20041104Order No 29628.pdf

Office of the Secretary
Service Date
November 4, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE REVISION AND
UPDATED CALCULATION OF THE
AVOIDED COST RATES FOR A VISTA
CORPORATION DBA A VISTA UTILITIES
FOR IDAHO POWER COMPANY AND FOR
ACIFICORP DBA UTAH POWER AND
LIGHT COMPANY.
CASE NOS. A VU-O4-
IPC-O4-
P A C- E-O4-
NOTICE OF AVOIDED COST
RECALCULATIONS
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF COMMENT/
PROTEST DEADLINE
ORDER NO. 29628
Pursuant to the Public Utility Regulatory Policies Act of 1978 (PURP A) and the
implementing regulations of the Federal Energy Regulatory Commission (FERC), the Idaho
Public Utilities Commission (Commission) has approved a methodology for calculation of the
avoided cost rates paid to PURP A qualifying cogeneration and small power production facilities
(QFs) by Idaho Power Company, A vista Corporation and PacifiCorp. Avoided cost rates are the
purchase price paid to QFs for purchases of QF capacity and energy.
YOU ARE HEREBY NOTIFIED that three recent events have triggered
consideration of computation of new PURP A avoided cost rates, i., the conclusion of general
rate cases for Idaho Power and A vista, and the release of a new natural gas price forecast by the
Northwest Power and Conservation Council (NPCC) 1
The conclusion of a general rate case affects avoided cost rates because cost of
capital figures are used in avoided cost computations in accordance with the approved
methodology. The Commission finds that the appropriate time to incorporate new cost of capital
figures is following a general rate case. A final Order in Idaho Power s general rate case was
issued on May 25, 2004 (Order No. 29505) and a Reconsideration Order was issued on
Formerly the Northwest Power Planning Council (NWPPC).
NOTICE OF AVOIDED COST RECALCULATIONS
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29628
September 28, 2004 (Order No. 29601). A final Order in Avista s general rate case was issued
on October 8, 2004 (Order No. 29602).
On September 24, 2004, the Northwest Power and Conservation Council released a
new natural gas price forecast. Because the new forecast was released at about the same time as
the Idaho Power and A vista rate cases were concluded, the Commission finds that both the new
cost of capital figures and the new natural gas prices should be incorporated in the computation
of new avoided cost rates. The Commission is not proposing to revise the cost of capital figures
used for PacifiCorp.
The practice of updating avoided cost rates due to new fuel price forecasts can be
traced to Commission Order No. 29124 , Case No. GNR-02-1. In that Order, the Commission
adopted a fuel price forecast from the draft Fifth Northwest Conservation and Electric Power
Plan, April 25 2002 of the Northwest Power Planning Council (NWPPC) as a reasonable
method for calculating a starting gas price in the avoided cost methodology. In doing so, we
expressed confidence in the source and the use of a medium forecast, which we continue to
believe has the highest probability of being right. In our Order, we stated that "natural gas prices
can be updated when a new NWPPC forecast becomes available." Order No. 29124 at 10. The
Commission has since approved updated gas prices based on an April 22, 2003 NWPPC forecast
in December 2003. Order No. 29391.
The new rates computed using the Council's September 24, 2004 natural gas price
forecast and Idaho Power s and Avista s revised costs of capital are approximately 5 mills/kWh
higher than the rates currently in effect for all three utilities. The proposed new rates for each
utility have been calculated by Commission Staff and are attached to this Order. The
computations of new rates using revised gas prices and costs of capital must be reviewed by the
utilities before they can be adopted by the Commission. Computation of the rates, we find, is a
ministerial task done in accordance with prior Commission orders; nevertheless, past practice has
been for the Staff s computation of the rates to be reviewed by the utilities to insure
mathematical accuracy.
The Commission opens this docket for the purpose of incorporating into the avoided
cost rates the new natural gas price forecast recently released by the Northwest Power and
Conservation Council. The Commission also finds it reasonable to incorporate in the avoided
NOTICE OF AVOIDED COST RECALCULATIONS
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29628
cost calculations the new cost of capital figures recently established for Idaho Power and A vista
in their respective general rate cases.
YOU ARE FURTHER NOTIFIED that the Commission has preliminarily found that
the public interest in this matter may not require a hearing to consider the issues presented and
that the issues raised in this docket may be processed under Modified Procedure, i., by written
submission rather than by hearing.
