20130516Response Letter.pdf

IHO
PlVER®
An iDACORP Company
2!1 NiY I r 10:3
i I J L.
IT TI_’May 16,2013 -‘-
Randy C.Allphin
Energy Contracts Coordinator,Ldr
Tel:[phone]
rallphinidahopower.com
Idaho Public Utilities Commission
AUn:Kristine A.Sasser
P0 Box $3720
Boise,ID $3 720-0074
RE:CASE NO.IPC-E-13-13
UPDATE TO PUBLISHED AVOIDED COST RATES TO REFLECT AN UPDATED
NATURAL GAS PRICE FORECAST OF THE U.S.ENERGY INFORMATION
ADMINISTRATION (EIA)AND AN UPDATED COST OF CAPITAL FOR AVISTA.
We have reviewed the information you have provided in your letter dated May 14th 2013,
notifying Idaho Power of revisions to the PURPA published Avoided Cost Rate(s)in accordance with
IPUC Order No.32697 and 32$02,specifically the update of the natural gas forecast to include the
May 2,2013 EIA natural gas forecast.Idaho Power concurs that the model and calculations used by
the IPUC staff for Idaho Power Company are consistent with IPUC Order No.32697 and 32$02.
In review of the detailed calculations,Idaho Power also observed that there was a minor
difference in the calculations in comparison to the previous information provided by the IPUC staff.
Idaho Power has contacted the IPUC staff and learned that the previous calculations contained a
minor error within an embedded net present value formula.This formula has been corrected in the
current calculations and Idaho Power concurs this is appropriate.
Sincerely,
Randy C Aliphin
Energy Contracts Coordinator,Ldr.
cc:Donovan Walker (IPCo)
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P 0 Box 70 Boise,Idaho $3707 1221 W Idaho St.Boise,Idaho 83702