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Home My WebLink About20250501PETITION.pdf "N6h- IQAW R® RECEIVED MEGAN GOICOECHEA ALLEN May 01, 2025 Corporate Counsel IDAHO PUBLIC meroicoecheaallen(&idahopower.com UTILITIES COMMISSION May 1, 2025 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-25-21 Idaho Power Company's Petition to Update Colstrip-Related Adjustable Portion of Avoided Cost Rates for Existing PURPA Contracts Dear Commission Secretary: Attached please find Idaho Power Company's Petition to be filed in the above- entitled matter. If you have any questions about the attached documents, please do not hesitate to contact me. Sincerely, v r ^I T IG l Megan Goicoechea Allen MGA:cd Attachments 1221 W. Idaho St(83702) P.O.Box 70 Boise, ID 83707 MEGAN GOICOECHEA ALLEN (ISB No. 7623) DONOVAN E. WALKER (ISB No. 5921) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 mgoicoecheaallen(a-),idahopower.com dwalker(a-)_idahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-25-21 COMPANY'S PETITION TO UPDATE ) COLSTRIP-RE LATE D ADJUSTABLE ) PETITION PORTION OF AVOIDED COST RATES ) FOR EXISTING PURPA CONTRACTS ) Idaho Power Company ("Idaho Power" or "Company"), in accordance with Idaho Code §§ 61-501, -502, and -503 and the applicable provisions of the Public Utility Regulatory Policies Act of 1978 ("PURPA"), and pursuant to Commission Rules of Procedure 53, IDAPA 31.01 .01.53, petitions the Idaho Public Utilities Commission ("Commission") for an order updating the Colstrip-related adjustable portion of the published avoided cost rates for existing PURPA contracts. The Company requests the Commission issue a final order by July 1, 2025, to allow for new rates to be effective on July 1, 2025. PETITION - 1 I. BACKGROUND In Order No. 28708, Case No. GNR-E-99-01, the Commission established a method for calculating the annual adjustable-rate portion of avoided costs for those Qualifying Facility ("QF") contracts using variable costs associated with Colstrip, a coal- fired generating facility in southeast Montana. For those QF contracts with Colstrip-related fuel costs and variable O&M, future Colstrip variable cost adjustments are to be calculated by using Avista's FERC Form 1 Colstrip Unit Coal Costs per megawatt hour ("MWh") and adding $2.00 per MWh (the average variable O&M cost of Colstrip plus $0.20 per MWh for generation taxes plus a five percent adjustment for line loss). QF contracts that use published avoided cost rates calculated under the Colstrip Method are updated annually on July 1. Historically, Commission Staff ("Staff") initiated the annual update of the Colstrip-related adjustable portion of the published avoided cost rates for existing PURPA contracts. However, because Idaho Power is the only remaining Idaho electric utility with effective contracts using the Colstrip method, in Order No. 35841 issued in Case No. IPC-E-23-16, the Commission directed Idaho Power to begin filing the annual updates starting in 2024. As computed by Idaho Power and shown below, the Colstrip-related adjustable rate will change from 22.74 mill/kilowatt hour ("kWh") to 24.56 mill/kWh, effective July 1, 2025. The relevant pages from Avista's FERC Form 1 used to calculate the Colstrip- related adjustable rate are provided in Attachment A. PETITION - 2 COLSTRIP ADJUSTABLE RATE CALCULATION For Period 7/1/2025-6/30/2026 Colstrip Fuel Cost Data Fuel $30,975,829 Net Generation (kWh) 1,373,013,000 Fuel Cost per kWh $0.022560 Fuel Cost per MWh $22.5605 Variable O&M, Taxes, and Line Loss Cost per MWh $2.00 Total Colstrip Adjustable Rate $24.5605 *Colstrip fuel cost data sourced from Avista FERC Form 1 for CY 2024; Page 402-403, Lines 12 and 20. II. COLSTRIP METHOD AFTER DECEMBER 31, 2025 As noted by the Company in last year's annual update (Case No. IPC-E-24-19), the Company intends to use data from Avista's FERC Form 1 until such an approach is no longer possible due to Avista's agreement to transfer its 15 percent ownership in Colstrip Units 3 and 4 to NorthWestern Corporation d/b/a Northwestern Energy ("NorthWestern"), effective December 31, 2025. Because Avista will no longer include Colstrip data in its FERC Form 1 after that date, Idaho Power intends at that point to use Colstrip data from NorthWestern's FERC Form 1 for the annual update as recommended by Staff and directed by the Commission.' In the event Idaho Power is unable to access necessary data after NorthWestern assumes Avista's interest in Colstrip or if Idaho Power suspects the NorthWestern data results in a skewed update due to ownership and reporting differences, the Company will work with Staff to find a dataset or mechanism that leads to an adjustable rate that meets the intent of Order No. 28708.2 1 In the Matter of Commission Staffs Petition to Update Colstrip-related Adjustable Portion of Avoided Cost Rates for Existing PURPA Contracts, Case No. IPC-E-23-16, Staff Petition at 2-4(May 3,2023)and Order No. 35841 at 2-3 (Jun. 30,2023). 