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HomeMy WebLinkAbout20240612Final_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