HomeMy WebLinkAbout20071023Comments.pdfSCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-0320
IDAHO BAR NO. 1895
r:;l:C E 1'
2507 OCT 23 :i!O:
IDA!-.D F'()3LIC
UTILiTIES CO.,;i,JISSIO,
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S PETITION TO MODIFY THE
METHODOLOGY FOR DETERMINING FUEL
COSTS USED TO ESTABLISH PUBLISHED
RATES FOR PURPA QUALIFYING FACILITIES
CASE NO. IPC-O7-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the Notice of
Petition, Notice of Modified Procedure and Notice of Comment /Protest Deadline issued on
September 27 2007, submits the following comments.
Pursuant to the Public Utility Regulatory Policies Act of 1978 (PURP A) and the
implementing regulations of the Federal Energy Regulatory Commission (FERC), the Idaho
Public Utilities Commission (Commission) has approved a methodology for calculation ofthe
avoided cost rates paid to PURP A 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.
On September 10, 2007, Idaho Power Company (Idaho Power; Company) filed a Petition
with the Idaho Public Utilities Commission (Commission) to modify the methodology for
determining fuel costs used to establish published rates for PURP A QFs. Idaho Power contends
STAFF COMMENTS OCTOBER 23 , 2007
that use of the current method to set the fuel cost component in the surrogate avoided resource
(SAR) methodology will result in published avoided cost rates that are not representative of the
costs Idaho Power is likely to avoid by purchasing energy from QFs.
BACKGROUND
In Order No. 29124 issued September 26 2002 in Case No. GNR-02-, the
Commission established the methodology currently used to compute the fuel cost component of
the surrogate avoided resource (SAR) methodology. For QF projects generating less than
aMW, the avoided cost rates determined by the SAR methodology are commonly referred to as
the published rates. The current SAR is a natural gas-fired combined cycle combustion turbine.
In accordance with Order No. 29124, the release of a new forecast by the Northwest Power and
Conservation Council (NWPCC; Council) triggers a recomputation of the published avoided cost
rates.
The method the Commission adopted in Order No. 29124 to calculate the fuel cost
component in the SAR methodology starts with an arithmetic average of the nominal prices for
natural gas for the first 3 years of the Council's median 20-year forecast of natural gas prices.
These three years consist of the current year s forecasted price, plus the previous two years
forecasted prices. The SAR methodology then escalates that 3-year average natural gas price at a
uniform percent per year over 20 years. The escalation rate is also calculated from the NWPCC
20-year natural gas forecast.
ST AFF ANAL YSIS
On September 11 , 2007, the NWPCC released a new forecast of natural gas prices.
Unlike past forecasts that predicted gradually increasing prices over the 20 years of the forecast
the new forecast predicts a decrease in prices between 2008 and 2012. This decrease in prices
produces a pronounced dip in the shape of the forecast as shown on the graph on Attachment 1.
In its Petition, Idaho Power points out that there is an extreme divergence between
NWPCC's new forecast of natural gas prices and the natural gas prices used in the avoided cost
calculation model. This extreme divergence is illustrated in Attachment 1. Using the adopted
method, the fuel prices used in the avoided cost model exceed the prices in the Council's actual
gas price forecast in all but one year of the forecast. The current methodology, while it fairly
replicated gas price forecasts in the past where prices were always increasing, now fails to
STAFF COMMENTS OCTOBER 23 2007
recognize the expected downward trend in fuel prices apparent in NWPCC's 20-year forecast.
Failing to recognize the downward price trend in the NWPCC's 2007 forecast will cause the
published rates to be much higher than they otherwise would be.
Staff notes that it is very important that the fuel cost component of the avoided cost rates
be accurately modeled. The fuel cost component in the SAR methodology comprises
approximately two-thirds of the avoided cost rates.
Idaho Power proposes that the Commission utilize the average of all 20 years of the
NWPCC's final 2007 median 20-year natural price forecast as the fuel cost component in the
SAR methodology. Because Idaho Power proposes to use the 20-year average price, no
escalation forecast is needed.
Staff is convinced that the current methodology for computing the fuel component of the
published avoided rates poorly replicates gas forecasts shaped like the Council's 2007 forecast.
