20140527_4370.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:YAO YIN
K1USTINE SASSER,DAG
DATE:MAY 23,2014
SUBJECT:UPDATE TO PUBLISHED AVOIDED COST RATES TO REFLECT ANUPDATEDNATURALGASPRICEFORECASTOFTHEU.S.ENERGYINFORMATIONADMINISTRATION(EIA),CASE NOS.AVU-E-14-04,IPC-E-14-11,PAC-E-14-03
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 rate at which PURPA qualifying cogeneration and
small power production facilities (QFs)are paid by Idaho Power,Avista,and PacifiCorp.
Avoided cost rates are the purchase price paid to QFs for purchases of QF capacity and energy.
The release of a new natural gas price forecast by EIA triggered an updated calculation of avoided
cost rates.
UPDATED NATURAL GAS PRICE FORECAST
One of the key input variables in the computation of avoided cost rates in the SAR
methodology is a long-term natural gas price forecast.In accordance with the methodology
approved in Order No.32697,the “reference case”natural gas price forecast for the Mountain
Region’s Electric Power sector published in ETA’s Annual Energy Outlook serves as the basis for
computing avoided cost rates.In Order No.32697,the Commission also found that the final
release of Annual Energy Outlook automatically triggers a recalculation of the published avoided
cost rates.In Order No.32802,the Commission clarified that an update should occur on June 1 or
within 30 days of the fmal release of the Annual Energy Outlook,whichever is later.
DECISION MEMORANDUM 1
The Annual Energy Outlook 2014 was released on May 7,2014.A copy of the
relevant natural gas price forecast is attached.
STAFF REVIEW
Commission Staff has recomputed avoided cost rates for Idaho Power,Avista,and
PacifiCorp,using EIA’s most recent natural gas price forecast.Staff provided Idaho Power,
Avista,and PacifiCorp with worksheets on May 22,2014,for review and comment,showing the
computation of the updated avoided cost rates.A copy of the rates computed by Staff for all three
utilities is attached.Due to the lower natural gas price forecast,the new avoided cost rates for the
year of 2014 have dropped approximately 4 to 10%from the previously published rates for the
same year,depending on the generation type.
STAFF RECOMMENDATION
Staff recommends that the attached avoided cost rates for Idaho Power,Avista,and
PacifiCorp be approved with an effective date of June 1,2014.
COMMISSION DECISION
Presented for Commission approval are the updated published avoided cost rates for
Idaho Power,Avista,and PacifiCorp,which have incorporated the natural gas price forecast
published in the final release of EIA’s Annual Energy Outlook 2014.The calculation of the fuel
cost adjustment to published avoided cost rates is arithmetic.Does the Commission wish to
approve the changes in rates effective June 1,2014?
Yao Yin
Kristine Sasser,DAG
M:AVU-E-1 4-O4IPC-E-14-1 1_PAC-E-1 4-O3jy_ks
DECISION MEMORANDUM 2
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IDAHO POWER COMPANY
AVOIDED COST RATES FOR WIND PROJECTS
June 1,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects 100 kW or smaller.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 37.96 35.58 34.90 37.82 41.40 44.04 2014 37.96
2 36.82 35.25 36.30 39.54 42.67 44.15 2015 35.58
3 36.23 36.04 37.87 40.92 43.16 44.73 2016 34.90
4 36.58 37.23 39.23 41.66 43.79 45.22 2017 37.82
5 37.40 38.38 40.09 42.40 44.33 45.84 2018 41.40
6 38.30 39.18 40.89 43.02 44.94 46.55 2019 44.04
7 38.96 39.94 41.57 43.67 45.63 47.23 2020 44.27
