20210525Declaration of Bryan Case in suppoert of Reply Comments of Fall River.pdf

Gregory M.Adams (ISB No.7454)
Peter J.Richardson (ISB No.3195)
Richardson Adams,PLLC
515 N.27th S rœt
Boise,Idaho 83702
Telephone:[phone]
Fax:[phone]
[e-mail]
[e-mail]
Attorneys for Fall River Rural Electric Cooperative,Inc.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )CASE NO.PAC-E-21-06PACIFICORPFORAPPROVALOR)REJECTION OF THE PURCHASE POWER )DECLARATON OF BRYAN CASE INAGREEMENTWITHCHESTERDIVERSION)SUPPORT OF REPLY COMMENTSHYDROPROJECT)OF FALL RIVER RURAL ELECTRIC
)COOPERATIVE,INC.
I,Bryan Case,declare under the penalty of perjuryas follows:
1.This declaration is based on my personal knowledge and,if called to testify to the
followingfacts,I could and would competently do so.
2.I am the General Manager of Fall River Rural Electric Cooperative,Inc.("Fall
River").
3.Fall River owns and operates the Chester Diversion Project hydropower facility.
4.The Chester Diversion Project is a small hydropower facility utilizingthe head of
a pre-existing Chester Diversion Dam (a.k.a.the Cross Cut Diversion dam)on the Henry's Fork
of the Snake River in Fremont County,Idaho,and it has a maximum generating capacity of 2.0
megawatts ("MW").The facility is already constructed and operating through an interconnection
to Fall River's own distribution system.
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE,INC.
PAC-E-21-06
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5. Fall River decided to sell the energy and capacity of the facility to PacifiCorp, dba
Rocky Mountain Power, ("PacifiCorp") as a qualifying facility, and we first contacted PacifiCorp
to request a power purchase agreement ("PP A") for such sales with a written request listing
project-specific information contained on PacifiCorp's Schedule 38 on September 12, 2019.
6. Fall River had hoped to begin selling power to PacifiCorp from the Chester
Diversion Project as soon as possible, but it took much longer than we expected it would to finalize
a PP A with PacifiCorp. In total, it took over one year and five months to get the PP A finalized
and fully executed for the Chester Diversion Project -from September 12, 2019, until February
26, 2021. During this time period, Fall River experienced delays in PacifiCorp's responses to
requests for a draft PPA and in responses to Fall River's edits to the draft PPAs supplied by
PacifiCorp.
7. The exhibits to this declaration include the significant correspondence between Fall
River and PacifiCorp related to Fall River's PPA request and ensuing discussions and exchange
of drafts beginning on September 12, 2019. I either caused to be sent, or was copied as a recipient
on, the correspondence set forth in the exhibits attached to this declaration.
8. Attached as Exhibit 1 hereto is a true and correct copy of the letter dated September
12, 2019, sent from me on behalf of Fall River containing project-specific information for the
Chester Diversion Project for the information listed on PacifiCorp's Schedule 38.
9. Attached as Exhibit 2 hereto is a true and correct copy of an email dated October
2, 2019, from Kyle Moore on behalf of PacifiCorp related to the PPA request.
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
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10. Attached as Exhibit 3 hereto is a true and correct copy of an email dated October
4, 2019, from Dave Peterson on behalf of Fall River with the attached Interconnection Request to
PacifiCorp and $1,000 application payment for the Chester Diversion Project.
11. Attached as Exhibit 4 hereto is a true and correct copy of an email dated October
9, 2019, sent from me on behalf of Fall River requesting PacifiCorp send a pro forma PPA
consistent with Schedule 38, Section B.1.
12. Attached as Exhibit 5 hereto is a true and correct copy of an email dated November
12, 2019, from Dave Peterson on behalf of Fall River supplying PacifiCorp's transmission and
interconnection personnel with Fall River's signed System Impact Study Agreement, a $10,000
deposit for the study, and other supporting materials.
13. Attached as Exhibit 6 hereto is a true and correct copy of the letter dated November
25, 2019, from Kristopher Bremer on behalf of PacifiCorp to Fall River regarding the
interconnection request, titled: "Q1182: Fall River Rural Electric Cooperative, Inc. -Chester
Hydro /Notice of Delay of System Impact Study Report Provision." The letter stated: "PacifiCorp
will be unable to provide the Interconnection Customer's System Impact Study ('Study') within
the timelines outlined in PacifiCorp's Small Generation Interconnection Procedures."
14. Attached as Exhibit 7 hereto is a true and correct copy of the letter dated December
10, 2019, from Greg Adams on behalf of Fall River to Jacob McDermott, PacifiCorp's counsel,
reiterating Fall River's request that PacifiCorp supply: (i) a proforma PP A as previously requested
on October 7, 2019; (ii) a draft PPA, as previously requested on September 12, 2019; and (iii) an
interconnection System Impact Study consistent with the System Impact Study Agreement dated
November 12, 2019.
