20110830final_order_no_32337.pdf

Office of the Secretary
Service Date
August 30,20fl
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE ADJUSTMENT OF )
AVOIDED COST RATES FOR NEW PURPA )CASE NO.GNR-E-l1-04
CONTRACTS FOR AVISTA CORPORATION )
DBA AVISTA UTILITIES,IDAHO POWER )
COMPANY,AND PACIFICORP DBA ROCKY )
MOUNTAIN POWER )ORDER NO.32337
__________________________________________________________________________________
)
Pursuant to the Public Utility Regulatory Policies Act of 1978 (PURPA)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 PURPA qualifying cogeneration
and small power production facilities (QFs)by Idaho Power Company,Avista Corporation and
PacifiCorp.Avoided cost rates are the purchase price paid to QFs for purchases of QF capacity
and energy.Order Nos.29124,30744,31092.
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 Northwest 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 Council or the
Council’s general advisory committees automatically “triggers”a recalculation of the published
avoided cost rates.Updating the avoided cost rates when the Council changes its natural gas
forecast “is a simple arithmetic calculation”that occurs automatically.Order No.31092 at 10
quoting Order No.31025 at 2.
NPCC —New Natural Gas Price Forecast
A new natural gas price forecast was recently approved by NPCC on August 9,2011.
The forecast was posted on the Council’s website on August 12,2011.The new forecast amends
Appendix A to the Plan.A copy of the amended medium natural gas price forecast is attached.
Attachment A.In accordance with the approved methodology,east-side delivered prices are to
be used for avoided cost computations.
ORDER NO.32337 1
Commission Staff recomputed avoided cost rates using the approved SAR
methodology and the Council’s most recent gas price forecast.Staff provided Idaho Power,
Avista and PacifiCorp with worksheets on August 16,2011,for review and comment showing
the computation of the revised avoided cost rates.Idaho Power,Avista and PacifiCorp by letter
filings accept Staffs avoided cost calculations as accurately incorporating the Council’s August
9,2011,revised natural gas price forecast and as consistent with the Commission’s approved
SAR methodology.A copy of the revised rates for all three utilities is attached.
COMMISSION FINDINGS
Presented for our approval are revised published avoided cost rates incorporating the
Council’s August 9,2011,medium natural gas price forecast.The methodology for calculation
of avoided cost rates was established in Case No.GNR-E-02-0 1,Order No.29124.We find that
the method for revising the fuel cost adjustment to published avoided cost rates is a simple
arithmetic calculation.Order No.31092.We further find that the Council’s new natural gas
price forecast was approved on August 9,2011,and posted on the Council’s website on August
12,2011.We find that the changes in avoided cost rates depicted in the Attachments to this
Order accurately incorporate the Council’s revised natural gas price forecast and are consistent
with the Commission-approved SAR methodology.A delay in changing the present avoided
cost rates would result in PURPA rates that are higher than avoided costs and therefore
unreasonable.Order No.31092 at 11 citing PURPA §2 10(b);Idaho Code §61-622;Order No.
31057 at 6.We find there is good cause and the public interest requires that we issue an Order
implementing new published avoided cost rates without further notice or procedure.Idaho Code
§61-307;Order No.31092 at 10-12.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
PacifiCorp dba Rocky Mountain Power and Avista Corporation dba Avista Utilities,electric
utilities,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 Sections 201 and 210 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 and to implement FERC rules.
ORDER NO.32337 2
ORDER
IT IS HEREBY ORDERED and the Commission hereby approves the revised
published avoided cost rates set forth in Attachments 2,3,and 4 to this Order for new PURPA
contracts executed on and after the service date of this Order for Avista,Idaho Power,and
Pacifi Corp.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 3L)
day of August 2011.
PA11t KJEL A R,PRESIDENT
N%tc_Jv 5$
MACK A.REDFORD,COMMISSIONER
ij aL
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jeiri D.Jewellti
Commission Secretary
O:GNR-E-1 1-O4ks
ORDER NO.32337 3
Bruce A.Measure 1 Joan M.Dukes
Chair J4JO r t flW e S t Vice-Chair
Montana Oregon
Rhonda Whiting ,s#Po’wer and Bill Bradbury
Conservation
Idaho oirici1 Washington
James A.Yost Phil Rockefeller
Idaho Washington
August 101h,2011
Update to the Council’s Forecast of Fuel Prices
The Council monitors its power planning assumptions on a regular basis to identify any
significant changes that might affect its Sixth Power Plan,and the action plan also calls for a
biennial monitoring report (MON-i)and a mid-tern check on conservation savings (CONS-16).