2 Id., Order No. 35841 at 3. PETITION - 3 III. PROCEDURE Idaho Power believes that a hearing is unnecessary to consider the issues and requests its Petition be processed under the Commission's Rules of Modified Procedure, i.e., by written submissions rather than by hearing. See Commission Rule of Procedure 201. et seq. IV. COMMUNICATIONS AND SERVICE OF PLEADINGS Communications and service of pleadings, exhibits, order, and other documents relating to this proceeding should be sent to: Megan Goicoechea Allen Energy Contracts Donovan Walker Idaho Power Company Regulatory Dockets 1221 West Idaho Street (83702) Idaho Power Company P.O. Box 70 1221 West Idaho Street (83702) Boise, Idaho 83707 P.O. Box 70 energycontracts(a-),idahopower.com Boise, Idaho 83707 mgoicoecheaallen(a�.idahopower.com dwalkerCcD_idahopower.com docketsC@.idahopower.com V. REQUEST FOR RELIEF Idaho Power respectfully requests that the Commission issue an order approving the updated Colstrip-related adjustable portion of the published avoided cost rate of 24.56 mill/kWh, effective July 1, 2025. Respectfully submitted this 1st day of May, 2025. MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company PETITION - 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 1st day of May, 2025, 1 served the foregoing Petition, in Case No. IPC-E-24-21, upon the following named parties by the method indicated below, and addressed to the following: Chris Burdin Hand Delivered Deputy Attorney General U.S. Mail Idaho Public Utilities Commission Overnight Mail P.O. Box 83720 FAX Boise, ID 83720-0074 X Email - chris.burdiN(a Puc.idaho.gov (I Christy Davenport, Legal Assistant PETITION - 5 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-25-21 IDAHO POWER COMPANY ATTACHMENT NO. 1 FERC Form Page 197 of 222 Document Accession #: 20250418-8040 Filed Date: 04/18/2025 This report is: Name of Respondent: (1)❑✓ An Original Date of Report: Year/Period of Report Avista Corporation 04/18/2025 End of:2024/Q4 (2)El A Resubmission Steam Electric Generating Plant Statistics 1.Report data for plant in Service only. 2.Large plants are steam plants with installed capacity(name plate rating)of 25,000 Kw or more.Report in this page gas-turbine and internal combustion plants of 10,000 Kw or more,and nuclear plants. 3.Indicate by a footnote any plant leased or operated as a joint facility. 4.If net peak demand for 60 minutes is not available,give data which is available,specifying period. 5.If any employees attend more than one plant,report on line 11 the approximate average number of employees assignable to each plant. 6.If gas is used and purchased on a therm basis report the Btu content or the gas and the quantity of fuel burned converted to Mcf. 7.Quantities of fuel burned(Line 38)and average cost per unit of fuel burned(Line 41)must be consistent with charges to expense accounts 501 and 547(Line 42)as show on Line 20. 8.If more than one fuel is burned in a plant furnish only the composite heat rate for all fuels burned. 9.Items under Cost of Plant are based on USofA accounts.Production expenses do not include Purchased Power,System Control and Load Dispatching,and Other Expenses Classified as Other Power Supply Expenses. 10.For IC and GT plants,report Operating Expenses,Account Nos.547 and 549 on Line 25"Electric Expenses,"and Maintenance Account Nos.553 and 554 on Line 32,"Maintenance of Electric Plant."Indicate plants designed for peak load service.Designate automatically operated plants. 11.For a plant equipped with combinations of fossil fuel steam,nuclear steam,hydro,internal combustion or gas-turbine equipment,report each as a separate plant.However,if a gas-turbine unit functions in a combined cycle operation with a conventional steam unit,include the gas-turbine with the steam plant. 