8 39.62 40.60 42.25 44.37 46.29 47.75 2021 46.02
9 40.21 41.26 42.96 45.02 46.80 48.22 2022 46.97
10 40.80 41,93 43.62 45.55 47.27 48.69 2023 48.82
11 41.41 42.57 44.16 46.04 47.74 49.26 2024 51.13
12 42.00 43.10 44.66 46.51 48.29 49.92 2025 52.63
13 42.49 43.59 45.14 47.05 48.91 50.58 2026 52.76
14 42.95 44.05 45.68 47.65 49.54 51.29 2027 53.67
15 43.39 44.57 46.26 48.26 50.21 52.02 2028 55.07
16 43.88 45.13 46.85 48.90 50.90 52.76 2029 58.37
17 44.40 45.69 47.46 49.56 51.59 53.50 2030 61.79
18 44,92 46.28 48.09 50.22 52.30 54.32 2031 64.38
19 45.47 46.87 48.72 50.88 53.06 55.11 2032 67.85
20 46.02 47.47 49.36 51.61 53.80 55.84 2033 71.49
2034 74.78
2035 78.31
2036 84.74
2037 87.54
2038 89.23
2039 93.64
Note:These rates will be further adjusted with the applicable integration charge.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)s Annual Energy
Outlook 2014 released May 7,2014,See “Annual Energy Outlook 2014,Table 18,Mountain Data,
http:/Iwww.eia.govlforecasts/aeo/tables_ref.cfm
IDAHO POWER COMPANY Page 1
IDAHO POWER COMPANY
AVOIDED COST RATES FOR SOLAR PROJECTS
June 1,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects 100 kW or smaller.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 6438 62.38 62.09 65.41 69.39 72.44 2014 64.38263.42 62.24 63.68 67.32 70.86 72.75 2015 62.38363.01 63.21 65.44 68.90 71.54 73.52 2016 62.09463.54 64.58 66.99 69.82 72.36 74.21 2017 65.41564,53 65.92 68.02 70.75 73.09 75.01 2018 69.39665.61 66.89 69.00 71.54 73.88 75.91 2019 72.44766.44 67.82 69,86 72.37 74.75 76.77 2020 73.08867.26 68.64 70.70 73.24 75.58 77.47 2021 75.26968.01 69.46 71.57 74.06 76.26 78.11 2022 76.641068.76 70.30 72.40 74.75 76.90 78.75 2023 78.921169.52 71.09 73.10 75.40 77.53 79.49 2024 81.671270.26 71.77 73.75 76.03 78.24 80.30 2025 83.621370.90 72.41 74.38 76.72 79.02 81.13 2026 84.201471.50 73.02 75.07 77.47 79.80 81.98 2027 85.571572.08 73.68 75.79 78.23 80.61 82.87 2028 87.441672.70 74.38 76.52 79.00 81.44 83.75 2029 91.211773.35 75.07 77.27 79.80 82.28 84.64 2030 95.111874.00 75.78 78.03 80.59 83.11 85.59 2031 98.191974.67 76.50 78.79 81.39 84.01 86.51 2032 102.152075.35 77.22 79.55 82.24 84.88 87.37 2033 106.30
2034 110.09
2035 114.14
2036 121.09
2037 124.43
2038 126.66
2039 131.62
Note:These rates will be further adjusted with the applicable integration charge.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)’s Annual EnergyOutlook2014releasedMay7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data,http:/Iwww.ela.goviforecastslaeoftables_ref.cfm
IDAHO POWER COMPANY Page 2
IDAHO POWER COMPANY
AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS
June 1,2014
$IMWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 61.81 59.78 59.45 62.73 66.67 69.68 2014 61.81260.84 59.62 61.02 64.62 68.12 69.97 2015 59.78360.41 60.57 62.76 66.18 68.79 70.73 2016 59.45460.92 61.92 64.29 67.09 69.59 71.40 2017 62.73561.90 63.24 65.31 67.99 70.30 72.18 2018 66.67862,96 64.20 66.28 68.78 71.07 73.06 2019 69.68763.77 65.11 67.11 69.58 71.92 73.90 2020 70.28864.58 65.92 87.94 70.43 72.73 74.58 2021 72.42965.31 66.72 68.80 71.24 73.40 75.21 2022 73.761066.04 67.54 69.60 71.92 74.02 75.83 2023 76.001166.79 68.32 70.29 72.55 74.63 76.56 2024 78.701267.51 68.99 70.93 73.16 75.33 77.35 2025 80.611368.14 69.61 71.54 73.84 76.09 78.16 2026 81.151468.73 70.21 72.21 74.58 76.86 79.00 2027 82.471569.29 70.85 72.93 75.32 77.66 79.87 2028 84.301669.90 71.54 73.64 76.08 78.48 80.74 2029 88.0217705472.22 74.37 76.86 79.30 81.61 2030 91.881871.18 72.92 75.12 77.64 80.12 82.56 2031 94.911971.83 73.63 75.87 78.43 81.01 83.46 2032 98.822072.50 74.33 76.62 79.28 81.86 84.31 2033 102.92