This report reflects the proposed changes in the Council’s long-term fuel price forecast.It is often
difficult to distinguish short-term variations in fuel prices,which are expected and modeled in the
Council’s planning,from significant long-term changes that can fundamentally alter the whole
range of future expectations.This rarely happens.However,changes in the outlook for natural
gas supplies in the last year appear to signal a fundamental shift in expectations about future
natural gas supplies.Cost-effective technologies to obtain natural gas trapped in shale formations
has changed the view of natural gas supplies from declining and constrained (as forecast in the
Sixth Power Plan)to plentiful and adequate for many decades to come.Although the potential of
shale gas was identified in the plan,the expected cost of developing it has been reduced through
technological breakthroughs so that future costs and prices are now lower.
After working with the Natural Gas Advisory Committee,the Council is proposing a downward
revision of our range of fuel price forecasts.A range of forecasts recognizes continued
uncertainty about developing shale gas--its costs and environmental effects--as well as the speed
of the economic recovery.
Natural Gas Price Forecast Revision
The range of natural gas prices is significantly narrower and lower in the near term compared to
the Sixth Power Plan’s forecast.The rapid development of shale gas has created a glut of natural
gas that is likely to last for several years and depress prices.By the end of the forecast horizon in
2030,the forecast reflects a range of possible long-term equilibrium natural gas prices.The
revised medium forecast is about equal to the medium-low forecast in the Sixth Plan at $6.44 in
2010 constant dollars.The revised high forecast is a little above the medium-high,and the low
revised forecast is a little less than $1 below the low case.
The range of forecasts reflects the different views of supply and demand for natural gas.The high
price forecast might be consistent,for example,with a rapid economic recovery in the U.S.and
worldwide,environmental restrictions on shale gas development,aggressive regulation of carbon
emissions leading to more substitution of natural gas electricity generation for coal,increased use
of natural gas vehicles,increased demand for exports of LNG from Canada and United States,and
increased demand from gas-to-liquid projects.In contrast,the low forecast would be consistent
851 SW.Sixth Avenue,Suite 1100 Steve Crow 503-222-5161
Portland,Oregon 97204-1348 Executive Director 800-452-5161
wwwriwcnuncilorg Fax:[phone]
Attachment A
Case No.GNR-E-l 1-04
with conditions that limit the demand for natural gas and promote the rapid development of
supply.
Implications of Revised Natural Gas Price Forecasts
The likely effect of the revised fuel price forecast on a revised power plan reduces the forecast of
electricity prices,and to some degree,changes the inter-fuel competition between natural gas and
electricity.The Council doesn’t expect significant effects on the resource strategy from this
change,but that will be tested at mid-term.Natural gas generation is already the fall-back
resource in the plan,renewables are limited by RPS requirements,and efficiency was constrained
by the assumed rates of penetration and development.
The following figures compare the Sixth Power Plan’s forecast with the revised forecast.The
revised forecast reflects lower natural gas prices.
Comparison of Revised and Sixth Plan Natural Gas Price Forecasts
Welihead Price (constant 2010 dollars per mmBTU)
Oil Price Forecast Revision
The range of world oil price forecasts has not been revised as significantly as natural gas prices.
In spite of the changes in natural gas supply and prices,oil prices have remained high,causing a
significant disconnection between oil and natural gas prices.Although the Council assumed that
natural gas prices would remain below oil prices on a Btu basis,the gap has widened and the
proposed revision maintains the wider gap in the future,though reduced somewhat from current
levels.
World oil prices have little effect on the Council’s power plan because oil has,to a large degree,
been relegated to a transportation fuel in the U.S.The primary effect might be on electric vehicle
development,but that is largely determined by other factors relating to technology,consumer
acceptance,and infrastructure development.