However, Staff does not agree with Idaho Power s proposal to average all 20 years of the
forecast. The Company s proposed approach cannot accurately replicate the shape of any
forecast, it fails to recognize the time value of money, and it could in the future produce even
more divergence between forecasted and modeled gas prices than the current method.
A much better approach, Staff contends, is to simply use each year of the Council'
entire forecast "as-. This approach is straightforward, simple and mathematically sound. It
eliminates problems that occur when trying to replicate a forecast with computed numbers. It
recognizes the time value of money and will work equally well in the future with forecasts of any
shape.
The table below depicts four sets of published avoided cost rates for Idaho Power for the
years 2007-2009:
(1) the current published avoided cost rates;
(2) the published avoided cost rates that would go into effect if the 2007 NWPCC natural gas
price forecast is used and the 3-year average natural gas price method remains
unchanged;
(3) the Idaho Power proposal- the fuel cost component is computed using the average of the
20 years of natural gas prices from the NWPCC's 2007 median gas price forecast, and
(4) Staffs proposal to use each year of the Council's entire forecast.
STAFF COMMENTS OCTOBER 23 , 2007
20-yr Levelized Avoided Cost Rate for Idaho Power
Updated Pricing Using Idaho Power Proposal Staff Proposal
Current Pricing Established Method Using all 20 years ofUsing a 20 yr Avg.forecast
On-line Date NWPCC 2004 NWPCC 2007 Forecast NWPCC 2007 Forecast NWPCC 2007 ForecastForecast
2007 62.72.67.66.
2008 63.73.68.67.
2009 65.74.68.67.
Because the same methodology is used to compute the avoided cost rates for Idaho
Power, A vista and PacifiCorp, any change in methodology approved by the Commission in this
case should apply to all three utilities. Using Staffs proposed methodology and the Council'
new forecast, avoided cost rates for each of the three utilities for the years 2007-2009 would be
as shown in the table below:
20-yr Levelized Avoided Cost Rate
Under Staff's Proposal to Use All 20 years of the NWPCC Gas Forecast
On-line Date Idaho Power Avista PacifiCorp
2007 66.67.67.
2008 67.67.67.
2009 67.68.68.
Staff believes its proposed approach is fair and reasonable, but it does suffer from one
minor problem. The Council's forecast, while commonly referred to as a 20-year forecast
actually extends to 2030. That provides Staff with 24 years of forecasted gas prices (including
2007) with which to use in computing avoided cost rates. Staff has traditionally produced tables
showing avoided cost rates for projects scheduled to come online up to five years in the future
(See Attachment 2). Thus, 25 years of forecasted prices are needed in order to produce 20-year
contract rates for projects coming online five years from now. On Attachment 2, for example, a
20-year levelized rate for a project that comes online in 2012 cannot be computed with a gas
forecast that only extends to 2030. Similarly on Attachment 2, non-Ievelized rates for years
STAFF COMMENTS OCTOBER 23,2007
beyond 2030 also cannot be computed. (See the circled figures on Attachment 2). This problem
will propagate one year at a time until the NWPCC renews and extends its forecast so that 25
years of forecasted prices are available.
To resolve this problem, Staff proposes to extend the natural gas price forecast by the
necessary years using a mathematical extrapolation. An exponential growth function is used in
the avoided cost spreadsheet to compute gas prices based on the last ten years of the NWPCC
forecast.
Staff believes that this method produces reasonable results because any possible errors in
the approximation technique are likely extremely small considering the overall forecast accuracy.
Furthermore, it is uncommon for contracts to be written for projects not expected to come online
five years into the future, thus, it is unlikely that approximated avoided cost rates would need to
be used anyway.
A complete set of fueled and non-fueled rates for each utility computed using the new
NWPCC fuel price forecast and the methodology described in these comments is attached as
Attachment 3. Also included for reference purposes, as Attachment 4 , is a printout of the revised
avoided cost spreadsheet. Electronic copies of the spreadsheet have been provided to each of the
utilities, and are available upon request to any 'other interested party.
ST AFF RECOMMENDATIONS
Staff recommends the following:
1) That the Commission adopt the September 2007 fuel price forecast of the Northwest
Power and Conservation Council for use in computing published avoided cost rates;
2) That the Commission issue an Order changing the method for determining the fuel cost
component of the SAR methodology to utilize each of the 20 years set out in the
NWPCC's 2007 median forecast of natural gas prices rather than the escalated average of
the first 3 years of the same forecast, and
3) That the rates computed using the September 2007 Council forecast and the new
proposed fuel cost methodology be effective beginning November 2007.
