20230428Notice_of_Application_Order_No_35758.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35758 1

Office of the Secretary
Service Date
April 28, 2023

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On April 12, 2023, Commission Staff applied for an order updating inputs to the surrogate
avoided resource method (“SAR Method”) model, making administrative changes to the SAR
Method model, and approving the SAR Method 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 SAR Method for all three major public
electric utilities in Idaho: Avista, Idaho Power, and Rocky Mountain Power (collectively, “the
Utilities”). Staff requested an effective date of June 1, 2023.
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 2023 released on March 16, 2023.
YOU ARE FURTHER NOTIFIED that a copy of the relevant natural gas price forecast is
included on the AEO2023-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-23-02

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35758
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35758 2

YOU ARE FURTHER NOTIFIED that Staff compared the 2023 natural gas forecast to the
2022 natural gas forecast published by the EIA. Starting in 2026, the natural gas forecast is
projected to be lower than in 2022, which results in lower avoided costs of energy starting in 2026.
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 must file written comments within 21 days of the service date of this
Order. 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 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:

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35758 3

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

For Avista:

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

For Rocky Mountain Power:

Mark Alder
Joe Dallas
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
within 28 days of the service date of this Order.
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. Persons interested in submitting written comments must do so within 21 days
of the service date of this Order. Commission Staff must file any reply comments within 28 days
of the service date of this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35758 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 28th day of
April 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\GNR-E-23-02 SAR\GNRE2302_ntc app mod_dh.docx