20100316Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:SCOTT WOODBURY
DATE:MARCH 15,2010
RE:UPDATE TO PUBLISHED AVOIDED COST RATES TO REFLECT AN
UPDATED NATURAL GAS PRICE FORECAST OF THE NORTHWEST
POWER AND CONSERVATION COUNCIL , ~ IE -0 J/
Pursuant to the Public Utility Regulatory Policies Act of 1978 (PURP A) and the
implementing regulations of the Federal Energy Regulatory Commission (FERC), the Idaho
Public Utilities Commission (Commission) has approved a Surrogate Avoided Resource (SAR)
methodology for calculation of the avoided cost rates paid to PURP A qualifying cogeneration
and small power production facilities (QFs) by Idaho Power Company, Avista and PacifiCorp.
A voided cost rates are the purchase price paid to QFs for purchases of QF capacity and energy.
One of the key input variables in the computation of avoided cost rates is a long-term
natural gas price forecast. In accordance with the methodology approved in Order No. 29124,
the medium natural gas price forecast of the Nortwest Power and Conservation Council (NPCC;
Council) is to be used as the basis for computing avoided cost rates. In Order No. 29124 the
Commission also found that the release of a new fuel price forecast by the Councilor the
Council's general advisory committees automatically triggers a recalculation of the published
avoided cost rates.
A new Council natural gas price forecast was approved on March 2, 2010 in conjunction
with the Council's approval and release of its Sixth Power Plan (Plan). The forecast was posted
on the Council's website on March 8, 2010. The forecast is Appendix A to the Plan. A copy of
the medium natual gas price forecast contained in Appendix A to the Plan is attached. In
accordance with the approved methodology, east-side delivered prices are to be used for avoided
cost computations.
DECISION MEMORANDUM - 1 -MARCH 15,2010
Commission Staf has recomputed avoided cost rates using the Council's most recent gas
price forecast. Staff provided Idaho Power, Avista and PacifiCorp with worksheets on March 9,
2010 for review and comment showing the computation of the revised avoided cost rates. Idaho
Power, A vista and PacifiCorp accept Stafs avoided cost calculations as accurately incorporating
the Council's March 8, 2010 revised natural gas price forecast and as consistent with the
Commission's approved SAR methodology. A copy of the rates for all three utilities is attached.
Staff recognizes that the recomputed avoided cost rates, if approved by the Commission,
are significa.'1tly lower than the rates curently in effect. Staff also realizes that there are
probably several developers in active negotiations with the utilities for power sales agreements
based on the higher existing rates. Nevertheless, Staff recommends that the Commission not
establish grandfathering criteria for entitlement to existing rates. Staff believes that developers
share equal responsibility with Commission Sta and the utilties to be aware of changes in fuel
price forecasts and to negotiate accordingly. Regardless ofwhetber new fuel price forecasts
cause avoided cost rates to increase or to decrease, Staf believes the Commission should be
prompt in approving revised rates. Consequently, Staff recommends that the revised rates
become effective upon Commission approvaL.
STAFF RECOMMENDATION
Staff recommends that the attached avoided cost rates for A vista, Idaho Power and
PacifiCorp be approved with an effective date of the Commission's Order.
COMMISSION DECISION
Presented in this case for Commission approval are revised published avoided cost rates
incorporating the Council's March 8, 2010 medium natural gas price forecast. The calculation of
the fuel cost adjustment to published avoided cost rates is arithmetic. Does the Commission find
it reasonable to approve the change in rates?
