20191126_dh2.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE NOVEMBER 14,2019
SUBJECT:IN THE MATTER OF ROCKY MOUNTAIN POWER’S PETITION TOINCREASETHEBLUESKYBLOCKVALUEFROM100TO200KILOWATT
HOURS;CASE NO.PAC-E-19-17.
On October 25,2019,Rocky Mountain Power (“Company”),a division of PacifiCorp,
filed an Application requesting the Commission’s approval to increase the size of each Blue Sky
Block (“Blue Sky Block”or “Block”)offered under Schedule 70—Renewable Energy Rider—and
Schedule 73—Renewable Energy Rider Bulk Purchases (collectively “Blue Sky program”or
“Program”)—from 100 kiLowatt hours (“kWh”)to 200 kWh.The Company requests an effective
date of January 1,2020 and that its Application be processed by Modified Procedure.
THE APPLICATION
The Company’s Application is submitted in response to changes in the Renewable
Energy Credit (“REC”)market between the inception of the Blue Sky program in 2003 and today.
The average cost of RECs purchased for the Program have continued to decrease even as demand
for the Program has grown.To meet growing customer demands for the Program and better align
the Program with market conditions,the Company proposes to increase the size of a Block from
100 kWh to 200 kWh but keep the price of each Block the same.t At the Company’s proposed
price per Block,customers who sign up for the Program,or continue to be enrolled,will cover the
incremental cost of acquiring the RECs plus the costs associated with offering the Program.
Under Schedule 70 Blocks cost $1.95 each per month.Under Schedule 73 bulk purchases of Blue Sky Blocks canbemadefor$0.70 per Block per month plus a $1500 per year fixed charue if customers are purchasing a minimumof1,212 Blue Sky Blocks.For purchases of over 750,000 Blue Sky Blocks,the Company offers individuallynegotiaiedcontracts.
DECISION MEMORANDUM 1
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure.Staff recommends a December 17,2019 public comment deadline,and a
December 24,2019 Company reply comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure,with public comments due by December 17,2019 and Company reply comments due
by December ‘4 20l9
Deputy Attorney General
LttflECflUCAC.E.I9.InI.WArrIh7d.tanL,
DECISION MEMORANDUM 2