20210127CEM Letter.pdf

CENN Commer ctal Ener em entMana
ppc_ E- Zo-o1
Inc.
Secretary, Idaho Public Utilities Commission '. i
P.O. Box 83720 Boise, ID 83720-0074 'T,,,
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Boise,ID 83714 :::,.:'l,'i .
January 26,202t rir:: "
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f', t. ';'Dear Commission Secretary, ryl,:j
We have been in contact with PacifiCorp since August lg,2}lg for the renewal ofbur
Power Purchase Agreement (PPA) terminated May 31,2020.
P.O, Box 4518, Pocatello, Idaho83205 - email: maherl04l @aol.com - Tel [phone]
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As request by PacifiCorp to upgrade the lnterconnection facility before a new PPA can be issued, an
Agreement between PacifiCorp and CEM was executed on March 24,2020.
Because of the delay in PacifiCorp's execution of the Interconnection work, they issued an
Amendment of PPA dated March20,2020 (see attachment) with a termination clause states
"ltlrLless terrninated earlier pursunnt to the ter-ms of tltis
Agreernent, th.is Agreernent sllq,ll erpire upon the earlier oI (i) tlrc
effectiue date of a rleu) poLuer purchase agreentent betrueen
PacifiCorp and SeLLer pertaining to the facilitg; or (tl.) Marclt
20 21 . " The Amendment listed Energy in accordance with the approved IPUC published rates of
June 01, 2019 inTable 1 as follows:
Y ear 2020 - $55.66llvIWh,
Y ear 2021 - $56.3 s/lvlwh.
As the PacifiCorp's lnterconnection work has not finished yet, they listed the power rates of 2020
for the new PPA. These new rates are much lower than those of 2019.
As stated, before that the delay in processing the new PPA is not our fault, but PacifiCorp, we feel
that the power rates published in June 01,2019 should be applied to the new PPA.
As we are in a time constraint to sign the new PPA before end of February 2021, we would
appreciate receiving IPUC's position on this critical issue as soon as possible. Thank you.
Maher Wissa
President
Commercial Energy Management, lnc.
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IV
AMENDMENT
to that certain
POWER PURCHASE AGREEMENT
Between
Commercial Energy Management, Inc.
And
PacifiCorp
This AMENDMENT (the "Amendment"), dated March 20, 2020, amends that certain
POWER PURCHASE AGREEMENT between PacifiCorp, an Oregon corporation
('PacifiCorp"), and Commercial Energy Management, Inc., an Idaho corporation ("Seller"),
dated November 21, 1991 (the "PPA"). Capitalized terms used but not defined in this Amendment
shall have the meaning set forth in the PPA.
BACKGROI.JND
A. PacifiCorp and Seller entered into the PPA 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 May 31,2020, 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 "Qualifying 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 of the PPA as described below
AGREEMENT
PacifiCorp and Seller agree as follows.
The last sentence of Section 2.1 of the PPA is amended and restated to read as follows:
"Unless terminated earlier pursuant to the terms of this Agreement, this Agreement
shall expire upon the earlier of (i) the effective date of a new power purchase
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agreement between PacifiCorp and Seller pertaining to the Facilitl; or (ii) March
1,2021."
Notwithstanding any provision in the PPA to the contrary, for the period beginning
June 1, 2020 through the end of the term of the Agreement, PacifiCorp shall pay Seller
as provided in Exhibit A to this Amendment for the energy output 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 ldaho Public Utilities Commission.
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, covenants, representations, warranties and all other provisions of the
Agreement remain in full force and effect.
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).
This Amendment may be executed in multiple counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken
together shall constitute but one and the same instrument. 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 s ignature p age fo I low s]
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IN MTNESS WHEREOF, the parties below have caused this Amendment to be execuhd in their
respective names.
PacifiCorp
BruceGriswold
By: 20200320 1 233.49 {7m.
Name: Bruce Griswold
Title: Director,Short-termOrigination
Commercial Energr llilanagement, Inc.
By:
Namo: ldaherF. Wissa
Title: President
EXIIIBIT A
Energy Rate
Energy Purchase Price : Energy Annual Rate * Monthly Peak Multiplier
Table l: Energy Annual Rates
Year
Energy Annual Rate
$/lvrwh
2020 $55.66
202r $s6.3s
Table 2 : Monthly On-Peak/Off-Peak Multipliers
Month 0n-Peak
Hours
Off-Peak
Hours
January l03o/o 94o/o
February l05o/o 97%
March 95o/o 80o/o
April 91Yo 76Yo
May 92%63%
June 94%6s%
July t2t%92%
August t2t%106%
September l09Yo 9gYo
October tt5%105%
November ll0o/o 96%
December l29o/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 Saturday, excluding NERC designated holidays.