12.If a nuclear power generating plant,briefly explain by footnote(a)accounting method for cost of power generated including any excess costs attributed to research and development;(b)types of cost units used for the various components of fuel cost;and(c)any other informative data concerning plant type fuel used,fuel enrichment type and quantity for the report period and other physical and operating characteristics of plant. Plant Name: Plant Line Item Plant Name: Plant Name: Coyote Plant Name: Plant Name: Name: No. (a) Boulder Park Colstrip Kettle Falls Rathdrum Spokane Springs 2 N.E. 1 Kind of Plant(Internal Internal Comb Steam Gas Turbine Steam Gas Turbine Gas Comb,Gas Turb,Nuclear) Turbine ................................................... Type of Constr Not Not 2 (Conventional,Outdoor, Conventional Conventional Not Applicable Conventional Applicable Applicable Boiler etc) 3 Year Originally Constructed 2002 1984 2003 1983 1995 1978 ........................................................... 4 Year Last Unit was Installed 2002 1985 2003 1983 1995 1978 ............................................................ Total Installed Cap(Max 5 Gen Name Plate Ratings- 25 233 287 58 167 62 MW)................................................... 6 Net Peak Demand on Plant- 57 233 319 86 174 62 MW(60 minutes) ......................................................... 7 Plant Hours Connected to 5,090 8,085 8,261 6,560 6,695 21 Load ....................................................... 8 Net Continuous Plant 25 222 322 53 166 65 Capability(Mesawatts) 9 When Not Limited by 0 222 322 53 0 0 Condenser Water ............................................................ 10 When Limited by Condenser 0 222 322 53 0 0 Water ............................................................. 11 Average Number of 2 273 32 28 2 1 Employees ............................................................. 12 Net Generation,Exclusive of 99,023,000 1,373,013,000 2,325,857,000 292,723,000 866,302,000 1,189,000 Plant Use-kWh 13 144,733 1,289,395 0 2,568,188 621,682 138,753 file://fdc 1 s-e116webp2/FercPDF/INPUT/20250418-8040_elwkmen0/XBRL_1_86_... 4/18/2025 FERC Form Page 198 of 222 Document Accession #: 20250418-8040 Filed Date: 04/18/2025 Cost of Plant:Land and Land Rights 14 Structures and 1,343,508 112,856,789 11,764,991 29,020,873 3,733,866 747,662 Improvements 15 Equipment Costs 33,811,107 224,729,187 194,339,146 113,914,366 61,785,312 13,596,464 16 Asset Retirement Costs 0 17,139,710 351,682 323,787 0 0 17 Total cost(total 13 thru 20) 35,299,348 356,015,081 206,455,819 145,827,214 66,140,860 14,482,879 Cost per KW of Installed 18 Capacity(line 17/5) 1,411.9739 1,527.9617 719.3583 2,514.2623 396.0531 233.5948 Including 19 Production Expenses:Oper, 26,041 129,537 285,892 82,136 27,197 25,093 Supv,&Engr 20 Fuel 2,305,827 30,975,829 46,812,209 10,992,914 27,728,049 32,644 21 Coolants and Water (Nuclear Plants Only) 22 Steam Expenses 0 3,301,866 0 637,950 0 0 23 Steam From Other Sources 0 0 0 0 0 0 24 Steam Transferred(Cr) 0 0 0 0 0 0 25 Electric Expenses 457,399 (114,742) 4,158,080 904,296 445,282 28,514 26 Misc Steam(or Nuclear) 32,251 5,603,378 1,049,085 515,255 18,786 8,104 Power Expenses 27 Rents 0 0 76,210 0 0 0 28 Allowances 0 0 0 0 0 0 29 Maintenance Supervision 46,036 414,022 382,957 75,241 65,940 17,277 and Engineering 30 Maintenance of Structures 0 852,394 128,156 170,362 2,883 0 31 Maintenance of Boiler(or 0 7,402,110 0 2,326,463 0 0 reactor)Plant 32 Maintenance of Electric 556,517 2,072,852 2,070,030 900,630 174,048 4,259 Plant 33 Maintenance of Misc Steam 162,432 1,090,920 503,647 871,183 195,376 22,678 (or Nuclear)Plant 34 Total Production Expenses 3,586,503 51,728,166 55,466,266 17,476,430 28,657,561 138,569 35 Expenses per Net kWh 0.0362 0.0377 0.0238 0.0597 0.0331 0.1165 35 Plant Name Boulder Colstrip Colstrip Coyote Kettle Kettle Rathdrum Spokane Park Springs 2 Falls Falls N.E. 36 Fuel Kind Gas Coal Oil Gas Gas Wood Gas Gas 37 Fuel Unit MCF Ton BBL MCF MCF Ton MCF MCF 38 Quantity(Units)of 882,017 866,030 3,421 15,260,415 5,022 479,313 10,077,699 14,215 Fuel Burned Avg Heat Cont-Fuel 39 Burned(btu/indicate if 1,020,000 16,970,000 5,880,000 1,020,000 1,020,000 8,600,000 1,020,000 1,020,000 nuclear) 40 2.61 35.25 131.43 3.07 3.04 22.9 2.75 2.3 file://fdc 1 s-el 16webp2/FercPDF/INPUT/20250418-8040_elwkmen0/XBRL_1_86_... 4/18/2025 FERC Form Page 199 of 222 Document Accession #: 20250418-8040 Filed Date: 04/18/2025 Avg Cost of Fuel/unit, as Delvd f.o.b.during year ................................................ 41 Average Cost of Fuel 2.61 35.25 131.43 3.07 3.04 22.9 2.75 2.3 per Unit Burned Average Cost of Fuel 42 Burned per Million 2.56 2.08 22.35 3.01 2.98 2.66 2.7 2.25 BTU ................................................ Average Cost of Fuel 43 Burned per kWh Net 0.02 0.02 0 0.02 0.04 0.04 0.03 0.03 Gen ................................................ 44 Average BTU per 9,085 10,719 0 6,692 0 14,102 11,866 12,195 kWh Net Generation FERC FORM NO.1 (REV.12-03) Page 402-403 file://fdc 1 s-e116webp2/FercPDF/INPUT/20250418-8040_elwkmen0/XBRL_1_86_... 4/18/2025