i:udmemos/avoided cost 3-09-1 0 update
DECISION MEMORANDUM - 2 -MARCH 15,2010
Appendix Al : Mcdil1m Case I;uelPrke Forecast Sixth .Povver .Plan
Table AI-I: Natural Gas Prices at Key Hubs and Northwest Generators
2006$lMtu
Medium Case
2005 7.95 6.98 7.08 7.70 7.58
2006 6.72 5.84 5.95 6.56 6.42
2007 6.53 5.67 5.78 6.38 6.24
2008 8.12 7.08 7.72 8.41 7.68
2009 3.95 3.35 3.94 4.59 3.91
2010 4.62 3.95 4.54 5.28 4.56
2011 4.90 4.20 4.80 5.61 4.86
2012 5.20 4.47 5.07 5.90 5.19
2013 5.52 4.76 5.36 6.20 5.48
2014 5.86 5.06 5.67 6.52 5.79
2015 6.22 5.38 6.00 6.85 6.11
2016 6.32 5.48 6.09 6.96 6.22
2017 6.43 5.57 6.19 7.06 6.32
2018 6.54 5.67 6.29 7.16 6.44
2019 6.65 5.77 6.39 7.27 6.54
2020 6.77 5.87 6.50 7.38 6.64
2021 6.93 6.02 6.64 7.53 6.79
2022 7.09 6.16 6.79 7.68 6.94
2023 7.25 6.31 6.94 7.83 7.09
2024 7.42 6.46 7.09 7.99 7.25
2025 7.60 6.62 7.25 8.16 7.41
2026 7.70 6.71 7.35 8.26 7.51
2027 7.81 6.81 7.45 8.36 7.61
2028 7.92 6.91 7.55 8.47 7.71
2029 8.03 7.01 7.65 8.57 7.82
2030 8.15 7.11 7.75 8.68 7.92
A1-19 :df''iF'I.N
AVISTA
AVOIDED COST RATES FOR NON.FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
Draft
$/MWh .
;'1';;.. ....
LEVELIZEO.
......1:;' .,...........
\ .+..cc.........,......
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARSl 2010 2011 2012 2013 2014 2015 YEAR RATES
1 56.94 60.32 64.06 67.60 71.41 75.50 2010 56.94
2 58.56 62.11 65.76 69.43 73.37 76.63 2011 60.32
3 60.25 63.80 67.49 71.29 74.74 77.71 2012 64.06
4 61.87 65.47 69.25 72.73 75.94 78.80 2013 67.60
5 63.47 67.16 70.70 73.98 77.07 79.87 2014 71.41
6 65.09 68.60 71.97 75.15 78.16 80.93 2015 75.50
7 66.50 69.87 73.15 76.26 79.21 82.01 2016 77.85
8 67.76 71.05 74.26 77.31 80.27 83.10 2017 80.16
9 68.92 72.16 75.31 78.36 81.34 84.20 2018 82.68
10 70.02 73.20 76.35 79.40 82.40 85.30 2019 85.15
11 7105 74.22 7737 80.44 83.46 86.40 2020 87.71
12 7205 75.23 78.38 81.47 84.51 87.45 2021 90.73
13 73.03 76.21 79.37 82.48 85.52 88.47 2022 93.88
14 73.99 77.18 80.36 83.46 86.50 89.46 2023 97.15
15 74.93 78.13 81.30 84.40 87.45 90.42 2024 100.55
16 75.84 79.04 82.21 85.31 88.37 91.35 2025 104.08
17 76.72 79.92 83.09 86.20 89.26 92.29 2026 107.09
18 7757 80.76 83.94 87.05 90.16 93.21 2027 110.18
19 78.39 81.58 84.76 87.91 91.04 94.11 2028 113.37
20 79.17 82.37 85.58 88.75 91.89 94.99 2029 116.67
2030 120.06
2031 124.62
2032 128.62
2033 132.76
2034 137.04
2035 141.48
Note: The rates shown in this table have been computed using the Northwest Power and Conservation Council's Fuel Price Forecast
contained in its Sixth Power Plan approved on February 10, 2010. See page A1-19, East-Side Delivered prices. (Reference Order No.
30480).
AVISTA
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
Draft
$/MWh
iii,!,;!;,d.LEVELIZED..~~.Ti.
.. .........i I.....NON.LEVELIZED'."":.M~t~:....'...1.... ..,tt-,.