31.01.01.201-204.
Reference Commission Rules of Procedure IDAP A
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the recalculation of avoided cost rates and the use of Modified
Procedure in Case Nos. A VU-04-, IPC-04-, and P AC-04-5 is Tuesday, November
23, 2004.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and may
enter its Order without a formal hearing. If comments or protests are filed within the deadline
the Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order on the basis of the written positions before it. Reference
IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case
Nos. A VU-04-, IPC-04-, and PAC-04-5 should be mailed to the Commission and the
Companies at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
VISTA CORPORATION
Street Address for Express Mail:
Blair Strong
Paine, Hamblen, et al
717 W. Sprague Avenue, Suite 1200
Spokane, W A 99201-3505
472 W. Washington Street
Boise, ID 83702-5983
Doug Young
A vista Utilities
1411 E. Mission
PO Box 3727
Spokane, W A 99220-3727
NOTICE OF AVOIDED COST RECALCULATIONS
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT /PROTEST DEADLINE
ORDER NO. 29628
ACIFICORP
James C. Paine
James Fell
Stoel Rives LLP
900 SW Fifth Avenue, Suite 2600
Portland, OR 97204
Mark Widmer
PacifiCorp
825 NE Multnomah Street
Portland, OR 97232
IDAHO POWER
Barton L. Kline
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
Randy Allphin
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
All comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document.
YOU ARE FURTHER NOTIFIED that the public filings in Case Nos. A VU-04-
IPC-04-and PAC-04-may be viewed at the Commission s website
www.puc.state.id.by clicking on "File Room" and "Electric Cases" or can be viewed during
regular business hours at the Idaho Public Utilities Commission, 472 West Washington Street
Boise, ID.
NOTICE OF AVOIDED COST RECALCULATIONS
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29628
ORDER
The Commission by this Order opens a docket for the reVISIon and updated
calculation of avoided cost rates and approves the foregoing procedure and scheduling.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this '-Iff..
day of November 2004.
JJ~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
D. Jewell
ission Secretary
blslN:A VUE0405 IPCE0425 P ACE0405 sw
NOTICE OF AVOIDED COST RECALCULATIONS
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 29628
A VISTA UTILJTIES
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
11JXX12004
mills/kWh
DRAFT
CONTRACT
LEN GTH
YEARS)2004
14.
14.
14.
14.45
14.
14.
14.
15.
15.
15.
15.41
15.
15.
15.
15.
16.
16.
16.
16.
16.43
2005
14.
14.47
14.
14.
14.
15.
15.
15.
15.
15.
15.
15.
16.
16.14 '
16.
16.
16.49
16.
16.
16.
2006
14.
14.
14.
15.
15.
15.42
15.
15.
, 15.
15.
16.
16.
16.
16.
16.
16.
16.
16;
17.
17.
ON-LINE YEAR
2007
14.
15.
15.
15.47
15.
15.
15.
16.
16.
16.
16.
16.
16.
16.
17.
17.
17.
17.
17.48
17.
EFFECTIVE DATE
:~~:-':_'--.::"':"::":':':":----::':--
:11/XXI2004,-
:-,
- n__...._-- n_-
2008
15.
15.
15.
15.
15.
16.
16.
16.45
16.
16.
16.
17.
17.
17.
17.41
17.
17.
17.
17:88
17.
- -- - -- - -- - -
2009
15.
15.
16.
16.
16.
16.
16.
16.
16.
- 17.
17.
17.41
17.
17.
17.
17.
18.
18.
18.29-
18.41
CONTRACT
YEAR
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
;?'~:')~
i\"~;:iF-
::';;:"
;'~i," E\t_EB:!2EE)~~
$;,
,,'t);;\\ :K;+;',A~,
; ;'
Tr~\f;
NON-LEVEL/ZED
RATES
14.
14.
14.
14.
15.
15.
16.
16.41
16.
17.
17.
17.
18.
18.
19.
19.
20.
20.
21.09.
21.
22.
22.
23.
23.
24.
24.
ADJUSTABLE COMPONENT
--- --- .
36.42 ..
':~---"":"~-:-:::'~=-::.. :..:..,-~:.:_:.:.-_._:..:--.. ....----
The total avoided cost rate in each year is the sum of the adjustabJe component and the fixed component from either of the tablesabove.
