20140801Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
FROM:KRISTINE SASSER
DEPUTY ATTORNEY GENERAL
DATE:JULY 31,2014
SUBJECT:COMPLIANCE FILING FOR CASE NO.IPC-E-13-21
BACKGROUND
In Order No.32697,the Commission directed a case be initiated outside of each
utility’s Integrated Resource Plan (]RP)filing for the establishment of the capacity deficiency
period to be utilized in the utility’s SAR methodology.Idaho Power filed its 2013 IRP with the
Commission on June 28,2013.On November 4,2013,Idaho Power filed an Application for
approval of the capacity deficiency period to be utilized in the SAR avoided cost methodology.
Idaho Power reported that its first deficit occurs in July 2021.
The case was processed by Modified Procedure.Commission Staff and the Idaho
Irrigation Pumpers Association filed comments.Idaho Power filed a reply.On April 8,2014,the
Commission issued Order No.33016 approving July 2013 as Idaho Power Company’s first
capacity deficit to be utilized in the Company’s SAR methodology.
On April 29,2014,Idaho Power filed a Petition for Reconsideration pursuant to Idaho
Code §61-626.The Commission granted reconsideration and established comment and reply
deadlines.Order No.33042.Pursuant to Idaho Code §61-626(3),the Commission stayed the
effects of Order No.33016 until reconsideration was complete.
FINAL ORDER ON RECONSIDERATION
On July 30,2014,based on the Company’s demonstrated demand response program
participation,as well as the factors considered in final Order No.33016 (IRP,updated load
forecast,updated natural gas forecast,new and terminated PURPA contracts and long term power
purchase agreements),the Commission determined that it is fair,just and reasonable for the Idaho
DECISION MEMORANDUM 1
Power to utilize July 2021 as the capacity deficiency date to be used in the Company’s SAR
methodology.Order No.33084.
STAFF REVIEW
Commission Staff has recomputed avoided cost rates for Idaho Power based on the
Commission’s fmding of capacity deficiency (for purposes of the SAR methodology)in July
2021.A copy of the rates computed by Staff is attached.The application of the Commission’s
capacity deficiency determination is arithmetic.Staff recommends that the attached avoided cost
rates for Idaho Power be approved,effective July 30,2014.
COMMISSION DECISION
Does the Commission wish to approve the changes in rates based on a capacity
deficiency determination of July 2021 —effective July 30,2014?
i&QA
Kn me Sasser
Deputy Attorney General
M:IPC-E-13-21_ks3
DECISION MEMORANDUM 2
IDAHO POWER COMPANY
AVOIDED COST RATES FOR WIND PROJECTS
July 30,2014
$!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 32.67 31.95 34.83 38.36 40.96 2014 35.10
2 33.93 32.32 33.33 36.53 39.61 41.05 2015 32.67
3 33.32 33.09 34.88 37.89 40.08 42.58 2016 31.95
4 33.66 34.26 36.23 38.61 41.40 43.55 2017 34.83
5 3446 35.40 37.06 39.87 42.34 44.45 2018 38.36
6 35.34 36.18 38.28 40.83 43.22 45.35 2019 40.96
7 35.99 37.28 39.25 41.72 44.11 46.17 2020 41.14
8 36.92 38.18 40.14 42.60 44.90 46.78 2021 46.02
9 37.72 39.03 41.01 43.40 45.53 47.33 2022 46.97
10 38.48 39.86 41.81 44.04 46.08 47.86 2023 48.82
11 39.23 40.62 42.46 44.61 46.62 48.48 2024 51.13
12 39.93 41.25 43.05 45.16 47.23 49.18 2025 52.63
13 40.52 41.82 43.60 45.77 47.90 49.88 2026 52.76
14 41.06 42.36 4420 46.42 4857 50.61 2027 53.67
15 41.57 42.94 44.84 47.07 49.27 51.37 2028 55.07
16 42.11 43.55 45.47 47.75 49.99 52.13 2029 58.37
