20081126notice_of_petition.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
November 26, 2008
IN THE MATTER OF THE JOINT PETITION
TO APPROVE A STIPULATION TO ADJUST
PUBLISHED IDAHO AVOIDED COST
RATES FOR IDAHO POWER COMPANY
PACIFICORP, AND A VISTA CORPORATION
CASE NO. GNR-O8-
NOTICE OF PETITION
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT/PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on November 5, 2008, a joint Petition was
filed by Idaho Power Company (Idaho Power) on behalf of itself, the Staff of the Idaho Public
Utilities Commission (Staff), Avista Corporation (Avista), PacifiCorp (PacifiCorp), U.
Geothermal, Inc. (U.S. Geothermal), Exergy Development Group of Idaho LLC (Exergy), Tuana
Springs Energy LLC (Tuana), and Idaho Windfarms LLC (IWF). Collectively, Petitioners seek
Commission approval of a Stipulation proposing changes in non-fuel related Surrogate Avoided
Resource (SAR) costs and request modification of published avoided cost rates.
Background
On September 10, 2007, Idaho Power filed a Petition with the Idaho Public Utilities
Commission (Commission) to modify the methodology for determining fuel costs used to
establish published rates for PURPA qualifying facilities (QFs). On December 28, 2007, the
Commission, in Order No. 30480, stated as follows:
. . . we find it reasonable, based on the written record developed in this case
to adopt Staff s proposed change for calculating the fuel cost component and
published avoided cost rates. We further find that the proposed change in the
methodology to calculate the fuel cost component and published avoided cost
rates can be made independently (and in advance) of a review of the entire list
of non-fuel methodology variables.
The Commission agrees that a periodic review of the other methodology
variables is advisable, and accepts and encourages Idaho Power s offer to
conduct a 2008 workshop to review the other non-fuel methodology variables.
We also deem it advisable that PacifiCorp and Avista participate. We direct
the Company to report its workshop findings to the Commission.
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
Order No. 30480, p. 11.
In accordance with Order No. 30480, Idaho Power hosted workshops on April 4
2008 , and July 23 , 2008. At the conclusion of the July 23 workshop, the participants agreed to
continue their discussions bye-mail with the goal of reaching a consensus on changes that
should be made to the non-fuel related costs ofthe SAR.
Non-fuel variables consist of two general categories - utility-specific variables and
generic variables. Utility-specific variables relate to each utility's cost of capital. Because they
are a direct outcome of general rate cases, the Petitioners agree that they are not an issue in this
case. Generic variables relate to the (SAR), whose costs set the basis from which Idaho
published avoided cost rates are determined. Adjustment of the non-fuel related generic
variables is the subject of this case and the Stipulation.
As a result of their continuing settlement discussions, the Petitioners have agreed on
interim values which are derived from using a "base year" of 2008 in the model for the non-fuel
related costs of the SAR. Those values are depicted below and are set out in Paragraph 4 of the
Stipulation:
Non-Fuel Related SAR Costs
Heat Rate
Equivalent Availability Factor
Capital Cost
Variable O&M
O&M Escalation Rate
SAR Escalation Rate
Fixed O&M
General Inflation
Current Proposed
100
86.
lOO/kW
$3.86/MWh
1.4%
$14.
100
92%
$802/kW
$3.4 7 /MWh
$13.24
Published avoided cost rates are adjusted as new fuel-related SAR values become
available from the Northwest Power and Conservation Council (Council) or the Council'
general advisory committees. A new Council forecast is anticipated in: early December 2008.
Petitioners recommend that the non-fuel related~ values of published rates~ be implemented at the
same time the Commission approves new fuel-related avoided cost components based on the
Council's median forecast of natural gas prices. This will allow the Commission to make a
single avoided cost rate change.
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed and considered
the Joint Petition in Case No. GNR-08-02 and has preliminarily found that the public interest
regarding the Stipulation and the proposed changes in non-fuel related SAR costs in the
published avoided cost rate methodology may not require a hearing to consider the issues
presented and that issues may be processed under Modified Procedure , by written
submission rather than by hearing.
31.01.01.201-204.
Reference Commission Rules of Procedure, IDAP
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the Joint Petition for approval of Stipulation and the issues raised in
Case No. GNR-08-02 and the Commission related use of Modified Procedure is
Wednesday, December 17 2008. Persons desiring a hearing must specifically request a hearing
in their written protest or comments.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing on
the issues presented in this proceeding unless it receives written protests or comments opposing
the use of Modified Procedure and stating why Modified Procedure should not be used.
Reference IDAP A 31.01.01.203.
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 based on the written positions before it. Reference IDAP
31.01.01.204.
YOU ARE FURTHER NOTIFIED that the Petition in Case No. GNR-08-02 and
related Stipulation may be viewed at the Commission s website www.puc.idaho.gov by clicking
on "File Room" and "Electric Cases " or can be viewed during regular .business hours at the
Idaho Public Utilities Commission, 472 W. Washington Street, Boise, Idaho and the Idaho
offices ofIdaho Power, PacifiCorp, and Avista.
YOU ARE FURTHER NOTIFIED that written comments concerning the Petition and
Stipulation filed in this case should be mailed to the Commission and the Petitioners at the
addresses reflected below.
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
IDAHO POWER COMPANY:
Donovan E. Walker
Barton L. Kline
Idaho Power Company
PO Box 70
1221 W. Idaho Street (83702)
Boise, ID 83707-0070
E-mail: dwalker(~jdahopower.com
bkline~idahopower.com
COMMISSION STAFF:
Scott D. Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
PO Box 83720
472 W. Washington Street (83702)
Boise, ID 83720-0074
E-mail: scott. woodburv(q),puc.idaho. gov
AVISTA CORPORATION:
David J. Meyer
Clint Kalich
A vista Corporation - MSC- 7
PO Box 3727
1411 E. Mission Street
Spokane, W A 99220-3727
E-mail: clint.kalich~avistacorp.com
davi d. mey er~a vi stacorp. com
ACIFICORP:
Mark Moench
Daniel Solander
Rocky Mountain Power
One Utah Center
201 S. Main Street, Suite 2300
S~lt Lake City, UT 84111
E-:mail: daniel.solander~pacificorp.com
mark.moench~pacificorp. com
EXERGY DEVELOPMENT GROUP LLC:
Peter J. Richardson, Esq.
Richardson & O'Leary PLLC
515 N. 27th Street (83702)
PO Box 7218
Boise, ID 83707-1218
E-mail: peter~richardsonandoleary.com
TUANA SPRINGS ENERGY LLC:
Dean J. Miller
McDevitt & Miller LLC
420 W. Bannock Street (83702)
PO Box 2564
Boise, ID 83701
E-mail: ioe(q),mcdevitt-miller.com
IDAHO WIND FARMS LLC:
Glenn Ikemoto
672 Blair Avenue
Piedmont, CA 94611
E-mail: glenni~pacbell.net
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.idaho.gov. Click the "Comments and Questions
icon, 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 Petitioners at the e-mail addresses listed
above.
DATED at Boise, Idaho this ;;2. & jJ\day of November 2008.
i::Je D. Jewell
ission Secretary
bls/N:GNR-08-02 sw
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE