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Home My WebLink About20240509Petition.pdf "N6h,-�IQAHO R@ RECEIVED Thursday, May 9, 2024 2:05PM IDAHO PUBLIC UTILITIES COMMISSION MEGAN GOICOECHEA-ALLEN Corporate Counsel mqoicoecheaallenidahopower.com May 9, 2024 Monica Barrios-Sanchez, Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-24-19 Idaho Power Company's Petition to Update Colstrip-Related Adjustable Portion of Avoided Cost Rates for Existing PURPA Contracts Dear Ms. Barrios-Sanchez: Attached please find Idaho Power Company's Petition to be filed in the above- entitled matter. If you have any questions about the attached documents, please do not hesitate to contact me. Sincerely, I� Megan Goicoechea Allen MGA:cd Attachments 1221 W. Idaho St(83702) P.O. Box 70 Boise, ID 83707 MEGAN GOICOCHEA ALLEN (ISB No. 7623) DONOVAN E. WALKER (ISB No. 5921) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 mgoicoecheaallen(a-),idahopower.com dwalker(a-)_idahopower.com Attorney for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-24-19 COMPANY'S PETITION TO UPDATE ) COLSTRIP-RE LATE D ADJUSTABLE ) IDAHO POWER COMPANY'S PORTION OF AVOIDED COST RATES ) PETITION FOR EXISTING PURPA CONTRACTS ) Idaho Power Company ("Idaho Power" or"Company"), in accordance with RP 201, Idaho Code 61-501, -502, and -503, and the applicable provisions of the Public Utility Regulatory Policies Act of 1978 ("PURPA"), and pursuant to the Idaho Public Utilities Commission ("IPUC" or "Commission") Rules of Procedure 37 and 53, IDAPA 31.01 .01.37 and .53, petitions the Commission for an order updating the Colstrip-related adjustable portion of the published avoided cost rates for existing PURPA contracts. The Company requests the Commission issue a final order by July 1, 2024, to allow for new rates to be effective on July 1, 2024. IDAHO POWER COMPANY'S PETITION - 1 I. BACKGROUND Qualifying Facility ("QF") contracts that use published avoided cost rates calculated under the Colstrip Method are updated annually on July 1. Historically, Commission Staff ("Staff") has petitioned the Commission for an order updating the Colstrip-related adjustable portion of the published avoided cost rates for existing PURPA contracts. As Idaho Power is the now the only Idaho electric utility (Idaho Power, Avista, and PacifiCorp)with contracts using the Colstrip Method, Staff proposed that Idaho Power initiate the annual update starting in 2024, which the Commission approved in Order No. 35841 , Case No. IPC-E-23-16. In Order No. 28708, Case No. GNR-E-99-01, the Commission established a method for calculating the annual adjustable-rate portion of avoided costs for those QF contracts using variable costs associated with Colstrip, a coal-fired generating facility in southeast Montana. For those QF contracts with Colstrip-related fuel costs and variable O&M, future Colstrip variable cost adjustments are to be calculated by using Avista's FERC Form 1 Colstrip Unit Coal Costs per megawatt hour ("MWh") and adding $2.00 per MWh (the average variable O&M cost of Colstrip plus $0.20 per MWh for generation taxes plus a five percent adjustment for line loss). As computed by Idaho Power and shown below, the Colstrip-related adjustable rate will change from 21.67 mills/kilowatt hour ("kWh") to 22.74 mills/kWh, effective July 1, 2024. The relevant pages from Avista's FERC Form 1 used to calculate the Colstrip- related adjustable rate are provided in Attachment A. IDAHO POWER COMPANY'S PETITION - 2 COLSTRIP ADJUSTABLE RATE CALCULATION For Period 7/1/2024-6/30/2025 Colstrip Fuel Cost Data Fuel $34,049,395 Net Generation (kWh) 1,641,846,600 Fuel Cost per kWh $0.020738 Fuel Cost per MWh $20.7385 Variable O&M, Taxes, and Line Loss Cost per MWh $2.00 Total Colstrip Adjustable Rate $22.7385 *Colstrip fuel cost data sourced from Avista FERC Form 1 for CY 2023; Page 402-403, Lines 12and 20. II. Colstrip Method after December 31, 2025 On January 16, 2023, Avista entered into an agreement with NorthWestern Corporation d/b/a Northwestern Energy ("NorthWestern") and will transfer its 15 percent ownership in Colstrip Units 3 and 4 to NorthWestern, effective December 31, 2025. After December 31 , 2025, Avista will no longer include Colstrip data in its FERC Form 1.1 At the recommendation of Staff, the Commission directed Idaho Power to use Colstrip data from NorthWestern's FERC Form 1 for the annual update after Avista stops including Colstrip data in its FERC Form 1. Additionally, in the event Idaho Power is unable to access necessary data after NorthWestern assumes Avista's interest in Colstrip or if Idaho Power suspects the NorthWestern data results in a skewed update due to ownership and reporting differences, the Company will work with Staff to find a dataset or mechanism that leads to an adjustable rate that meets the intent of Order No. 28708.2 1 In the Matter of Commission Staffs Petition to Update Colstrip-related Adjustable Portion of Avoided Cost Rates for Existing PURPA Contracts. Case No. IPC-E-23-16, pages 2-3 (May 3, 2023). 