STAFF COMMENTS OCTOBER 23 2007
Respectfully submitted this
Technical Staff: Rick Sterling
i:/umisc/comments/ipceO7.15swrps comments
STAFF COMMENTS
J3
day of October 2007.
Sco Woodbury
Deputy Attorney General
OCTOBER 23 2007
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AVISTA
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
November 2007
$/MWh
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2007 2008 2009 2010 2011 2012 YEAR RATES
70.68.66.63.60.59.2007 70.
69.67.64.62.60.43 60.2008 68.
68.66.63.61.60.60.2009 66.
67.65.62.61.60.60.2010 63.
66.64.62.61.60.61.2011 60.
65.63.62.61.49 61.49 62.2012 59.
65.63.48 62.61.62.63.2013 60.
64.63.42 62.62.62.63.2014 60.
64.49 63.62.62.63.45 64.2015 62.
64.63.63.63.46 64.65.2016 64.
64.64.63.64.64.66.2017 67.
64.64.47 64.64.65.66.2018 69.
65.64.64.65.66.67.2019 71.
65.65.65.65.66.68.2020 73.
65.65.65.66.67.68.2021 76.
66.66.66.66.67.69.2022 78.
66.63 66.66.67.68.70.2023 80.
67.67.67.68.69.70.2024 83.
67.67.67.68.69.71.2025 85.49
67.67.68.69.70.72.05 2026 88.
2027 91.
2028 93.
2029 97.
2030 100.
2031 102.
2032 106.
Attachment 3
Case No. IPC-07-
Staff Comments
10/23/07 Page 1 of
AVISTA
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
November 2007
$/MWh
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2007 2008 2009 2010 2011 2012 YEAR RATES
14.15.15.16.16.41 16.2007 14.
15.15.15.16.16.16.2008 15.
15.15.16.16.16.17.2009 15.
15.47 15.16.16.16.17.2010 16.
15.15.16.16.17.17.2011 16.41
15.16.16.16.17.17.2012 16.
15.16.16.17.17.45 17.2013 17.
16.16.45 16.17.17.18.2014 17.
16.16.16.17.17.18.2015 17.
16.16.17.17.17.18.2016 18.
16.16.17.17.18.18.49 2017 18.
16.17.17.17.18.18.2018 19.
16.17.17.17.18.18.2019 19.
16.17.17.18.18.18.2020 20.
17.17.41 17.18.18.19.2021 20.
17.17.17.18.18.19.2022 21.
17.17.18.18.48 18.19.2023 21.
17.17.18.18.19.19.47 2024 22.
17.48 17.18.18.19.19.2025 22.
17.17.18.18.19.19.2026 23.
2027 23.
2028 24.
2029 24.
2030 25.
2031 25.
2032 26.
EFFECTIVE DATE ADJUSTABLE COMPONENT
11/1/2007 55.
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 2008 on-line date would receive the following rates:
Years Rate
17.99 + 55.
17.99 + Adjustable component in each year
Example 2. A 4-year non-Ievelized contract with a 2007 on-line date would receive the following rates:
Years Rate
14.98 + 55.
15.33 + Adjustable component in year 2008
15.68 + Adjustable component in year 2009
16.04 + Adjustable component in year 2010
Attachment 3
Case No. IPC-07-
Staff Comments
10/23/07 Page 2 of 6
IDAHO POWER COMPANY
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
November 2007
$/MWh
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2007 2008 2009 2010 2011 2012 YEAR RATES
69.67.65.62.44 59.58.2007 69.
68.66.41 63.61.59.59.2008 67.
67.65.62.60.40 59.59.2009 65.
66.63.61.60.59.59.2010 62.44
65.63.61.60.59.60.46 2011 59.
64.62.61.60.60.61.2012 58.
63.62.61.60.60.61.2013 59.49
63.62.61.61.61.62.2014 59.
63.62.61.61.62.63.2015 61.
63.62.62.62.63.64.2016 63.
63.62.62.62.63.65.2017 65.
63.63.63.63.64.65.2018 68.
63.63.63.64.65.66.2019 70.
64.64.64.64.65.67.2020 72.
64.64.64.65.44 66.48 68.2021 74.