2034 106.66
2035 110.67
2036 117.56
2037 120.85
2038 123.02
2039 127.93
Note:The rates shown in this table have been computed using the U.S.Energy Information AdminIstration (EIA)s Annual EnergyOutlook2014releasedMay7,2014.Sea Annual Energy Outlook 2014,Table 18,Mountain Data,http://www.eia.gov/forecastslaeo/tables_ref,cfm
IDAHO POWER COMPANY Page 3
IDAHO POWER COMPANY
AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS
June 1,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 79.79 78.01 77.95 81.50 85.72 89.01 2014 79.79278.93 77.98 79.65 83.53 87.30 89.43 2015 78.01378,63 79.06 81.52 85.21 88.09 90.32 2016 77.95479.27 60.54 83.18 86.25 89.03 91.12 2017 81.50580.36 81.97 84.32 87.28 89.86 92.03 2018 85.72681.53 83.05 65.40 88.18 90.76 93.04 2019 89.01782.47 84.08 86.35 89.11 91.73 94.00 2020 89.89883.39 85.00 87.30 90.07 92.66 94.80 2021 92.31984.22 65.91 88.27 91.00 93.45 95.55 2022 93.941085.06 86.84 89.19 91.79 94.18 96.28 2023 96.481185.92 87.73 89.98 92.52 94.90 87.12 2024 99.481286.74 88.50 90.72 93.24 95.71 98.03 2025 101.691387.47 89.22 91.44 94.03 96.57 98.94 2026 102.541488.15 89.92 92.21 84.87 97.44 99.89 2027 104.181588.81 90.66 93.02 95.70 98.34 100.86 2028 106.321689.51 91.43 93.83 96.56 99.26 101.83 2029 110.361790.24 92.21 94.65 97.44 100.18 102.80 2030 114.551890.97 92.99 95.49 98.31 101.09 103.83 2031 117.911991.70 93.79 96.33 99.18 102.07 104.83 2032 122.162092.45 94.58 97.15 100.10 103.01 105.77 2033 126.60
2034 130.69
2035 135.05
2036 142.30
2037 145.95
2038 148.49
2039 153.78
Note:A seasonal hydro proect is defined as a generation facility which produces at least 55%of its annual generation during themonthsofJune,July,and August.Order 32802.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)s Annual EnergyOutlook2014releasedMay7,2014.See Annual Energy Outlook 2014,Table 18,Mountain Data,http:/Iwww.eia.govlforecastslaeo/tablesj’ef.cfm
IDAHO POWER COMPANY Page 4
IDAHO POWER COMPANY
AVOIDED COST RATES FOR OTHER PROJECTS
June 1,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED(YEARS)2014 2015 2016 2017 2016 2019 YEAR RATES
1 54.86 52.72 52.28 55.46 59.30 62.20 2014 54.86253.83 52.51 53.81 57.30 60.69 62.44 2015 52.72353.35 53.42 55.50 58.81 61.31 63.14 2016 52.28453.82 54.72 56.98 59.67 62.06 63.76 2017 55.46554.75 55.99 57.95 60.53 62.72 64.49 2018 59.30655.76 56.90 58.87 61.26 63.45 65.33 2019 62.20756.53 57.77 59.66 62.02 64.25 66.12 2020 62.69857.30 58.53 60.44 62.83 65.02 66.75 2021 64.72957.99 59.29 61.26 63.59 65.64 67.33 2022 65.941058.68 60.07 62.02 64.23 66,22 67.91 2023 68.071159.39 60.81 62.67 64.81 66.79 68,59 2024 70.661260.07 61.43 63.26 65.38 67.44 69.35 2025 72.441360.66 62.02 63.84 66.03 68.16 70.11 2026 72.861461.20 62.58 64.47 66.72 68.89 70.92 2027 74.071561.73 63.19 65.15 67.42 69.65 71.75 2028 75,771662.31 63.83 65.82 68.15 70.43,72.58 2029 79.371762,91 64.48 66.52 68.90 71.22 73.41 2030 83.101863.52 65.14 67.24 69.64 72.00 74.32 2031 86.001964.14 65.82 67.95 70.39 72,85 75.19 2032 69.782064.77 66.50 68.68 71.20 73.67 76.00 2033 93.75
2034 97.36
2035 101.23
2036 107.99
2037 111.13
2038 113.16
2039 117.93
Note:Other projects”refers to projects other than wind,solar,non-seasonal hydro,and seasonal hydro projects.These “Other projects’may include (but are not limited to):cogeneration,biomass,blogas,landfill gas,or geothermal projects.
