20220505Notice_of_Application_Order_No_35398.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35398 1

Office of the Secretary
Service Date
May 5, 2022

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On April 21, 2022, Commission Staff applied to update the natural gas forecast used
as an input to calculate published avoided cost rates for eligible qualifying facilities (“QFs”).
Under the Public Utility Regulatory Policies Act of 1978, the Commission calculates published
avoided cost rates for eligible QFs using the surrogate avoided resource method (“SAR Method”)
for all three major public electric utilities in Idaho: Avista, Idaho Power, and Rocky Mountain
Power (collectively, “the Utilities”).
The Commission now sets deadlines for interested persons to comment on the
Application, and for Commission Staff to reply.
BACKGROUND
The SAR Method calculates avoided cost rates for QFs that are under the applicable
resource type project eligibility cap, using a Combined Cycle Combustion Turbine plant as a
surrogate. Each year, the Commission updates the natural gas forecast used in the model and the
updated rates are available to eligible QFs beginning June 1. See Order Nos. 32697 and 32802.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Staff updated the natural gas forecast in the SAR
Method model, using the “reference case” natural gas price forecast for the Mountain Region’s
Electric Power sector included in the Energy Information Administration (“EIA”) Annual Energy
Outlook 2022 released on March 3, 2022.
YOU ARE FURTHER NOTIFIED that a copy of the relevant natural gas price forecast
is included on the AEO2022-EnergyPricesMountain tab in the SAR Method model which is
attached to the Application.
IN THE MATTER OF COMMISSION
STAFF’S APPLICATION TO UPDATE
INPUTS TO THE “SURROGATE AVOIDED
RESOURCE” METHOD AVOIDED COST
RATES
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CASE NO. GNR-E-22-01

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35398
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35398 2

YOU ARE FURTHER NOTIFIED that Staff has also improved how avoided costs of
capacity data is presented for Idaho Power’s Energy Storage QFs, with rates presented for online
years 2022 through 2027.
YOU ARE FURTHER NOTIFIED that Staff compared the 2022 natural gas forecast
and the 2021 natural gas forecast published by the EIA. See Table No. 1, below. Although the
two forecast trends are similar overall, new avoided cost of energy based on the 2022 natural gas
forecast will be higher than current avoided cost of energy until around 2049, because the new
forecast is slightly higher until 2049.
YOU ARE FURTHER NOTIFIED that the Application and Attachments are available
for public inspection during regular business hours at the Commission’s office. These documents
are also available on the Commission’s website at www.puc.idaho.gov. Click on the “ELECTRIC”
icon, select “Open Cases,” and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter and will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure,
IDAPA 31.01.01.201 through .204. The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments. Persons shall have until May 23, 2022 to file written comments. Comments must
be filed through the Commission’s website or by e-mail unless computer access is unavailable. To
comment electronically, please access the Commission’s website at www.puc.idaho.gov. Click the
“Case Comment Form” and complete the form using the case number as it appears on the front of
this document. To file by e-mail, the customer must e-mail the comment to the Commission
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35398 3

Secretary and the Utilities at the e-mail addresses listed below. If computer access is unavailable,
then comments may be mailed to the Commission and the Utilities at these addresses:
For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714

For Idaho Power:

Donovan E. Walker
Idaho Power Company
1121 W. Idaho Street 83702
P.O. Box 70
Boise, ID 83707-0070
[e-mail]
[e-mail]

For Avista:

David Meyer
Michael Andrea
Avista Corporation
P.O. Box 3727
1411 East Mission Avenue
Spokane, WA 99220-3727
[e-mail]
[e-mail]

For Rocky Mountain Power:

Ted Weston
Emily Wegener
Rocky Mountain Power
1407 West North Temple, Ste. 330
Salt Lake City, UT 84116
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that Commission Staff must file any reply
comments by May 26, 2022.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
O R D E R
IT IS HEREBY ORDERED that Commission Staff’s Application be processed by
Modified Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting
written comments must do so by May 23, 2022. Commission Staff must file any reply comments
by May 26, 2022.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35398 4

IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April
21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 5th day
of May 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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