The URL can be used to link to this page

Home My WebLink About20040615Comments of Idaho Power.pdfMONICA B. MOEN ISB # 5734 BARTON L. KLINE ISB #1526 Idaho Power Company P. O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2682 FAX Telephone: (208) 388-6936 ~rf't:J'JE.D illl\Lv\...l 0 -. -' 2001j JtI~ \4 PM 4: u nL\~ \ E S J~~~ I ~ SlOW Attorney for Idaho Power Company Street Address for Express Mail 1221 West Idaho Street Boise, Idaho 83702 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE ANNUAL REVISION AND UPDATED CALCULATION OF THE ADJUSTABLE PORTION OF THE AVOIDED COST RATES FOR A VISTA CORPORATION DBA AVISTA UTILITIES FOR EXISTING PURPA CONTRACTS, FOR IDAHO POWER COMPANY, AND FOR PACIFICORP DBA UTAH POWER & LIGHT COMPANY CASE NO. GNR-04- IDAHO POWER COMPANY' ACCEPTANCE OF UPDATED CALCULATION OF PUBLISHED AVOIDED COST RATES COMES NOW Idaho Power Company ("Idaho Power" or "the Company'), and hereby accepts the annual revisions and updated calculation of the adjustable rate portion of avoided rates as proposed by PUC Staff in the May 28, 2004 letter from Scott Woodbury, Deputy Attorney General. Idaho Power Company s acceptance in this case is based on the following: IDAHO POWER COMPANY'S ACCEPTANCE, Page Rate Adjustments Based On Colstrip Costs The proposal presented by Staff in its May 28, 2004 letter revises the variable cost components of the rates paid under certain contracts signed by Idaho Power during the late 1980s and early 1990s. These contracts provide that a portion of the rate paid by Idaho Power will be adjusted annually based on changes in fuel and variable operating costs at the Colstrip coal-fired generating plant in Montana. As a result, the discussion and computation of the Colstrip-related fuel costs and variable O&M costs described in the May 28, 2004 letter only apply to a specific group of existing contracts. No new contracts containing rates tied to Colstrip operating costs are being signed. For the applicable contracts , Idaho Power accepts the computation of the revised Colstrip-related fuel costs and variable O&M costs as specified in the May 28 , 2004 letter. Washington Changes To Variable Rates Based On Gas Prices At Sumas The second part of the May 28, 2004 letter addresses changes in certain QF purchase rates based on changes in gas prices as measured at Sumas , Washington. As in the case of the Colstrip-related variable cost component, there is a group of QF contracts where a portion of the rate paid to the QFs will be adjusted annually based on changes in the cost of natural gas as measured at Sumas , Washington. Idaho Power has only one contract that utilizes the changes in the Sumas gas price to adjust a portion of the price paid to the existing QF seller. For purposes of adjusting the rates in that one contract, Idaho Power accepts the changes in the cost component based on changes in gas prices at Sumas as presented in the May 28, 2004 Letter. IDAHO POWER COMPANY'S ACCEPTANCE, Page 2 DATED this 14th day of June 2004. (h 4e- MONICA B. MOEN Attorney for Idaho Power Company IDAHO POWER COMPANY'S ACCEPTANCE, Page 3 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 14TH day of June 2004 , I caused a true and correct copy of the within and foregoing IDAHO POWER COMPANY'S ACCEPTANCE OF UPDATED CALCULATION OF PUBLISHED AVOIDED COST RATES to be served upon the following named parties by the method indicated below, and addressed to the following: Scott D. Woodbury Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington Street O. Box 83720 Boise , Idaho 83720-0074 Blair Strong Paine , Hamblen , et al 717 W. Sprague Avenue, Suite 1200 Spokane, WA 99201-3505 . x Doug Young Avista Utilities-WWP 1411 E. Mission , P.O. Box 3727 Spokane, W A 99220-3727 John M. Eriksson Stoel Rives LLP One Utah Center 201 S. Main Street, Suite 1100 Salt Lake City, UT 84111-4904 Rodger Weaver PacifiCorp 825 N.E. Multnomah, Suite 600 Portland , OR 97232 Mark Widmer PacifiCorp 825 N.E. Multnomah Street Portland , OR 97232 Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX Hand Delivered S. Mail Overnight Mail FAX 0. MONICA B. MOEN CERTIFICATE OF SERVICE