12.00
10.00
.8 8.00
6.00
.8
a
4.00
2.00
0.00
Low
Modion,Low
Medn,n,
°°°°Mndiom H,gh
Bplon Low
•6P Med Low
6P Modion,
OP Med.High
OP High
2
Comparison of Revised and Sixth Plan Oil Price Forecasts
Refiners Acquisition Cost $2010/barrel
140
120
100 Proposod Low
—Proposed Mod Low
80 Proposed Mediuw
60
Proposed Medgh
L 40 6th Plan Med
6th Plan Med High
6th Plan High20
C —(N CS U)CO —Co 05 0 —(N CS CO LI)CO —(0 0)0
Coal Price Forecast Revision
Like oil,coal prices have relatively little effect on the Council’s power plan.They can affect
electricity market prices in relatively few hours and they affect the operating cost of existing coal-
fired power plants.However,new coal development is pre-empted in much of the region and
new plants do not appear in the Council’s plan.
The primary change in the forecast is incorporating 2010 actual prices and narrowing the near-
term range.The long-term forecasts for 2030 are unchanged.Unlike the natural gas price
forecasts,neither the oil nor the coal price forecasts are used extensively in the region.
Comparison of Revised and Sixth Plan Coal Price Forecasts
Powder River Basin $2010/mmbtu
1.20
1.00
—Proposed Low
‘4 0,80 —-“““‘—Proposed IVied low
___________
Proposed Medium
..—.-‘,Proposed Med high
0.60 “‘-‘-Proposed HIgh
‘4 6th Plan Low
4 0.40 6th Plan Med low
6th Plan Medium
6th Plan Med high
020 6th Plan High
3
0.00
3
Range of Price Forecast
The following tables present the numeric values for the revised natural gas price forecasts,as well
as the refiners’acquisition cost of oil and minemouth coal prices for Powder River Basin coal.
The natural gas prices are shown for the welihead,as well as at various hubs and delivery points.
The natural gas prices at wellhead under the medium scenario are shown in constant 2010 dollars,
as well as in nominal dollars.
Table 1:Proposed range of natural gas price forecast -welihead prices in constant 2010 dollars.
Table 2:Natural gas prices delivered at various hubs and Northwest generators-medium forecast
Table 3:Wellhead price of natural gas in nominal dollars
Table 4:Henry Hub delivered price of natural gas in nominal dollars
Table 5:Refiners’cost of acquisition for oil in constant 2010 dollars
Table 6:Cost of Powder River Basin Coal in constant 2010 dollars
Table 1:Proposed Prices for Natural Gas Lower 48
State Welihead (2010$/mmBtu)
Low Medium Low Medium Medium High High
2010 4.05 4.05 4,05 4.05 4.05
2011 4.03 4.07 4.13 4.37 4.50
2012 4.01 4.09 4.21 4.72 4.99
2013 3.99 4.11 4.30 5.10 5.54
2014 3.97 4.13 4.38 5.51 6.15
2015 3.95 4.15 4,47 5,95 6,82
2016 3.93 4.17 4.56 6.04 6.93
2017 3.91 4.21 4.67 6.13 7.03
2018 3.89 4.26 4.79 6.22 7.14
2019 3.87 4.30 4.91 6.32 7.24
2020 3.8 4.34 5.03 6.4 7.35
2021 3.91 4.39 5.16 6.51 7.46
2022 3.93 4.43 5.29 6.60 7.57
2023 3.95 4.47 5.42 6.70 7.69
2024 3.97 4.52 5.56 6.80 7.80
2025 3.99 4.56 5.70 6,91 7,92
2026 4.01 4.61 5.84 7.08 8.16
2027 4.03 4.66 5.98 7.26 8.40
2028 4.05 4.70 6.13 7.44 8.65
