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HomeMy WebLinkAbout20170530_5266.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM:YAO YIN DAPHNE HUANG,DAG DATE:MAY 26,2017 SUBJECT:UPDATE TO PUBLISHED AVOIDED COST RATES TO REFLECT AN UPDATED NATURAL GAS PRICE FORECAST OF THE U.S.ENERGY INFORMATION ADMINISTRATION,CASE NOS.AVU-E-17-02,IPC-E-17- 07,PAC-E-17-05 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 calculating 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 the U.S.Energy Information Administration (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 EIA’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 final release of the Annual Energy Outlook,whichever is later. DECISION MEMORANDUM 1 The Annual Energy Outlook 2017 was released on January 5,2017.A copy of the relevant natural gas price forecast is attached. STAFF’S ANNUAL UPDATE Commission Staff has recomputed avoided cost rates for PacifiCorp,Avista,and Idaho Power,using the EIA’s most recent natural gas price forecast.The new avoided cost rates,if approved,will increase approximately 1%to 6%from current published rates,depending on the generation type.Staff computed the rates for all three utilities and attached a copy to this Memorandum.Staff provided Idaho Power,Avista,and PacifiCorp with worksheets showing the computation of the updated avoided cost rates on May 16,2017,for review and comment. UTILITIES’RESPONSES In its response letter,Avista identified an issue with capacity payment calculations for replacement contracts that Staff believes is outside the scope of this case.1 However,both Avista and PacifiCorp acknowledged that the rates as presented are correct. Idaho Power objected to use of the ETA’s Mountain Region natural gas forecast upon which the updated avoided cost rates are based.Idaho Power believes that the continued use of this forecast “results in an artificially high price that customers should not be required to pay.” Response and Objection of Idaho Power Company at 7.Instead,Idaho Power proposed using the EIA’s natural gas spot price at Henry Hub:High Oil and Gas Resource and Technology forecast, adjusted for Sumas and Idaho City Gate,which is used in Idaho Power’s 2017 Integrated Resource Planning process and Incremental Cost IRP methodology. STAFF RECOMMENDATION Staff observes that the EIA’s “reference case”natural gas price forecast for the Mountain Region’s Electric Power sector has been used to update published avoided cost rates each year for the past four years without objection.Thus there is no precedent for how to process an objection to Staffs annual update to the published avoided cost rates reflected in updated natural gas price forecasts.Staff believes its proposed updated rates should not be delayed,but that it is appropriate to give Idaho Power’s objection and proposal due consideration. Staff recommends that its proposed updated rates be approved,effective June 1,2017 (per Order No.32697),and that the Commission accept Idaho Power’s objection as an application Staff believes the issue only affects Avista,as a winter peaking utility,not the other two utilities which are summer peaking.Therefore,Staff will discuss this concern with Avista separately.If Avista’s concern remains after such discussions,Staff believes it appropriate for Avista to file a separate application to address the issue. DECISION MEMORANDUM 2 in a generic proceeding (as to all three utilities)to revise Staff’s methodology for updating published avoided cost rates to reflect updated natural gas price