCHWENDIMAN WIND LLC
CASE NO. PAC-05-
REPLY COMMENTS OF EXERGY
DEVELOPMENT GROUP OF IDAHO
INC.
COMES NOW, Exergy Development Group of Idaho, Inc. ("Exergy ) and hereby lodges
its reply comments to the comments filed by the Staff of the Idaho Public Utilities Commission
Staff'
Staff recommends that the Commission not approve the contract between PacifiCorp and
the Schwendiman Wind LLC because it "does not comply with the required 90-110 percent
performance band criteria established in Order No. 29632." Staff Comments p. 8. However
before the conclusion can be reached that the contract must be rejected for failure to comply with
the 90/110 band, the Staff must show that the band actually applies to PacifiCorp. They have not
done so.
The 90/110 band is a concept adopted by this Commission in Case No. IPC-04-08 by
Order No. 29632. To support its assumption that Order No. 29632 is applicable to PacifiCorp,
staff recites, in a footnote:
Although Case No. IPC-04-08 arose from a complaint case against Idaho
Power, all three electric utilities, including PacifiCorp, participated because the
proceeding involved generic issues related to the methodology for computing
published rates and the refining eligibility criteria for them.
To further support its contention that Order No. 29632 has generic applicability Staff observed
that:
In fact, PacifiCorp offered a witness in the case who agreed with Idaho Power that
QFs should be required to commit to monthly (as opposed to daily or hourly)
delivery schedules in order to obtain firm energy prices. Tr. at 510-511.
While it may be interesting to note that PacifiCorp intervened, and in fact participated, in a
complaint case brought against Idaho Power by a third party, that fact alone does not expand the
scope of that complaint case to encompass all utilities operating under Commission jurisdiction.
Even if Order No. 29632 were generic, the mechanical availability provision in the
Schwendimen contract is a reasonable alternative to the 90/110 band concept that this
Commission is free to adopt for general applicability as well. In fact, a mechanical availability
requirement is a more accurate means to the end result - which is assurance of firm production.
With the 90/110 band concept, the developer is stuck trying to predict weather, which can, as we
all know, be fickle. While with a mechanical availability requirement, the developer is
responsible to insure the facility is on line and available to produce power a certain percentage of
the time. Thus, the mechanical availability concept is both more workable and more productive
in terms of firming up the production from a QF.
The Commission is respectfully requested to approve the Schwendimen contract without
the requirement of complying with a burdensome and unworkable 90/110 band.
Reply Comments
Respectfully submitted this 14th day of September 2005.
Richardson & O'Leary, LLP
AJ
Peter J. Richardson
Attorneys Exergy Development Group of Idaho, LLC
Reply Comments
CERTIFICATE OF SERVICE
I hereby certify that on this 14th day of September, 2005, the REPLY
COMMENTS OF EXERGY DEVELOMENT GROUP, INC. was sent to the following parties as
shown:
Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472 West Washington
Boise, Idaho 83702
iiewell~puc.state.id.
( ) U.S. Mail, Postage Prepaid
(X) Hand Delivered
( )
Overnight Mail
( )
Facsimile
( )
Electronic Mail
Bruce Griswold
Manager Origination
PacifiCorp
825 NE Multnomah Ste 1800
Portland OR 97232
(X) U.S. Mail, Postage Prepaid
( )
Hand Delivered
( )
Overnight Mail
( )
Facsimile
( )
Electronic Mail
Data Request Response Ctr
P aci fi Corp
825 NE Multnomah, Suite 800
Portland, OR 97232
(X) U.S. Mail, Postage Prepaid
( )
Hand Delivered
( )
Overnight Mail
( )
Facsimile
( )
Electronic Mail
Lisa Nordstrom
PacifiCorp
825 NE Multnomah, Suite 1800
Portland, Oregon 97232
lisa.nordstrom~pacifi corp. com
(X) U.S. Mail, Postage Prepaid
( )
Hand Delivered
( )
Overnight Mail
( )
Facsimile
( )
Electronic Mail
Brian D. Jackson
7800 Alfalfa Lane
Melba, ID 83641
(X) U.S. Mail, Postage Prepaid
( )
Hand Delivered
( )
Overnight Mail
( )
Facsimile
( )
Electronic Mail
Signed ~Jf\GJ.;\ ~Nina M. Curtis
CERTIFICATE OF SERVICE -