HomeMy WebLinkAbout20240726Approved Compliance Filing Schedule 33.pdf MOR
IDAHO
ip�"
POWER®
An IDACORP Company
RECEIVED
Tuesday, June 18, 2024
IDAHO PUBLIC
DONOVAN WALKER UTILITIES COMMISSION
Lead Counsel
Dwalker(afidahopower.com
June 18, 2024
VIA ELECTRONIC MAIL
Commission Secretary
Idaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 201-A
Boise, Idaho 83714
Re: Case No. IPC-E-24-01
Idaho Power Company's Application for Approval of a Power Purchase
Agreement with PVS 2, LLC
Dear Commission Secretary:
Attached for electronic filing Idaho Power Company's Compliance Filing in the
above matter. Please feel free to contact me directly with any questions you might have
about this filing.
Very truly yours,
Donovan Walker
DEW:cd
Enclosures
DONOVAN E. WALKER (ISB No. 5921)
MEGAN GOICOECHEA ALLEN (ISB No 7623)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: (208) 388-5317
Facsimile: (208) 388-6936
dwalkerCcDidahopower.com
mgoicoecheaallenCa�_idahopower.com
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY'S APPLICATION FOR ) CASE NO. IPC-E-24-01
APPROVAL OF A POWER PURCHASE )
AGREEMENT WITH PVS 2, LLC. ) IDAHO POWER COMPANY'S
COMPLIANCE FILING
Idaho Power Company ("Idaho Power" or "Company") hereby respectfully submits
this Compliance Filing to effectuate updates to Tariff Schedule 33 (Attachment 1 hereto)
based on the Proposed Payment Structure (Attachment 2 hereto) in accordance with
Order No. 36197 issued by the Idaho Public Utilities Commission ("Commission") in this
matter and consistent with the regulatory framework previously approved for the Brisbie,
LLC ("Brisbie") Energy Services Agreement ("Brisbie ESA").
I. BACKGROUND
1. The Brisbie ESA, which was approved by the Commission in Case No. IPC-E-
21-42, is consistent with and reflects the regulatory framework set forth in the Company's
Clean Energy Your Way ("CEYW") Construction offering including a number of
comparable provisions including a similar compensation mechanism for excess
generation and renewable capacity credits.
IDAHO POWER COMPANY'S COMPLIANCE FILING - 1
2. In reviewing the Brisbie ESA in Case No. IPC-E-21-42, the Commission initially
issued Order No. 35777 on May 11 , 2023, which approved the Brisbie ESA contingent on
several modifications as directed by the Commission. The Company was instructed to file
updated versions of the Brisbie ESA and Schedule 33 incorporating the necessary
modifications regarding the treatment of Excess Generation Credits ("EGC") and
Renewable Capacity Credits ("RCC") within 90 days of the order, or by August 9, 2023.
3. Thereafter, Idaho Power and Brisbie entered into the First Amendment to the
Brisbie ESA and updated Schedule 33 to incorporate the direction from, and comply with,
Commission Order No. 35777. The Company submitted the same in a Compliance Filing,
which included a detailed description of the methodology for the Company's RCC
performance mechanism payment structure for monthly payments under the Brisbie ESA
related to the Pleasant Valley Solar Power Purchase Agreement ("PPA"). The
Commission approved the First Amendment, Schedule 33, and other adjustments in
Order No. 35958 issued on October 12, 2023.
4. In Order No. 36197 issued in the instant case on May 28, 2024, the
Commission approved the PPA between Idaho Power and PVS 2, LLC ("PVS 2"), which
is the second PPA Renewable Resource approved by the Commission that will have the
associated energy and environmental attributes assigned to Brisbie under the provisions
of the Brisbie ESA.
5. Based on the Commission's guidance related to executing future CEYW
Construction agreements generally and the Brisbie ESA specifically, the Company hereby
submits this Compliance Filing to present an updated Schedule 33 as well as the
Proposed Payment Structure consistent with the recently approved PVS 2 Renewable
IDAHO POWER COMPANY'S COMPLIANCE FILING - 2
Resource PPA. Schedule 33 and the Proposed Payment Structure are attached hereto
as Attachments 1 and 2, respectively.