DECLARA TON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
PAC-E-21-06
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15. Attached as Exhibit 8 hereto is a true and correct copy of the email dated January
6, 2020, from Kyle Moore on behalf of PacifiCorp, along with the attached proforma Idaho Small
Hydro PPA.
16. Attached as Exhibit 9 hereto is a true and correct copy of the email dated January
15, 2020, from Greg Adams on behalf of Fall River reiterating the prior requests to Jacob
McDermott, counsel for PacifiCorp.
17. Attached as Exhibit 10 hereto is a true and correct copy of the email dated January
15, 2020, from Jacob McDermott on behalf of PacifiCorp related to the PPA and interconnection
issues.
18. Attached as Exhibit 11 hereto is & true and correct copy of the letter dated February
19, 2020, sent by Greg Adams on behalf of Fall River to PacifiCorp's representatives providing a
proposed draft PP A for the Chester Diversion Project based on the provisions of the pro forma
PP A PacifiCorp had sent.
19. Attached as Exhibit 12 hereto is a true and correct copy of the email dated March
5, 2020, from Kyle Moore on behalf of PacifiCorp replying to the February 19 correspondence.
20. Attached as Exhibit 13 hereto is a true and correct copy of the email dated March
9, 2020, from Greg Adams on behalf of Fall River responding to requests for additional
information, along with corresponding attachments.
21. Attached as Exhibit 14 hereto is a true and correct copy of the email dated March
13, 2020, from Kyle Moore on behalf of PacifiCorp, responding to the information provided in the
March 9 email and stating PacifiCorp would not commence negotiation of the PP A without any
interconnection studies.
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
PAC-E-21-06
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22. Attached as Exhibit 15 hereto is a true and correct copy of the letter dated May 11,
2020, from Greg Adams on behalf of Fall River regarding the Chester Hydro PP A, supplying
revisions to the initial request for a PP A to facilitate an off-system PP A.
23. Attached as Exhibit 16 hereto is a true and correct copy of the email dated June 10,
2020, from Greg Adams on behalf of Fall River following up on the previous correspondence.
24. Attached as Exhibit 17 hereto is a true and correct copy of the email dated June 18,
2020, from Kyle Moore on behalf of PacifiCorp with the attached draft PP A for the Chester
Project.
25. Attached as Exhibit 18 hereto is a true and correct copy of the email dated July 20,
2020, from Greg Adams on behalf of Fall River, including attachments with proposed revisions to
the Chester Hydro PP A.
26. Attached as Exhibit 19 hereto is a true and correct copy of the email dated August
21, 2020, from Greg Adams on behalf of Fall River following up on the previous correspondence.
27. Attached as Exhibit 20 hereto is a true and correct copy of the email dated August
26, 2020, from Kyle Moore on behalf of PacifiCorp.
28. Attached as Exhibit 21 hereto is a true and correct copy of the email dated
September 3, 2020, from Greg Adams on behalf of Fall River following up on the previous
correspondence.
29. Attached as Exhibit 22 hereto is a true and correct copy of the email dated
September 17, 2020, from Kyle Moore on behalf of PacifiCorp with proposed PPA edits attached.
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
PAC-E-21-06
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30. Attached as Exhibit 23 hereto is a true and correct copy of the email dated October
2, 2020, from Greg Adams on behalf of Fall River following up regarding transmission losses
discussed on a telephone call on October 1, 2020.
31. Attached as Exhibit 24 hereto is a true and correct copy of the email dated October
16, 2020, from Greg Adams on behalf of Fall River, reiterating clarifications requested by Fall
River on the parties' telephone call on October 1, 2020.
32. Attached as Exhibit 25 hereto is a true and correct copy of the email dated
November 30, 2020, from Greg Adams on behalf of Fall River requesting PacifiCorp's response
to Fall River's prior requests to PacifiCorp.
3 3. Attached as Exhibit 26 hereto is a true and correct copy of the email dated
December 1, 2020, from Kyle Moore on behalf of PacifiCorp apologizing for delay and requesting
information about Chester Diversion Project's metering.
34. Attached as Exhibit 27 hereto is a true and correct copy of the email dated
December 2, 2020, from Dave Peterson on behalf of Fall River supplying additional information
regarding the Chester Diversion Project's metering requested by PacifiCorp.
3 5. Attached as Exhibit 28 hereto is a true and correct copy of the email dated
December 4, 2020, from Kyle Moore on behalf of PacifiCorp regarding metering.
