HomeMy WebLinkAbout20200616_ej1.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: JUNE 12, 2020
SUBJECT: IN THE MATTER OF THE ANNUAL REVISION TO QF VARIABLE
ENERGY PRICES PURSUANT TO TERMS OF THE 1992 AMENDMENTS
TO POWER PURCHASE AGREEMENTS BETWEEN IDAHO QFS AND
PACIFICORP; CASE NO. PAC-E-20-08.
On June 4, 2020, Rocky Mountain Power, a division of PacifiCorp (“Rocky Mountain
Power” or “Company”) filed an Application requesting the Commission approve the annual update
to the variable energy portion of avoided cost rates for qualifying facilities (“QFs”) with the 1992
amendment. The 1992 amendment applies to 13 QFs. The annual revision to the variable energy
rate began July 1, 2003. The variable energy rate is calculated by summing the average of Rocky
Mountain Power’s fuel costs for its Carbon, Hale, Naughton, Huntington, and Hunter coal-fired
generation plants with the variable operations and maintenance costs for Colstrip. This year’s
proposed update would result in a variable energy rate of $23.07 per megawatt hour (“MWh”) for
the QFs with the 1992 amendment compared to the rate of $23.85 per MWh currently in effect.
Historically, this update has been processed through a letter sent by Commission Staff
to Rocky Mountain Power requesting review and confirmation of Staff’s updated calculation. This
year, Rocky Mountain Power filed an Application to initiate the update. The Company requests a
July 1 effective date, as has been historical practice. However, the timing of the Application filed
by the Company and the proposed effective date does not allow the Commission adequate time to
process the Application before the effective date. Pursuant to Commission Rule of Procedure 123,
“In the absence of an order approving or suspending any or all such proposed changes, the changes
not suspended or approved go into effect thirty (30) days after filing or on their proposed effective
date, whichever is later.” IDAPA 31.01.01.123.01.
DECISION MEMORANDUM 2
STAFF RECOMMENDATION
Staff recommends the Commission suspend the proposed effective date while the case
is being processed. Staff recommends the Commission issue a Notice of Application and Notice
of Modified Procedure and establish a 21-day comment period and a 7-day reply period.
COMMISSION DECISION
Does the Commission wish to suspend the proposed effective date and establish a 21-
day comment period and a 7-day reply period?
__________________________
Edward J. Jewell
Deputy Attorney General
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