20240626Final_Order_No_36244.pdf

Office of the Secretary
Service Date
June 26,2024
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 )
PORTION OF ITS AVOIDED COST RATES ) ORDER NO. 36244
FOR EXISTING PURPA CONTRACTS )
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 ("PURPA") ("Petition"). The annual update to
the Colstrip Method is proposed to take effect on the Company's requested effective date of July
1, 2024.
On June 3, 2024, the Commission issued a Notice of Petition and set deadlines for public
and Company comments and Staff s reply. Order No. 36205. Staff filed the only comments in this
case.
Having reviewed the record, we now issue this Final Order granting the Company's
request, effective July 1, 2024.
THE PETITION
The Company stated 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 [Federal
Energy Regulatory Commission] Form 1 Colstrip Unit Coal Costs per megawatt hour ("MWh")
and adding $2.00 per MWh . . . ." Petition at 2. The Petition continued by stating that this $2.00
per MWh was "[the] average variable O&M cost of Colstrip plus $0.20 per MWh for generation
taxes plus a five percent adjustment for line [loss]."Id. Relevant pages from Avista Corporation's
("Avista") Federal Energy Regulatory Commission ("FERC") Form 1 are attached to the
Company's Petition as Attachment A.
The Company calculated that the Colstrip-related adjustable rate will change from 21.67
mills/kilowatt hour("kWh") to 22.74 mills/kWh, effective July 1, 2024.
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 no longer possible. At that point, the
ORDER NO. 36244 1

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).'
STAFF COMMENTS
Staff s comments stated that the Colstrip-related adjustable-rate change to 22.74 mills/kWh
in this case was reasonable. Staff believed that the Petition and associated method complied with
Order No. 28708 and should be approved effective July 1, 2024.
COMMISSION DECISION AND FINDINGS
The Commission has jurisdiction over the Company under the authority and power granted
to the Commission under Title 61 of the Idaho Code and PURPA. The Commission has authority
under PURPA and the FERC's implementing 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 has reviewed the record, all submitted materials, and Staff's comments.
Based on its review of the record, and the calculations for the adjustable portion of the avoided
costs using the Colstrip Method, the Commission finds it fair,just, and reasonable to approve the
updated Colstrip-related adjustable-rate change to 22.74 mill/kWh effective July 1, 2024.
ORDER
IT IS HEREBY ORDERED that the adjustable portions of the avoided-cost rates for
existing PURPA contracts using the Colstrip Method are changed from 21.67 mill/kWh to 22.74
mill/kWh, effective July 1, 2024.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of 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.
' 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.
ORDER NO. 36244 2

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 261h day of
June 2024.
ERIC ANDERSON, PRESIDENT
IN R. HAMMOND JR., COMMISSIONER
G
EDWARD LODGE, COMMISSIONER
ATTEST:
is Ba n
Commission Secretary
IALega1\ELECTRIC\IPC-E-24-19_Colstrip AMordersUPCE2419_Final_md.docx
ORDER NO. 36244 3