2 In the Matter of Commission Staffs Petition to Update Colstrip-related Adjustable Portion of Avoided Cost Rates for Existing PURPA Contracts. Case No. IPC-E-23-16, Order No. 35841, Page 3 (June 30, 2023. IDAHO POWER COMPANY'S PETITION - 3 III. PROCEDURE Idaho Power believes that a hearing is unnecessary to consider the issues and requests its Petition be processed under the Commission's Rules of Modified Procedure, i.e., by written submissions rather than by hearing. See Commission Rule of Procedure 201. et seq. IV. COMMUNICATIONS AND SERVICE OF PLEADINGS Communications and service of pleadings, exhibits, order, and other documents relating to this proceeding should be sent to: DONOVAN E WALKER CAMILLE CHRISTEN MEGAN GOICOECHEA ALLEN IDAHO POWER COMPANY REGULATORY DOCKETS PO BOX 70 IDAHO POWER COMPANY BOISE ID 83707 PO BOX 70 cchristen(o)_idahopower.com BOISE ID 83707-0070 mgoicoecheaallen(a)_idahopower.com dwalker idahopower.com dockets(c)_idahopower.com V. REQUEST FOR RELIEF Idaho Power respectfully requests that the Commission issue an order approving the updated Colstrip-related adjustable portion of the published avoided cost rate of 22.74 mill/kWh, effective July 1, 2024. Respectfully submitted this 9t" day of May, 2024. ?I I l L MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company IDAHO POWER COMPANY'S PETITION - 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 9t" day of May, 2024, 1 served the foregoing Idaho Power Company's Petition, in Case No. IPC-E-24-19, upon the following named parties by the method indicated below, and addressed to the following: Dayne Hardie Hand Delivered Deputy Attorney General U.S. Mail Idaho Public Utilities Commission Overnight Mail P.O. Box 83720 FAX Boise, ID 83720-0074 X Email dayne.hard ie(a-)puc.idaho.gov ( 9 Christy Davenport, Legal Assistant IDAHO POWER COMPANY'S PETITION - 5 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-24-19 IDAHO POWER COMPANY ATTACHMENT A This report is: Name of Respondent: (1)❑✓ An Original Date of Report: Year/Period of Report Avista Corporation 04/12/2024 End of:2023/04 (2)El A Resubmission Steam Electric Generating Plant Statistics 1.Report data for plant in Service only. 2.Large plants are steam plants with installed capacity(name plate rating)of 25,000 Kw or more.Report in this page gas-turbine and internal combustion plants of 10,000 Kw or more,and nuclear plants. 3.Indicate by a footnote any plant leased or operated as a joint facility. 4.If net peak demand for 60 minutes is not available,give data which is available,specifying period. 5.If any employees attend more than one plant,report on line 11 the approximate average number of employees assignable to each plant. 6.If gas is used and purchased on a therm basis report the Btu content or the gas and the quantity of fuel burned converted to Mcf. 7.Quantities of fuel burned(Line 38)and average cost per unit of fuel burned(Line 41)must be consistent with charges to expense accounts 501 and 547(Line 42)as show on Line 20. 8.If more than one fuel is burned in a plant furnish only the composite heat rate for all fuels burned. 9.Items under Cost of Plant are based on USofA accounts.Production expenses do not include Purchased Power,System Control and Load Dispatching,and Other Expenses Classified as Other Power Supply Expenses. 10.For IC and GT plants,report Operating Expenses,Account Nos.547 and 549 on Line 25"Electric Expenses,"and Maintenance Account Nos.553 and 554 on Line 32,"Maintenance of Electric Plant."Indicate plants designed for peak load service.Designate automatically operated plants. 11.For a plant equipped with combinations of fossil fuel steam,nuclear steam,hydro,internal combustion or gas-turbine equipment,report each as a separate plant.However,if a gas-turbine unit functions in a combined cycle operation with a conventional steam unit,include the gas-turbine with the steam plant. 