Example 1. A 20-year levefized contract with a 2005 on-line date would receive the following rates:
Years Rate
16.80 + 36.42
16.80 + Adjustable component in each year
Example 2. A 4-year non-Ievefized contract with a 2005 on-line date would receive the following rates:
Years Rate
14.32 + 36.42
14.65 + Adjustable component in year 2006
14.98 + Adjustable component in year 2007
15.33- + Adjustable component in year 2008
CASE NO. A VU-04-
ORDER NO. 29628
PAGE 1 OF 2
A VISTA UTILITIES
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
11/XX/2004
mills/kWh
: ~ ',~ ~#~~:
~l,9i~j;rtiJt~:I~?
: ::~, - -
ON-LINE YEAR
2004 2005 2006 2007 2008 2009
50A2 51.52.54.55.56.
51.52.53.54.56.57.
51.52.54.55.46 56.58.
52.53.43 54.56.57.45 58.
52.54.55.56.58.59.49
53.54.55.57.58.60.
53.55.56.47 57.59.60.
54.55.57.58.42 59.61.
54.56.57.58.60.42 61.
55.56.58.59.60.62.48
55.57.23 58.60.61..63.
56.57.59.60.62.63.
56.58.59.61.62.64.
57.58.60.61.63.64.
57.59.60.62.63.65.
58.59.61.62.64.65.
58.60.61.49 62.64.66.
59.60.44 61.63.64.66.
59AO 60.62.63.65.43 67.
59.61.62.64.65.67.47
CONTRACT
YEAR
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
. 2023
2024
2025
2026
2027
2028
2029
DRAFT
. i:!cl~:~lt~~~,
~)~"
~~fL~:~;ti~~~i:
- - "
NON-LEVELJZED
RATES
50.42
51.
52.
54.
55.
56.
58.
59.
61.
62.
64.
65.
67.
69.
70.
72.
74.22
76.
77.
79.
81.
83.
85.
87.
90.
92.28
CASE NO. A VU-04-
ORDER NO. 29628
PAGE 2 OF 2
IDAHO POWER COMPANY
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
11/XXI2004
mills/kWh
DRAFT
ON-LINE YEAR
CONTRACT NON-LEVELIZED
2004 2005 2006 2007 2008 2009 YEAR RATES
13.13.13.13.14.14.2004 13.
13.13.45 13.14.14.40 14.2005 13.
13.13.13.14.14.14.2006 13.
13.43 13.14.14.14.15.2007 13.
13.13.14.14.14.15.2008 14.
13.14.14.14.15.15.2009 14.
13.14.14.49 14.15.15.2010 14.
13.14.14.14.15.15.2011 15.
14.14.43 14.15.15.46 15.2012 15.
14.14.14.15.15.15.2013 15.
14.14.15.15.15.16.2014 16.
14.49 14.15.15.15.16.2015 16.
14.14.15.15.16.16.2016 17.
14.15.15.42 15.16.16.2017 17.
14.15.15.15.16.16.2018 17.
14.15.15.16.16.40 16.2019 18.
15.15.43 15.16.16.16.2020 18.
15.15.15.16.16.17.2021 19.
15.15.16.16.16.17.2022 19.
15.41 15.16.16.16.17.2023 20.
2024 20.
2025 21.
2026 21.
2027 22.
2028 22.
2029 23.
EFFECTIVE DATE ADJUSTABLE COMPONENT
11 /XX/2004 36.42
The total avoided cost rate in each year is the sum of the adjustable component and the fixed component from either of the tables
auove.
Example 1. A 20-year levelized contract with a 2005 on-line date would receive the following rates:
Years Rate
15.76 + 36.42
15.76 + Adjustable component in each year
Exampie 2. A 4-year non-Ievelized contract with a 2005 on-line date would receive the following rates:
Years Rate
13.30 + 36.42
13.61 + AdjustabJe component in year 2006
13.92 + Adjustable component in year 2007
14.24 + Adjustable component in year 2008
CASE NO. IPC-04-
ORDER NO. 29628
PAGE 1 OF 2
IDAHO POWER COMPANY
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
11/XXJ2004
mills/kWh
DRAFT
ON-LINE YEAR
CONTRACT NON-LEVELJZED
2004 2005 - 2006 2007 2008 2009 YEAR RATES
49.42 50.51.53.54.45 55.2004 49.42
50.51.52.48 53.55.56.44 2005 50.
