20031205Final Order No 29391.pdf

Office of the Secretary
Service Date
December 5, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE REVISION AND
UPDATED CALCULATION OF THE
AVOIDED COST RATES FOR AVISTA
CORPORATION DBA A VISTA UTILITIES,
FOR IDAHO POWER COMPANY AND FOR
PACIFICORP DBA UTAH POWER AND
LIGHT COMPANY.
CASE NOS. AVU-O3-
IPC-O3-
PAC-O3-
ORDER NO. 29391
The Idaho Public Utilities Commission in Order No. 29124, Case No. GNR-02-
ordered several changes to the variables and manner in which avoided cost rates are to be
computed for projects smaller than 10 MW. Among the ordered changes were abandonment of
the utility first deficit year, changes in cost variables associated with a combined cycle
combustion turbine and changes in the manner in which fuel costs are determined.
More specifically for fuel costs, the Commission chose to adopt the medium fuel
price forecast prepared by the Northwest Power and Conservation Council (formerly the
Northwest Power Planning Council) along with the method for establishing the starting year gas
price and escalation rate proposed by the Idaho Independent Energy Producers. Order No. 29124
states that natural gas prices can be updated when a new Northwest Power and Conservation
Council forecast becomes available.
A new fuel price forecast was prepared by the Council on April 22, 2003. Staff has
used this forecast to compute new avoided cost rates for projects smaller than 10 MW according
to the revised methodology spelled out in Order No. 29124. A copy of the revised fuel price
forecast, computation of starting year gas price and escalation rate, and Staff computation of the
resultant avoided cost rates was provided to PacifiCorp, Idaho Power and A vista for their review.
All utilities by letter accept the calculated rate schedules as accurate.
Under the revised fuel price forecast of the Northwest Power & Conservation
Council, the starting gas price increases from $3.75/mmbtu to $4.40/mmbtu; the fuel escalation
rate decreases from 2.6% to 2.4%.
ORDER NO. 29391
Commission Findings
The Commission has reviewed the filings of record in Case Nos. AVU-03-, IPC-
03-, and PAC-03-12. We have also reviewed our prior Order No. 29124. Pursuant to
Commission approved avoided cost methodology (Order No. 29124) natural gas prices are to be
updated when a new Northwest Power & Conservation Council forecast becomes available. We
find that the medium fuel price forecast prepared by the Northwest Power & Conservation
Council has changed. We find that the resultant change in avoided cost rates is a simple
arithmetic calculation. The new forecast includes a new starting gas price and fuel escalation
rate. The Commission has reviewed and finds the Staff calculated changes in the avoided cost
rates for Idaho Power, Avista and PacifiCorp (see attached) to be accurate. We find it reasonable
to approve the change in avoided cost rates for an effective date of December 15 2003.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over A vista Corporation dba
Avista Utilities, Idaho Power Company and PacifiCorp dba Utah Power & Light Company,
electric utilities, pursuant to the authority and power granted it under Title 61 of the Idaho Code
and the Public Utility Regulatory Policies Act of 1978 (PURP A).
The Commission has authority under PURP A and the implementing regulations of
the Federal Energy Regulatory Commission (FERC) to set avoided costs, to order electric
utilities to enter into fixed term obligations for the purchase of energy from qualified facilities
and to implement FERC rules.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED and the Commission does hereby approve the revised starting year gas
price and escalation rate as set forth in the April 22, 2003 medium fuel price forecast prepared by
the Northwest Power & Conservation Council.
IT IS FURTHER ORDERED and the Commission with the changes approved above
does hereby approve the resultant fueled and non-fueled avoided cost rates for Avista
Corporation, Idaho Power Company, and PacifiCorp as detailed in Attachments A, Band C to
this Order for an effective date of December 15 2003.
ORDER NO. 29391
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 5'fk
day of December 2003.
61~ &Jv
MARSHA H. SMITH, COMMISSIONER
ATTEST:
tdJ?mmission Secretary
bls/O:A VUEO308 IPCE0315 P ACEO312 sw
ORDER NO. 29391
AVISTA UTILITIES
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
December 15, 2003
mills/kWh
ON-LINE YEAR
CONTRACT NON-LEVELIZED
2003 2004 2005 2006 2007 2008 YEAR RATES
44.45.46.47.49 48.49.77 2003 44.
44.45.46.48.49.50.2004 45.
45.26 46.47.44 48.49.50.2005 46.
45.46.47.49.50.51.44 2006'47.49
46.23 47.48.45 49.50.51.2007 48.
46.47.48.50.51.30 52.2008 49.
47.48.49.43 50.51.53.2009 50.
47.48.49.51.52.53.2010 52.
48.49.50.51.52.54.2011 53.40
48.49.50.52.53.54.2012 54.
48.50.51.27 52.49 53.55.2013 55.