Note:The rates shown In this table have been computed using the U.S.Energy Information Administration (EIA)’s Annual EnergyOutlook2014releasedMay7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data,http:llwww.eia.gov/forecastslaeo/tables_ref.cfm
IDAHO POWER COMPANY Pages
AVISTA
AVOIDED COST RATES FOR WIND PROJECTS
June 1,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects 100 kW or smaller.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 35.10 35.45 34.76 34.83 38.36 40.96 2014 35.10
2 35.27 35.12 34.79 36.53 39.61 42.48 2015 35.45
3 35.11 35.03 35.90 37.90 41.01 43.53 2016 34.76
4 35.05 35.77 37.02 39.28 42.09 44.26 2017 34.83
5 35.62 36.66 38.23 40.41 42.90 45.02 2018 38.36
6 36.35 37.68 39.28 41.29 43.69 45.83 2019 40.96
7 37.22 38.60 40.13 42,12 44.51 46.58 2020 44.13
8 38.04 3938 40.93 42.95 45.26 47.15 2021 45.88
9 38.74 40.12 41.74 43.72 45.85 47.66 2022 46.83
10 39.43 40.88 42.49 44.33 46.38 48.16 2023 48.68
11 40.13 41.58 43.10 44.89 46.90 48.77 2024 50.98
12 40.78 42.16 43.65 45.42 47.50 49.45 2025 52.48
13 41.34 42.69 44.18 46.02 48.16 50.14 2026 52.61
14 41.84 43.20 44.76 46.67 48.83 50.87 2027 53.52
15 42.33 43.76 45.39 47.32 49.53 51.63 2028 54.92
16 42.86 44.35 46.01 48.00 50.25 52.39 2029 58.21
17 43.42 44.95 46.66 48.69 50.98 53.16 2030 61.63
18 43.98 45.56 47.32 49.39 51.71 54.01 2031 64.22
19 44.56 46.19 47.99 50.09 52.51 54.82 2032 67.68
20 45.15 46.81 48.65 50.85 53.28 55.58 2033 71.32
2034 74.61
2035 78.14
2036 84.56
2037 87.36
2038 89.05
2039 93.46
Note:These rates will be further adjusted with the applicable integration charge.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)s Annual Energy
Outlook 2014 released May 7,2014.See Annual Energy Outlook 2014,Table 18,Mountain Data,
http://www.eia.gov/forecasts!aeo/tables_ref cfm
AVISTA Page 1
AVISTA
AVOIDED COST RATES FOR SOLAR PROJECTS
June 1,2014
$!MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects 100 kW or smaller.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 35.10 36.73 36.06 34.83 38.36 40.96 2014 35.10
2 35.88 36.41 35.47 36.53 39.61 43.14 2015 36.73
3 35.94 35.92 36,36 37.90 41.43 44.42 2016 36.06
4 35.69 36.46 37.38 39.59 42.73 45.27 2017 34.83
5 36.15 37.23 38.77 40.90 43.67 46.10 2018 38.36
6 36.80 38.36 39.93 41.90 44.55 46.96 2019 40.96
7 37.78 39.36 40.87 42.83 45.44 47.75 2020 45.50
8 38.68 40.20 41.74 43.73 46.24 48.35 2021 47.28
9 39.45 41.00 42.60 44.55 46.87 48.89 2022 48.24
10 40.19 41.79 43.39 45.22 47.44 49.41 2023 50.11
11 40.93 42.52 44.03 45.81 47.98 50.04 2024 52.44
12 41.62 43.14 44.62 46.37 48.61 50.74 2025 53.96
13 42.20 43.70 45.17 47.00 49.29 51.44 2026 54.11
14 42.73 44.23 45.78 47.68 49.98 52.19 2027 55.04
15 43.24 44.80 46.42 48.35 50.70 52.96 2028 56.46
16 43.79 45.42 47.07 49.05 51.44 53.73 2029 59.78
17 44.37 46.02 47.73 49.76 52.18 54.51 2030 63.22
18 44.95 46.65 48.41 50.48 52.93 55.37 2031 65.83
19 45.54 47.29 49.09 51.19 53.74 56.19 2032 69.32
20 46.15 47,93 49.77 51.97 54.52 56.96 2033 72.98
2034 76.29
2035 79.85
2036 86.30
2037 89.12
2038 90.83
.2039 95.27
Note:These rates will be further adjusted with the applicable integration charge.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)s Annual Energy