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
NEARSl 2010 2011 2012 2013 2014 2015 YEAR RATES
1 21.93 22.26 22.60 22.94 23.28 23.63 2010 21.93
2 22.09 22.42 22.76 23.10 23.45 23.80 2011 22.26
3 22.24 22.58 22.92 23.26 23.61 23.97 2012 22.60
4 22.40 22.73 23.07 23.42 23.77 24.13 2013 22.94
5 22.55 22.88 23.23 23.58 23.93 24.29 2014 23.28
6 22.69 23.03 23.38 23.73 24.09 24.45 2015 23.63
7 22.83 23.18 23.53 23.88 24.24 24.61 2016 23.99
8 22.97 23.32 23.67 24.03 24.39 24.76 2017 24.35
9 23.11 23.46 23.81 24.17 24.53 24.90 2018 24.71
10 23.24 23.59 23.95 24.31 24.67 25.05 2019 25.09
11 23.37 23.72 24.08 24.44 24.81 25.19 2020 25.46
12 23.50 23.85 24.21 24.58 24.95 25.32 2021 25.85
13 23.62 23.98 24.34 24.70 25.08 25.46 2022 26.24
14 23.74 24.10 24.46 24.83 25.20 25.58 2023 26.63
15 23.86 24.22 24.58 24.95 25.33 25.71 2024 27.04
16 23.97 24.33 24.70 25.07 25.45 25.83 2025 27.45
17 24.08 24.44 24.81 25.19 25.56 25.95 2026 27.86
18 24.19 24.55 24.92 25.30 25.68 26.07 2027 28.28
19 24.29 24.66 25.03 25.40 25.79 26.18 2028 28.71
20 24.39 24.76 25.13 25.51 25.89 26.28 2029 29.14
2030 29.58
2031 30.03
2032 30.49
2033 30.95
2034 31.42
2035 31.89
EFFECTIVE DATE I ADJUSTABLE COMPONENT
~Draft I 35.01
The total avoided cost rate in each year is the sum of the adjustable component and the fixed component from either of the tables
above.
Example 1.A 20-year levelized contract with a 2010 on-line date would receive the following rates:
Years Rate
1 24.39 + 35.01
2.20 24.39 + Adjustable component in each year
Example 2. A 4-year non-Ievelized contract with a 2010 on-line date would receive the following rates:
Years Rate
1 21.93 + 35.01
2 22.26 + Adjustable component in year 2011
3 22.60 + Adjustable component in year 2012
4 22.94 + Adjustable component in year 2013
Note: The rates shown in ttis tablé tlaVê been computed using the Northwest Power and Conservation Council's Fuel Price Forecast
contained in its Sixth Power Plan approved on February 10, 2010. See page A1-19, East-Side Delivered prices. (Reference Order No.
30480).
IDAHO POWER COMPANY
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
Draf
$/MWh
\i;~ ..;....i ...;;d....D....
~.~......... . .
....
\.:T), ..-C-d -7-...,d(d.) .........d...;....i. ......:;dNÖN"i.ÊYEi.IZ~D.... .......:i
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
!YEARSl 2010 2011 2012 2013 2014 2015 YEAR RATES
1 56.67 60.06 63.78 67.32 71.13 75.21 2010 56.67
2 58.30 61.85 65.48 69.15 73.09 76.34 2011 60.06
3 59.99 63.53 67.22 71.01 74.46 77.43 2012 63.78
4 61.61 65.21 68.99 72.46 75.66 78.52 2013 67.32
5 63.23 66.91 70.44 73.72 76.80 79.60 2014 71.13
6 64.85 68.36 71.72 74.90 77.89 80.66 2015 75.21
7 66.27 69.64 72.91 76.01 78.95 81.5 2016 7756
8 67.54 70.83 74.03 7707 80.03 82.85 2017 79.87
9 68.72 71.94 75.09 78.13 81.10 83.96 2018 82.38
10 69.82 73.00 76.14 79.19 82.18 85.07 2019 84.85
11 70.87 74.04 77.18 80.24 83.25 86.19 2020 87.40
12 71.89 75.06 78.20 81.28 84.32 87.26 2021 90.42
13 72.89 76.06 79.21 82.31 85.35 88.30 2022 93.57
14 73.86 77.04 80.21 83.31 86.35 89.31 2023 96.83
15 74.82 78.01 81.8 84.27 87.32 90.29 2024 100.23
16 75.76 78.95 82.11 85.21 88.26 91.24 2025 103.76
17 76.66 79.85 83.01 86.11 89.18 92.20 2026 106.75
18 7753 80.72 83.88 87.00 90.10 93.15 2027 109.85
19 78.37 81.56 84.73 87.88 91.00 94.08 2028 113.03
20 79.19 82.38 85.58 88.74 91.89 94.99 2029 116.32
2030 119.71
2031 124.27
2032 128.26
2033 132.39
2034 136.67
2035 141.10
Note: The rates shown iii this lacle nave beeii computed using the Northwest Power and Conservation Council's Fuel Price Forecast
contained in its Sixth Power Plan approved on February 10,2010. See page A1-19, East-Side Delivered prices. (Reference Order No.