2029 4.07 4.75 6.29 7.62 8.91
2030 4.09 4.80 6.44 7.81 9.18
4
Table 2:Natural Gas Prices at Key Hubs and Northwest Generators
2010$/mmBtu
Medium Case
U.S.Henry Sumas West-Side East-Side
Year Wellhead Hub AECO Price Delivered Delivered
2010 4.05 4.25 3.47 182 4.40 3.93
2011 4.13 4.34 3.56 3.90 4.54 4.05
2012 4.21 4.43 3.65 3.97 4.63 4.18
2013 4.30 4.51 3.74 4.05 4.71 4.28
2014 4.38 4.60 3.84 4.13 4.79 4.37
2015 4,47 4.70 3,93 4.22 4.88 4.47
2016 4.56 4.79 4.03 4.30 4.97 4.58
2017 4.67 4.91 4.15 4.41 5.08 4.70
2018 4.79 5.03 4.28 4.52 5.19 4.84
2019 4.91 5.16 4.41 4.63 5.31 4.97
2020 5,03 5.29 4,54 4.75 5.43 5.10
2021 5.16 5.42 4.68 4.87 5.55 5.24
2022 5.29 5.56 4.82 4.99 5.68 5.39
2023 5.42 5.69 4.96 5.11 5.81 5.53
2024 5.56 5.84 5.11 5.24 5.94 5.68
2025 5.70 5.98 5.26 5.37 6.07 5.84
2026 5.84 6.13 5.41 5.51 6.21 5.99
2027 5.98 6.29 5.57 5.64 6.35 6.15
2028 6.13 6.44 5.73 5.79 6.50 6.32
2029 6.29 6.60 5.90 5.93 6.65 6.49
2030 6.44 6.77 6.07 6.08 6,80 6.66
5
Table 3:Wellhead Price of Natural Gas Nominal Dollars
Proposed Update August 2011 Values
Low Medium Low 1 Medium Medium High High
2010 4.05 4.05 4.05 4.05 4.05
2011 4.43 4.47 4.54 4.60 4.63
2012 4.48 4.57 4.71 4.85 4.89
2013 4.53 4.67 4.88 5.10 5.18
2014 4.59 4.77 5.07 5.37 5.48
2015 4.64 4.88 —26 5.65 5.82
2016 4.70 4.99 5.45 5.92 6.19
2017 4.76 5.13 5.69 6.21 6,58
2018 4.81 5.27 5.93 6.50 6.99
2019 4.87 5.41 6.18 6.81 7.43
2020 4.98 5.56 6.44 7.14 7.90
2021 5.09 5.71 6.72 7.48 8.39
2022 5.20 5.86 7.00 7.83 8.92
2023 5.32 6.02 7.30 8.20 9.48
2024 5.44 6.19 7.61 8.60 10.08
2025 5,56 6.36 7,93 9.01 10.71
2026 5.68 6.53 8.27 9.43 11.38
2027 5.81 6.71 8.62 9.88 12.10
2028 5.94 6.89 8.99 10.35 12.86
2029 6.07 7.08 9.37 10.85 13.67
2030 6.20 7.27 9,77 11.37 14.53
6
Table 4:Henry Hub Price Forecasts (Nominal Dollars)
Proposed Update August 2011 values
Low Medium Low Medium Medium High High
2010 4.25 4.25 4.25 4.25 4.25
2011 4.65 4.69 4.76 4.83 4.86
2012 4.70 4.80 4.94 5.09 5.14
2013 4.76 4.90 5.13 5.36 5.43
2014 4.82 5.01 5.32 5.64 5.75
201.5 4,87 5.12 5.52 5.94 6.11
2016 4.93 5.24 5.73 6.22 6.50
2017 4.99 5.38 5.97 6,52 6.90
2018 5.05 5.53 6.22 6.83 7.34
2019 5.11 5.68 6.49 7.15 7.80
2020 5.23 5.83 6,76 7.49 8.29
2021 5.34 5.99 7.05 7.85 8.81
2022 5.46 6.16 7.35 8.22 9.37
2023 5.58 6.33 7.67 8.62 9.96
2024 5.71 6.50 7.99 9.03 10.58
2025 5.83 6.68 8.33 9,46 1 1.25
2026 5.96 6.86 8.69 9.91 11.95
2027 6.10 7.05 9.06 10.38 12.71
2028 6.23 7.24 9.44 10.87 13.51
2029 6.37 7.44 9.84 11.39 14.35
2030 6.51 7.64 10.26 11.93 15.26
7
Table 5:Refiners’Acquisition Cost of Oil ($2010/Barrel)
Low Medium Low Medium Medium High High
2010 76 76 76 76 76
2011 75 76 77 78 78
2012 74 75 78 80 81
2013 73 75 78 82 85
2014 72 74 79 84 88
2015 70 74 80 86 92
2016 69 73 81 87 93
2017 67 72 81 88 95
2018 66 72 83 90 97
2019 65 72 84 91 99
2020 63 71 85 93 101
2021 62 71 86 94 104
2022 61 70 88 96 107
2023 60 70 89 98 110
2024 58 70 90 100 112
2025 57 69 91 102 116
2026 56 68 92 104 119