forecasts.In such proceeding,all electric utilities and interested parties would have the opportunity to provide comment so the Commission can more fully understand the full impact of Idaho Power’s proposal.Staff recommends that the Commission issue a Notice of Application and Notice of Modified Procedure setting a 21-day comment period and a 14-day all-party reply. Counsel for Idaho Power has indicated Staffs proposal is reasonable,and Idaho Power does not object to processing its objection as Staff recommends. COMMISSION DECISION Does the Commission wish to accept Staffs updated published avoided cost rates for Idaho Power,Avista,and PacifiCorp,effective June 1,2017? Does the Commission wish to accept Idaho Power’s objection as an application for a generic proceeding and issue a Notice of Application and Notice of Modified Procedure with a 21- day comment period and a 14-day all-party reply period? Daphn4{uang Deputy Attorney General M:AVU-E-1 7-O2IPC-E-1 7-07_PAC-E-1 7-05j’y_djh DECISION MEMORANDUM 3 3. 8 En e r g y Pr i c e s by Se c t o r an d So u r c e (2 0 1 6 do l l a r s pe r mi l l i o n Bt u , un l e s s ot h e r w i s e no t e d ) Mo u n t a i n -0 8 Se c t o r an d So u r c e 20 1 5 20 1 6 20 1 7 20 1 3 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 El e c t r i c Po w e r 8, Di s t i l l a t e Fu e l Oi l Re s i d u a l Fu e l Oi l Na t u r a l Ga s St e a m Co a l Ur a n i u m 15 . 1 7 11 . 8 9 14 . 2 7 15 . 4 5 17 . 7 8 18 . 6 0 19 . 2 4 19 . 7 7 20 . 1 1 ) 20 . 4 2 4. 0 4 3. 1 1 3. 5 5 59 9 7. 7 6 9. 1 8 10 . 4 3 11 . 5 7 11 . 9 3 12 . 2 2 3. 2 8 23 4 3. 5 5 3. 9 6 4. 2 7 4. 3 7 4. 3 7 4. 2 2 4. 2 1 4. 3 2 1. 8 5 1. 8 4 13 0 1. 8 7 18 8 13 0 1. 8 8 1. 8 9 1. 8 8 1. 8 7 0. 5 4 0. 5 6 0. 6 0 0. 5 2 0. 6 2 0. 6 2 0. 6 4 0. 6 6 0. 6 9 0. 7 0 14 . 9 6 11 . 8 9 14 . 5 8 17 . 1 4 18 . 9 1 20 . 2 2 21 . 3 8 22 . 4 6 23 . 3 3 24 . 1 8 3. 9 8 3. 1 ] . 3. 6 3 5. 2 4 8. 2 6 9. 9 8 11 . 5 9 13 . 1 4 13 . 8 5 14 . 4 7 32 4 2. 9 4 3. 7 3 4. 1 3 4. 5 4 4. 7 5 4. 8 6 4. 7 9 4. 8 9 5. 1 2 1. 8 3 1. 8 4 1. 9 5 13 5 2. 0 0 2. 0 6 2. 0 9 2. 1 4 2. 1 8 2. 2 1 0. 5 3 0. 5 6 0. 6 1 0. 6 4 0. 6 6 0. 6 7 0. 1 1 0. 7 5 0. 8 0 0. 8 3 Pr i c e s In No m I n a l Do l l a r s El e c t r i c Po w e r 8/ Di s t i l l a t e Fu e l OI l Re s i d u a l Fu e l Oi l Na t u r a l Ga s St e a m Co a l Ur a n i u m 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 20 4 0 20 . 9 0 21 . 2 8 21 . 5 3 21 . 5 3 21 . 7 9 22 . 2 3 22 . 5 4 23 . 1 0 23 . 0 7 23 . 4 0 23 3 4 24 . 0 7 24 . 1 6 24 . 3 2 24 . 6 6 24 . 8 7 12 . 6 2 12 . 9 4 13 . 0 7 13 . 1 3 13 . 3 8 13 . 7 1 14 . 0 3 14 . 4 0 14 . 3 9 14 . 6 5 14 . 7 9 15 2 1 15 . 2 9 15 . 3 9 15 . 6 0 15 . 7 7 4. 6 1 4. 7 9 4. 8 2 4. 8 4 4. 8 8 4. 8 4 4. 8 0 4. 8 1 4. 7 8 4. 8 0 4. 8 4 4. 8 7 43 2 4. 9 2 43 6 5. 0 1 1. 8 5 1. 8 5 1. 8 4 1. 8 3 1. 8 2 1. 8 3 1. 8 3 1. 8 5 1. 8 6 1. 8 7 1. 8 8 1. 9 0 1. 9 0 13 1 1. 9 2 13 4 0. 7 4 0. 7 6 0. 7 8 0. 8 0 0. 8 1 0. 8 2 0. 8 4 0. 8 6 0. 8 9 0. 9 1 0. 9 4 0. 9 6 03 9 1. 0 2 1. 0 5 1. 0 8 25 . 2 8 26 . 3 2 27 2 5 27 . 8 4 28 . 8 0 30 . 0 3 31 . 2 4 32 . 5 5 33 . 1 6 34 2 8 35 . 1 4 36 . 6 1 37 . 4 2 38 . 3 8 39 . 6 7 40 . 7 8 15 . 2 7 15 . 0 1 16 . 5 4 16 . 9 8 17 . 6 9 18 . 5 2 19 . 3 7 20 . 3 0 20 . 6 8 21 . 4 7 22 . 0 7 23 . 1 3 23 . 6 9 24 . 2 9 25 . 0 9 25 . 8 6 5. 5 7 53 2 6. 1 0 6. 2 6 5. 4 5 6. 5 4 6. 5 3 6. 7 7 6. 8 7 7. 0 3 7. 2 2 7. 4 1 7. 6 2 7. 7 7 73 7 8. 2 2 2. 2 4 2. 2 9 2. 3 3 2. 3 7 2. 4 1 2. 4 7 2. 5 3 16 1 2. 6 7 2. 7 4 2. 8 1 2. 8 9 2. 9 5 3. 0 2 3. 0 9 3. 1 8 0. 8 9 0. 9 4 03 8 1. 0 3 1. 0 7 1. 1 0 1. 