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Home My WebLink About20210513Petition.pdfSTATE OF IDAHO OFFICE OF THE ATTORNEY GENERAT LAWRENCE G. WASDEN May L3,202L fohn R. Hammond |r. Deputy Attorney General iohn.hammond (Dpuc.idaho.gov VIA E-Mail fan Noriyuki, Secretary Idaho Public Utilities Commission secretarv@ nuc. idaho. sov Re: Case No. AW-E-ZL-OS and IPC-E-21-14 In the Matter of Commission Staffs Petition to Update Inputs to the Colstrip Method Dear Ms. Noriyuki: Enclosed for electronic filing in the above matter, please find Commission Staffs Petition to Update Inputs to the Colstrip Method. Please let me know if you have any questions. Regards, fohn R. Hammond, |r. Deputy Attorney General Contracts & Admlnlstratlve Law Dlvlslon/ldaho Publlc Utilitles Commlssion P.O. Box 83720, Boise, ldaho 83720-0074 Telephone: (208) 334-0300, Fax: (208) 334-3762 11331W. Chinden Blvd., Bldg.8, Suite ZOL-A, Boise, ldaho 83714 JOHN R. HAMMOND JR. DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0314 IDAHO BAR NO. 5470 Street Address for Express Mail: I 1331 W CHINDEN BLVD, BLDG 8, SUITE 201.A BOISE,ID 83714 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF COMMISSION STAFF'S PETITION TO UPDATE COLSTRIP. RELATED ADJUSTABLE PORTION OF AVOIDED COST RATES FOR EXISTING PURPA CONTRACTS CASE NOS. AVU-E.21.05 LPC-E-2I-14 ) ) ) ) ) PETITION The Staff of the Idaho Public Utilities Commission ("Staff'), in accordance with ldaho Code $$ 6 1 -501 , -502, and -503, and applicable provisions of the Public Utility Regulatory Policies Act of 1978 ("PURPA") and pursuant to Commission Rule of Procedure 37 and 53, petitions the Idaho Public Utilities Commission ("Commission") for an order updating the Colstrip-related adjustable portion of the published avoided cost rates for existing PURPA confracts. In support of its Petition, Staffstates: I. BACKGROT]ND l. Each July 1, the Commission updates Quali$ing Facility ("QF") contracts that use published avoided cost rates calculated under the Colstrip Method. Historically, Staffinitiated the Colstrip Method updates via a letter that asked Idaho electric utilities to confirm that Staff had correctly applied the updated data to the preexisting methodology. Each utility then would file a letter with the Commission stating whether it agreed with Staff s updated computation. Finding this to be an administrative function and a relatively simple arithmetic update to a preexisting methodology, the Commission would then issue an order updating the Colstrip-related adjustable portion of the published avoided cost rates for existing PURPA contracts. See e.9., GNR-E-19-01. PETITION I 2. ln 2020 Staff initiated the annual update to the Colstrip Method with a Petition rather than a letter to the Idaho electric utilities. See Case Nos. IPC-E-20-24 and AVU-E-20-04. On July 2,2020, the Commission approved the changes to the adjustable portions of the avoided cost rates for existing PURPA contracts using the Colstrip Method. See Order No. 34716 at 3. II. COLSTRIP METHOD 3. Idaho Powerr and Avista2 are still parties to effective contracts with Colstrip Method rates. Rocky Mountain Power no longer has effective contracts with Colstrip Method rates. 4. The Idaho Public Utilities Commission in Order No. 28708, Case No. GNR-E-99- 01, established a methodology for the annual adjustable-rate portion of avoided costs for those QF contracts using variable costs associated with Colstrip, a coal-fired generating facility in southeast Montana. For those QF contracts with Colstrip-related fuel costs and variable O&M, future Colstrip variable cost adjustments are to be calculated by using FERC Form 1 Colstrip Unit Coal Costs per megawaff hour ("MWh") and adding $2.004{Wh (the average variable O&M cost of Colstrip plus 201lMWh for generation taxes plus a five percent (5%) adjustment for line loss). Staff attached relevant pages from Avista's FERC Form I as Attachment A. 5. As computed by Staff and shown below, the Colstrip-related adjustable rate will change from 16.55 mill/kilowatt hour ("kWh") to 20.37 milllkWh, effective July 1, 2021. I Idaho Power's last effective contract under the Colstrip Method will expire in September 2030. 2 Avista's Arch Ford and Idaho County Light and Power contracts under the Colstrip Method will expire June 30, 2022. 