65.65.65.41 66.67.68.2022 76.
65.65.65.66.67.69.44 2023 79.
65.66.66.67.68.49 70.2024 81.
66.43 66.67.67.69.70.2025 83.
66.67.67.68.69.71.2026 86.
2027 89.48
2028 92.
2029 95.
2030 98.
2031 101.
2032 104.40
Attachment 3
Case No. IPC-07-
Staff Comments
10/23/07 Page 3 of
IDAHO POWER COMPANY
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
November 2007
$/MWh
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2007 2008 2009 2010 2011 2012 YEAR RATES
13.14.14.14.15.15.2007 13.
14.14.14.15.15.43 15.2008 14.
14.14.14.15.15.15.2009 14.
14.14.15.15.40 15.16.2010 14.
14.14.15.15.15.16.2011 15.
14.15.15.15.16.16.2012 15.
14.15.15.15.16.16.2013 15.
14.15.15.16.16.16.2014 16.
15.15.46 15.16.16.16.2015 16.
15.15.15.16.16.17.2016 17.
15.15.16.16.48 16.17.2017 17.
15.15.16.16.17.17.40 2018 17.
15.16.16.16.17.17.2019 18.
15.16.16.16.17.17.2020 18.
15.16.16.17.17.44 17.2021 19.
16.16.40 16.17.17.17.2022 19.
16.16.16.17.17.18.2023 20.
16.16.17.17.17.18.2024 20.
16.16.17.17.17.18.2025 21.
16.16.17.17.18.18.2026 21.
2027 22.
2028 22.
2029 23.
2030 23.
2031 24.
2032 24.
EFFECTIVE DATE ADJUSTABLE COMPONENT
11/1/2007 55.
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 2008 on-line date would receive the following rates:
Years Rate
16.89 + 55.
16.89 + Adjustable component in each year
Example 2. A 4-year non-Ievelized contract with a 2007 on-line date would receive the following rates:
Years Rate
13.92 + 55.
14.24 + Adjustable component in year 2008
14.57 + Adjustable component in year 2009
14.91 + Adjustable component in year 2010
Attachment 3
Case No. IPC-07-
Staff Comments
10/23/07 Page 4 of 6
PACIFICORP
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
November 2007
$/MWh
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2007 2008 2009 2010 2011 2012 YEAR RATES
70.68.66.63.60.60.03 2007 70.
69.67.65.62.60.48 60.2008 68.
68.66.63.61.60.60.2009 66.
67.65.62.61.44 60.61.2010 63.
66.46 64.62.61.61.61.2011 60.
65.63.62.40 61.61.62.2012 60.
65.63.62.44 61.62.63.2013 60.
64.63.62.62.62.63.2014 60.
64.63.62.62.63.64.2015 62.
64.63.63.41 63.45 64.65.2016 65.
64.64.63.64.64.66.2017 67.
65.64.64.64.65.66.2018 69.
65.64.64.65.65.67.2019 71.
65.65.65.65.66.68.2020 73.
65.65.65.66.67.68.2021 76.
66.66.66.66.67.69.2022 78.
66.66.66.67.68.69.2023 80.
66.66.67.67.68.70.42 2024 83.
67.67.67.68.69.70.2025 85.
67.67.68.68.69.71.2026 88.
2027 91.
2028 94.
2029 97.
2030 100.
2031 103.
2032 106.
Attachment 3
Case No. IPC-07-
Staff Comments
10/23/07 Page 5 of
PACIFICORP
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
November 2007
$/MWh
LEVELIZED NON.LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2007 2008 2009 2010 2011 2012 YEAR RATES
15.15.15.16.16.16.2007 15.
15.15.15.16.16.17.2008 15.
15.15.16.16.44 16.17.2009 15.
15.15.16.16.16.17.2010 16.
15.16.03 16.40 16.17.17.2011 16.46
15.16.16.16.17.17.2012 16.
15.16.16.17.17.49 17.2013 17.
16.16.16.17.17.18.2014 17.
16.16.17.17.40 17.18.2015 18.
16.16.17.17.17.18.2016 18.45
16.16.17.17.18.18.2017 18.
16.17.17.42 17.18.18.2018 19.
16.17.17.17.18.18.2019 19.
16.17.17.18.18.18.2020 20.
17.17.40 17.18.18.63 19.2021 20.
17.17.17.18.18.19.2022 21.