1 5 1. 2 2 1. 2 8 1. 3 4 1. 4 0 1. 4 7 1. 5 4 1. 6 1 1. 6 9 1. 7 7 AVISTA AVOIDED COST RATES FOR WIND PROJECTS June 01,2017 $IMWh 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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 38.93 39.80 39.43 2017 28.61 2 29.99 32.89 36.59 39.35 39.62 39.81 2018 31.48 3 31.36 34.76 37.58 39.38 39.81 40.46 2019 34.42 4 33.04 35.88 37.99 39.56 40.26 41.53 2020 38.93 5 34.19 36.48 38.37 39.97 41.13 42.61 2021 39.80 6 34.91 36.99 38.86 40.69 42.05 43.51 2022 39.43 7 35.51 37.55 39.58 41.49 42.85 44.28 2023 40.22 8 36.11 38.28 40,36 42.22 43.56 45.00 2024 41.93 9 36.85 39.04 41.07 42.88 44.23 45.61 2025 45.26 10 37.61 39.75 41.72 43.50 44.81 46.15 2026 47.84 11 38.31 40.39 42.33 44.05 45.33 46.65 2027 49.20 12 38,95 41.00 42.87 44.54 45.81 47.11 2028 50.42 13 39.56 41.54 43.36 45.01 46.26 47.55 2029 51.88 14 40.10 42.03 43.83 45.44 46.68 47.98 2030 52.60 15 40.59 42.50 44.25 45.85 47.10 48.41 2031 53.33 16 41.05 42.92 44.66 46.25 47.51 48.83 2032 5448 17 41.48 43.33 45.06 46.65 47.92 49.23 2033 55.32 18 41.88 43.72 45.45 47.04 48.31 49.63 2034 56.55 19 42.28 44.11 45.83 47.41 48.68 50.02 2035 57.99 20 42.65 44.48 46.19 47.77 49.06 50.39 2036 59.45 2037 61.10 2038 62.26 2039 63.80 2040 65.68 2041 66.82 2042 68.84 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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https:llwww.eia.govloutlookslaeo/tables_refcfm AVISTA Page 1 AVISTA AVOIDED COST RATES FOR SOLAR PROJECTS June 01,2017 $/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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 2861 3148 34.42 40.31 41.20 40.85 2017 28.61 2 29.99 32.89 37.25 40.74 41.03 41.23 2018 31.48 3 31.36 35.18 38.47 40.77 41.22 41.90 2019 34.42 4 33.34 36.52 39.00 40.97 41.70 42.97 2020 40.31 5 34.69 37.26 39.45 41,38 42.56 44.06 2021 41.20 6 35.53 37.86 39.99 42.11 43.49 44.97 2022 40.85 7 36.22 38.48 40.75 42.92 44.30 45.76 2023 41.65 8 36.89 39.26 41.56 43.66 45.02 46.48 2024 43.38 9 37.68 40.07 42.29 44.33 45.70 47.10 2025 46.74 10 38,49 40.81 42.96 44.96 46.29 47.64 2026 49.34 11 39.23 41.48 43.60 45.52 46.81 48.16 2027 50.72 12 39.90 42.11 44.16 46.02 47.30 48.62 2028 51.97 13 40.54 42.68 44.66 46.49 47.76 49.07 2029 53.45 14 41.11 43.19 45.14 46.92 48.19 49.51 2030 54.19 15 41.62 43.67 45.58 47.34 48.62 49.95 2031 54.95 16 42.10 44.11 46.00 47.75 49.04 50.38 2032 56.11 17 42.54 44.53 46.41 48.16 49.45 50.78 2033 56.98 18 42.97 44.94 46.81 48.55 49.84 51.18 2034 58.23 19 43.37 45.34 47.20 48.93 50.23 51.58 2035 59.70 20 43.77 45.72 47.57 49.30 50.61 51.96 2036 61.19 2037 62.86 2038 64.05 2039 65.61 2040 67.52 2041 68.69 2042 70.73 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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https://www.eia.gov/outlooks/aeoltables_ref.cfm AVISTA Page 2 AVISTA AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS June01,2017 $/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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 2861 3148 3442 46.65 47.64 47.38 2017 28.61 2 29.99 32.89 40.31 47.13 47.52 47.82 2018 31.48 3 31.36 37,14 42.57 47.21 47.75 48.52 2019 34.42 4 34,76 39.47 43.64 47.45 48.28 49.64 2020 46.65 5 36.96 40.82 44.43 47.90 49.18 50.77 2021 47.64 6 38.38 41.84 45.21 48.67 50.15 51.73 2022 47.38 7 39.49 42.77 46.15 49.53 51.00 52.56 2023 48.28 8 40.49 43.79 47.10 50.30 51.77 53.32 2024 50.11 9 41.55 44.79 47.96 51.01 52.48 53.98 2025 53.57 10 42.57 45.69 48.73 51.68 53.11 54.57 2026 56.27 11 43.48 46.50 49.45 52.28 53.67 55.12 2027 57.75 12 44.31 