12.If a nuclear power generating plant,briefly explain by footnote(a)accounting method for cost of power generated including any excess costs attributed to research and development;(b)types of cost units used for the various components of fuel cost;and(c)any other informative data concerning plant type fuel used,fuel enrichment type and quantity for the report period and other physical and operating characteristics of plant. Plant Name: Plant Line Item Plant Name: Plant Name: Coyote Plant Name: Plant Name: Name: No. (a) Boulder Park Colstrip Kettle Falls Rathdrum Spokane Springs 2 N.E. 1 Kind of Plant(Internal Internal Comb Steam Gas Turbine Steam Gas Turbine Gas Comb,Gas Turb,Nuclear) Turbine ................................................... Type of Constr Not Not 2 (Conventional,Outdoor, Conventional Conventional Not Applicable Conventional Applicable Applicable Boiler etc) 3 Year Originally Constructed 2002 1984 2003 1983 1995 1978 ........ ................................................... 4 Year Last Unit was Installed 2002 1984 2003 1983 1995 1978 ............................................................ Total Installed Cap(Max 5 Gen Name Plate Ratings- 25 233 286 51 167 62 MW)................................................... 6 Net Peak Demand on Plant- 26 228 319 95 172 53 MW(60 minutes) ......................................................... 7 Plant Hours Connected to 3,221 8,758 8,011 7,209 6,063 3 Load ....................................................... 8 Net Continuous Plant 25 222 322 54 167 65 Capability(Mesawatts) 9 When Not Limited by 0 222 322 54 0 0 Condenser Water ............................................................ 10 When Limited by Condenser 0 222 322 54 0 0 Water ............................................................. 11 Average Number of 2 252 32 26 1 1 Employees ............................................................. 12 Net Generation,Exclusive of 63,905,000 1,641,846,000 2,265,353,000 308,291,000 779,307,000 112,000 Plant Use-kWh 13 144,733 1,289,395 0 2,568,188 621,682 138,753 Cost of Plant:Land and Land Rights 14 Structures and 1,312,452 111,860,988 11,800,944 29,619,893 3,739,982 746,178 Improvements 15 Equipment Costs 32,775,846 220,053,648 192,808,126 113,479,534 61,667,377 13,596,464 16 Asset Retirement Costs 0 17,139,710 351,682 323,787 0 0 17 Total cost(total 13 thru 20) 34,233,031 350,343,741 204,960,752 145,991,402 66,029,041 14,481,395 Cost per KW of Installed 18 Capacity(line 17/5) 1,369.32 1,503.62 716.65 2,862.58 395.38 233.57 Including 19 Production Expenses:Oper, 24,753 74,600 660,721 102,576 23,440 22,796 Supv,&Engr 20 Fuel 1,982,207 34,049,395 46,437,759 11,997,451 28,638,414 (4,255) 21 Coolants and Water (Nuclear Plants Only) 22 Steam Expenses 0 3,592,098 0 629,880 0 0 23 Steam From Other Sources 0 0 0 0 0 0 24 Steam Transferred(Cr) 0 0 0 0 0 0 25 Electric Expenses 246,972 (144,667) 3,281,653 896,152 232,300 25,137 26 Misc Steam(or Nuclear) 30,548 5,887,656 594,939 481,021 23,881 9,010 Power Expenses 27 Rents 0 0 103,105 0 0 0 28 Allowances 0 0 0 0 0 0 29 Maintenance Supervision 66,187 274,399 295,267 99,377 83,153 28,570 and Engineering 30 Maintenance of Structures 2,577 744,875 89,483 125,790 46,898 91 31 Maintenance of Boiler(or 0 5,125,679 0 1,964,813 0 0 reactor)Plant 32 Maintenance of Electric 537,456 632,517 1,248,997 217,091 143,872 31,300 Plant 33 Maintenance of Misc Steam 131,656 901,840 651,821 443,266 51,734 16,945 (or Nuclear)Plant 34 Total Production Expenses 3,022,356 51,138,392 53,363,745 16,957,417 29,243,692 129,594 35 Expenses per Net kWh 0.05 0.03 0.02 0.06 0.04 1.16 35 Plant Name Boulder Colstrip Colstrip Coyote Kettle Kettle Rathdrum Spokane Park Springs 2 Falls Falls N.E. 36 Fuel Kind Gas Coal Oil Gas Gas Wood Gas Gas 37 Fuel Unit MCF Ton BBL MCF MCF Ton MCF MCF 38 Quantity(Units)of Fuel Burned 577,226 1,026,440 2,634 14,841,519 10,164 519,633 9,176,931 1,398 Avg Heat Cont-Fuel 39 Burned(btu/indicate if 1,020,000 16,970,000 5,880,000 1,020,000 1,020,000 8,600,000 1,020,000 1,020,000 nuclear) 40 3.43 32.8 145.36 3.13 0.76 23.07 3.12 t (3.04) Avg Cost of Fuel/unit, as Delvd f.o.b.during year ................................................. 41 Average Cost of Fuel 3.43 32.8 145.36 3.13 0.76 23.07 3.12 (3.04) per Unit Burned Average Cost of Fuel 42 Burned per Million 3.37 1.93 24.72 3.07 0.75 2.68 3.06 (2.98) BTU ................................................. Average Cost of Fuel 43 Burned per kWh Net 0.03 0.02 0 0.02 0.01 0.04 0.04 0 Gen ................................................. 44 Average BTU per kWh 9,213 10,619 0 6,683 0 14,540 12,011 12,732 Net Generation FERC FORM NO.1 (REV.12-03) Page 402-403