II. COMPLIANCE FILING
6. Attachment 1 includes a revised Schedule 33 in clean and legislative copy
which reflects the Commission-approved Pleasant Valley Solar 2 LLC project in the same
way that the initial project, Pleasant Valley Solar LLC is presented. This includes the
annual RCC in Table 1, the monthly unadjusted RCC by month in Table 2, and the
eligibility date for the RCC in Table 3.
7. Attachment 2 includes the "Proposed Payment Structure" document which
details the payment structure calculations and methodology that was previously
developed with Staff and is presented in the same format as that which was previously
approved in the previous compliance filing for Brisbie.'
III. CONCLUSION
8. Idaho Power appreciates the Commission's review and consideration of the
issues in this case and the opportunity to make this Compliance Filing. The Company
respectfully requests the Commission approve the attached Schedule 33 and Proposed
Payment Structure as compliant with prior Commission direction and Orders.
Respectfully submitted this 18th day of June, 2024.
DONOVAN E. WALKER
Attorney for Idaho Power Company
Case No. IPC-E-21-42, Compliance Filing, August 9, 2023.
IDAHO POWER COMPANY'S COMPLIANCE FILING - 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 18th day June of 2024, 1 served a true and correct
copy of the foregoing Idaho Power Company's Compliance Filing upon the following
named parties by the method indicated below, and addressed to the following:
Adam Triplett Emailed to:
Deputy Attorney General adam.triplett()-puc.idaho.gov
Idaho Public Utilities Commission
Po Box 83720
Boise, Idaho 83720-0074
O&D4--
Christy Davenport, Legal Assistant
IDAHO POWER COMPANY'S COMPLIANCE FILING -4
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-24-01
IDAHO POWER COMPANY
ATTACHMENT 1
Idaho Power Company First Revised Sheet No. 33-4
Cancels IDAHO PUBLIC UTILITIES COMMISSION
I.P.U.C. No. 30, Tariff No. 101 Original Sheet No. 33-4 Approved Effective
July 26, 2024 July 26, 2024
Per ON 36270
SCHEDULE 33 Monica Barrios-Sanchez Secretary
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
BRISBIE, LLC.
(Continued)
Renewable Resource Agreements
Calculation of the Monthly Unadjusted Renewable Capacity Credit for each Project is quantified in the
tables below. The Monthly Adjusted Renewable Capacity Credit will be provided to Brisbie, LLC
monthly, starting the month of the Project's Renewable Capacity Credit Eligibility Date (as defined in
Table 3) or the month following the respective Project's commercial operation date, whichever is later,
and will remain in effect for the duration of the term of the Renewable Resource PPA or the period of
time during which the Idaho Power-owned Renewable Resource will provide Project Output to Brisbie,
LLC as applicable. The Monthly Adjusted Renewable Capacity Credit will be provided in accordance
with Revised Exhibit 3.1 of Brisbie, LLC's Special Contract, dated December 22, 2021, as amended.
TABLE 1: RENEWABLE CAPACITY CREDIT
a b c d e f
Project Most Recently Project Capacity Renewable Renewable Renewable Annual
Acknowledged Nameplate Contribution Capacity Capacity Capacity Renewable
IRP (kW AC) Factor Contribution Credit Rate Credit Capacity
(a * b) ($/kW-yr) Adjustment Credit*'
c*d*e
Pleasant 2019 200,000 0.3121 62,420 $121.19 1.0 $7,564,680
Valley
Solar
LLC
Pleasant 2021 125,000 0.3154 39,425 $131.60 1.0 $5,188,330
Valley
Solar 2
LLC
*Table 2 denotes the Monthly Unadjusted Renewable Capacity Credit.
'Table 3 denotes each project's date of eligibility for the Annual Renewable Capacity Credit.
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective — 1221 West Idaho Street, Boise, Idaho
Idaho Power Company
IDAHO PUBLIC UTILITIES COMMISSION
I.P.U.C. No. 30, Tariff No. 101 Original Sheet No. 33-5 Approved Effective
July 26, 2024 July 26, 2024
Per ON 36270
SCHEDULE 33 Monica Barrios-Sanchez Secretary
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
BRISBIE, LLC.
