20240612Final_Order_No_36226.pdf

Office of the Secretary
Service Date
June 12,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-23-27
COMPANY'S APPLICATION FOR )
APPROVAL OF THE CAPACITY ) ORDER NO. 36226
DEFICIENCY PERIOD TO BE UTILIZED )
FOR AVOIDED COST CALCULATIONS )
On October 23, 2023, Idaho Power Company ("Company") applied for approval of its
capacity deficiency period determination for avoided cost calculations under the Public Utility
Regulatory Policies Act of 1978 ("PURPA"). The Company projected its first deficit will be in
July 2026.
On January 26, 2024, the Commission issued Order No. 36070, requiring the Company to
submit a compliance filing (1) reflecting the Company's most recent load forecast along with an
explanation of any difference between that forecast and its proposed forecast; and (2) excluding
the 14-megawatt ("MW") Western Resource Adequacy Program ("WRAP") capacity benefit in
determining its capacity deficiency period. The Company was also directed to provide evidence
substantiating its proposed Capacity Benefit Margin("CBM"). See Order No. 36070 at 4-5.
On March 27, 2024, the Company filed a Compliance Filing. After reviewing the filing,
Staff noted that it did not include information regarding deficit amounts needed to update the
Surrogate Avoided Resource ("SAR")Model.
On May 2, 2024, the Company filed a Supplemental Compliance Filing that included the
necessary additional information.
On May 16, 2024, Staff filed the updated SAR Model and published avoided cost rates.
Staff also sent both to the Company for verification.
On May 22, 2024, the Company submitted a letter agreeing with the updates.
Staff presented a Decision Memorandum at the Commission's June 4, 2024, Decision
Meeting, recommending the Commission approve (1) the June 2026 first capacity deficiency
period identified in the Compliance Filing; (2) the seasonal deficit positions identified in the
Supplemental Compliance Filing; and (3) Staff s updated published avoided cost rates and SAR
Model filed on May 16, 2024.
ORDER NO. 36226 1

STAFF COMMENTS
Staff indicated that, to comply with Order No. 36070, the Company updated the proposal
in its Application by: (1) using the load forecast developed in March 2024; (2) removing the 14-
MW WRAP capacity benefit; and (3) removing the CBM. These changes moved the Company's
first capacity deficiency period from July 2026 to June 2026. Staff noted that the primary
difference between the Company's most recent load forecast and the one proposed in the
Application was that the expected load growth ramp for certain industrial customers was postponed
several months. Staff believed this was reasonable. Staff similarly believed removing the capacity
of the CBM was reasonable because of inconsistent transmission availability in the Mid-C market.
Staff also believed the Company's use of a 0.05 event-days per year Loss of Load Expectation for
both summer and winter to determine SAR Model deficits was reasonable.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, 61- 502,
and 61-503. The Commission has the power to "supervise and regulate every public utility in the
state and to do all things necessary to carry out the spirit and intent of the [Public Utilities Law]."
Idaho Code § 61-501. The Commission also has authority under PURPA and the implementing
regulations of the Federal Energy Regulatory Commission("FERC")to set avoided costs,to order
electric utilities to enter fixed term obligations for the purchase of energy from QFs, and to
implement FERC rules.
Having reviewed the record,the Company's submissions,and Staff s recommendation,the
Commission finds that the Company has complied with the Commission's Order No. 36070. The
Company's compliance filing properly: (1)reflects the Company's most recent load forecast along
with an explanation of any difference between that forecast and its proposed forecast; and (2)
excludes the 14 MW WRAP capacity benefit in determining its capacity deficiency period.
Because the CBM was removed entirely, the Company did not have to provide evidence to
substantiate it. Accordingly, we hereby approve (1) the June 2026 first capacity deficiency period
identified in the Compliance Filing; (2) the seasonal deficit positions identified in the
Supplemental Compliance Filing; and (3) Staffs updated published avoided cost rates and SAR
Model filed on May 16, 2024.
ORDER NO. 36226 2

ORDER
IT IS HEREBY ORDERED that, effective on the service date of this order, the June 2026
first capacity deficiency period identified in the Compliance Filing; the seasonal deficit positions
identified in the Supplemental Compliance Filing;and Staff s updated published avoided cost rates
and SAR Model filed on May 16, 2024, are approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 12th day of
June 2024.
ERIC ANDERSON, PRESIDENT
OHN R. HAMMOND JR., COMMISSIONER
G
Gv�
EDWARD LODGE, CO ISSIONER
ATTEST:
o ca arri ch
Commission Secretary
IALegahELECTRICUPC-E-23-27_CapDeflorders\IPCE2327_Complimce_at.docx
ORDER NO. 36226 3