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Home My WebLink About20260501Application.pdf NIQAW R® LISA C. LANCE RECEIVED Corporate Counsel MAY 1, 2026 IlanceC�idahopower.com IDAHO PUBLIC UTILITIES COMMISSION May 1, 2026 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-26-14 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, Lisa C. Lance LCL:cd Attachments 1221 W. Idaho St(83702) P.O. Box 70 Boise, ID 83707 LISA C. LANCE (ISB No. 62411) DONOVAN E. WALKER (ISB No. 5921) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2649 Facsimile: (208) 388-6936 Ilance idahopower.com Attorney for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-26-14 COMPANY'S PETITION TO UPDATE ) COLSTRIP-RE LATE D ADJUSTABLE ) IDAHO POWER COMPANY'S PORTION OF AVOIDED COST RATES ) PETITION FOR EXISTING PURPA CONTRACTS ) Idaho Power Company ("Idaho Power" or"Company"), in accordance with RP 201, Idaho Code 61-501, -502, and -503, and the applicable provisions of the Public Utility Regulatory Policies Act of 1978 ("PURPA"), and pursuant to the Idaho Public Utilities Commission ("IPUC" or "Commission") Rules of Procedure 37 and 53, IDAPA 31.01 .01.37 and .53, petitions the 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 before July 1, 2026, to allow for new rates to be effective on July 1, 2026. I. BACKGROUND In Order No. 28708, Case No. GNR-E-99-01, the Commission established a IDAHO POWER COMPANY'S PETITION method for calculating the annual adjustable-rate portion of avoided costs for those Qualifying Facilities ("QF") contracts using variable costs associated with Colstrip, a coal- fired generating facility in southeast Montana. QF contracts that use published avoided cost rates calculated under the Colstrip Method are updated annually on July 1. In Order No. 35841 , issued in Case No. IPC-E-23-16, the Commission directed Idaho Power to submit annual filings updating the adjustable portion of the avoided cost rates. For those QF contracts with Colstrip-related fuel costs and variable O&M, future Colstrip variable cost adjustments are to be calculated 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). As computed by Idaho Power and shown below, the Colstrip-related adjustable rate will change from 24.56 mill/kilowatt hour ("kWh") to 24.40 mill/kWh, effective July 1, 2026. The relevant pages from Avista's FERC Form 1 used to calculate the Colstrip- related adjustable rate are provided in Attachment A. COLSTRIP ADJUSTABLE RATE CALCULATION For Period 7/1/2026-6/30/2027 Colstrip Fuel Cost Data Fuel $32,308,150 Net Generation (kWh) 1,442,496,000 Fuel Cost per kWh $0.022397 Fuel Cost per MWh $22.3974 Variable O&M, Taxes, and Line Loss Cost per MWh 52.00 Total Colstrip Adjustable Rate $24.3974 "Colstrip fuel cost data sourced from Avista FERC Form 1 for CY 2025; Page 402-403, Lines 12 and 20. IDAHO POWER COMPANY'S PETITION II. COLSTRIP METHOD AFTER DECEMBER 31, 2025 Because Avista will no longer include Colstrip data in its FERC Form 1 after December 31, 2025, this will be the last year Idaho Power relies on Avista's FERC Form 1 data for its annual update.' As noted by the Company in last year's annual update (Case No. IPC-E-25-21), going forward, Idaho Power will use Colstrip data from NorthWestern's FERC Form 1 for the annual update, as recommended by Staff and directed by the Commission.2 Consistent with Commission direction, 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. 28708.3 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 On January 16, 2023, Avista entered into an agreement with NorthWestern Corporation d/b/a Northwestern Energy ("NorthWestern") and will transfer its 15 percent ownership in Colstrip Units 3 and 4 to NorthWestern, effective December 31, 2025. 2 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, pages 2-3 (May 3, 2023). 3 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, Order No. 35841, Page 3 (June 30, 2023). IDAHO POWER COMPANY'S PETITION relating to this proceeding should be sent to: DONOVAN E WALKER CAMILLE CHRISTEN LISA C. LANCE IDAHO POWER COMPANY REGULATORY DOCKETS PO BOX 70 IDAHO POWER COMPANY BOISE ID 83707 PO BOX 70 cchristen(d_)idahopower.com BOISE ID 83707-0070 dwalker(a)_idahopower.com mgoicoecheaallen(o).idahopower.com dockets idaho power.