Loading...
HomeMy WebLinkAbout20041104Order No 29628.pdfOffice 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