47.25 50.09 52.81 54.20 55.62 2028 59.10 13 45.08 47.92 50.67 53.32 54.69 56.11 2029 60.68 14 45.76 48.52 51 21 53.79 55.16 56.59 2030 61.54 15 46.38 49.08 51.71 54.24 55.62 57.05 2031 62.40 16 46.95 49.60 52.18 54.69 56.07 57.52 2032 63.67 17 47.48 50.09 52.64 55.12 56.52 57.96 2033 64.65 18 47.98 50.56 53.09 55.55 56.94 58.39 2034 66.02 19 48.46 51.02 53.52 55.96 57.36 58.82 2035 67.60 20 48.92 51.46 53.94 56.36 57.77 59.23 2036 69.20 2037 70.99 2038 72.30 2039 73.98 2040 76.02 2041 77.31 2042 79.48 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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https:llwww.eia.gov!outlooks/aeo/tables_ref.cfm AVISTA Page 3 AVISTA AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS June 01,2017 $/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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29.99 32.89 35.16 36.35 36.57 36.71 2018 31.48 3 31.36 33.84 35.65 36.35 36.74 37.35 2019 34.42 4 32.38 34.49 35.81 36.52 37.19 38.39 2020 35.95 5 33.13 34.81 36.03 36.90 38.02 39.45 2021 36.78 6 33.57 35,12 36.40 37.60 38.91 40.33 2022 36.36 7 33.97 35.53 37.04 38.39 39.70 41.09 2023 37.10 8 34.42 36.15 37.75 39.10 40.39 41.78 2024 38.76 9 35.03 36.82 38.40 39.74 41.04 42.38 2025 42.05 10 35.69 37.45 39.01 40.34 41.61 42,89 2026 44.58 11 36.31 38.03 39.58 40.87 42,10 43.38 2027 45.89 12 36.88 38.59 40.08 41.35 42.57 43.82 2028 47.07 13 37.42 39.08 40.54 41.80 43.00 44.24 2029 48.48 14 37.91 39.53 40.97 42.21 43.41 44.66 2030 49.15 15 38.35 39.95 41.37 42.61 43.81 45.07 2031 49.83 16 38.77 40.34 41.75 42.99 44.21 45.47 2032 50.92 17 39.16 40.72 42.13 43.37 44.60 45.86 2033 51,71 18 39.53 41.08 42.49 43.75 44.97 46.24 2034 52.89 19 39,89 41.44 42.85 44.10 45.33 46.61 2035 54.28 20 40.23 41.79 43.20 44.45 45.69 46.97 2036 55.68 2037 57.27 2038 58.38 2039 59.86 2040 61.69 2041 62.77 2042 64.72 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: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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https://www.eia.gov/outlooks/aeo/tables_ref.cfm AVISTA Page 4 AVISTA AVOIDED COST RATES FOR OTHER PROJECTS June 01,2017 $/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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 56.53 57.66 57.55 2017 28.61 2 29.99 32.89 45.06 57.08 57.61 58.06 2018 31.48 3 31.36 40.18 48.94 57.22 57.92 58.84 2019 34.42 4 36.95 44.07 5086 57.53 58.51 60.03 2020 56.53 5 40.49 46.37 52.18 58.05 59.48 61.23 2021 57.66 6 42.82 48.04 53,33 58,89 60.51 62.24 2022 57.55 7 44.59 49.45 54.55 59.81 61.43 63.14 2023 58.60 8 46.10 50.84 55.73 60.64 62.26 63.97 2024 60.58 9 47.56 52.14 56.77 61.41 63.04 64.69 2025 64.19 10 48.91 53.29 57.70 62.14 63.73 65.34 2026 67.05 11 50.10 54.31 58.56 62.80 64.35 65.95 2027 68.69 12 51.17 55.25 59.32 63.39 64.93 66.51 2028 70.20 13 52.14 56.07 60.01 63.95 65.48 67.05 2029 71.95 14 53.00 56.82 60.65 64.48 66.00 67.59 2030 72.96 15 53.78 57.51 61.24 64.98 66.52 68.11 2031 73.99 16 54.50 58.14 61.80 65.48 67.02 68.63 2032 75.44 17 55.16 58.74 62.34 65.96 67.52 69.12 2033 76.59 18 55.78 59.31 62.86 66.44 67.99 69.60 2034 78.13 19 56.37 59.86 63.37 66.90 68.46 70.08 2035 79.89 20 56.93 60.38 63.85 67.34 68.92 70.54 2036 81.67 2037 83.64 2038 85.14 2039 87.01 2040 89.24 2041 90.72 2042 93.09 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 Energy Outlook 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https:I/www.eia.gov/outlooks!aeo/tables_ref.cfm AVISTA Page 5 IDAHO POWER COMPANY AVOIDED COST RATES FOR WIND PROJECTS June 01,2017 $/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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 35.95 36,78 36.36 2017 28.61 2 29.99 32.89 35.15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.65 36.35 36.74 38.36 2019 34.42 4 32.37 34.48 35.81 36.52 37.92 39.92 2020 35.95 5 33.12 34.80 36.03 37.46 39.19 41.29 2021 36.78 6 33.56 35.11 36.85 38.54 40.38 42.39 2022 36.36 7 33.95 35.89 37.80 39.59 41.38 43.30 2023 37.10 8 34.71 36.78 38.75 40.50 42.24 44.12 2024 42.07 9 35.56 37.67 39.60 41.30 43.02 44.80 2025 45.41 10 36.41 38.47 40.35 42.04 43.69 45.40 2026 47.99 11 37.18 39.19 41.04 42.68 44.27 45.95 2027 49.35 12 37.88 39.86 41.66 43.24 44.81 46.45 2028 50.58 13 38.53 40,45 42.20 43.77 45.30 46.92 2029 52.04 14 39.11 40.98 42.71 44.24 45.77 47.38 2030 52.76 15 39.63 41.48 43.17 44.70 46.22 47.82 2031 53.50 16 40.12 41.94 43.61 45.13 46.65 48.26 2032 54.64 17 40.57 42.37 44.04 45.56 47.08 48.67 2033 55.49 18 40.99 42.78 44.44 45.97 47.48 49.07 2034 56.72 19 41.40 43.18 44.84 46.36 47.87 49.47 2035 58.16 20 41.79 43.57 45.22 46.74 48.26 49.85 2036 59.63 2037 61.27 2038 62.44 2039 63.98 2040 65.87 2041 67.01 2042 69.03 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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https://www eia.gov/outlooks/aeo/tablesref.cfm IDAHO POWER COMPANY Page 1 IDAHO POWER COMPANY AVOIDED COST RATES FOR SOLAR PROJECTS June 01,2017 $IMWh 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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29,99 32.89 35.15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.65 36.35 36.74 47.75 2019 34.42 4 32.37 34.48 35.81 36.52 44.68 54.09 2020 35.95 5 33.12 34.80 36.03 42.65 50.06 58.39 2021 36.78 6 33.56 35.11 40.99 47.23 54.05 61.50 2022 36.36 7 33.95 39.29 44.94 50.81 57.08 63.89 2023 37.10 8 37.56 42.76 48.16 53.66 59.50 65.85 2024 72.61 9 40.65 45.67 50.79 55.98 61.51 67.46 2025 76.39 10 43.30 48.11 52.99 57.96 63.19 68.81 2026 79.43 11 45.56 50.18 54.89 59.64 64.63 70.01 2027 81.25 12 47.51 51.99 56.51 61.08 65.90 71.07 2028 82.94 13 49.23 53.56 57.93 62.36 67.02 72.03 2029 84.88 14 50.73 54.93 59.19 63.50 68.04 72.93 2030 86.08 15 52.06 56.17 60.32 64.53 68.98 73.77 2031 87.30 16 53.26 57.28 61.35 65.49 69.86 74.56 2032 88.94 17 54.34 58.29 62.30 66.38 70.68 75.30 2033 90.29 18 55.33 59.23 63.19 67.21 71.45 76.00 2034 92.03 19 56.24 60.10 64.02 67.99 72.17 76.67 2035 93.99 20 57.09 60.91 64.78 68.71 72.86 77.30 2036 95.98 2037 98.16 2038 99.87 2039 101.96 2040 104.40 2041 106.11 2042 108.71 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 2017 released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https://ww.eiagovIoutlooksIaeoItables_ref.cfm IDAHO POWER COMPANY Page 2 IDAHO POWER COMPANY AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS June 01,2017 $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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29.99 32.89 35.15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.65 36.35 36.74 46.84 2019 34.42 4 32.37 34.48 35.81 36.52 44.02 52.72 2020 35.95 5 33.12 34.80 36.03 42.14 49.01 56.73 2021 36.78 6 33.56 35.11 40.59 46.38 52.72 59.64 2022 36.36 7 33.95 38.96 44.25 49.73 55.56 61.89 2023 37.10 8 37.29 42.18 47.25 52.38 57.82 63.74 2024 69.65 9 40 15 44.90 49.70 54.56 59.72 65.26 2025 73.39 10 4263 47.17 51.76 56.42 61.30 66.54 2026 76.38 11 44,75 49.11 53.54 57.99 62.65 67.68 2027 78.15 12 46.57 50.81 55.07 59.35 63.85 68.68 2028 79.80 13 48.19 52.28 56.40 60.55 64.91 69.59 2029 81.69 14 49.60 53.58 57.59 61.63 65.88 70.45 2030 82.85 15 