2027 55 68 93 106 122
2028 54 67 94 108 125
2029 53 66 95 111 129
2030 52 66 96 113 132
8
Table 6:Powder River Basin Coal Prices $2010/rnmBTU
Low Medium Low Medium Medium High High
2010*069 069 069 069 069
2011 0.68 0.69 0.70 0.70 0.72
2012 0.67 0.69 0.71 0.72 0.76
2013 0.66 0.69 0.72 0.74 0.79
2014 0.65 0.69 0.73 0.76 0.83
2015 064 069 074 078 088
2016 0.63 0.69 0.74 0.78 0.89
2017 0.62 0.69 0.74 0.79 0.91
2018 0.61 0.68 0.74 0.80 92
2019 0.60 0.68 0.74 0.81 0.94
2020 059 067 075 082 096
2021 0.58 0.67 0.75 0.82 0.98
2022 0.57 0.66 0.75 0.83 0S9
2023 0.56 0.65 0.75 0.84 1.01
2024 0.56 0.65 0.75 0.85 1.03
2025 0.55 0.64 0.75 0.86 1.05
2026 0.54 0.64 0.75 0.87 1.06
2027 0.53 0.63 0.75 0.88 1.08
2028 0.52 0.63 0.75 0.88 1.10
2029 0.52 0.62 0.76 0.89 1.11
2030 051 062 076 090 1 13
*Subject to further updates
9
AVISTA
AVOIDED COST RATES FOR FUELED PROJECTS
August 30,2011
S MWh
Eligibility for these rates is limited to wind and solar projects 100 kW or smaller,and to non-wind and non-
solar projects smaller than 10 aMW
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
2011 2012 2013 2014 2015 2016 YEAR RATES
1 22.26 22.60 22.94 23.28 23.63 23.99 2011 22.26
2 22.42 22.76 23.10 23.45 23.80 24.16 2012 22.60
3 22.58 22.92 23.26 23.61 23.97 24.33 2013 22.94
4 22.73 23.07 23.42 23.77 24.13 24.50 2014 23.28
5 22.88 23.23 23.58 23.93 24.29 24.66 2015 23.63
6 23.03 23.38 23.73 24.09 24.45 24.82 2016 23.99
7 23.18 23.53 23.88 24.24 24.61 24.98 2017 24.35
8 23.32 23.67 24.03 24.39 24.76 25.13 2018 24.71
9 23.46 23.81 24.17 24.53 24.90 25.28 2019 25.09
10 23.59 23.95 24.31 24.67 25.05 25.42 2020 25.46
11 23.72 24.08 24.44 24.81 25.19 25.57 2021 25.85
12 23.85 24.21 24.58 24.95 25.32 25.70 2022 26.24
13 23.98 24.34 24.70 25.08 25.46 25.84 2023 26.63
14 24.10 24.46 24.83 25.20 25.58 25.97 2024 27.04
15 24.22 24.58 24.95 25.33 25.71 26.10 2025 27.45
16 24.33 24.70 25.07 25.45 25.83 26.22 2026 27.86
17 24.44 24.81 25.19 25.56 25.95 26.34 2027 28.28
18 24.55 24.92 25.30 25.68 26.07 26.46 2028 28.71
19 24.66 25.03 25.40 25.79 26.18 26.57 2029 29.14
20 24.76 25.13 25.51 25.89 26.28 26.68 2030 29.58
2031 30.03
2032 30.49
2033 30.95
2034 31.42
2035 31.89
2036 32.38
EFFECTIVE DATE ADJUSTABLE COMPONENT
8/30/2011 29.33
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 2011 on-line date would receive the following rates:
Years Rate
1 24.76 +29.33
2-20 24.76 +Adjustable component in each year
Example 2.A 4-year non-levelized contract with a 2011 on-line date would receive the following rates:
Years Rate
1 22.26 +29.33
2 22.60 +Adjustable component in year 2012
3 22.94 +Adjustable component in year 2013
4 23.28 +Adjustable component in year 2014
Note:The rates shown in this table have been computed using the Northwest Power and Conservation Councils August 9,2011 Update
to the Fuel Price Forecast contained in its Sixth Power Plan approved on February 10,2010.See Table 2,pageS,East-Side Delivered
prices.(Reference Order No.30480).
