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HomeMy WebLinkAbout20240603Notice_of_Petition_Order_No_36205.pdf Office of the Secretary Service Date June 3,2024 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-24-19 COMPANY'S PETITION TO UPDATE THE ) COLSTRIP-RELATED ADJUSTABLE ) NOTICE OF PETITION PORTION OF ITS AVOIDED COST RATES ) FOR EXISTING PURPA CONTRACTS ) NOTICE OF MODIFIED PROCEDURE ORDER NO. 36205 On May 9,2024,Idaho Power Company("Company")petitioned the Idaho Public Utilities Commission ("Commission) for an order implementing the annual update to the Colstrip-related adjustable portion of the published avoided cost rates for certain qualifying facilities ("QF")under the Public Utility Regulatory Policies Act of 1978 ("Petition"). The annual update to the Colstrip Method is proposed to take effect on the Company's requested effective date of July 1, 2024. The Commission now sets deadlines for commenting on the Petition. BACKGROUND In 1999 the Commission established a method for 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. Order No. 28708, Case No. GNR-E-99-01. NOTICE OF PETITION YOU ARE HEREBY NOTIFIED that the "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)." Petition at 2. Relevant pages from Avista Corporation's ("Avista") FERC Form I are attached to the Company's Petition as Attachment A. YOU ARE FURTHER NOTIFIED that as computed by the Company,the Colstrip-related adjustable rate will change from 21.67 mills/kilowatt hour("kWh") to 22.74 mills/kWh, effective July 1, 2024. YOU ARE FURTHER NOTIFIED that as directed by the Commission in Order No. 35841, the Company stated that it was using data from Avista's FERC Form 1 until such an approach is NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36205 1 no longer possible. At that point, the Company plans to use data from NorthWestern Energy's FERC Form 1 for the remainder of the necessary updates (unless data availability becomes an issue).1 YOU ARE FURTHER NOTIFIED that the Petition is available for public inspection during regular business hours at the Commission's office. The Petition is also available on the Commission's website at www.puc.idaho.gov. Click on the "ELECTRIC" icon, select "Open Cases," and click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq. NOTICE OF MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter, and that it will proceed under Modified Procedure pursuant to the Commission's Rules of Procedure 201-204, IDAPA 31.01.01.201-.204. The Commission notes that Modified Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this Petition may file a written comment explaining why the person supports or opposes the Petition. Persons who would like a hearing must specifically request a hearing in their written comments and explain why written comments alone are insufficient. Persons interested in filing written comments must do so by June 12, 2024. Comments must be filed through the Commission's website or by e-mail unless computer access is unavailable. To comment electronically, please access the Commission's website at http://www.puc.idaho.gov/. Click the "Case Comment Form" and complete the form using the case number as it appears on the front of this document. To file by e-mail, persons must e-mail the comments to the Commission Secretary and all parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting 1 On January 16, 2023, Avista entered into an agreement with Northwestern Energy and will transfer its 15 percent ownership in Colstrip Units 3 and 4 to NorthWestern Energy, effective December 31, 2025. Petition at 3. If data availability becomes an issue, the Company will work with Staff to develop a new method in accordance with the Commission's directive in Order No. 35841. NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36205 2 a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code § 74-101(13), and all information provided by such person is available for public and media inspection. If computer access is unavailable, then comments may be mailed to the Commission and the Parties at the addresses below.Persons submitting a comment by mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code§74-101(13),and all information provided by such person is available for public and media inspection. For the Idaho Public Utilities For Idaho Power: Commission: Commission Secretary Donovan Walker Idaho Public Utilities Commission Megan Goicoechea Allen P.O. Box 83720 Camille Christen Boise, ID 83720-0074 Idaho Power Company 1221 West Idaho Street 83702 Street Address for Express Mail: P.O. Box 70 Boise, ID 83707-0070 11331 W. Chinden Blvd. dwalkergidahopower.com Building 8, Suite 201-A mgoicoecheaallenkidahopower.com Boise, ID 83714 cchristen(aidahopower.com secretgakpuc.idaho.gov docketskidahopower.com energycontractskidahopower.com YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by June 18, 2024. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set, the Commission will consider this matter on its merits and enter its final order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing. ORDER IT IS HEREBY ORDERED that the Petition be processed by Modified Procedure, Rules 201-204.Persons interested in filing written comments must do so by June 12,2024.The Company must file any reply comments by June 18, 2024. NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36205 3 IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3rd day of June 2024. ERIC ANDERSON, PRESIDENT J R. HAMMOND JR., COMMISSIONER G Gv� EDWARD LODGE, CO ISSIONER ATTEST: I J�_ Mo a ios Commission Secretary IALega1\ELECTRIC\IPC-E-24-19_Colstrip ACR\orders\Ntc_App_Mod_md.docx NOTICE OF PETITION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36205 4