36. Attached as Exhibit 29 hereto is a true and correct copy of the email dated
December 7, 2020, from Dave Peterson on behalf of Fall River regarding metering.
37. Attached as Exhibit 30 hereto is a true and correct copy of the email dated
December 8, 2020, from Greg Adams on behalf of Fall River reiterating prior requests regarding
the PPA.
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
P AC-E-21-06
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3 8. Attached as Exhibit 31 hereto is a true and correct copy of the email dated
December 8, 2020, from Kyle Moore on behalf of PacifiCorp regarding timing of PacifiCorp
responses on metering and PP A edits.
39. Attached as Exhibit 32 hereto is a true and correct copy of the email dated
December 11, 2020, from Kyle Moore on behalf of PacifiCorp, including attached edits to the draft
PPA.
40. Attached as Exhibit 33 hereto is a true and correct copy of the email dated
December 30, 2020, from Kyle Moore on behalf of PacifiCorp providing final confirmation on
sufficiency of Chester Diversion Project's existing metering for PacifiCorp's purposes.
41. Attached as Exhibit 34 hereto is a true and correct copy of the email dated January
5, 2021, from Greg Adams on behalf of Fall River with final edits to the PPA attached.
42. Attached as Exhibit 35 hereto is a true and correct copy of the email dated January
15, 2021, from Greg Adams on behalf of Fall River reiterating Fall River's intent to execute the
final PPA.
43. Attached as Exhibit 36 hereto is a true and correct copy of the email dated Thursday
January 21, 2021, from Kyle Moore on behalf of PacifiCorp, stating he would follow up early the
next week on the final PP A.
44. Attached as Exhibit 37 hereto is a true and correct copy of the dated February 9,
2021, from Greg Adams on behalf of Fall River again requesting response on PacifiCorp's
preferred process for execution of the final PP A.
45. Attached as Exhibit 38 hereto is a true and correct copy of the email dated February
10, 2021, from Cynthia Mifsud, counsel for PacifiCorp, regarding the final PPA.
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
PAC-E-21-06
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46. Attached as Exhibit 39 hereto is a true and correct copy of the email dated February
11, 2021, from Kyle Moore on behalf of PacifiCorp, providing an copy of the final PP A for Fall
River to execute.
47. Attached as Exhibit 40 hereto is a true and correct copy of the email dated February
11, 2021, sent from me on behalf of Fall River with the signed final PP A attached.
48. Attached as Exhibit 41 hereto is a true and correct copy of the email dated March
2, 2021, from Greg Adams on behalf of Fall River requesting information on when the executed
PP A would be filed with the Idaho Public Utilities Commission.
49. Attached as Exhibit 42 hereto is a true and correct copy of the email dated March
3, 2021, from Kyle Moore on behalf of PacifiCorp with the executed PPA attached and responding
regarding timing to file the PP A for approval by the Idaho Public Utilities Commission.
50. As these correspondences demonstrate, there were significant delays by PacifiCorp
during the PP A discussions. Additionally, the correspondence demonstrate that Fall River was
persistent in following up with requests for responses from PacifiCorp throughout the process. I
will summarize the significant delays caused by PacifiCorp during the process.
51. First, delays in PacifiCorp's interconnection process caused a delay in Fall River's
PP A process. Fall River initially intended to interconnect the Chester Diversion Project to a nearby
PacifiCorp-owned power line to avoid the complications and cost of transmitting the power to
PacifiCorp, and made an interconnection request on October 4, 2019, contained in Exhibit 3.
However, PacifiCorp was unable to supply an interconnection System Impact Study to Fall River,
which was communicated by PacifiCorp's correspondence dated November 25, 2020, contained
in Exhibit 6. In tum, PacifiCorp's PPA negotiators refused to even commence negotiations on a
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
PAC-E-21-06
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draft PP A due to unknown interconnection timelines, which is demonstrated in an email from Kyle
Moore on behalf of PacifiCorp dated March 13, 2020, contained in Exhibit 14. Instead of
engaging in a dispute over PacifiCorp's position, Fall River elected to revise its PPA request to be
a request for an off-system PP A for deliveries transmitted to PacifiCorp over Bonneville Power
Administration's ("BPA") system, which was supplied by letter from Greg Adams dated May 11,
2020, contained in Exhibit 15. This delay resulting from PacifiCorp's interconnection process
delayed the PP A negotiations by several months.
52. Second, PacifiCorp was delayed m supplying an initial pro forma PP A for
evaluation. PacifiCorp provided a pro forma PP A for evaluation on January 6, 2020, contained in
Exhibit 8, which was almost three months after my request for a proforma PPA dated October 9,
2020, contained in Exhibit 4, even though PacifiCorp's Schedule 38, page 4, Section B, states the
proforma PPA will be supplied within seven days. This delayed Fall River's ability to begin
evaluating and preparing Fall River's comments and edits to the form of PP A PacifiCorp proposed
by over two months.