Outlook 2014 released May 7,2014.See Annual Energy Outlook 2014,Table 18,Mountain Data,
http://www.eia.gov/forecasts/aeo/tables_ref.cfm
AVISTA Page 2
AVISTA
AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS
June 1,2014
$IMWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 35.10 42.63 42.05 34.83 38.36 40.96 2014 35.10
2 38.72 42.35 38.58 36.53 39.61 46.20 2015 42,63
3 39.75 40.03 38.51 37.90 43.39 48.52 2016 42.05
4 38.65 39.66 39.06 41.00 45.68 49.91 2017 34.83
5 38.60 39.88 41.24 43.17 47.24 51.08 2018 38.36
6 38.93 41.52 42.94 44.76 48.53 52.18 2019 40.96
7 40.38 42.89 44.28 46.10 49.73 53.15 2020 51.85
8 41.64 44.01 45.45 47.34 50.77 53.89 2021 53.72
9 42.69 45.03 46.55 48.42 51.60 54.55 2022 54.78
10 43.67 46.01 47.54 49.29 52.32 55.18 2023 56.75
11 44.60 46.91 48.36 50.06 53.00 55.89 2024 59.17
12 45.46 47.65 49.08 50.78 53,75 56.67 2025 60.79
13 46.19 48.33 49.76 51.54 54.53 57.45 2026 61.04
14 46.85 48.96 50.48 52.33 55.31 58.25 2027 62.07
15 47.47 49.63 51.22 53.11 56.11 59.08 2028 63.59
16 48.12 50.33 51.96 53.90 56.93 59.92 2029 67.01
17 48.79 51.01 52.70 54.70 57.74 60.75 2030 70.56
18 49.45 51.71 53.45 55.49 58.55 61.65 2031 73.28
19 50.12 52.42 54.20 56.27 59.42 62.52 2032 76.88
20 50.79 53.11 54.94 57.11 60.25 63.33 2033 80.66
2034 84.08
2035 87.75
2036 94.31
2037 97.25
2038 99.08
2039 103.64
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)s Annual Energy
Outlook 2014 released May 7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data,
http:llwww.eia.govlforecasts/aeoltables_ref.cfm
AV1STA Page 3
AVISTA
AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS
June 1,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 35.10 32.67 31.95 34.83 38.36 40,96 2014 35.10233.93 32.32 33.33 36.53 39.61 41.05 2015 32.67333.32 33.10 34.88 37.90 40.08 41.60 2016 31.95433.66 34.27 36.23 38.62 40,70 42.08 2017 34.83534,46 35.41 37.07 39.34 41.22 42.68 2018 38.36635.35 36.19 37.86 39.94 41.81 43.38 2019 40.96736.00 36.94 38,52 40.58 42.49 44.04 2020 41.14836.65 37.58 39.19 41.26 43.13 44.54 2021 42.85937.22 38.23 39.88 41.90 43.63 45.00 2022 43.761037,80 38.89 40.53 42.42 44.09 45.45 2023 45.561138.40 39.52 41.07 42.89 44.54 46.02 2024 47.821238,98 40.04 41.55 43.35 45.08 46.66 2025 49.271339.46 40.51 42.02 43.89 45.69 47.32 2026 49.351439.91 40.97 42.55 44.48 46.32 48.02 2027 50.221540.34 41.49 43.13 45.08 46.98 48.75 2028 51.561640.82 42.04 43.71 45.71 47.67 49.49 2029 54.811741.34 42.60 44.32 46.37 48.36 50.23 2030 58.181841.86 43.18 44.95 47.03 49.07 51.06 2031 60.721942.40 43.78 45.59 47.70 49.84 51.85 2032 64.132042.96 44.38 46.22 48.43 50.58 52.58 2033 67.72
2034 70.95
2035 74.43
2036 80.79
2037 83.54
2038 85.17
2039 89.52
Note:A “seasonal hydro project”is defined as a generation facility which produces at least 55%of its annual generation during themonthsofJune,July,end August.Order 32802.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)’s Annual EnergyOutlook2014releasedMay7,2014.See “Annual Energy Outlook 2014,Table 18,MountaIn Data,http:Uwww.eia.govlforecastsfaeoltablesref.cfm
AVISTA Page 4
AVISTA
AVOIDED COST RATES FOR OTHER PROJECTS