30480). These rates also reflect a change in Idaho Power's weighted cost of capital as a result of Order No. 30722 in the Company's
2008 general rate case.
IDAHO POWER COMPANY
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
Draft
$/MWh
,...........'.i.,.., .c¡l.EVEL:IZEfl...
i
..' .......... . ..........it1.1(.-._
......; . ft.;' .........; ....~. c¡-d.'. ....... ....x......,'...........,....
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELlZED
(YEARSl 2010 2011 2012 2013 2014 2015 YEAR RATES
1 21.67 21.99 22.32 22.66 23.00 23.35 2010 21.67
2 21.82 22.15 22.48 22.82 23.17 23.51 2011 21.99
3 21.98 22.31 22.64 22.98 23.33 23.68 2012 22.32
4 22.13 22.46 22.80 23.14 23.49 23.84 2013 22.66
5 22.28 22.61 22.95 23.30 23.65 24.00 2014 23.00
6 22.42 22.76 23.10 23.45 23.80 24.16 2015 23.35
7 22.56 22.90 23.25 23.60 23.95 24.31 2016 23.70
8 22.70 23.04 23.39 23.74 24.10 24.47 2017 24.06
9 22.84 23.18 23.53 23.89 24.25 24.61 2018 24.42
10 22.97 23.32 23.67 24.03 24.39 24.76 2019 24.79
11 23.10 23.45 23.80 24.16 24.53 24.90 2020 25.16-
12 23.23 23.58 23.93 24.30 24.66 25.03 2021 25.54
13 23.35 23.71 24.06 24.43 24.79 25.17 2022 25.93
14 23.47 23.83 24.19 24.55 24.92 25.30 2023 26.32
15 23.59 23.95 24.31 24.67 25.05 25.43 2024 26.71
16 23.71 24.06 24.43 24.79 25.17 25.55 2025 27.12
17 23.82 24.18 24.54 24.91 25.29 25.67 2026 27.53
18 23.93 24.29 24.65 25.02 25.40 25.79 2027 27.94
19 24.03 24.39 24.76 25.14 25.51 25.90 2028 28.37
20 24.13 24.50 24.87 25.24 25.62 26.01 2029 28.80
2030 29.23
2031 29.68
2032 30.13
2033 30.58
2034 31.05
2035 31.52
EFFECTIVE DATE T ADJUSTABLE COMPONENT
~Draft T 35.01
The total avoided cost rate in each year is the sum of the adjustable component and the fixed component from either of the tables
above.
Example 1.A 20-year levelized contract with a 2010 on-line date would receive the following rates:
Years Rate
1 24.13 + 35.01
2-20 24.13 + Adjustable component in each year
Example 2.A 4-year non-Ievelized contract with a 2010 on-line date would receive the following rates:
Years Rate
1 21.67 + 35.01
2 21.99 + Adjustable component in year 2011
3 22.32 + Adjustable component in year 2012
4 22.66 + Adjustable component in year 2013
Note: The rates shown in this t851e nave been complJtea using the NbrtiWest Power and Conservation Council's Fuel Price Forecast
contained in its Sixth Power Plan approved on February 10,2010. See page A1-19, East-Side Delivered prices. (Reference Order No.
