20200521Notice_of_Petition_Order_No_34674.pdf

NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34674 1

Office of the Secretary
Service Date
May 21, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF COMMISSION
STAFF’S PETITION TO UPDATE INPUTS
TO THE COLSTRIP METHOD AND TO
DISCONTINUE THE SUMAS METHOD
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CASE NOS. IPC-E-20-24

AVU-E-20-04

NOTICE OF PETITION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 34674

On May 14, 2020, Commission Staff filed a Petition requesting the Commission
approve the annual update to the Colstrip Method of calculating avoided cost rates for certain
qualifying facilities under the Public Utility Regulatory Policies Act of 1978. Staff’s Petition also
asked the Commission to discontinue the Sumas Method of calculating avoided cost rates.
The Commission now sets comment deadlines on the Petition.
NOTICE OF PETITION
YOU ARE HEREBY NOTIFIED that the Commission approved the Colstrip Method
in Order No. 28708, Case No. GNR-E-99-1. The Colstrip Method applies to certain contracts
executed between September 28, 1990 and January 30, 1995. Idaho Power Company (“Idaho
Power”) and Avista Corporation (“Avista”) still have contracts in which avoided costs rates were
set under the Colstrip Method. PacifiCorp dba Rocky Mountain Power no longer has contracts
that use the Colstrip Method.
YOU ARE FURTHER NOTIFIED that the adjustable portion of the Colstrip Method
is updated annually using variable costs associated with operating Colstrip, a coal-fired generating
facility in southeast Montana. The Colstrip Method is the summation of the cost of coal per
megawatt hour (“MWh”) and the average variable operations and maintenance costs and
generation taxes minus a line loss adjustment.
YOU ARE FURTHER NOTIFIED that as computed by Commission Staff, this year’s
update to the adjustable portion of the Colstrip Method will result in a change from 16.17 mill/kWh
to 16.55 mill/kWh, effective July 1, 2020.
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34674 2

YOU ARE FURTHER NOTIFIED that each Idaho utility indicates it no longer has an
effective contract utilizing the Sumas Method. The Sumas Method applied to certain contracts
executed between January 31, 1995 and September 26, 2002. The adjustable portion of the avoided
cost rates under the Sumas Method was based on annual average gas prices indexed at Sumas,
Washington.
YOU ARE FURTHER NOTIFIED that in Order No. 25883, the Commission directed
Avista to track the Sumas fuel prices and submit them to the Commission each year. Commission
Staff recommends the Commission no longer require Avista to annually provide Sumas natural
gas prices to the Commission, and that the Commission discontinue all requirements related to the
Sumas Method.
YOU ARE FURTHER NOTIFIED that the Petition is 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.gov. Click on the “ELECTRIC” tab at the top of
the home page, then select “Open Cases,” and then locate and click on the case number as shown
on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically Idaho
Code §§ 61-501 to 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et 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 this matter, 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.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application must file a written comment in support or opposition with the Commission within 21-
days of the service date of this Order. The comment must contain a statement of reasons
supporting the comment. Persons desiring a hearing must specifically request a hearing in their
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34674 3

written comments. Written comments concerning this Petition should be sent electronically, unless
email is not available, to the Commission, Commission Staff, and the utilities at the email
addresses reflected below:
For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714
Email: [e-mail]

For Commission Staff:

Edward Jewell
Mike Louis
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Email: [e-mail]
[e-mail]
For Idaho Power:

Donovan E. Walker
Michael Darrington
Energy Contracts
Idaho Power Company
1221 West Idaho Street 83702
P.O. Box 70
Boise, ID 83707-0070
Email: DWalker @idahopower.com
[e-mail]
dockets@ idahopower.com
[e-mail]

For Avista:

Michael Andrea
Clint Kalich
Avista Utilities
1411 E. Mission
P.O. Box 3727
Spokane, WA 99220-3727
Email: [e-mail]
[e-mail]

Comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via email may do so by accessing the
Commission’s home page located at www.puc.idaho.gov. Click the “Consumers” tab then click
the “Case Comment Form,” and complete the comment form using the case number as it appears
on the front of this document. These comments must also be sent to the Applicant.
YOU ARE FURTHER NOTIFIED that Commission Staff must file any reply
comments within 28-days of the service date of this Order.
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
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34674 4

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 Commission Staff’s Petition be processed by
Modified Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting
written comments must do so within 21-days of the service date of this Order. The Commission
Staff must file any reply comments within 28-days of the service date of this Order.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 34602,
issued March 17, 2020. All pleadings should be filed with the Commission electronically and shall
be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 21st
day of May, 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Diane M. Hanian
Commission Secretary

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