20190422notice_of_applications_order_no_34318.pdf

Office of the Secretary
Service Date
April 22,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF UPDATES TO )CASE NOS.AVU-E-19-05
PUBLISHED AVOIDED COST RATES )IPC-E-19-13
)PAC-E-19-05
)NOTICE OF APPLICATIONS
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34318
Pursuant to the Public Utility Regulatory Policies Act of 1978 ("PURPA")and the
implementing regulations of the Federal Energy Regulatory Commission ("FERC"),the Idaho
Public Utilities Commission ("Commission")uses the Surrogate Avoided Resource ("SAR")
methodology to calculate published avoided cost rates.The Commission has used the SAR method
since Idaho began implementing PURPA in the early 1980's.Order No.32697 at 7.QFs in Idaho
that are ineligible for published avoided cost rates may individually negotiate PURPA contracts
with the utilities using the IntegratedResource Plan ("IRP")pricing method.See id.at 17.
The Commission's SAR model currentlyuses a natural gas combined cycle combustion
turbine as the surrogate resource for determining the marginal cost of energy.Id.Because
published avoided cost rates are based on the costs that would be incurred by a natural gas facility,
the natural gas price forecast is a key input in the SAR model.The natural gas forecast price is
updated annuallyin the SAR model followingthe release of the Annual Energy Outlook by the
Energy Information Administration ("EIA").Order Nos.32697,32802.
Additionally,Staff proposes updating the SAR model for each utility to reflect changes
in the federal and state corporate tax rates.Staff also proposes updating Avista's SAR model to
reflect the cost of capital approved in Avista's last general rate case.
On April 12,2019,Commission Staff sent letters to Idaho Power,Avista,and Rocky
Mountain Power ("Companies")explaining the proposed updates to the SAR method.Staff
included the updated published avoided cost rates,and asked the Companies to file comments with
the Commission on the Applications by no later than May 16,2019.Staff's letters to the utilities
serve as Applications in these dockets.See Commission Rules 51 and 52.
NOTICE OF APPLICATIONS
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34318 1
The Commission now issues this Notice of Applications and Notice of Modified
Procedure setting comment and reply deadlines in each docket.
NOTICE OF APPLICATIONS
YOU ARE HEREBY NOTIFIED that Staff proposes to update inputs to the SAR
model,which will update the published avoided cost rates for the Companies.
YOU ARE FURTHER NOTIFIED that Staff proposes to update the natural gas price
input using the EIA's 2019 Annual Energy Outlook forecast for the Mountain Region.
YOU ARE FURTHER NOTIFIED that Staff proposes to update the federal and state
corporate tax rates applicable to the Companies using the tax rates established in the federal Tax
Cuts and Jobs Act of 2017 and Idaho House Bill 463.
YOU ARE FURTHER NOTIFIED that Staff proposes to update Avista's cost of
capital,as established in AVU-E-17-01.
YOU ARE FURTHER NOTIFIED that copies of the proposed updated rates were sent
to each utility for verification.The proposed updated rates are attached to the Applications in these
dockets,and are available for public review.
YOU ARE FURTHER NOTIFIED that the Applications are available for public
inspection during regular business hours at the Commission's office.These documents are also
available on the Commission's web site at www.puc.idaho.cov.Click on the "File Room"tab at
the top of the page,then select "Electric Cases"and click on the case number as shown on the
front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in these cases will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically Idaho
Code §§61-502 and 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in these matters will be
conducted pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in these matters,and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure,IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
NOTICE OF APPLICATIONS
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34318 2
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on these
Applications may file a written comment in support or opposition with the Commission by
no later than May 16,2019.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written
comments.Written comments concerning these Applications shall be mailed to the Commission
and the Companies at the addresses reflected below:
For the Idaho Public Utilities For Idaho Power Company:
Commission:
Donovan E.Walker
Commission Secretary Michael Darrington
Idaho Public Utilities Commission Idaho Power Company
PO Box 83720 1221 West Idaho Street 83702
Boise,ID 83720-0074 P.O.Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-Mail:dwalker @idahopower.com
[e-mail]
472 W.Washington Street
Boise,ID 83702-5918
For Avista Corporation:For Rocky Mountain Power:
Michael Andrea Yvonne Hogle
Clint Kalich Ted Weston
Avista Utilities Daniel MacNeil
1411 E.Mission PacifiCorp dba Rocky Mountain Power
PO Box 3727 1407 West North Temple,Suite 330
Spokane,WA 99220-3727 Salt Lake City,UT 84116
[e-mail] [e-mail]
[e-mail] [e-mail]
[e-mail]
These comments should contain the case captions and case numbers 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.idaho.goy.Click the "Consumers"tab then click
the "Case Comment or Question Form"and complete the comment form using the case number as
it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that Staff shall file reply comments,if necessary,
by no later than May 23,2019.
NOTICE OF APPLICATIONS
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34318 3
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its Order
without a formal hearing.If written comments are received within the time limit set,the
Commission will consider them and,in its discretion,may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that the Applications of Staff be processed by Modified
Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested in submitting written
comments must do so by May 16,2019.Staff may file reply comments by no later than May 23,
2019.
NOTICE OF APPLICATIONS
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34318 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2019.
PAUL JELLAND R,PRESIDENT
KRISTINE RAPER,COMM SSIONER
ERIC ERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I:\Legal\ELECTRIC\IPC-E-19-13\IPCEl913_nte app mod proc_ej
I:\Legal\ELECTRIC\AVU-E-19-05\AVUEl905_nteapp mod proc_ej
I:\Legal\ELECTRIC\PAC-E-19-05\PACE1905 ntc app mod proc_ej
NOTICE OF APPLICATIONS
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34318 5