Attachment
Order No.32337
Case No.GNR-E-1 1-04
Avista Corporation
AVISTA
AVOIDED COST RATES FOR NON-FUELED PROJECTS
August 30,2011
$1MWh
Eligibility for these rates is limited to wind and solar projects 100 kW or smaller,and to non-wind and non-
solar projects smaller than 10 aMW
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2011 2012 2013 2014 2015 2016 YEAR RATES
1 51.59 53.47 55.18 56.86 58.67 60.61 2011 51.59
2 52.49 54.29 55.99 57.73 59.60 61.60 2012 53.47
3 53.32 55.08 56.81 58.61 60.54 62.64 2013 55.18
4 54.10 55.87 57.65 59.51 61.52 63.65 2014 56.86
5 54.87 56.67 58,50 60.43 62.49 64.66 2015 58.67
6 55.64 57.48 59.37 61.35 63.44 65.66 2016 60.61
7 56.42 58.30 60.24 62.26 64.40 66.66 2017 62.68
8 57.21 59.13 61.10 63.17 65.35 67.65 2018 64.98
9 57.99 59.95 61.96 64.07 66.30 68.64 2019 67.26
10 58.77 60.77 62.82 64.97 67.24 69.62 2020 69.60
11 59.55 61.58 63.67 65.86 68.17 70.59 2021 72.1.1
12 60.33 62.39 64.52 66.75 69.09 71.55 2022 74.77
13 61.09 63.19 65.36 67.62 70.01 72.51 2023 77.43
14 61.85 63.99 66.19 68.49 70.91 73.45 2024 80.25
15 62.61 64.77 67.01 69.35 71.80 74.38 2025 83.25
16 63,35 65.55 67.82 70.19 72.69 75.30 2026 86.24
17 64.09 66.32 68.62 71.03 73.56 76.21 2027 89.42
18 64.81 67.08 69.41 71.86 74.42 77.11 2028 92.8.0
19 65.53 67.82 70.19 72.67 75.27 78.00 2029 96.27
20 66.24 68.56 70.96 73.47 76.11 78.38 2030 99.85
2031 103.67
2032 107.63
2033 111.75
2034 116.06
2035 120.56
2036 125.25
Note:The rates shown in this table have been computed using the Northwest Power and Conservation Councils August 9,2011 Update
to the Fuel Price Forecast contained in its Sixth Power Plan approved on Februa 10,2010.See Table 2,page 5.East-Side Deilvered
pnces.(Reference Order No.30480).
IDAHO POWER COMPANY
AVOIDED COST RATES FOR FUELED PROJECTS
August 30,2011
$/MWh
Eligibility for these rates is limited to wind and solar projects 100 kW or smaller,and to non-wind and non-
solar projects smaller than 10 aMW
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2011 2012 2013 2014 2015 2016 YEAR RATES
1 2199 22.32 22.66 23.00 23.35 23.70 2011 21.99
2 22.15 22.48 22.82 23.17 23.51 23,87 2012 22.32
3 22.31 22.64 22.98 23.33 23.68 24.04 2013 22.66
4 22.46 22.80 23.14 23.49 23.84 24.20 2014 23.00
5 22.61 22.95 23.30 23.65 24.00 24.37 2015 23.35
6 22.76 23.10 23.45 23.80 24.16 24.53 2016 23.70
7 22.90 23.25 23.60 23.95 24.31 24.68 2017 24.06
8 23.04 23.39 23.74 24.10 24.47 24.83 2018 24.42
9 23.18 23.53 23.89 24.25 24.61 24.98 2019 24.79
10 23.32 23.67 24.03 24.39 24.76 25.13 2020 25.16
11 23.45 23.80 24.16 24,53 24.90 25.27 2021 25.54
12 23.58 23.93 24.30 24.66 25.03 25.41 2022 25.93
13 23.71 24.06 24.43 24.79 25.17 25.55 2023 26.32
14 23.83 24.19 24.55 24.92 25.30 25.68 2024 26.71
15 23.95 24.31 24.67 25.05 25.43 25.81 2025 27.12
16 24.06 24.43 24.79 25.17 25.55 25.93 2026 27.53
17 24.18 24.54 24.91 25.29 25.67 26.06 2027 27.94
18 24.29 24.65 25.02 25.40 25.79 26.18 2028 28.37
19 24.39 24.76 25.14 25.51 25.90 26.29 2029 28.80
20 24.50 24.87 25.24 25.62 26.01 26.40 2030 29.23
2031 29.68
.
