Petition for Reconsideration by Lake Benton Power Partners, LLC Docket No. E002/M

Transcription

1 Jeffrey C. Paulson & Associates, Ltd Ohms Lane Suite 325 Edina, MN MINNESOTA PUBLIC UTILITIES COMMISSION Telephone (952) Facsimile (952) August 3, 2006 Dr. Burl W. Haar Executive Secretary Minnesota Public Utilities Commission 121 East Seventh Place 350 Metro Square Building St. Paul, MN Re: Petition for Reconsideration by Lake Benton Power Partners, LLC Docket No. E002/M Dear Dr. Haar: Enclosed for filing are the original and 15 copies of the executed affidavit of Marion J. Horna to accompany the Petition for Reconsideration filed by Lake Benton Power Partners on July 19, The unexecuted affidavit was filed with the Petition for Reconsideration pending Mr. Horna's return from travel and ability to sign the affidavit. I am also enclosing an affidavit of service reflecting service of the executed affidavit on the parties. Please contact me if you have any questions, and thank you for your consideration. JCP/sIg. Paulson cc: All parties

2 STATE OF MINNESOTA ) ) ss. ' COUNTY OF HENNEPIN ) AFFIDAVIT OF SERVICE Sherry Gaugler, of the City of Minneapolis, County of Hennepin, State of Minnesota, being duly sworn, says that on the 3 rd day of August 2006, I sent a true and correct copy an executed affidavit of Marion J. Horna to accompany the Petition for Reconsideration of Lake Benton Power Partners, LLC in MPUC Docket E002/M by messenger to the Minnesota Department of Commerce and Minnesota Public Utilities Commission and by first class U. S. Mail, postage prepaid to the remaining parties at the addresses on the attached service list. Sherry Gaugler Subscribed and sworn to before me this >rd 3 day.of August, TRESELER: Notary Public-Minnesota : Notary Public

3 In the Matter of the Petition of Northern States Power Company d/b/a Xcel Energy for Approval of a Second Amendment to a Wind Generation Purchase Agreement with Lake Benton Power Partners, LLC Docket No. E002/M Service List Burl W. Haar Executive Secretary MN Public Utilities Commission 121 East Seventh Place, Suite 350 St. Paul, MN Julia Anderson Attorney General's Office 1400 Bremer Tower 445 Minnesota Street St. Paul, MN Steve Eisenberg Reunion Power, LLC PO Box 2049 Manchester Center, VT Debra J. Paulson Xcel Energy 414 Nicollet Mall, 5 th Floor Minneapolis, MN Sharon Ferguson MN Department of Commerce 85 7 th Place East St. Paul, MN Curt Nelson OAG-RUD 900 NCL Tower 445 Minnesota Street St. Paul, MN Peter H. Grills O'Neil, Grills & O'Neill, PLLP W1750 First National Bank Building 332 Minnesota Street Sr.PauJ,MN Jeffrey C. Paulson Jeffrey C. Paulson & Associates, Ltd Ohms Lane, Suite 325 Edina,MN 55439

4 STATE OF MINNESOTA PUBLIC UTILITIES COMMISSION LeRoy Koppendrayer Marshall Johnson Kenneth Nickolai Phyllis Reha Thomas Pugh In the Matter of the Petition of Lake Benton Power Partners, LLC for an Amendment to a Wind Generation Purchase Agreement with Northern States Power Company Chair Docket No. E002/M Affidavit of Marion J. Horna Marion J. Horna, being duly sworn and under oath, hereby deposes and states as follows: 1. I am currently the Principal of MJH Powder Consulting LLC. a professional consulting firm offering services to companies and individuals involved in energy development and financing, both with respect to renewable energy projects and traditional energy sources. I am a professional engineer, and I have been employed in various capacities in the energy business for 38 years. 2. From April 1999 through September I was employed by Enron Wind Corp. as their Director of Asset Management. Enron Wind was created after purchasing the assets of Zond Systems, Inc. ("Zond"). a manufacturer of wind turbines and developer of wind energy projects. My responsibilities included the asset management of a MW project in Lake Benton, Minnesota owned by Lake Benton Power Partners. LLC (''Lake Benton"). The project was developed by Zond pursuant to a power purchase agreement with Northern States Power Company, and Enron Wind retained management responsibilities for the project. My responsibilities as the project's Asset Manager included handling all issues under the power purchase agreement and related financial matters. I was the custodian of records for the project at the time. 3. The project became operational in 1998, and its first full year of operation was The first full year of property taxes reflecting an assessment of the complete project became due and payable in At that time it was decided to seek reimbursement from NSP for the eligible portion of the taxes paid pursuant to Minnesota statute. Discussions with NSP about an amendment to the power purchase agreement to this effect did not lead to an agreement. As a result. Lake Benton filed for approval of recovery with the Minnesota Public Utilities Commission in March In preparation for discussions with NSP and the filing, I was asked to identify the property tax cost assumptions used in the bid underlying the prices in the power purchase agreement between NSP and Lake Benton. The bid by Zond selected by

5 NSP was dated June 6, Together with Israel Carmeli, another Enron Wind employee at the time who worked under my supervision, we located the bid documents from the successful bid and the computer model used to prepare the bid, and extracted the year by year assumptions used by Zond to estimate property taxes expected for the Lake Benton project. These amounts were forwarded to counsel in Minnesota and presented in the case before the Commission. 5. The amounts presented to the Commission represent the actual amounts for property taxes from the computer model for the final bid selected by NSP. To the best of my recollection, they are the only amounts we discovered in the bid with respect to property taxes expected to be paid by Lake Benton. Further Affiant Sayeth Naught. Marion J. Horna Subscribed and Sworn to before me this^ oay of July, BRANWWUeKO N NMTMMM fwn BOSN.VTMW COIHi.EXP.07.OMMI