(Continued)
Renewable Resource Agreements
(Continued)
TABLE 2: MONTHLY UNADJUSTED RENEWABLE CAPACITY CREDIT BY MONTH
Project Jan Feb Mar June July Aug Sept Oct Nov Dec
Pleasant $416,057 $416,057 -- $1,380,554$2,761,108$1,380,554 $189,117 $189,117 $416,057 $416,057
Valley Solar
LLCM
Pleasant $324,271 $324,271 $17,294 $959,841 $1,919,682 $959,841 $17,294 $17,294 $324,271 $324,271
Valley Solar 2
LLC2
TABLE 3: ELIGIBILITY DATE FOR RENEWABLE CAPACITY CREDIT
Project PPA Execution Date Capacity Deficiency Year Renewable Capacity Credit Eligibility Date
leasant 10/27/2022 2023 6/1/2023
Valley Solar
LC
leasant 12/5/2023 2023 6/1/2023
Valley Solar 2
LC
1 Amounts to be adjusted by the Performance Ratio Adjustment Factor,which is calculated pursuant to the methodology
detailed in Case No. IPC-E-21-42,Attachment 1 to Idaho Power Company's Compliance Filing dated August 9, 2023, as
approved in Order No. 35777 (May 11, 2023),to determine the Monthly Adjusted Renewable Capacity Credit.
2 Amounts to be adjusted by the Performance Ratio Adjustment Factor,which is calculated pursuant to the methodology
detailed in Case No. IPC-E-24-01,Attachment 2 to Idaho Power Company's Compliance Filing dated June 18, 2024, as
approved in Order No. (Month, Day,Year), to determine the Monthly Adjusted Renewable Capacity Credit.
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective — 1221 West Idaho Street, Boise, Idaho
Idaho Power Company 9rigiRaLFirst Revised Sheet No. 33-4
Cancels
I.P.U.C. No. 30, Tariff No. 101 Original Sheet No. 33-4
SCHEDULE 33
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
BRISBIE, LLC.
(Continued)
Renewable Resource Agreements
Calculation of the Monthly Unadjusted Renewable Capacity Credit for each Project is quantified in the
tables below. The Monthly Adjusted Renewable Capacity Credit will be provided to Brisbie, LLC
monthly, starting the month of the Project's Renewable Capacity Credit Eligibility Date (as defined in
Table 3) or the month following the respective Project's commercial operation date, whichever is later,
and will remain in effect for the duration of the term of the Renewable Resource PPA or the period of
time during which the Idaho Power-owned Renewable Resource will provide Project Output to Brisbie,
LLC as applicable. The Monthly Adjusted Renewable Capacity Credit will be provided in accordance
with Revised Exhibit 3.1 of Brisbie, LLC's Special Contract, dated December 22, 2021, as amended.
TABLE 1: RENEWABLE CAPACITY CREDIT
a b c d e f
Project Most Recently Project Capacity Renewable Renewable Renewable Annual
Acknowledged Nameplate Contribution Capacity Capacity Capacity Renewable
IRP (kW AC) Factor Contribution Credit Rate Credit Capacity
(a * b) ($/kW-yr) Adjustment Credit*'
c*d*e
Pleasant 2019 200,000 0.3121 62,420 $121.19 1.0 $7,564,680
Valley
Solar
LLC
Pleasant 2021 125,000 0.3154 39,425 $131.60 1_0 $5,188,330
Valley
Solar 2
LLC
*Table 2 denotes the Monthly Unadjusted Renewable Capacity Credit.
'Table 3 denotes each project's date of eligibility for the Annual Renewable Capacity Credit.
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. 36042 Timothy E. Tatum, Vice President, Regulatory Affairs
Effective— aR ar„ 1, 2024 1221 West Idaho Street, Boise, Idaho
Idaho Power Company
I.P.U.C. No. 30, Tariff No. 101 Original Sheet No. 33-5
SCHEDULE 33
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
BRISBIE, LLC.