June 1,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-UNE YEAR
LENGTH CONTRACT NON-LEVELIZED(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 35.10 51.82 51.37 34.83 38.36 40.96 2014 35.10243.14 51.60 43.41 36.53 39.61 50.95 2015 51.82345.68 46.43 41.86 37.90 46.43 54.89 2016 51.37443.27 44.64 41.66 43.19 50.28 57.13 2017 34.83542.43 44.01 45.09 46.70 52.78 58.83 2018 38.36642.23 46.43 47.63 49.19 54.74 60.30 2019 40.96744.42 48.38 49.58 51.20 56.41 61.55 2020 61.73846.24 49.94 51.23 52.94 57.83 62.52 2021 63.74947.75 51.32 52.71 54.43 58.95 63.36 2022 64.951049.09 52.59 54.01 55.63 59.92 6415 2023 67.071150.33 53.72 55.08 56.68 60.82 65.00 2024 69.641251.44 54.68 56.03 57.64 61.74 65.90 2025 71.411352.40 55.54 56,90 58.60 62.69 66.79 2026 71.821453.25 56.34 57.79 59.57 63.61 67.70 2027 73.011554,05 57.15 58.69 60.51 64.54 68.62 2028 74.691654.85 57.97 59.56 61.45 65.47 69.54 2029 78.28
17 55.66 58.78 60.43 62.38 66.39 70.45 2030 81.991856.45 59.58 6130 63.29 67.30 71.43 2031 84.881957.24 60.39 62.15 64.18 68.26 72.36 2032 88.642058.02 61.18 62.98 65.12 69.18 73.24 2033 92.59
2034 96.19
2035 100.04
2036 106.78
2037 109.91
2038 111.92
2039 116.67
Note:‘Other projects’refers to projects other than wind,solar,non-seasonal hydro,and seasonal hydro projects.These ‘Other projects”may include (but are not limited to):cogeneration,biomass,biogas,landfill gas,or geothermal projects.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)’s Annual EnergyOutlook2014releasedMay7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data,http://www.eia.gov/forecasts/aeoftables_ref.cfm
AVISTA Page 5
PACIFICORP
AVOIDED COST RATES FOR WIND PROJECTS
June 1,2014
S/MWhNewContractsandReplacementContracts without Full Capacity Payments
Eligibility for these rates is limited to projects 100 kW or smaller.
LEVELIZED NON.LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 37.90 35.52 34.83 37.75 41.33 43.98 2014 37.90236.75 35.19 36.24 39.48 42.60 44.08 2015 35.52336.16 35.98 37.81 40.86 43.10 44.66 2016 34.83436.52 37.17 39.18 41.60 43.73 45.16 2017 37.75537.34 38.33 40.03 42.34 44.27 45.77 2018 41.33638.24 39.13 40.84 42.97 44.88 46.49 2019 43.98738.91 39.89 41.52 43.62 45.58 47.17 2020 44.20839.57 40.55 42.20 44.32 46.23 47.69 2021 45.96940.16 41.21 42.91 44.98 46.75 48.17 2022 46.901040.75 41.89 43.58 45.51 47,22 48.64 2023 48.751141.37 42.53 44.13 46.00 47,69 49.22 2024 51.061241.96 43.07 44.63 46.47 48.25 49.88 2025 52.551342.46 43.56 45.11 47.02 48.88 50,55 2026 52.691442.92 44.03 45.65 47.63 49.52 51.26 2027 53.601543.37 44.56 46.25 48.24 50.19 52.00 2028 55.001643.86 45.13 46.84 48.89 50.89 52.75 2029 58.291744.39 45.69 47.46 49.56 51.60 53.51 2030 61.711844.93 46.29 48.10 50.23 52.31 54.34 2031 64.301945.48 46.89 48.75 50.91 53.09 55.14 2032 67.772046.05 47.50 49.39 51.65 53.84 55.89 2033 71.41
2034 74.70
2035 78.23
2036 84.65
2037 87.45
2038 89.14
2039 93.55
Note:These rates will be further adjusted with the applicable integration charge.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)s Annual EnergyOutlook2014releasedMay7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data,http://www.eia.gov/forecasts!aeo/tables_ref.cfm