49.50.51.52.54.55.48 2014 57.
49.50.52.53.54.55.2015 58.
50.51.52.53.55.56.2016 60.
50.51.73 52.54.55.56.2017 61.48
50.52.53.54.55.57.2018 62.
51.52.49 53.55.56.57.2019 64.44
51.52.54.55.40 56.58.2020 65.
51.53.54.47 55.57.58.45 2021 67.
52.53.54.56.57.46 58.2022 69.
2023 70.
2024 72.47
2025 74.
2026 75.
2027 77.
2028 79.
ATTACHMENT A
ORDER NO. 29391
CASE NOS. AVU-O3-
IPC-O3-
P AC-O3-
AVISTA UTILITIES
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
December 15, 2003
mills/kWh
ON-LINE YEAR
CONTRACT NON-LEVELIZED
2003 2004 2005 2006 2007 2008 YEAR RATES
13.13.13.13.14.14.2003 13.
13.13.47 13.14.14.43 14.2004 13.
13.13.13.14.26 14.14.2005 13.
13.45 13.14.14.40 14.15.2006 13.
13.13.14.22 14.14.15.23 2007.14.27
13.14.14.14.15.15.2008 14.
13.14.14.14.15.15.2009 14.
13.14.14.14.15.15:68 2010 15.
14.14.44 14.15.15.46 15.2011 15.
14.14.14.15.15.15.2012 16.
14.14.15.15.15.16.2013 16.
14.48 14.15.15.15.16.2014 16.75
14,14.15.15.15.16.2015 17.
14.15.15.15.16.16.49 2016 17.
14.15.15.15.16.23 16.2017 17.
14.15.15.15.16.16.2018 18.
15.15.15.16.16.47 16.2019 18.
15.15.48 15.16.16.16.2020 19.
15.15.15.16.16.17.2021 19.
15.15.16.16.41 16.17.2022 20.
2023 20.
2024 21.
2025 21.
2026 22.
2027 22.
2028 23.
EFFECTIVE DATE ADJUSTABLE COMPONENT
12/15/2003 31.24
The total avoided cost rate in each year is the sum of the adjustable component and the fixed component from either of the tables
above.
Example 1. A 20-year levelized contract with a 2004 on-line date would receive the following rates:
Years Rate
15.68 + 31.
15.68 + Adjustable component in each year
Example 2. A 4-year non-Ievelized contract with a 2004 on-line date would receive the following rates:
Years Rate
13.33 + 31.24
13.63 + Adjustable component in year 2005
13.95 + Adjustable component in year 2006
14.27 + Adjustable component in year 2007
ATTACHMENT A
ORDER NO. 29391
CASE NOS. AVU-O3-
IPC-O3-
PAC-O3-
IDAHO POWER COMPANY
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
December 15 2003
mills/kWh
ON-LINE YEAR
CONTRACT NON-LEVELIZED
2003 2004 2005 2006 2007 2008 YEAR RATES
44.45.46.47.49.50.2003 44.
45.24 46.47.41 48.49.50.2004 45.
45.46.47.49.50.51.42 2005 46.
46.47.48.44 49.50.77 51.2006 47.
46.47.48.50.51.30 52.2007 49.
47.48.49.45 50.51.53.2008 50.
47.48.49.51.52.53.2009 51.48
48.49.50.41 51.52.54.2010 52.
48.49.50.52.53.54.2011 53.
48.50.51.52.53.55.2012 55.
49.41 50.51.53.54.27 55.2013 56.
49.51.52.53.45 54.56.2014 57.
50.23 51.42 52.53.55.56.48 2015 59.
50.51.53.54.55.56.2016 60.
51.52.53.46 54.56.57.2017 62.
51.52.53.55.56.44 57.2018 63.
51.75 52.54.55.56.58.2019 65.
52.53.54.55.57.58.2020 66.
52.45 53.54.56.57.58.2021 68.21
52.54.55.56.57.59.2022 69.
2023 71.49
2024 73.
2025 74.
2026 76.
2027 78.
2028 80.
ATTACHMENT B
ORDER NO. 29391
CASE NOS. A VU-O3-
IPC-O3-
PAC-O3-
IDAHO POWER COMPANY
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
December 15, 2003
mills/kWh
ON-LINE YEAR
CONTRACT NON-LEVELIZED
2003 2004 2005 2006 2007 2008 YEAR RATES
13.49 13.14.14.44 14.78 15.2003 13.49
13.13.14.14.14.15.28 2004 13.
13.14.14.43 14.15.15.45 2005 14.
13.14.14.14.15.15.2006 14.44
14.14.14.15.15.41 15.2007 14.
14.14.14.15.15.15.2008 15.
14.14.15.15.15.16.2009 15.46
14.48 14.15.15.15.16.2010 15.
14.14.15.15.16.16.2011 16.