50.85 54.74 58.66 6261 66.77 71.25 2031 84.02 16 51.98 55.79 59.63 63.51 67.61 72.00 2032 85.61 17 53.00 56.74 60.53 64.36 68.39 72.71 2033 86.91 18 53,93 57.63 61.37 65.15 69.12 73.38 2034 88.61 19 54.80 58.45 62.16 65.89 69.81 74.03 2035 90.52 20 55.61 59.23 62.89 66.58 70.47 74.63 2036 92.45 2037 94.58 2038 96.24 2039 98.28 2040 100.66 2041 102.32 2042 104.85 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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https:llww,eia.gov/outlooks/aeo/tabIes_ref.cfm IDAHO POWER COMPANY Page 3 IDAHO POWER COMPANY AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS June 01,2017 $/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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29.99 32.89 35.15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.85 36.35 36.74 53.23 2019 34.42 4 3237 34.48 35.81 36.52 48.62 62.36 2020 35.95 5 33.12 34.80 36.03 45.67 56.41 68.37 2021 36.78 6 33.56 35.11 43.41 52.29 62.02 72.64 2022 36.36 7 33.95 41.28 49.10 57.36 66.24 75.89 2023 37.10 8 39.23 46.25 53.65 61.33 69.56 78.52 2024 90.42 9 43.62 50.34 57.32 64.55 72.30 80.67 2025 94.47 10 47,32 53.73 60.36 67.25 74.57 82.47 2026 97.77 11 50.45 56.59 62.96 69.53 76.50 84.05 2027 99.85 12 53.13 59.06 65.18 71.48 78.19 85.43 2028 101.82 13 55.47 61.20 67.10 73.20 79.68 86.68 2029 104.03 14 57.51 63.07 68.81 74.73 81.03 87.83 2030 105.52 15 59.31 64.73 70.33 76.11 82.26 88.90 2031 107.02 16 60.92 66.22 71.70 77.37 83.39 89.90 2032 108.95 17 62.37 67.58 72.96 78.53 84.45 90.83 2033 110.59 18 63.69 68.82 74.12 79.61 85.43 91.70 2034 112.63 19 64.90 69.96 75.20 80.60 86.34 92.53 2035 114.89 20 66.02 71.03 76.20 81.54 87.21 93.31 2036 117.19 2037 119.68 2038 121.71 2039 124.12 2040 126.88 2041 128.92 2042 131.85 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: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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by SectorMountain at https:/Iwww.eia.gov/outlookslaeo/tables_ref.cfm IDAHO POWER COMPANY Page 4 IDAHO POWER COMPANY AVOIDED COST RATES FOR OTHER PROJECTS June 01,2017 $/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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29.99 32.89 35,15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.65 36.35 36.74 44.37 2019 34.42 4 32.37 34.48 35.81 36.52 42.24 48.98 2020 35.95 5 33.12 34.80 3603 40.78 46.14 52.23 2021 36.78 6 33.56 35.11 39.50 44.09 49.12 54.61 2022 36.36 7 33.95 38.07 42.37 46.77 51.42 56.46 2023 37.10 8 36.53 40.60 44.77 48.91 53.28 58.01 2024 61.60 9 38.81 42.79 46.75 50.69 54.85 59.29 2025 65.22 10 40.82 44.63 48.43 52.22 56.16 60.37 2026 68.09 11 42.54 46.22 49.90 53.52 57.29 61.34 2027 69.75 12 44.04 47.62 51.16 54.65 58.29 62.19 2028 71.28 13 45.37 48.83 52.26 55.66 59.19 62.98 2029 73.04 14 46.54 49.90 53.25 56.56 60.01 63.72 2030 74.07 15 47.58 50.87 54.14 57.38 60.77 64.41 2031 75.11 16 48.52 51.75 54.96 58.15 61.49 65.08 2032 76.57 17 49.37 52.55 55.72 58.87 62.17 65.70 2033 77.75 16 50.16 53.30 56.43 59.55 62.81 66.29 2034 79.30 19 50.89 54.00 57.10 60.19 63.41 66.86 2035 81.07 20 51.57 54.66 57.73 60.79 63.99 67.40 2036 82.88 2037 84.86 2038 86.38 2039 88.27 2040 90.51 2041 92.01 2042 94.40 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 Energy Outlook 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https/Iwww.eiagovloutlookslaeo/tables_ref.cfm IDAHO POWER COMPANY Page 5 PACIFICORP AVOIDED COST RATES FOR WIND PROJECTS June 01,2017 $!