(Continued)
Renewable Resource Agreements
(Continued)
TABLE 2: MONTHLY UNADJUSTED RENEWABLE CAPACITY CREDIT BY MONTH
Project Jan Feb Mar June July Aug Sept Oct Nov Dec
Pleasant $416,057 $416,057 - $1,380,554$2,761,108$1,380,554 $189,117 $189,117 $416,057 $416,057
Valley Solar
LLCM
Pleasant $324,271 $324,271 $17,294 $959,841 $1,919,682 $959,841 $17,294 $17,294 $324,271 $324,271
Valley Solar 2
LLC2
TABLE 3: ELIGIBILITY DATE FOR RENEWABLE CAPACITY CREDIT
Project PPA Execution Date Capacity Deficiency Year Renewable Capacity Credit Eligibility Date
leasant 10/27/2022 2023 6/1/2023
Valley
olar LLC
leasant 12/5/2023 2023 6/1/2023
Valley Solar 2
LC
Amounts to be adjusted by the Performance Ratio Adjustment Factor,which is calculated pursuant to the methodology
detailed in Case No. IPC-E-21-42,Attachment 1 to Idaho Power Company's Compliance Filing dated August 9, 2023, as
approved in Order No. 35777 (May 11, 2023),to determine the Monthly Adjusted Renewable Capacity Credit,
2 Amounts to be adjusted by the Performance Ratio Adjustment Factor,which is calculated pursuant to the methodology
detailed in Case No. IPC-E-24-01,Attachment 2 to Idaho Power Company's Compliance Filing dated June 18, 2024, as
approved in Order No. (Month, Day,Year), to determine the Monthly Adjusted Renewable Capacity Credit.
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. 36042 Timothy E. Tatum, Vice President, Regulatory Affairs
Effective— aR ar„ 1, 2024 1221 West Idaho Street, Boise, Idaho
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-23-01
IDAHO POWER COMPANY
ATTACHMENT 2
Attachment 2 — Case No. IPC-E-24-01 - Proposed Brisbie, LLC
Renewable Capacity Credit Payment Structure for Pleasant
Valley Solar 2
The Pleasant Valley Solar 2 Power Purchase Agreement ("PPA") was executed
on December 5, 2023, and the capacity contribution calculated at the time of contract
execution was 31.54%. The annual payment is determined by multiplying the average
capacity contribution by the avoided cost of capacity. The avoided cost of capacity is the
levelized fixed cost associated with the least-cost dispatchable resource from the
Company's most recently acknowledged Integrated Resource Plan ("IRP") at time of PPA
execution. In the case of Brisbie, LLC, the 2021 IRP was the most recently acknowledged
IRP at the time of PPA execution. For the 2021 IRP the identified resource was a simple-
cycle combustion turbine ("SCCT") with a Ievelized capacity cost of $131.60 per kW per
year.
Determine Annual Payment
The annual payment is calculated by multiplying the capacity contribution by the
nameplate of the selected project by the avoided cost of capacity:
Annual Payment = Capacity Contribution * Project Nameplate *Avoided Cost of Capacity
Applying the annual payment calculation to the Pleasant Valley Solar 2 project, the
resulting value is determined to be $5,188,330 per year:
Annual Payment = 31.54% * 125,000 kW * $131.60
y � � � � kW •yr — $5,188,330/yr
Determine Months of Capacity Need
The annual payment will be calculated at the time of contract execution and
distributed proportionally over the months that capacity is expected to be needed. To
determine the months of capacity need, the Loss of Load Expectation ("LOLE") per month
of the different historical years would be used to calculate an average LOLE for each
month. If a significant resource stack change is expected in the near future, an adjusted
case would be used to guide the monthly weighted average calculations. For the Pleasant
Valley Solar 2 project, a forward period was utilized, 2026. The average monthly LOLE
values for the 2026 Load and Resource ("L&R") year are listed in Table 1.
Table 1. 2026 L&R Average Monthly LOLE
Month Average LOLE
January 0.000711
February 0.000554
March 0.000155
April 0.000031
May 0.000006
June 0.010193
July 0.063225
August 0.009844
September 0.000994
October 0.000099
November 0.004159
December 0.009680
For the Pleasant Valley Solar 2 project, because the contract was executed after
the 2021 IRP acknowledgement, the ELCC method was used to determine capacity
contribution, and monthly LOLE values were calculated. A 2026 L&R year was used to
determine the months of capacity need because it is the year the project is expected to
be online. Idaho Power is expecting incremental ramping industrial load during 2026,
meaning the load expected in January 2026 is significantly lower than the load expected
in December 2026. To annualize for the impact of the industrial load ramp, the average
LOLE value of months November and December was used for January and February.
Using the results from the 2026 L&R with industrial load annualizing adjustment applied
to January and February LOLE values, the monthly LOLE weighted averages are listed
in Table 2.
