20120322interlocutory_order_no_32498.pdf

Office of the Secretary
Service Date
March 22.2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE COMMISSION’S )
REVIEW OF PURPA QF CONTRACT )CASE NO.GNR-E-l1-03
PROVISIONS INCLUDING THE )
SURROGATE AVOIDED RESOURCE (SAR))
AND INTEGRATED RESOURCE PLANNING )
(IRP)METHODOLOGIES FOR )INTERLOCUTORY
CALCULATING PUBLISHED AVOIDED )ORDER NO.32498
COST RATES.
________
)
On September 1,2011.the Commission initiated this proceeding to review the terms
of PURPA power purchase agreements including,but not limited to,the surrogate avoided
resource (SAR)and Integrated Resource Planning (IRP)methodologies for calculating avoided
cost rates.Order No.32352.On November 2,2011,the Commission issued a Notice of
Scheduling outlining the procedural schedule for the case and the case has been proceeding
according to schedule established by the Commission.Order No.32388
On March 12,2012,Idaho Power Company filed a Motion for a Temporary Stay of
its Obligation to Enter into New Power Purchase Agreements with Qualifying Facilities other
than pursuant to its Schedule 86.Idaho Power requests that the Commission find that (1)the
evidence set forth in GNR-E-11-03 establishes prima facie proof that Idaho Power’s current
avoided cost rates are not accurate:(2)without adequate interim relief from its duty to purchase
output from QFs at inaccurate avoided cost rates,Idaho Power’s customers are likely to suffer
substantial harm;(3)the balance of harms favors granting interim relief compared to not granting
such relief;and (4)good cause exists to grant immediate relief on an interim basis.Idaho
Power’s Motion was accompanied by an Affidavit of Randy Aliphin.On March 15,16,and 20,
2012,Idaho Power also filed the Affidavits of Lisa Grow,Mark Stokes,Karl Bokenkamp,
William Hieronymus and Tessia Park in support of its Motion.Idaho Power requests that a stay
become effective March 15,2012.
PacifiCorp dba Rocky Mountain Power filed a Request to Join and Response to
Idaho Powefs Motion.The Idaho Conservation League,Snake River Alliance,Exergy,and J.R.
Simplot Company each filed responses in opposition to Idaho Power’s Motion and asked that the
request for a stay be dismissed in its entirety.
INTERLOCUTORY ORDER
ORDER NO.32498 1
Idaho Power’s Motion for Stay was considered at the Commission’s March 19,2012,
decision meeting.In response to the Motion,the Commission determined to convene a hearing
for oral argument on Wednesday,March 21,2012,and appropriate notice was provided to the
parties.IDAPA 31.01.01.321 and .325.On March 20,2012,a late Petition to Intervene was
filed by Energy Integrity Project,asserting that granting late intervention will not disrupt the
proceedings or prejudice any other party because “this Intervenor will not raise additional issues
and ...the matter has not yet proceeded to filing of testimony.”Energy Integrity Project
Petition to Intervene,p.2.The Commission determined to grant Energy Integrity Project’s
Petition to Intervene at the hearing on March 21,2012.No other party objected to the Petition,
and Energy Integrity Project averred it will not raise new issues or otherwise delay the
proceedings.
FINDINGS AND CONCLUSiONS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power,an electric
utility,and the issues raised in this matter pursuant to the authority and power granted it under
Title 61 of the Idaho Code and the Public Utility Regulatory Policies Act of 1978 (PURPA).The
Commission has authority under PURPA and the implementing regulations of the Federal
Energy Regulatory Commission (FERC)to set avoided costs,to order electric utilities to enter
into fixed-term obligations for the purchase of energy from qualified facilities (QFs)and to
implement FERC rules.
Based on the record and positions presented by the parties,Idaho Power’s Motion for
Temporary Stay is denied.We also find,however,as stated on the record at the conclusion of
the March 21,2012,hearing,that the methodologies previously approved by this Commission,as
utilized and applied by Idaho Power,do not currently produce rates that reflect Idaho Power’s
avoided costs and are not just and reasonable,nor in the public interest.Effective March 21,
2012,and continuing until altered or amended by Order of the Commission at the conclusion of
this case,contracts for all projects over 100 kW entered into by Idaho Power and presented to
this Commission for approval will be individually evaluated with regard to all terms contained
therein.As contracts are negotiated and presented to the Commission for approval,parties
should keep in mind that FERC regulations require that the avoided cost rates for all QF
purchases be just and reasonable to utility customers and in the public interest,and not
discriminate against qualifying cogeneration and small power production facilities.18 C.F.R.§
INTERLOCUTORY ORDER
ORDER NO.32498
292.304(a)(1).Further,utilities are required to purchase QF generation at a rate equal to the
utility’s avoided cost.18 C.F.R.292,304(b)(2).The Commission’s case-by-case review will
ensure QF purchase agreements satisfy these and other FERC requirements.
ORDER
IT IS HEREBY ORDERED that the Petition to Intervene filed by Energy Integrity
Project is granted.
IT IS FURTHER ORDERED that all parties in this proceeding serve all papers
hereafter filed in this matter on all parties of record.This Intervenor is represented by the
following for purposes of service:
Tauna Christensen
Energy Integrity Project
769N 1100E
Shelly,ID 83274
E-mail:tauna(Zi;energyintegrityproject.org
IT IS FURTHER ORDERED Idaho Power’s Motion for Temporary Stay is denied.
THIS IS AN INTERLOCUTORY ORDER.Any person interested in this Order may
file a petition for review within twenty-one (21)days of the service date of this Order with
regard to any matter decided in this Order.After any person has petitioned for review,any other
person may file a cross-petition within seven (7)days.See IDAPA 31.01.01.321 through 325.
INTERLOCUTORY ORDER
ORDER NO.32498 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 22
day of March 2012.
PAUL KJ LAN E,PRESIDENT
REORD,ONER
LAL AJL
MARSHA H.SMITH,COMMISSIONER
ATTEST:
7(I//
Jçan D Jewell
Cdtnmission Seretary
O;GNRF-1 I O3ks4
INTERLOCUTORY ORDER
ORDER NO.32498 4