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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28,61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29.99 32.89 35.15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.65 36.35 36.74 37.35 2019 34.42 4 32.37 34.49 35.81 36.52 37.19 39.12 2020 35.95 5 33.12 34.81 36.03 36.90 38.58 40.62 2021 36.78 6 33.57 35.12 36.40 38.06 39.85 41.80 2022 36.36 7 33.96 35.53 37.40 39.16 40.91 42.78 2023 37.10 8 34.41 36.45 38.39 40.11 41.81 43.64 2024 38.76 9 35.29 37.37 39.27 40.94 42.62 44.37 2025 45.34 10 36.16 38.19 40.04 41.70 43.32 44.99 2026 47.92 11 36.95 38.93 40.76 42.36 43.93 45.57 2027 49.28 12 37.67 39.62 41.39 42.95 44.49 46.09 2028 50.51 13 38.33 40.23 41.95 43.49 45.00 46.58 2029 51.96 14 38.93 40.77 42.47 43.98 45.48 47.05 2030 52.69 15 39.46 41.28 42.95 44.45 45.94 47.51 2031 53.42 16 39.96 41.75 43.40 44.90 46.39 47.97 2032 54.56 17 40.42 42.19 43.84 45.33 46.83 48.39 2033 55.41 18 40.85 42.62 44.26 45.76 47.25 48.81 2034 56.64 19 41.27 43.03 44.67 46.16 47.65 49.22 2035 58.08 20 41.67 43.42 45.05 46.55 48.05 49.61 2036 59.54 2037 61.19 2038 62.35 2039 63.89 2040 65.78 2041 66.92 2042 68.93 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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3,8 Energy Prices by Sector-Mountain at https:/Iwww.eia.gov/outlooks/aeo/tables_ref.cfm PACIFICORP Page 1 PACIFICORP AVOIDED COST RATES FOR SOLAR PROJECTS June 01,2017 $!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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29.99 32.89 35.15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.65 36.35 36.74 37.35 2019 34.42 4 3237 34.49 35.81 36.52 37.19 45.85 2020 35.95 5 33.12 34.81 36.03 36.90 43.75 51.45 2021 36.78 6 33,57 35.12 36.40 42.18 48.51 55.41 2022 36.36 7 33.96 35.53 40.80 46.28 52.10 58.41 2023 37.10 8 34.41 39.30 44.37 49.50 54.93 60.83 2024 38.76 9 37.72 42.46 47.26 52.11 57.26 62.79 2025 75.65 10 40.55 45.09 49.67 54.32 59.20 64.42 2026 78.68 11 42.95 47.32 51.74 56.19 60.84 65.85 2027 80.49 12 45.02 49.26 53.51 57.79 62.28 67.10 2028 82.17 13 46.84 50.94 55.05 59.20 63.55 68.22 2029 84.09 14 48.43 52.41 56.42 60.45 64,69 69.25 2030 85.29 15 49.83 53.72 57.64 61.58 65.74 70.20 2031 86.50 16 51.10 54.90 58.75 62.63 86.71 71.10 2032 88.13 17 52.24 55.98 59.77 63.59 67.62 71.93 2033 89.47 18 53.28 56.98 60.71 64.49 68.46 72.71 2034 91.19 19 54.24 57.90 61.60 65.33 69.25 73.45 2035 93.14 20 55.14 58.76 62.42 66.11 70.00 74.14 2036 95.12 2037 97.29 2038 98.99 2039 101.06 2040 103.49 2041 105.19 2042 107.77 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 2017 released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https://www.eia.gov/outlooks/aeoltables_ref.cfm PACIFICORP Page 2 PACIFICORP AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS June 01,2017 $!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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28,61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29.99 32.89 35.15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.65 36.35 36.74 37.35 2019 34.42 4 32.37 34.49 35.81 36.52 37.19 45.20 2020 35.95 5 33.12 34.81 36.03 36.90 43.24 50.40 2021 36.78 6 33.57 35.12 36.40 41.78 47.67 54.09 2022 36.36 7 33.96 35.53 40.47 45.59 51.01 56.89 2023 37.10 8 34.41 39.03 43.79 48.58 53.65 59.16 2024 38.76 9 37.48 41.96 46.49 51.03 55.84 61.00 2025 72.71 10 40.12 44.42 48.74 53.10 57.66 62.54 2026 75.69 11 42.37 46.50 50.68 54.84 59.20 63.88 2027 77.46 12 4.4.31 48.32 52.34 56.34 60.55 65.06 2028 79.10 13 46.01 49.90 53.78 57.67 81.75 66.12 2029 80.97 14 47.51 51.28 55.06 58.85 62.83 