20250627Final Order No. 36658.pdf

Office of the Secretary
Service Date
June 27,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-25-21
COMPANY'S PETITION TO UPDATE THE )
COLSTRIP-RELATED ADJUSTABLE ) ORDER NO. 36658
PORTION OF AVOIDED COST RATES )
FOR EXISTING PURPA CONTRACTS )
On May 1,2025,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 ("Colstrip Method") for certain qualifying
facilities("QF")under the Public Utility Regulatory Policies Act of 1978 ("PURPA") ("Petition").
On May 22, 2025, the Commission issued a Notice of Petition and Notice of Modified
Procedure, establishing a June 12, 2025, deadline for initial comments, and a June 19, 2025,
deadline for the Company to file reply comments. Order No. 36606. Commission Staff("Staff')
filed the only comments in this case on June 12, 2025.
Having reviewed the record in this case we now issue this Final Order updating the Colstrip
Method, effective July 1, 2025.
BACKGROUND
The Commission has established the Colstrip Method for determining the annual
adjustable-rate portion of avoided costs for those contracts using variable cost data from Avista
Corporation's ("Avista") Federal Energy Regulatory Commission ("FERC") Form 1 associated
with Colstrip—a coal-fired generating facility in southeast Montana. Order No. 28708, Case No.
GNR-E-99-01.
THE PETITION
The Company represented that it calculated the Colstrip-related adjustable rate will change
from 22.74 mill/kilowatt hour ("kWh") to 24.56 mill/kWh, effective July 1, 2025. Petition at 2.
The Company submitted the relevant pages from Avista's FERC Form 1, from which the
calculation was derived, as Attachment A to the Petition. Id.
The Company further represented that because Avista's ownership stake in the Colstrip
facility will be transferred to NorthWestern Corporation d/b/a Northwestern Energy
("NorthWestern") as of December 31, 2025, and Avista will no longer include Colstrip data in its
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FERC Form 1,the Company intended to use Colstrip data from NorthWestern's FERC Form 1 for
future annual updates.Id. at 3.
The Company stated that if it was unable to access necessary data after NorthWestern
assumes Avista's interest in the Colstrip facility,or if the Company suspects the NorthWestern data
results in a skewed update due to ownership and reporting differences, the Company would work
with Staff to find a dataset or mechanism that leads to an adjustable rate that meets the intent of
the prior Commission orders. Id.
STAFF COMMENTS
Staff reviewed the Company's methodology to verify the proposed rate. Staff Comments
at 2. Based on its review, Staff believed the Company's calculation complied with Commission
Order No. 28708 and that the resulting rate was correct. Id. Accordingly, Staff recommended the
Commission approve the Colstrip-related adjustable rate of 24.56 mills/kWh with an effective date
of July 1, 2025.Id.
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 all submitted
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 resulting adjustable rates of 24.56 mill/kWh for existing contracts, effective July 1,
2025.
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 22.74 mill/kWh to 24.56
mill/kWh, effective July 1, 2025.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (2 1) days of the service date of this Order regarding any matter
ORDER NO. 36658 2

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 271h day of
June 2025.
G
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DWARD LOD(UE, 4R "SIDENT
?HNN R. HAMMOND JR., COMMISSIONER
DAYN HA DIE, COMMISSIONER
ATTEST:
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Momca Ba ios nchez
Commission Secretary
I:\Legal\ELECTRIC\IPC-E-25-21_colstrip\orders\FhW j 1.docx
ORDER NO. 36658 3