50.51.53.54.55.57.2006 51.
51.52.40 53.55.56.57.2007 53.
51.52.54.55.56.58.2008 54.45
52.53.54.56.57.59.2009 55.
52.54.55.44 56.58.59.2010 57.
53.54.56.57.58.60.2011 58.
53.55.56.57.59.60.2012 59.
54.42 55.57.58.59.61.43 2013 61.46
54.56.57.59.60.62.2014 62.
55.45 56.58.59.61.62.2015 64.
55.57.58.60.61.63.2016 66.
56.44 57.59.24 60.62.63.2017 67.
56.58.59.61.62.64.2018 69.
57.58.60.61.63.64.2019 71.
57.59.60.62.63.65.2020 72.
58.59.61.62.64.65.2021 74.
58.60.61.63.64.66.2022 76.
59.60.62.63.65.66.2023 78.
2024 80.
2025 82.
2026 84.23
2027 86.
2028 88.42
2029 . 90.
CASE NO. IPC-04-
ORDER NO. 29628
PAGE 2 OF 2
PACIFICORP
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
11/XXJ2004
mills/kWh
DRAFT
ON-LINE YEAR
CONTRACT NON-LEVELIZED
2004 2005 2006 2007 2008 2009 YEAR RATES
14.14.14.15.15.15.2004 14.
14.14.14.15.15.15.2005 14.
14.14.15.15.15.16.2006 14.
14.49 14.15.15.15.16.2007 15.
14.14.15.15.16.16.40 2008 15.
14.15.15.46 15.16.16.2009 15.
14.15.15.15.16.16.2010 16.
15.15.15.16.16.48 16.2011 16.46
15.15.15.16.16.17.2012 16.
15.15.16.16.16.17.2013 17.
15.43 15.16.16.16.17.2014 17.
15.15.16.16.17.17.42 2015 18.
15.16.16.16.17.16 17.2016 18.45
15.16.16.16.17.17.2017 18.
15.16.16.17.17.40 17.2018 19.
15.16.16.17.17.17.2019 19.
16.16.46 16.17.17.18.2020 20.
16.16.16.17.17.18.2021 20.
16.16.17.17.43 17.18.2022 21.
16.16.17.17.17.18.2023 21.
2024 22.
2025 22.
2026 23.
2027 23.
2028 24.
2029 24.
EFFECTIVE DATE ADJUSTABLE COMPONENT
11 /XX/2004 36.42
, . -.- -- --- -'
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 2005 on-line date would receive the following rates:
Years Rate
16.75 + 36.42
16.75 + Adjustable component in each year
Example 2. A 4-year non-leveHzed contract with a 2005 on-line date would receive the following rates:
Years Rate
14.36 + 36.42
14.69 + Adjustable component in year 2006
15.03 + Adjustable component in year 2007
15.38 + Adjustable component in year 2008
CASE NO. PAC-04-
ORDER NO. 29628
PAGE 1 OF 2
PACIFICORP
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
11/XXI2004
mills/kWh
DRAFT
ON-LINE YEAR
CONTRACT NON-LEVELIZED
2004 2005 2006 2007 2008 2009 YEAR RATES
50.46 51.52.54.55.56.2004 50.46
51.52.53.54.56.57.2005 51.
51.52.54.55.56.58.2006 52.
52.53.46 54.56.57.48 58.2007 54.
52.54.55.56.58.59.2008 55.
53.54.55.57.28 58.60.2009 56.
53.55.56.47 57.59.27 60.2010 58.
54.55.57.58.41 59.61.2011 59.
54.56.57.58.60.61.2012 61.
55.56.58.59.47 60.62.42 2013 62.
55.57.58.59.61.45 62.2014 64.
56.57.59.60.48 61.63.47 2015 65.
56.58.59.60.62.45 63.2016 67.43
57.58.59.61.43 62.64.47 2017 69.
57.58.60.40 61.63.64.2018 70.
57.59.60.62.63.65.40 2019 72.
58.59.61.62.64.65.2020 - 74.
58.60.61.63.64.66.2021 76.
59.60.62.63.65.66.2022 77.
59.45 60.62.63.5.48 67.2023 79.
2024 81.
2025 83.
2026 85.
2027 87.
2028 90.
2029 92.
CASE NO. P AC-04-
ORDER NO. 29628
PAGE 2 OF 2