17.17.18.18.45 18.19.2023 21.
17.17.18.18.18.19.43 2024 22.
17.17.18.18.19.19.2025 22.
17.17.18.18.19.19.2026 23.
2027 23.
2028 24.
2029 24.
2030 25.40
2031 25.
2032 26.
EFFECTIVE DATE ADJUSTABLE COMPONENT
11/1/2007 55.
The total avoided cost rate in each year is the sum of the adjustable component and the fixed component from either of the tables
above.
Example 1. A 20-year levelized contract with a 2008 on-line date would receive the following rates:
Years Rate
17.94 + 55.
17.94 + Adjustable component in each year
Example 2. A 4-year non-Ievelized contract with a 2007 on-line date would receive the following rates:
Years Rate
15.03 + 55.
15.38 + Adjustable component in year 2008
15.73 + Adjustable component in year 2009
16.09 + Adjustable component in year 2010
Attachment 3
Case No. IPC-07-
Staff Comments
10/23/07 Page 6 of
AVOIDED COST CALCULATION MODEL
10/15/2007
Version 9.DRAFT
NORTHWEST POWER AND CONSERVATION COUNCIL
Natural Gas Price Forecast
September 11, 2007
Real Price Nominal Price
(East-5lde Delivered)by Year FUEL COST
YEAR (2006 per MMBtu)($perMMBtu)$IMWh
2000 27.
2001 28.
2002 20.
2003 31.
2004 33.
2005 43.
2006 46.
2007 55.
2008 53.
2009 50.
2010 47.
2011 44.43
2012 43.
2013 43.
2014 43.
2015 44.
2016 46.
2017 5.41 48.
2018 50.
2019 52.
2020 53.
2021 55.47
2022 57.
2023 59.
2024 61.
2025 62.
2026 65.
2027 67.45
2028 69.
2029 10.72.26
2030 10.74.
General inflation rate.1% per year
1. Choose Utility IIPCO
2, Choose Condition I NON-RJElED
3. Copy rates to tariff sheets
(Repeat for each utility and fuel condition chosen).
4. Print Rates
INPUT IPCO
DATA DATA
FIRST OEFICIT YEAR 2002
SURPLUS ENERGY COST ($/MWh).N/A
SURPLUS COST BASE YEAR:1994
SAR" PLANT LIFE (YEARS).
SAR" PLANT COST ($IkW).$679
BASE YEAR OF "SAR" COST:2000
SAR" CAPACITY FACTOR (%).92%
HEAT RATE (BTUIkWH).100
UTLTY WT'D COST OF CAPITAL (%):852%
RATEPAYER DISCOUNT RATE (%).852%
SAR" FIXED O&M ($lkW):$10.
SAR" VARIABLE O&M ($/MWh).
CURRENT YEAR GAS PRICE ($/MMBTU).$7.
CURRENT YEAR FUEL COST ($/MWh):55.
BASE YEAR, O&M EXPENSES.2000
ESCALATION RATE; "SAR" (%).10%
ESCALATION RATE; SURPLUS (%).N/A
ESCALATION RATE; O&M (%).70%
ESCALATION RATE; FUEL (%).70%
ADJUSTABLE PORTION ($/MWh).
CAPITAL CARRYING CHARGE (%).11.517%
LEVEL CARRYING COST ($/MWh).
"IlL TING" RATE (%).10%
TYPE OF RATES.NON-FUELED
CURRENT YEAR.2007
20-yr Levellzed rate, 2007 on-line date:66.88
UTILITY-SPECIFIC VARIABLES IPCO AVISTA PCP
FIRST DEFICIT YEAR.2002 2002 2002
UTL TY WT'D COST OF CAPITAL (%).852%248%10.270%
CAPITAL CARRYING CHARGE (%).11.517%12.679%12.600%
HLH LLH PRICE DIFFERENTIAL.$7.28 $5.Monthly
WIND INTEGRATION ADJUSTMENT.