Table 2. 2026 Monthly LOLE Weighted Average
Month Weighted Average
January 6.17%
February 6.17%
March 0.14%
April -
May -
June 9.09%
July 56.36%
August 8.77%
September 0.89%
October 0.09%
November 3.71%
December 8.63%
The twelve months of the calendar year are grouped into three different periods
given their Loss of Load Probability ("LOLP") profiles, as described in the list below:
• Summer: June, July, and August
• Winter: January, February, November, and December
• Off-Season: March, September, and October
Note that April and May remain at 0% LOLP. A weighted average per period is
calculated by adding the percentages of each month within the corresponding period
together, as shown in Table 3.
Table 3. 2026 LOLE Weighted Average per Period
Summer Winter Off-Season
June 9.09% January 6.17% March 0.14%
July 56.36% February 6.17% September 0.89%
August 8.77% November 3.71% October 0.09%
December 8.63%
Summer Total -74% Winter Total -25% Off-Season Total _1%
For the winter and off-season periods, the total is spread out relatively equally over
the various the months; this means the approximate 25% for the winter total would be
divided by the 4 months for 6.25% in each month, and the approximate 1% for the off-
season total would be divided by the 3 months for 0.33% in each month.
For the summer period, the high LOLP hours span from the last 2 weeks of June
through the first 2 weeks of August (totaling 8 weeks), meaning there are 4 weeks in July,
2 weeks in June and 2 weeks in August that encompass the high LOLP hours. Because
the summer total is set to equal the approximate 74%, the high LOLP hours weekly
weighting can be used to smooth the summer period spread:
• June - 74% * /2 weeks l = 18.50%
18 weeks
• July - 74% * 4 weeks = 37.00%
8 weeks
• August - 74% * 2 weeks l = 18.50%
(8 weeksJ
The final weights by month are shown in Table 4.
Table 4. 2026 Seasonal Monthly LOLE Weighted Average
Month Weighted Average
January 6.25%
February 6.25%
March 0.33%
April -
May -
June 18.50%
July 37.00%
August 18.50%
September 0.33%
October 0.33%
November 6.25%
December 6.25%
The monthly payment is calculated by taking the previously calculated annual
payment of $5,188,330 per year and multiplying it by the weighted average for each
month, as shown in Table 5.
Table 5. 2026 Seasonal Monthly Payment
Month Weighted Average Monthly Payment
January 6.25% $324,271
February 6.25% $324,271
March 0.33% $17,294
April - -
May - -
June 18.50% $959,841
July 37.00% $1,919,682
August 18.50% $959,841
September 0.33% $17,294
October 0.33% $17,294
November 6.25% $324,271
December 6.25% $324,271
Total 100.00% $5,188,330
Performance Metric
The Performance Ratio ("PR") is a metric widely used to track performance of
photovoltaic ("PV") systems in the industry.123 The PR metric can be used to ensure a
project is being well maintained and is performing as expected. PR can be defined as the
ratio of measured output to the expected output for a given reporting period based on the
system nameplate rating. Traditionally, PR is mathematically expressed as
kW hAC
kWDC,STC
PR kW hsun
m2
1 kW
m2
where
kWhAc = Energy Generated by the Plant
kWDC,STC = Rated Direct Current Power of the Plant at Standard Test Conditions
kWhsun = Plane of Array ("POA") Irradiance
The PR metric is most often used by power plant operators to track plant
performance. Idaho Power proposes to modify the previously shown equation to consider
the contracted nameplate of the plant on the Alternating Current ("AC") side and not on
the Direct Current ("DC") side. The contract with Idaho Power is on the AC side and it has
the potential to be the limiting factor during operation. The proposed modification would
result in the following PR equation:
kWhAc
PR = kWNP,AC * kW hsun
IEC 61724-1: 2017 Photovoltaic System Performance
2 Performance of Photovoltaic Systems Recorded by oSPARC, NREL 2020
3 PV System Performance Assessment, Sunspec Alliance, San Jose State University, 2014
One of the interconnection requirements is for the project to provide Idaho Power
with weather data via Supervisory Control and Data Acquisition ("SCADA"). One of the
variables required is the Plane of Array ("PDX) irradiance (kWh,,,,). The energy injected
into the system is also measured via SCADA, making the PR calculation relatively
straight-forward.
Performance Ratio Target
The PR metric is directly impacted by the energy output which is proportional to
irradiance and inversely proportional to module temperature. The PR equation accounts
for irradiation; changes in irradiation will have little effect on the PR. However, changes
in temperature are not accounted for in the PR calculation and the PR will decrease as
temperature increases. To account for the impact of temperature on the PR calculation,
Idaho Power proposes to set a different PR target for the summer months than the non-
summer months. The Company proposes to use the PR targets described in Table 7 and
graphically displayed in Figure 1.
