20090218Idaho Power Response.pdf

er1DA~POR~
An IDACORP Company
Februar 18, 2009
2009 fEB l
10
UTiLlTl: '
Idaho Public Utilities Commssion
Attn: Scott Woodbury
PO Box 83720
Boise, ID 83720-0074
Randy C. Alphin
Senior Plang Admnistrator
Tel: [phone]
rallphin(fidahopower.com
RE: CASENOS. GNR-E-09-1
IN THE MATTER OF THE FUL COST RELATED ADJUSTABLE TO IDAHO
AVOIDED COST RATES FOR IDAHO POWER COMPAN, PACIFICORP DBA ROCKY
MOUNAI POWER, AN AVISTA CORPORATION DBA AVISTA UTILITIES.
We have reviewed the inormtion you have provided in your letter dated Februar 9, 2009
notifyg Idaho Power of revision of the Published avoided cost rates due to inclusion of a revised
Northwest Power and Conservation Council natual gas forecast that was released on December 29,
2008.
On Februar 11, 2009 Rick Sterling called Randy Allphin at Idao Power advising of a
mathematical error discovered in the values that were included in the letter dated Februry 9, 2009
and e-mailed a revised Published Avoided Cost calculation to Idao Power for review. For reference
a representative value from this revised calculation is $88.11 for a 20 yea levelized contract with an
on-line year of 2009.
Idaho Power concurs that the model and calculations used by the IPUC staff for Idaho Power
Company are consistent with IPUC Order 30480.
Idaho Power believes there may be some question as to whether the December 29, 2008
Northwest Power and Conservation Council natual gas forecast is a final or draft forecast. However,
in reviewing the Northwest Power and Conservation Council process in developing its 6th plan, there
are numerous indications that this Natual Gas forecast is the final forecast that wil be used in the 6th
plan. Idaho Power assumes that if at a later date a different final forecast is included in the 6th plan
these Published Avoided Costs wil be revised accordingly and any QF purchase power agreements
executed wil include the Published Avoided Costs as approved by the Commssion at the time the
agreement was executed and wil not be subj ect to change.
Sincerely,
J2 f. a¥'
I t:dY C Allphi
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POBox 70 Boise, Idaho 83707 1221 W Idaho St. Boise, Idaho 83702
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cc:Bar Kline (IPCo) / /
Donovan Walker (IPCo) I
Mike Youngblood (IPCo)
Mark Stokes (IPCo) ..
POBox 70 Boise, Idaho 83707
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1221 W Idaho St. Boise, Idaho 83702