14.15.15.42 15.78 16.16.2012 16.
14.15.15.15.16.16.2013 16.
14.15.15.16.16.41 16.2014 17.
15.15.45 15.16.16.54 16.2015 17.
15.15.15.16.16.17.2016 18.
15.15.16.1 6.41 16.17.2017 18.
15.43 15.16.16.16.17.2018 18.
15.15.16.16.17.17.42 2019 19.43
15.16.16.16.17.17.2020 19.
15.16.16.48 16.17.17.2021 20.
15.16.16.16.17.17.2022 20.
2023 21.
2024 21.
2025 22.
2026 22.
2027 23.
2028 23.
EFFECTIVE DATE ADJUSTABLE COMPONENT
12/15/2003 31.24
The total avoided cost rate in each year is the sum of' the adjustable component and the fixed component from either of the tablesabove.
Example 1. A 20-year levelized contract with a 2004 on-line date would receive the following rates:
Years Rate
16.21 + 31.
16.21 + Adjustable component in each year
Example 2-. A 4-year non-Ievelized contract with a 2004 on-line date would receive the following rates:
Years Rate
13.80 + 31.
14.12 + Adjustable component in year 2005
14.44 + Adjustable component in year 2006
14.78 + Adjustable component in year 2007
ATTACHMENT B
ORDER NO. 29391
CASE NOS. A VU-O3-
IPC-O3-
PAC-O3-
PACIFICORP
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
December 15, 2003
mills/kWh
ON-LINE YEAR
CONTRACT NON-LEVELIZED
2003 2004 2005 2006 2007 2008 YEAR RATES
44.46.47.48.49.50.2003 44.
45.47 46.47.48.78 49.51.2004 46.
45.47.48.49.50.48 51.2005 47.
46.45 47.48.49.51.52.22 2006 48.
46.48.49.50.51.52.2007 49.
47.40 48.49.50.52.53.28 2008 50.
47.48.50.51.52.53.2009 51.
48.29 49.44 50.51.53.54.2010 52.
48.49.51.52.53.54.2011 54.
49.50.51.52.53.55.25 2012 55.
49.50.51.53.54.42 55.2013 56.
49.51.52.53.54.56.2014 58.
50.51.52.54.55.56.2015 59.
50.51.53.54.40 55.57.2016 60.
51.52.28 53.54.56.57.42 2017 62.41
51.42 52.53.55.56.47 57.2018 63.
51.52.54.55.56.58.2019 65.41
52.53.54.55.57.58.2020 66.
52.53.54.56.57.58.2021 68.
52.53.55.56.57.59.2022 70.
2023 71.
2024 73.
2025 75.29
2026 77.
2027 78.
2028 80.
ATTACHMENT C
ORDER NO. 29391
CASE NOS. A VU-O3-
IPC-O3-
P AC-O3-
PACIFICORP
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
December 15 2003
mills/kWh
ON-LINE YEAR
CONTRACT NON-LEVELIZED
2003 2004 2005 2006 2007 2008 YEAR RATES
13.14.14.14.15.15.2003 13.
13.14.14.14.15.15.2004 14.
14.14.14.15.15.15.2005 14.
14.14.49 14.15.15.15.2006 14.
14.14.14.15.15.16.2007 15.
14.44 14.15.15.46 15.16.2008 15.
14.14.15.15.15.16.2009 15.
14.15.15.15.16.16.48 2010 16.
14.15.15.15.16.16.2011 16.46
14.15.15.16.16.16.2012 16.
15.15.43 15.16.16.16.2013 17.
15.15.15.16.16.17.2014 17.
15.15.16.16.16.17.2015 18.
15.42 15.16.16.16.17.28 2016 18.45
15.15.16.16.17.17.40 2017 18.
15.15.16.16.17.17.2018 19.
15.16.16.46 16.17.23 17.2019 19.
15.16.16.16.17.17.2020 20.
15.16.16.17.. 17.43 17.2021 20.
16.16.16.17.17.17.2022 21.
2023 21.
2024 22.
2025 22.
2026 23.
2027 23.
2028 24.26
EFFECTIVE DATE ADJUSTABLE COMPONENT
12/15/2003 31.
The total av9ided cost rate in each year is the sum of the adjustable component and the fixed component from either of the tables
above.
Example 1. A 20-year levelized contract with a 2004 on-line date would receive the following rates:
Years Rate
16.37 + 31.
16.37 + Adjustable component in each year
Example 2. A 4-year non-Ievelized contract with a 2004 on-line date would receive the following rates:
Years Rate
14.04 + 31.
14.36 + Adjustable component in year 2005
14.69 + Adjustable component in year 2006
- 15.03 + Adjustable component in year 2007
ATTACHMENT C
ORDER NO. 29391
CASE NOS. AVU-O3-
IPC-O3-
PAC-O3-