30480). These rates also reflect a change in Idaho Power's weighted cost of capital as a result of Order No. 30722 in the Company's
2008 general rate case.
PACIFICORP
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
Draft
$/MWh
'j.L ........ ."...2 . ..... LEVELIZEP;.... . "'..'.L '~PN~1L:YELlZE-o ... ....; ...i.2~
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVEll ZED
(YEARSl 2010 2011 2012 2013 2014 2015 YEAR RATES
1 56.85 60.24 63.97 67.51 71.32 75.40 2010 56.85
2 58.48 62.03 65.67 69.34 73.28 76.53 2011 60.24
3 60.17 63.71 67.40 71.20 74.66 77.62 2012 63.97
4 61.79 65.39 69.17 72.65 75.85 78.72 2013 67.51
5 63.40 67.09 70.63 73.91 76.99 79.79 2014 71.32
6 65.03 68.54 71.91 75.08 78.08 80.85 2015 75.40
7 66.44 69.82 73.09 76.19 79.14 81.94 2016 77.76
8 67.71 71.01 74.21 77.25 80.21 83.04 2017 80.07
9 68.89 72,12 75.27 78.31 81.29 84.15 2018 82.58
10 69.99 73.17 76.32 79.37 82.36 85.26 2019 85.05
11 71.04 74.21 7735 80.42 83.43 86.37 2020 87.61
12 7205 75.22 78.37 81.45 84.50 87.44 2021 90.63
13 73.05 76.22 79.38 82.48 85.53 88.47 2022 93.78
14 74.02 77.20 80.38 83,48 86.52 89.48 2023 97.05
15 74.97 78.17 81.34 84.44 87.49 90.45 2024 100.44
16 75.91 79.10 82.26 85.37 88.42 91.40 2025 103.98
17 76.80 79.99 83.16 86.27 89.33 92.36 2026 106.98
18 77.67 80.86 84.03 87.14 90.25 93.30 2027 110.07
19 78.51 81.0 84.87 88.02 91.15 94.23 2028 113.26
20 79.31 82.51 85.71 88.88 92.03 95.13 2029 116.56
2030 119.95
2031 124.51
2032 128.50
2033 132.64
2034 136.92
2035 141.35
Note: (1) The rates shown in this table have been computed using the Northwest Power and Conservation Council's Fuel Price Forecast
contained in its Sixth Power Plan approved on February 10,2010. See page A1-19, East-Side Deilvered prices. (Reference Order No.
30480). (2) The rates shown in this table have been computed using the weighted average cost of capital from PacifiCorp's most recent
general rate case. (See Order No. 30482).
PACIFICORP
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
Draft
$/MWh
.~dI;j\'..;..be\LEVELIZED '..crt,,,., ........!..., ~5..'..'.
.,., ...\. '.\\ '\\. .... ..,.,.:c-,c .... ......,,(..\.....
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARSl 2010 2011 2012 2013 2014 2015 YEAR RATES
1 21.85 22.17 22.51 22.85 23.19 23.54 2010 21.85
2 22.00 22.33 22.67 23.01 23.36 23.71 2011 22.17
3 22.16 22.49 22.83 23.17 23.52 2388 2012 22.51
4 22.31 22.65 22.99 23.33 23.68 24.04 2013 22.85
5 22.46 22.80 23.14 23.49 23.84 24.20 2014 23.19
6 22.61 22.95 23.29 23.64 24.00 24.36 2015 23.54
7 22.75 23.09 23.44 23.79 24.15 24.51 2016 23.89
8 22.89 23.23 23.58 23.94 24.30 24.66 2017 24.25
9 23.03 23.37 23.72 24.08 24.44 24.81 2018 24.62
10 23.16 23.51 23.86 24.22 24.59 24.96 2019 24.99
11 23.29 23.64 24.00 24.36 24.73 25.10 2020 25.37
12 23.42 23.77 24.13 24.49 24.86 25.24 2021 25.75
13 23.54 23.90 24.26 24.62 24.99 25.37 2022 26.14
14 23.66 24.02 24.38 24.75 25.12 25.50 2023 26.53
15 23.78 24.14 24.50 24.87 25.25 25.63 2024 26.93
16 23.90 24.26 24.62 24.99 25.37 25.75 2025 27.34
17 24.01 24.37 24.74 25.11 25.49 25.87 2026 27.75
18 24.12 24.48 24.85 25.22 25.60 25.99 2027 28.17
19 24.22 24.59 24.96 25.33 25.72 26.10 2028 28.60
20 24.32 24.69 25.06 25.44 25.82 26.21 2029 29.03
2030 29.47
2031 29.92
2032 30.37
2033 30.83
2034 31.30
2035 31.77
EFFECTIVE DATE I ADJUSTABLE COMPONENT
Draft I 35.01-
The total avoided cost rate in each year is the sum of the adjustable component and the fixed component from either of the tables abo e.