2032 30.13
2033 30.58
2034 31.05
2035 31.52
2036 32.00
EFFECTIVE DATE ADJUSTABLE COMPONENT
8/30/2011 29.33
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 2011 on-line date would receive the following rates:
Years Rate
1 24.50+29.33
2-20 24.50 +Adjustable component in each year
Example 2.A 4-year non-leveiized contract with a 2011 on-line date would receive the following rates:
Years Rate
1 21.99+29.33
2 22.32 +Adjustable component in year 2012
3 22.66 +Adjustable component in year 2013
4 23.00 +Adjustable component in year 2014
Note:The rates shown in this table have been computed using the Northwest Power and Conservation Councils August 9,2011 Update
to the Fuel Price Forecast contained in its Sixth Power Plan approved on February 10,2010.See Table 2,page 5,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.
Attachment
Order No.32337
Case No.GNR-E-11 -0-1
Idaho Power Company
IDAHO POWER COMPANY
AVOIDED COST RATES FOR NON-FUELED PROJECTS
August 30,2011
$;MWh
Eligibility for these rates is limited to wind and solar projects 100 kW or smaller,and to non-wind and non-
solar projects smaller than 10 aMW
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARSI 2011 2012 2013 2014 2015 2016 YEAR RATES
1 51.32 53.20 54.91 56.58 5839 60.32 2011 51.32
2 52.22 54.02 55.71 57.45 5931 61.31 2012 53.20
3 53.05 54.81 56.53 58.33 60.26 62.35 2013 54.91
4 53.83 55.60 57.37 59.23 61.24 63.37 2014 56.58
5 54.60 56.40 58.22 60.16 62.21 64.38 2015 5839
6 55.38 57.21 59.10 61.08 63.17 65.38 2016 60.32
7 56.16 58.05 59.98 61.99 64.13 66.39 2017 62.39
8 56.96 58.88 60.85 62.91 65.10 67.40 2018 64.68
9 57.75 59.71 61.72 63.83 66.05 68.39 2019 66.96
10 58.54 60.53 62.59 64.74 67.00 69.39 2020 69.30
11 59.33 81.36 63.45 65.64 67.95 70.37 2021 71.80
12 60.12 62.18 64.31 66.54 68.89 71.34 2022 74.46
13 60.90 63.00 65.17 67.43 69.81 72.32 2023 77.11
14 61.68 63.81 66.01 68.32 70.74 73.28 2024 79.93
15 62.45 64.61 66.85 69.19 71.65 74.23 2025 82.92
16 63.21 65.41 67.68 70.06 72.56 75.18 2026 85.91
17 63.96 66.20 68.51 70.92 73.45 76.11 2027 89.09
18 64.71 66.98 69.32 71.77 74.34 77.04 2028 92.46
19 65.45 67.75 70.12 72.61 75.22 77.95 2029 95.93
20 66.18 68.51 70.92 73.44 76.08 78.86 2030 99.50
2031 103.32
2032 107.27
2033 111.39
2034 115.69
2035 120,18
2036 124.87
Note:The rates shown in this table have been computed using the Northwest Power and Conservation Councils August 9,2011 Update
to the Fuel Price Forecast contained in its Sixth Power Plan approved on February 10,2010.See Table 2,page 5,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 FUELED PROJECTS
August 30,2011
$;MWh
Eligibility for these rates is limited to wind and solar projects 100 kW or smaller,and to non-wind and non-
solar projects smaller than 10 aMW
LEVELIZED NON LEVELIZED
CONTRACT1 ON-UNE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2011 2012 2013 2014 2015 2016 YEAR RATES
1 2155 21.88 22.21 22.54 22.88 23.23 2011 21.55
2 21.71 22.04 22.37 22.71 23.05 23.40 2012 21.88
3 21.86 22.19 22.53 22.87 23.21 23.56 2013 22.21
4 22.01 22.35 22.68 23.03 23.37 23.73 2014 22.54
5 22.16 22.50 22.84 23.18 23.53 23.89 2015 22.88
6 22.31 22.64 22.99 23.33 23.69 24.04 2016 23.23
7 22.45 22.79 23.13 23.48 23.84 24.20 2017 23.58
8 22.59 22.93 23.28 23.63 23.99 24.35 2018 23,94
9 22.73 23.07 23.42 23.77 24.13 24.50 2019 24.30