Table 7. PR Targets by Period
Period Target
January through May PR > 1.0
June through September PR >_ 0.95
October through December PR >_ 1.0
Performance Metric Threshold by Month
1
0
N 0.9
w
s
H
0
0.8
M
U
u
c
E 0.7
0
w
a 0.s
0.s
2 4 6 8 10 12
Month of the Year
Figure 1. PR Targets by Month
Hours of Need
Capacity is only avoided during certain hours of the calendar year. The hours
where capacity is needed are the hours which have high LOLP values. To provide
compensation for capacity when it is needed, the PR metric will be calculated based on
the high LOLP hours from the timing of highest risk analysis published in the 2023 IRP,
which are provided in Table 8.
Table 8. High LOLP Hours
Period Identified High LOLP Hours
Summer + September4 3:00 pm - 11:00 pm
Winter + March & October5 6:00 am - 12:00 pm & 3:00 pm - 9:00 pm
4 Identified Summer risk hours from the 2023 IRP are 5:00 pm - 11:00 pm. Due to the limited solar PV
generation possible in the 5:00 pm to 11:00 pm window in certain months of the Summer period; the 3:00
pm - 5:00 pm hours are included to reduce the solar generation measurement variability. For LOLP hours
outside of solar PV generation hours, the expectation of solar PV generation based on irradiance at the
site is zero.
5 Identified Winter risk hours from the 2023 IRP are 6:00 am - 12:00 pm &4:00 pm - 9:00 pm. Due to the
limited solar PV generation possible in the 4:00 pm to 9:00 pm window in certain months of the Winter
period; the 3:00 pm -4:00 pm hour is included to reduce the solar generation measurement variability.
For LOLP hours outside of solar PV generation hours, the expectation of solar PV generation based on
irradiance at the site is zero.
For clarification, the hours presented in Table 8 are Hour Beginning ("HB") for the
first interval and Hour Ending for the second interval ("HE"). Using the summer +
September period as an example, 3:00 pm HB represents the hour spanning from 3:00
pm to 4:00 pm while 11:00 pm HE represents the hour spanning from 10:00 pm to 11:00
pm; this means the identified summer period high LOLP hours begin at 3:00 pm and
conclude at 11:00 pm.
Reduction on Payment
To receive the full monthly payment, the project will have to meet the PR threshold
in the corresponding high LOLP hours (as set in Table 8). If the PR is not met, a reduction
in payment will be applied to the project. The reduction will be calculated based on the
impact to capacity as measured by the ELCC. The impact on capacity will be determined
by reducing the output of the project and calculating its ELCC. For the Pleasant Valley
Solar 2 project, the relationship between output and ELCC reduction was calculated over
the range of 0.5 PR to 1.0 PR, as shown in Figure 2.
Performance Ratio vs ELCC
100.00��
Al
80.ao%
J -
-
60.00% _
O I
0
0
a 40.00%
m
c
v
20.009
a
O.uu`ro
0.7 0.8 0.9 1
Pv Output
Figure 2. Relationship Between PR & ELCC
The results shown in Figure 2 will be used to determine the monthly payment
reduction if the project did not meet the monthly PR target. In any month where capacity
payments are applied do not meet the corresponding target PR, a reduction as presented
in Figure 2 would be applied (the reduction is calculated by interpolating between the
monthly PR value and the target PR value for that month). As an example of how the PR
versus ELCC approach would be implemented, data for a similar project near the
Pleasant Valley Solar 2 site was collected for the 2021 L&R; the PRs were then calculated
for the corresponding high LOLP hours of each month with the results shown in Table 9
(bolded values represent calculated PR values that did not meet the targets identified in
Table 7).
Table 9. Monthly Performance Ratio & Payment Example
Month Performance Ratio Payment Reduction Monthly Payment
January 1.08 3.00% $324,271
February 1.13 0.00% $324,271
March 1.08 0.00% $17,294
April - - -
May - - -
June 0.98 0.00% $959,841
July 1.00 0.00% $1,919,682
August 0.99 0.00% $959,841
September 0.97 0.00% $17,294
October 1.01 0.00% $17,294
November 1.11 n nno/ (R'194 971
December 0.98 1.60% $319,082
Total $5,183,142