53. Third, PacifiCorp was delayed in supplying the draft PPA in response to Fall
River's revised PPA request. PacifiCorp took 38 days, until June 18, 2020, to respond to Fall
River's revised PP A request for an off-system PPA, which had been sent on May 11, 2020, which
are reflected in Exhibits 15-17. This was in excess of the outer time limit we expected for response
to PPA edits based on the 30-days deadline for such responses provided in PacifiCorp's Schedule
38, page 8.
54. Fourth, during the ensuing discussions, PacifiCorp took 58 days, until September
17, 2020, to respond to Fall River's next proposed edits to the PPA and supply of additional
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
PAC-E-21-06
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PacifiCorp-requested information that Fall River had sent on July 20, 2020. This is reflected in
Exhibits 18-21. Again, this 58-day period was well in excess of the 30-day maximum response
time we expected. PacifiCorp's lead negotiator, Kyle Moore, acknowledged the delay in an
August 26, 2020 email, contained in Exhibit 20, stating "we apologize for our delay and will make
it up in our next response period."
55. Fifth, PacifiCorp was slow to respond to make a proposal on the remaining limited
items at issues during last fall. On a telephone call on October 1, 2020, Fall River and PacifiCorp
representatives discussed a limited number of open items in the PP A. Fall River requested
PacifiCorp's proposed resolution for the following points: (i) BPA transmission losses to be used,
(ii) identification of any metering upgrades that Fall River would be required to make at the Chester
Diversion Project under PacifiCorp's proposed PPA, and (iii) an appropriate cure period for any
failure by Fall River to begin deliveries by the PPA's First Delivery Date. As is reflected in
communications in Exhibits 23-30, PacifiCorp took 71 days, until December 11, 2020, to provide
a proposal for the cure period for the First Deliver Date in the PP A, and it took 90 days, until
December 30, 2020, to confirm that no metering upgrades would be required under its proposed
PP A. During this time period, PacifiCorp's representative Kyle Moore again apologized about
PacifiCorp's delay in an email dated December 1, 2020, contained in Exhibit 26.
56. Additionally, PacifiCorp's proposal for the cure period for the First Delivery Date
was not acceptable to Fall River, as it would have placed unreasonable risks of default on Fall
River for delays in the PPA approval process before the Idaho Public Utilities Commission. Fall
River had to make a counter proposal, which it did by email from our counsel dated January 5,
2021, containing a final PP A with final edits to the First Delivery Date and proposed delay default
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
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provisions, which is contained in Exhibit 34. In that January 5, 2021 email, Fall River also
communicated that with that final edit, the PP A was "acceptable to Fall River and we are prepared
to get it executed and filed with the PUC." That version of the PPA was the final PPA eventually
executed by the parties.
57. However, PacifiCorp did not communicate its preferred process for execution of
the final PPA until an email sent by PacifiCorp's representative, Kyle Moore, on February 11,
2021, which sent the PPA and indicated Fall River should execute it, contained in Exhibit 38.
58. On behalf of Fall River, I executed the PPA on that same date, February 11, 2021.
That PPA sent by PacifiCorp and executed by me on February 11, 2021, contained the avoided
cost rates that had been in effect at the time that Fall River sent and expressed commitment to the
final PPA on January 5, 2021. PacifiCorp's representative, Bruce Griswold, countersigned the
same PPA on February 26, 2021, containing those same rates.
I declare under penalty of perjury pursuant to the law of the State of Idaho that the
foregoing is true and correct.
DATED this :l Yday of May 2021.
I __ J J /7 By:/J/1~-~
Bryan Case
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
PAC-E-21-06
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CERTIFICATE OF SERVTCE
I HEREBY CERTIFY that on tni&u1of May, 202I,Idelivered true and correct copies
of the fbregoing Declaration and Exhibits to the following parties via electronic mail:
Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
j an.noriyuki@puc. idaho. gov
Dayn Hardie
Deputy Attorney General
Idaho Public Utilities Commission
P.O. Box 83720
Boise, lD W2A-0074
dayn,hardie@puc. idaho. gov
Ted Weston
Idaho Regulatory Affairs Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
salt Lake city, uT 841l6
ted, weston@pacifico rp. com
IdahoDockets@paci fi corp. com
Emily Wegener
Counsel
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake City, UT 84116
emily, we gener@paci ficorp. com
y¡ayÚ ,zozt
M. Adams (ISB No. 7454)
DECLARATON OF BRYAN CASE IN SUPPORT OF REPLY COMMENTS OF FALL
RIVER RURAL ELECTRIC COOPERATIVE, INC.
PAC-E-21-06
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