PACIFICORP Page 1
PACIFICORP
AVOIDED COST RATES FOR SOLAR PROJECTS
June 1,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects 100 kW or smaller.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 63.74 61.73 61.43 64.74 68.72 71.76 2014 63.74
2 62.78 61 59 63.03 66.66 70.18 72.06 2015 61.73
3 62.36 62.56 6478 68.23 70.86 72.83 2016 61.43
4 62.89 63.93 66.33 69.15 71.68 73.52 2017 64.74
5 63.89 65.26 67.36 70.07 72.41 74.32 2018 68.72
6 64.96 66.24 68.34 70.87 73.20 75.22 2019 71.76
7 65,79 67.17 69.19 71.69 74.06 76.08 2020 72.39
8 66.62 67.99 70.04 72.56 74.89 76.77 2021 74.56
9 67.36 68.81 70.91 73.39 75.58 77.42 2022 75.93
10 63.11 69.65 71.74 74.08 76.22 73.06 2023 78.20
11 68.88 70.44 72.45 74.73 76.85 78.80 2024 80.94
12 69.62 71.13 73.10 75.36 77.56 79.62 2025 82.87
13 70.27 71.77 73.73 76.06 78.34 80.45 2026 83.45
14 70.87 72.38 74.42 76.82 79.13 81.31 2027 84.81
15 71.45 73.05 75.15 77.58 79.95 82.20 2028 86.67
16 72.08 73.75 75.89 78.36 80.79 83.09 2029 90.42
17 72.74 74.45 76.64 79.16 81.64 83.99 2030 94.32
18 73.40 75.17 77.41 79.97 82.48 84.96 2031 97.38
19 74.07 75.90 78.18 80.78 83.40 85.89 2032 101.33
20 74.76 76.64 78.95 81.64 84.28 86.77 2033 105.47
2034 109.25
2035 113.29
2036 120.23
2037 123.55
2038 125,77
2039 130.72
Note:These rates will be further adjusted with the applicable integration charge.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)s Annual Energy
Outlook 2014 released May 7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data,
http:/Iwww.eia.gov/forecasts/aeo!tablesjef.cfm
PACIFICORP Page 2
PACIFICORP
AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS
June 1,2014
$/MWIi
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 61.23 59.19 58.85 62.12 66.06 69.06 2014 61.23
2 60.25 59.03 60.42 64.02 67.50.69.35 2015 59.19
3 59.82 59.98 62.16 65.57 68.17 70.10 2016 58.85
4 60.33 61.33 63.69 66.48 68.97 70.77 2017 62,12
5 61.31 62,65 64.71 67.38 69.67 71.55 2018 66.06
6 62.37 63.60 65.67 68.16 70.45 72.43 2019 69.06
7 63,18 64.52 66.51 68.97 71.30 73.27 2020 69.65
8 63.99 65.33 67.34 69.82 72.11 73.95 2021 71.78
9 64.72 66.13 68.20 70.63 72.78 74.58 2022 73.11
10 65.46 66.95 69.01 71.31 73.40 75.20 2023 75.34
11 66.21 67.73 69.70 71.94 74.01 75.93 2024 78.04
12 66.94 68.41 70.33 72.56 74.72 76.73 2025 79.93
13 67.57 69.03 70.95 73.24 75.48 77.54 2026 80.46
14 68.15 69.63 71.63 73.98 76.25 78.39 2027 81.78
15 68.72 70.28 72.35 74.73 77.06 79.27 2028 83.59
16 69.34 70.97 73.07 75.50 77.89 80.15 2029 87.31
17 69.99 71.66 73.81 76.29 78.72 81.03 2030 91.15
18 70.63 72.37 74.57 77.08 79.55 81.99 2031 94.17
19 71.30 73.09 75.33 77.88 80.45 82.91 2032 98.08
20 71.97 73.81 76.08 78.73 81.32 83.77 2033 102.16
2034 105.90
2035 109.89
2036 116.78
2037 120.05
2038 122.21
2039 127.11
Note:The rates shown in this table have been computed using the U.S.Energy information Administration (EIA)s Annual Energy
Outlook 2014 released May 7,2014.See Annual Energy Outlook 2014,Table 18,Mountain Data,
http://www.eia.govlforecastslaeoltables_ref.cfm PACIFICORP Page 3
-PACIFICORP
•AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS
June 1,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 78.82 77.03 76.95 80.49 84.69 87.97 2014 78.82
2 77.96 76.99 78.65 82.51 86.27 88.38 2015 77.03
3 77.65 78.07 80.51 84.19 87.06 89.26 2016 76.95
4 78.28 79.54 82.17 85.22 87.99 90.06 2017 80.49
5 79.37 80.98 83.30 86.25 88.82 90.97 2018 84.69
6 80.54 82.05 84.39 87.15 89.71 91.98 2019 87.97
7 81.47 83.08 85.34 88.07 90.68 92.94 2020 88.83
8 82.39 84.00 86.28 89.04 91.61 93.73 2021 91.24
9 83.23 84.91 87.25 89.96 92.39 94.48 2022 92.85
10 84.07 85.84 88.17 90.75 93.13 95.21 2023 95.38
11 84.93 86.72 88.96 91.49 93.85 96.05 2024 98.37
12 85.75 87.50 89.71 92.21 94.66 96.97 2025 100.56
13 86.48 88.22 90.42 93.00 95.53 97.88 2026 101.39
14 87.17 88.92 91.20 93.84 96.40 98.84 2027 103.01
15 87.83 89.67 92.02 94.68 97.31 99.81 2028 105.14
16 88.53 90.45 92.83 95.55 98.23 100.79 2029 109.17
17 89.27 91.23 93.66 96,43 99.16 101.77 2030 113.33
16 90.00 92.02 94.51 97.32 100.08 102.82 2031 116.68
19 90.75 92.83 95.35 98.20 101.07 103.83 2032 120.91
20 91.51 93.63 96.20 99.13 102.03 104.78 2033 125.33
2034 129.41
2035 133.75
2036 140.98
2037 144.61
2038 147.14
2039 152.40
Note:A “seasonal hydro project”is defined as a generation facility which produces at least 55%of its annual generation during the
months of June,July,and August.Order 32802.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)s Annual Energy
Outlook 2014 released May 7,2014.See Annual Energy Outlook 2014,Table 18,Mountain Data,
http://www.eia.gov/forecastslaeoltables_ref.cfm
PACIFICORP Page 4
PACIFICORP
AVOIDED COST RATES FOR OTHER PROJECTS
June 1,2014
$IMWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 54.43 52.28 51.84 55.01 58.85 61.74 2014 54.43
2 53.39 52.07 53.37 56.86 60.24 61.97 2015 52.28
3 52.92 52.98 55.05 58.36 60.85 62.67 2016 51.84
4 53.38 54.28 56.54 59.22 61.60 63.29 2017 55.01
5 54.31 55.55 57.51 60.08 62.26 64.03 2018 58.85
6 55.33 56.46 58.43 60.81 62.99 64.86 2019 61.74
7 56.10 57.34 59.22 61.57 63.79 65.66 2020 62.22
8 56.87 58.10 60.00 62.38 64.56 66.29 2021 64.25
9 57.56 58.86 60.82 63,15 65.18 66.87 2022 65.46
10 58.25 59.64 61.59 63.78 65.76 67.45 2023 67.58
11 58.97 60.38 62.23 64.37 66.33 68.13 2024 70.17
12 59.65 81.01 62.83 64.94 68.99 68.90 2025 71.94
13 60.24 61.60 63.41 65.59 67.72 69.67 2026 72.36
14 60.79 82.16 64.05 66.29 68.45 70.48 2027 73.55
15 61.33 62.78 64.73 67.00 69.22 71.31 2028 75.25
16 61.90 63.43 65.42 67.73 70.01 72.16 2029 78.84
17 62.52 64.08 66.12 68.49 70.81 73.00 2030 82.56
18 63.13 64.76 66.85 69.25 71.60 73.92 2031 85.46
19 63.76 65.44 67.57 70.01 72.47 74.81 2032 89.23
20 64.41 66.13 68.30 70.83 73.30 75.63 2033 93.19
2034 96.79
2035 100.65
2036 107.40
2037 110.54
2038 112.56
2039 117.32
Note:“Other projects”refers to projects other than wind,solar,non-seasonal hydro,and seasonal hydra projects.These “Other projects”
may include (but are not limited to):cogeneration,biomass,biogas,landfill gas,or geothermal projects.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)’s Annual Energy
Outlook 2014 released May 7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data,
http:l/www.ela.govlforecastslaeo/tables_ref.cfm PACIFICORP Page 5