2PETITION COLSTRIP ADJUSTABLE RATE CALCULATION Updated Rates for Period 711121-6130122 Colstrip Fuel Cost from Avista FERC Form 1 for CY 2019 Iine 12 line 20 Net Generation (kwh) Fuel Fuelcost per kWh 1,220,31 1,000 $22,413,469 $0,018367 FuelCost per MWh Variable O&M, Gen. Tax, S%{ine loss per MWh Total Colstrio Adiustable Rate $18.3670 $2.0000 $20.3670 III. PROCEDURE 6. Staff believes that a hearing is unnecessary to consider the issues and requests that this Petition be processed under Modified Procedure; i.e., by written submissions rather than by hearing. See Commission Rule of Procedure 201, et seq. IV. COMMUNICATIONS AI\D SERVICE OF PLEADINGS 7. Communications and service of pleadings, exhibits, orders, and other documents relating to this proceeding should be sent to: John R. Hammond Jr. Deputy Affomey General Idatro Public Utilities Commission P.O. Box 83720 Boise, lD 83720-0074 i ohn.hamrnond (g)puc. i daho. go v Mike Louis Supervisor of Engineering Section Idaho Public Utilities Commission P.O. Box 83720 Boise, ID 83720-0074 mike. loui sf@puc. idaho. go v V. REOUEST FOR RELIEF 8. Staff respectfully requests that the Commission issue an order approving the updated Colstrip-related adjustable rate of 20.37 mill/kWh, efflective July l, 2021. 3PETITION Respectfully submitted this 13ft day of May 2021 R. Hammond, Jr. Attorney General Public Utilities Commission CERTIFICATE OF SERVICE I HEREBY CERTIFY that I have on this 13tr day of May,202l, served the foregoing Petition, in Case Nos. AVU-E-21-05 and IPC-E-21-14, by electronically mailing a copy thereof to the following: DONOVAN E WALKER REGULATORY DOCKETS IDAHO POWER COMPA}ry PO BOX 70 BOISE ID 83707-0070 E-mail : dwalker@idahopower. com dockets@ idahopower. com CLINT KALICH AVISTA CORPORATION POBOX3727 SPoKANE WA99220-3727 E-mail : clint.kalich@avistacom.com MICHAEL DARRINGTON IDAHO POWER COMPANY PO BOX 70 BOISE ID 83707 E-mail : mdarrinqton(@ idahopower. com MICHAEL G ANDREA SENIOR COUNSEL AVISTA CORPORATION POBO){3727 SPOKANE W499220-3727 E-mail: michael.andrea@avistacom.com I(ln;$ffivt<tN Keri J. HawkeY Assistant to John R. Hammond Jr. 4PETITION ATTACHMENT 6(A)) Avista Corporation try (2) lA lr{r EA r vrgllrar Resubmission tlYru, ua, tt, 0/,|15D021 End of 20201Q4 STEAM-ELECTRIC GENERATING PLANT STATISTICS (Large Plants) (Continued) 9. ltems under Cost of Plant are based on U. S. of A. Accounts. Produciion expenses do not include Purchased Power, System Control and Load Dispatching, and Other Expenses Classilied as other Power Supply Expenses. 10. For lG and GT plants, repoi Operating Expenses, Account Nos. S47 and 549 on Line 25 "Electric Expenses," and Maintenance Account Nos. 553 and 554 on Line 32, "Maintenance of Elec'tric Plant." lndicate plants desQned for peak load service. Designate automatically operated plants. 1 1 . For a plant equipped with combinations of fossil fuel steam, nuclear sleam, hydro, internal combustion or gas-turbine equipment, report each as a separate plant. However, if a ga+turbine unit funclions in a combined cycle operation with a conventional steam unit, include the ga+turbine with the steam plant. 12. lt a nuclear power generating plant, brieily explain by tootnote (a) accounting method for cost of power generated including any excess costs attributed to research and development; (b) types of cost units used for the various components of fuel cost; and (c) any other informative data conceming plant $pe fuel used, fuel enrichment type and quantity for the and other and characteristics of Plant Name: Keffle Falls Steam Conventional 1983 1983 50.70 98 3759 54 54 il 28 264851 000 2573941 28775717 80342935 323787 1 12016380 2209.3961 205292 7093295 387759 0 0 105S87 140959 1657292 3081 56 213320 1 1 359359 0.0429 Wood Ton 462472 8600000 15.314 15.314 1.781 0.027 0 0 0 537501 709798 Plant Name: Colsfip (e) Plant Name: Ratfdrurn (D Line No. Steam Gas Turbine 1 Conventional Not Applicable 2 1984 1995 3 1985 1995 4 233.40 166.50 5 235 161 6 6916 128/-7 222 167 8 222 0 9 222 0 't0 249 1 't1 122031 1000 171022000 12 '1289395 621682 13 1120286/9 356s1 18 '14 221351503 61624330 15 14387288 0 16 349056835 6581 1 130 't7 1495.5306 395.2620 18 149532 13258 19 22413/,69 32233U 20 0 0 21 2976867 0 22 0 0 23 0 0 24 33359 242375 25 26412189119942 0 0 27 0 0 28 549910 41274 29 635889 0 30 6138583 0 31 1958141 62878 32 97301 1 68289 33 39950652 3671350 u 0.0327 0.0215 35 Coal oit Gas 36Gas MCF Ton BBL MCF 37 762615 2755 0 2015263 0 0 3847430 1020000 0 16970000 5880000 0 1020000 0 0 39 29.096 81.344 0.000 1.599 0.000 0.000 402.3U 0.000 2-364 0.000 29.096 81.U4 0.000 r.599 0.000 0.000 41 1.715 13.834 0.000 1.567 0.000 0.000 422.317 0.000 0.035 0.000 0.018 0.000 0.000 0.019 0.000 0.000 43 10618.000 0.000 0.000 12025.000 0.000 0.000 440.000 0.00015035.000