67.09 2030 82.12 15 48.83 52.52 56.21 59.92 63.82 68.00 2031 83.29 16 50.02 53.63 57.26 60.91 64.74 68.85 2032 84.87 17 51.09 54.64 58.22 61.82 65.60 69.64 2033 86.16 18 5207 55.58 59.12 62.67 66.40 70.39 2034 87.84 19 52.98 56.45 59.95 63.47 67.15 71.10 2035 89.74 20 53.83 57.27 60.73 64.21 67.86 71.76 2036 91.67 2037 93.78 2038 95.43 2039 97.45 2040 99.83 2041 101.47 2042 104.00 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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https:/Iwww.eiagovloutlookslaeoltables_ref.cfrn PACIFICORP Page 3 PACIFICORP AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS June 01,2017 $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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28.61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29.99 32.89 35.15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.65 36,35 36.74 37.35 2019 34.42 4 32.37 34.49 35.81 36.52 37.19 49.77 2020 35.95 5 33.12 34.81 36.03 36.90 46.76 57.76 2021 36.78 6 33.57 35.12 36.40 44.60 53.56 63.34 2022 36.36 7 33.96 35.53 42.79 50.43 58.62 67.53 2023 37.10 8 34.41 40.97 47.85 54.97 62.58 70.85 2024 38.76 9 39.14 45.43 51.93 58.63 65.80 73.53 2025 93.34 10 43.11 49.11 55.29 61.69 68.46 75.76 2026 96.62 11 46.45 52.21 58.15 64.25 70.71 77.68 2027 98.69 12 4931 54.88 60.59 66.44 72.66 79.35 2028 100.64 13 51.80 57.18 62.69 68.36 74.37 80.84 2029 102.84 14 53.97 59.19 64.55 70.06 75.90 82.20 2030 104.31 15 55.89 60.98 66.21 71.58 77.29 83.44 2031 105.79 16 57.60 62.58 67.70 72.97 78.56 84.59 2032 107.70 17 59.13 64.02 69.06 74.24 79.74 85.65 2033 109.33 18 60.53 65.35 70.31 75.42 80.83 86.65 2034 111.35 19 61.81 66.57 71.47 76.51 81.84 87.58 2035 113.60 20 63.00 67.71 72.54 77.52 82.80 88.46 2036 115.87 2037 118.35 2038 120.35 2039 122.74 2040 125.49 2041 127.51 2042 130.42 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: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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https:llwww.eia.gov/outlookslaeo/tables_ref.cfm PACIFICORP Page 4 PACIFICORP AVOIDED COST RATES FOR OTHER PROJECTS June01,2017 $/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)2017 2018 2019 2020 2021 2022 YEAR RATES 1 28,61 31.48 34.42 35.95 36.78 36.36 2017 28.61 2 29.99 32.89 35.15 36.35 36.57 36.71 2018 31.48 3 31.35 33.83 35.65 36.35 36.74 37.35 2019 34.42 4 32.37 34.49 35.81 36.52 37.19 43.42 2020 35.95 5 33.12 34.81 36.03 36.90 41.88 47.54 2021 36.78 6 33.57 35.12 36,40 40.69 45.39 50.50 2022 36.36 7 33.96 35.53 39.58 43.71 48.06 52.77 2023 37.10 8 34.41 38.27 4221 46.11 50.20 54.63 2024 38.76 9 36.84 40.62 44.38 48.09 51.99 56.15 2025 64.72 10 38.97 42.60 46.20 49.77 53.47 57.42 2026 67.59 11 40.79 44.29 47.78 51.20 54.74 58.54 2027 69.23 12 42.37 45.78 49.14 52.44 55.87 59.52 2028 70.76 13 43.77 47.08 50.33 53.53 56.86 60.42 2029 72.51 14 45.00 48.21 51.39 54.51 ‘57.76 61.25 2030 73.53 15 46.09 49.24 5234 55.41 58.60 62.02 2031 74.57 16 47.08 50.16 53.21 56.23 59.38 62.76 2032 76.02 17 47.98 51.01 54.02 57.01 60.12 63.44 2033 77.19 18 48.80 51.80 54.78 5774 60.81 64.09 2034 78.74 19 49.57 52.54 55.49 58.42 61.46 64.71 2035 80.50 20 50.28 53,23 56.16 59.06 62.08 65.30 2036 82.29 2037 84.27 2038 85.78 2039 87.66 2040 89.89 2041 91.39 2042 93.77 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):cogeneratlon,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 2017,released January 2017.See Annual Energy Outlook 2017,Table 3.8 Energy Prices by Sector-Mountain at https://www.eia.govloutlooks/aeo/tables_ref.cfm PACIFICORP Page 5