20240625Final_Order_No_36241.pdf

Office of the Secretary
Service Date
June 25,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ROCKY MOUNTAIN ) CASE NO. PAC-E-24-08
POWER'S APPLICATION FOR APPROVAL )
OF UPDATED VARIABLE ENERGY PRICES ) ORDER NO. 36241
FOR QFs SUBJECT TO TERMS OF THE )
1992 AMENDMENTS TO CERTAIN POWER )
PURCHASE AGREEMENTS )
On April 12,2024,Rocky Mountain Power,a division of PacifiCorp("Company"),applied
for Commission approval of the annual updates to the Qualifying Facility ("QF") variable energy
price pursuant to the terms of the 1992 amendments ("Amendment") to certain Idaho QFs power
purchase agreements. The Company requests that its Application be processed through Modified
Procedure with an effective date for the new variable energy rate of July 1, 2024.
On May 14, 2024,the Commission issued a Notice of Application and Notice of Modified
Procedure establishing public comment and Company reply deadlines. Staff filed the only
comments.
Having reviewed the record, the Commission approves the Company's Application as
filed.
THE APPLICATION
The Company requests Commission approval for a variable energy rate of $31.76 per
megawatt hour ("MWh") for deliveries commencing July 1, 2024 through June 30, 2025. The
variable energy rate is the sum of the Company's fuel costs and Colstrip variable Operation and
Maintenance ("O&M") cost. The variable O&M costs are based on the operation costs of the
Colstrip coal power generating facility,excluding the generation tax and line loss adjustments. The
Company represents that the variable energy rate will apply only to its Marsh Valley Hydro
contract.1
STAFF COMMENTS
After reviewing the Application and verifying the accuracy of the proposed rate, Staff
recommended approval of the proposed $31.76 per MWh variable energy rate, effective July 1,
2024, through June 30, 2025.
1 This contract will remain effective through February 28,2028.
ORDER NO. 36241 1

COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company, an electric utility, under Title 61 of
the Idaho Code and the Public Utility Regulatory Policies Act of 1978 ("PURPA"). The
Commission has authority under PURPA and Federal Energy Regulatory Commission ("FERC")
regulations 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. The Commission is empowered to
investigate rates, charges, rules, regulations, practices, and contracts of public utilities and to
determine whether they are just, reasonable, preferential, discriminatory, or in violation of any
provision of law, and to fix the same by order. Idaho Code §§ 61-502 and 61-503.
The Commission has reviewed the record—including the Application and Staff's
Comments. Based on our review, we find it reasonable to approve the Application as filed. Staff
reviewed the data provided by the Company and verified the Company's calculations included in
the Application.Accordingly,the Commission finds that a variable energy rate of$31.76 per MWh
effective July 1, 2024, through June 30, 2025, is fair,just, and reasonable.
ORDER
IT IS HEREBY ORDERED that the variable energy rate for deliveries from affected QF
contracts between July 1, 2024, and June 30, 2025, shall be $31.76 per MWh.
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. See Idaho Code §§ 61-
626.
1H
ORDER NO. 36241 2

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 25th day of
June 2024.
ERIC ANDERSON, PRESIDENT
- �-4�
HN:R. HAMMONID JR., COMMISSIONER
EDWARD LODGE, OM T SIONER
ATTEST:
V-01 ' a 13 a n X&-..% n Ue
Commission Secretary
IALegaRELECTRIC\PAC-E-24-08_PPAs QFS\orders\PACE2408_fina1_at.docx
ORDER NO. 36241 3