Example 1.A 20-year levelized contract with a 2010 on-line date would receive the following rates:
Years Rate
1 24.32 + 35.01
2-20 24.32 + Adjustable component in each year
Example 2. A 4-year non-Ievelized contract with a 2010 on-line date would receive the following rates:
Years Rate
1 21.85 + 35.01
2 22.17 + Adjustable component in year 2011
3 22.51 + Adjustable component in year 2012
4 22.85 + Adjustable component in year 2013
Note: (1) The rates shown in this table have been computed using the Northwest Power and Conservation Councils Fuel Price Forecast
contained in its Sixth PoWer Plan approved on FebrJary 10, 2010. See page A 1-19, East-Side Delivered prices. (Reference Order No.
30480). (2) The rates shown in this table have been computed using the weighted average cost of capital from PacifiCorp's most recent
general rate case. (See Order No. 30482).
Aviste Corp.
i411 East Mision PO Box 3717
Spokane, Washington 9928.3727
Telephone [phone]
Toll Free 800.727.9170
ISTAt
Corp.
March lOt 3010
VIA EIv!AIL AND REGtlL.A.R M..'\L
Idaho Public Utilities CommissiOll
Attn: Scôtt Woodbury, Dep.uty Attorney Gcncnl'
PO Box 83720
Boise, ID 83720-O'J74
Eiml.il: scott. woodbury(iYpuc.daho.gov
Re: IN THE MATTER OF THE AOJUSTM.KNT OF AVOlÐEÐ COST RATES FOR
NEW PURPA CONTRACTS FUn AVl8TA Co.RlORATION DBA AVISTA
UTHJTIES, LDAaO l)OWim. COMPANY, ANI) PACfF1CORl DBA ROCKY
MOUNTAlN ~)OW£\R
IPUC Case Nü. GNR-E-JO-Oì
Dear Mr. Woodbury:
In a lett,,~r dated Murch 9,20 I 0, YOu provided notice timt the Idaho Public Utilities
Commission C.Commission") StaÍThas rècomputed aVüided cost rates üsing Ùie NOlihwest
Power and Conscrvati,m C'mincils ('''ouncil'') 110st recênt gas ptice forecast. You also
included "vitb your March 9 Letter, the resultsfiom the recalctilatcd avoided cost rates using the
new Council naturai gas pi'icc forecast. You requested that Avista review the recalculated
avoided cost ralèS aud Hie a response \-vith the Commission by March 12, 2010.
A vista beL') r~\"¡cwd the recakulatcd avoided cost rates that were computed using the
Council's mos! recent natural gas ¡:irIce f())ccu.\1 and were attached to the March 9 Letter. A vista
agrces that the lCGlÌculated avoided cost rates accurately reflèßt the Council's most recent natural
gas price forecas.t.
Sincerely,
.., ."
c.~... .___.""-_._,.._- __r_- - '-'--.-.
Clint Kalidi
Managêr of Resource Plaiuiing and
Power Sl.ipply Analysis
cc: Bob Lai1eny
Steve :S fk\.vn:~.lJ
Mkhac i\nJn:a
I\r.:
:"'~'G';~..~~~:":~%"r1"'J:-!Âo:~,::=~"~~l:kVÆ~"~~~~(io~~",';~~~.A"',,,~~t";".~¥
-':tik~;;,~~..