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 24.40 mill/kWh, effective July 1, 2026. Respectfully submitted this 1s' day of May, 2026. 4� C"d"- LISA C. LANCE Attorney for Idaho Power Company IDAHO POWER COMPANY'S PETITION CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 1st day of May, 2026, 1 served the foregoing Idaho Power Company's Petition, in Case No. IPC-E-26-14, 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(bPuc.idaho.gov 9- �3� Christy Davenport, Legal Assistant IDAHO POWER COMPANY'S PETITION BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-26-14 IDAHO POWER COMPANY ATTACHMENT A This report is: Name of Respondent: (1) ❑J An Original Date of Report: Year/Period of Report Avista Corporation 04/17/2026 End of:2025/Q4 (2) ❑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: Coote Plant Name: Plant Name: Name: No. (a) Boulder Park Colstrip y2prings Kettle Falls Rathdrum Spokane 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 2 (Conventional,Outdoor, Conventional Conventional Not Applicable Conventional Not 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 26 228 319 179 218 60 -MW(60 minutes) 7 Plant Hours Connected to 6,368 13,760 7,696 6,525 6,746 11 Load 8 Net Continuous Plant 25 222 322 53 166 65 Capability(Megawatts) 9 When Not Limited by 0 222 322 53 0 0 Condenser Water 10 When Limited by 0 222 322 53 0 0 Condenser Water 11 Average Number of 3 257 30 28 1 1 Employees 12 Net Generation,Exclusive 125,781,000 1,442,496,000 2,161,719,000 291,285,000 793,245,000 526,000 of Plant Use-kWh 13 Cost of Plant:Land and 144,733 1,289,395 0 2,779,633 621,682 138,753 Land Rights 14 Structures and 1,405,275 111,412,021 11,811,042 36,828,754 3,667,146 758,635 Improvements 15 Equipment Costs 38,351,532 230,194,272 194,502,023 121,046,612 62,307,664 13,598,483 16 Asset Retirement Costs 0 16,926,371 351,682 323,787 0 0 17 Total Cost(10-23) 39,901,540 359,822,059 206,664,747 160,978,786 66,596,492 14,495,871 Cost per KW of Installed 18 Capacity(line 17/5) 1,596.0616 1,544.3007 720.0862 2,775.4963 398.7814 233.8044 Including 19 Production Expenses: 38,283 174,907 260,214 103,717 35,030 29,490 Oper,Supv,&Engr 20 Fuel 3,170,244 32,308,150 44,752,244 10,429,770 24,198,904 22,621 21 Coolants and Water (Nuclear Plants Only) 22 Steam Expenses 0 3,523,846 0 684,628 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 477,158 (8,938) 4,465,523 949,381 347,121 10,207 26 Misc Steam(or Nuclear) 79,827 6,001,356 975,255 530,205 9,897 213,940 Power Expenses 27 Rents 0 0 103,105 0 0 0 28 Allowances 0 0 0 0 0 0 29 Maintenance Supervision 44,690 466,657 405,751 47,941 39,470 3,045 and Engineering 30 Maintenance of Structures 1,164 925,745 95,485 202,567 4,212 0 31 Maintenance of Boiler(or 0 7,660,474 0 1,652,960 0 0 reactor)Plant 32 Maintenance of Electric 435,902 2,412,089 3,193,636 490,863 389,365 9,206 Plant 33 Maintenance of Misc Steam 130,937 1,333,974 122,498 517,233 44,310 28,753 (or Nuclear)Plant 34 Total Production Expenses 4,378,205 54,798,260 54,373,711 15,609,265 25,068,309 317,262 35 Expenses per Net kWh 0.0348 0.038 0.0252 0.0536 0.0316 0.6032 35 Plant Name Boulder Park Colstrip Colstrip Coyote Kettle Falls Kettle Rathdrum Spokane Springs 2 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 1,121,158 903,153 1,989 14,271,319 2,512 454,737 9,371,097 6,837 Fuel Burned Avg Heat Cont-Fuel 39 Burned(btu/indicate 1,020,000 16,970,000 5,880,000 1,020,000 1,020,000 8,600,000 1,020,000 1,020,000 if nuclear) Avg Cost of 40 Fuel/unit,as Delvd 2.83 35.49 128.35 3.14 4.17 22.91 2.58 3.31 f.o.b.during year 41 Average Cost of Fuel 2.83 35.49 128.35 3.14 4.17 22.91 2.58 3.31 per Unit Burned Average Cost of Fuel 42 Burned per Million 2.77 2.09 21.83 3.07 4.09 2.66 2.53 3.24 BTU Average Cost of Fuel 43 Burned per kWh Net 0.03 0.02 0 0.02 0.05 0.04 0.03 0.04 Gen 44 Average BTU per 9,092 10,633 0 6,734 0 13,436 12,050 13,258 kWh Net Generation FERC FORM NO.1 (REV.12-03) Page 402-403