Tiber, Un~ed Metonels Slmplo~ Reneweble
SEASONALIZATION FACTORS SEASON FACTOR Contracts Energy 0' Id., Fossil
Gulch
Mar-May 735 Mar-May Mar-May
Idaho Power Jun-Sep 200 Jun, Jul, Nov, Dee Jul, Aug, Nov, Dee
Oct-Feb 000 Jan. Feb. Auo, Sea, Oct Jan, Feb, Jun, SeD, Oct
Jul-Feb 080 July - Feb
Avista Mar-Jun 840 Mar - June
PacifiCorp Monthly See PacifiCorp
spreadsheets
AVOID 9.0XLS
Attachment 4
Case No. IPC-07-
Staff Comments
10/23/07 Page 1 of
SURPLUS COST
($/MWh)
YEAR VALUE
1994 N/A
1995 N/A
1996 N/A
1997 N/A
1998 N/A
1999 N/A
2000 N/A
2001 N/A
2002 N/A
2003 N/A
2004 N/A
2005 N/A
2006 N/A
2007 N/A
2008 N/A
2009 N/A
2010 N/A
2011 N/A
2012 N/A
2013 N/A
2014 N/A
2015 N/A
2016 N/A
2017 N/A
2018 N/A
2019 N/A
2020 N/A
2021 N/A
2022 N/A
2023 N/A
2024 N/A
2025 N/A
2026 N/A
2027 N/A
2028 N/A
2029 N/A
2030 N/A
2031 N/A
2032 N/A
2033 N/A
2034 N/A
2035 N/A
2036 N/A
2037 N/A
2038 N/A
2039 N/A
2040 N/A
2041 N/A
2042 N/A
2043 N/A
2044 N/A
2045 N/A
AVOID 9.0XLS
ANNUAL CARRYING CHARGES
Plant on-line in the year shown
CARRYING TILTED
YEAR CHARGE CAPITAL
2000 N/A
2001 N/A
2002 10.
2003 10.
2004 10.
2005 10.
2006 10.
2007 11.
2008 11.
2009 11.
2010 11.
2011 12.
2012 12.45
2013 12.10.
2014 12.10.
2015 13.10.
2016 13.10.
2017 13.11.
2018 14.11.
2019 14.40 11.48
2020 14.11.
2021 15.11.
2022 15.12.
2023 15.12.48
2024 15.12.
2025 16.13.
2026 16.13.
2027 17.13.
2028 17.13.
2029 17.14.
2030 18.14.43
2031 18.14.
2032 18.15.
2033 19.15.
2034 19.15.
2035 20.16.
2036 20.16.
2037 20.16.
2038 21.17.
2039 21.17.
2040 22.17.
2041 22.18.
2042 23.18.
2043 23.18.
2038 24.19.
2039 24.19.
2040 25.20.
2041 25.20.
2042 26.20.
2043 26.21.
2044 27.43 21.
2045 28.22.
ANNUAL OPERATION & MAINTENANCE COSTS
($/MWh)
YEAR FIXED VARIABLE TOTAL FUEL
2000 N/A
2001 N/A
2002 1.40 N/A
2003 N/A
2004 N/A
2005 N/A
2006 N/A
2007 55.
2008 3.47 53.
2009 50.
2010 47.
2011 44.
2012 43.
2013 43.
2014 43.
2015 44 .77
2016 46.
2017 4.40 6.49 48.
2018 50.
2019 52.
2020 53.
2021 55.47
2022 57.
2023 59.
2024 61.
2025 5.45 62.
2026 65.
2027 67.45
2028 69.
2029 72.26
2030 74.
2031 6.40 71.07
2032 79.
2033 82.
2034 10.85.
2035 10.88.
2036 3.46 10.91.
2037 11.94.
2038 11.97.
2039 11.100.
2040 11.103.
2041 12.107.45
2042 12.111.
2043 12.114.
2044 13.118.
2039 13.100.
2040 14.103.
2041 14.107.45
2042 4.77 10.14.111.
2043 10.15.114.
2044 10.15.118.
2045 10.16.122.
Attachment 4
Case No. IPC-07-
Staff Comments
10/23/07 Page 2 of
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.
CERTIFICA TE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 23RD DAY OF OCTOBER 2007,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. IPC-07-, BY MAILING A COpy THEREOF , POSTAGE PREPAID, TO
THE FOLLOWING:
BARTON L KLINE
LISA D NORDSTROM
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
MAIL: bkline(q),idahopower.com
lnordstrom~idahopower. com
JOHN R GALE
VP - REGULATORY AFFAIRS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
MAIL: rgale~idahQl2ower.com
~#~
SECRET Y
CERTIFICATE OF SERVICE