""~'~~':;Í"~..e:".~~~~..'~~tir1l~7.Pi RECEiVE.D -;:"'~.t~~~~
"'""Ó""',;":,~;.",~,,. An IDACORP Company
~'_"¥,;'~b:£~-,s';r.r'3'i",,:.~;_..~ "'."¡; l-~.J.~~-.t:;:"~\.~~;,,..:,w::-- t.: :.,...,.t.ý.;" .. -.,-'
eslll~POR~
BARTON L. KLINE
Lead Counsel
bkline(âidahopower.com
LjTIL!!¥¡~;p ¿~jh1i'.; '" ,,~''¡'.'' ," ~ A' ~~,".'. ,":._~,*: ~. .. ,¡"..; ''.;..-''''''~''..." .,..~'i..,. :"..
~""~..~,,~'''~~~~~ £~,~,,,;¡io"',.,,-,¡,..~.-.~ '.."-.. "'" .,.,..~.;¡~~-,!..~..~,¿;"';d'_;:,' 'Ii' ~'- " .~~.'~
March 10, 2010
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilties Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. GNR-E-10-01
In the Matter of the Adjustment of Avoided Cost Rates for New PURPA
Contracts for Avista Corporation, d/b/a Avista Utilties; Idaho Power
Company; and PacifiCorp, d/b/a Rocky Mountain Power
Dear Ms. Jewell:
On March 9, 2010, Idaho Power Company received a letter from the Commission
Staff regarding the above-referenced proceeding. In that March 9 letter, Commission Staff
included sheets showing the results of Staffs recomputation of the Company's avoided
costs rates using the new Northwest Power and Conservation Coundl:gas forecast. This
wil advise the Commission that Idaho Power,has reviewed the revised rates provided by
the Commission Staff and has concluded that the revised rates represent an accurate
computation of Idaho Power Company's posted-avoided cost rates consistent with the
methodology previously approved by the Commission. As such, Idaho Power believes that
it would be in the public interest for the Commission to approve the rate sheets provided to
the Company by the Commission Staff.
Very l/.YY ~ yours., "l~~
Barton L. Kline
BLK:csb
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
~£?.
~~~OUNTAIN RECE!v::n
20W MAR 12 AM JO: 05
201 South Main, Suite 2300
Salt Lake City. Utah 84111
March 12, 2010 i D ß\ i~.~ C: ~; iJ h L. ~ .,~:
UTlLfl-'H:S COl)~H~AfSS;rJ(J
VL OVERNIGHT DELIVERY
Idaho Public Service Commission
472 West Washigton
Boise, ID 83702-5983
Attention:Ms. Jean D. Jewell -
Commssion Secreta
RE: CASE NO. GNR-E-IO-Ol
IN THE MATTER OF THE ADJUSTMNT OF A VOIDED COST RATES FOR
NEW PURA CONTRACTS FOR AVISTA CORPORATION DBA AVISTA
UTILITIS, IDAHO POWER COMPAN, AN PACIFICORPDBA ROCKY
MOUNAI POWER.
Pursuat to the Idao Public Utilities Commssion (Commssion) Order No. 29124, issuace of a
new gas forecast by the Nortwest Power and Conservation Council (NCC) automaticaly
trggers recalculation of the published avoided cost rate.
On March 2, 2010 NPCC approved a new natu gas forecast and on March 8, 2010 ths forecast
was posted on NPCC's website. Commssion sthas updated the avoided cost rates based on
the new gas forecas and provided the updated rates to Rocky Mounta Power for review.
Ths letter is to inform the Commission that Rocky Mounta Power has reviewed the
Commssion sts calculation of the updated avoided cost rates and acknowledges tht the
updated rates are calculated correctly.
3nlYw~
Jeffmsen iA.
Vice President, Reguation
cc:
Scott Woodbur
Rick Sterling