10 22.86 23.21 23.56 23.91 24.27 24.64 2020 24.66
1 1 22.99 23.34 23.69 24.05 24.41 24.78 2021 25.04
12 23.12 23.47 23.8.2 24.18 24.55 24.92 2022 25.42
13 23.24 23.60 23.95 24.31 24.68 25.05 2023 25.80
14 23.37 23.72 24.08 24.44 24.81 25.19 2024 26.19
15 23.49 23.84 24.20 24.57 24.94 25.31 2025 26.59
16 23.60 23.96 24.32 24.69 25.06 25,44 2026 26.99
17 23.71 24.07 24.44 24.80 25.18 25.56 2027 27.40
18 23.82 24.18 24.55 24.92 25.30 25.68 2028 27.81
19 23.93 24.29 24.66 25.03 25.41 25.79 2029 28.24
20 24.03 24.40 24.77 25.14 25.52 25.91 2030 28.66
2031 29.10
2032 29.54
2033 29.99
2034 30.44
2035 30.91
2036 31.38
EFFECTIVE DATE ADJUSTABLE COMPONENT
8/30/2011 29.33
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 2011 on-line date would receive the following rates:
Years Rate
1 24.03+29.33
2-20 24.03 +Adjustable component n each year
Example 2.A 4-year non-levelized contract with a 2011 on-line date would receive the following rates:
Years Rate
1 21.55+29.33
2 21.88 +Adjustable component in year 2012
3 22.21 +Adjustable component in year 2013
4 22.54 ÷ Adjustable component in year 2014
Note:(1)The rates shown in this table have been computed using the Northwest Power and Conservation Councils August 9,2011
Update to the Fuel Price Forecast contained in its Sixth Power Plan approved on February 10,2010.See Table 2,page 5,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.32196).
Attachment
Order No.32337
Case No.GNR-Ei 1-04
PacifiCorp
PACIFICORP
AVOIDED COST RATES FOR NON-FUELED PROJECTS
August 30,2011
$/MWh
Eligibility for these rates is limited to wind and solar projects 100 kW or smaller,and to non-wind and non-
solar projects smaller than 10 aMW
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2011 2012 2013 2014 2015 2016 YEAR RATES
1 50.88 52.76 54.46 56.13 57.92 59.85 2011 50.88
2 51.78 53.57 55.26 56.99 58.85 60.84 2Q12 52.76
3 52.61 54.36 56.08 57.87 59.79 61.88 2013 54.46
4 53.39 55.15 56.92 58.77 60.77 62.89 2014 56.13
5 54.16 55.95 57.77 59.69 61.74 63.90 2015 57.92
6 54.94 56.77 58.65 60.62 62.71 64.91 2016 59.85
7 55.72 57.60 59.52 61.54 63.67 65.92 2017 61.91
8 56.52 58.43 60.40 62.45 64.64 66.93 2018 64.20
9 57.32 59.26 61.27 63.38 65.59 67.93 2019 66.47
10 58.11 60.10 62.15 64.29 66.55 68.93 2020 68.80
11 58.90 60.93 63.01 65.20 67.50 69.92 2021 71.30
12 59.70 61.76 63.88 66.10 68.44 70.90 2022 73.95
13 60.48 62.58 64.74 67.00 69.38 71.88 2023 76.59
14 61.27 63.40 65.59 67.89 70.31 72.85 2024 79.40
15 62.04 64.21 66.44 68.78 71.24 73.81 2025 82.39
16 62.82 65.01 67.28 69.66 72.15 74.77 2026 85.37
17 63.58 65.81 68.12 70.53 73.06 75.71 2027 88.54
18 64.34 66.60 68.94 71.39 73.96 76.65 2028 91.90
19 65.09 67.38 69.76 72.24 74.85 77.58 2029 95.36
20 65.83 68.16 70.57 73.09 75.73 78.50 2030 98.93
2031 102.74
2032 106.68
2033 110.79
2034 115.09
2035 119.57
2036 124.25
Note:(1.)The rates Shown in this table have been computed using the Nohhwest Power and Conservation Council’s August 9,2011
Update to the Fuel Price Forecast contained in its Sixth Power Plan approved on February 10.2010.See Table 2,pageS,East-Side
Deiivered prices.(Reference Order No.30480).(2)The rates shown in this table have teen computed using the weighted average cost
of capital from PacifiCorp’s most recent general rate case.(See Order No.32196).