17 42.69 44.16 46.13 48.44 50.72 52.89 2030 61.79
18 43.26 44.78 46.79 49.13 51.44 53.73 2031 64.38
19 43.84 45.42 47.45 49.82 52.23 54.53 2032 67.85
20 44.43 46.04 48.12 50.57 52.99 55.27 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’Ilwww.eia.gov/forecastslaeo/tables_ref.cfm
IDAHO POWER COMPANY Page 1
IDAHO POWER COMPANY
AVOIDED COST RATES FOR SOLAR PROJECTS
July 30,2014
$/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 32.67 31.95 34.83 38.36 40.96 2014 35.10
2 33.93 32,32 33.33 36,53 39.61 41.05 2015 32.67
3 33.32 33.09 34.88 37.89 40.08 51.57 2016 31.95
4 33.66 34.26 36.23 38.61 47.87 57.12 2017 34.83
5 34.46 35.40 37.06 44.83 52.75 60.82 2018 38.36
6 35.34 36.18 42.24 49.15 56.31 63.65 2019 40.96
7 35.99 40.53 46.08 52.47 59.13 65.87 2020 41.14
8 39.65 43.91 49.14 55.20 61.42 67.59 2021 75.26
9 42.59 46.69 51.73 57.45 63.23 69.02 2022 76.64
10 45.08 49.08 53.91 59.28 64.76 70.28 2023 78.92
11 47.26 51.14 55.71 60.85 66.11 71.52 2024 81.67
12 49.15 52.86 57.27 62.24 67.42 72.75 2025 83.62
13 50.76 54.37 58.66 63.57 68.69 73.92 2026 84.20
14 52.18 55.71 59.98 64.85 69.89 75.07 2027 85.57
15 53.46 57.00 61.26 66.06 71.06 76.21 2028 87.44
16 54.69 5824 62.46 67.24 72.21 77.31 2029 91.21
17 55.87 59.40 63.62 68.37 73.31 78.38 2030 95.11
18 56.98 60.53 64.74 69.47 74.38 79.50 2031 98.19
19 58.05 61.61 65.81 70.53 75.49 80.56 2032 102.15
20 59.08 62.65 66.85 71.61 76.54 81.55 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 Energy
Outlook 2014 released May 7,2014.See Annual Energy Outlook 2014,Table 18,Mountain Data,
http://www.eia,govlforecasts/aeo/tables_ref,cfm
IDAHO POWER COMPANY Page 2
IDAHO POWER COMPANY
AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS
July 30,2014
$/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 4096 2014 35.10
2 33.93 3232 33.33 36.53 39.61 41.05 2015 32.67
3 33.32 33.09 34.88 37.89 40.08 50.70 2016 31.95
4 33.66 34.26 36.23 38.61 47.24 55.80 2017 34.83
5 34.46 35.40 37.06 44.35 51.74 59.23 2018 38.36
6 35.34 36.18 41.86 48.34 55.04 61,87 2019 40.96
7 35.99 40.22 45.41 51.43 57.67 63.96 2020 41.14
8 39.39 43.35 48.27 53.97 59.82 65.57 2021 72.42
9 42.12 45.95 50.69 56.09 61.51 66.91 2022 73.76
10 44.44 48.19 52.74 57.81 62.95 68.10 2023 76.00
11 46.48 50.12 54.43 59.27 64.22 69.29 2024 78.70
12 48.26 51.73 55.89 60.58 65.46 70.46 2025 80.61
13 49.77 53.15 57.20 61.84 66.67 71.59 2026 81.15
14 51.10 54.42 58.45 63.06 67.82 72.70 2027 82.47
15 52.31 55.64 59.67 64.22 68.95 73.79 2028 84.30
16 53.47 56.81 60.81 65.34 70.05 74.86 2029 88.02
17 54.59 57.93 61.92 66.44 71.12 75.91 2030 91.88
18 55.65 59.00 62.99 67.49 72.16 77.00 2031 94.91
19 56.67 60.04 64.03 68.52 73.23 78.04 2032 98.82
20 57.66 61.04 65.03 69.57 74.25 79.00 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 Energy
Outlook 2014 released May 7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data,
http:/Iwww,eia.gov/forecastslaeo/tables_ref.cfm
IDAHO POWER COMPANY Page 3
IDAHO POWER COMPANY
AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS
July 30,2014
$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 3510 32.67 31.95 34.83 38.36 40.96 2014 35.10
2 33.93 32.32 33.33 36.53 39.61 41.05 2015 32.67
3 33.32 33.09 34.88 37.89 40.08 56.81 2016 31.95
4 33.66 34.26 36.23 38.61 51.64 65.03 2017 34.83
5 34.46 35.40 37.06 47.73 58.83 70.37 2018 38.36
6 35.34 36.18 44.56 54.00 63.94 74.32 2019 40.96
7 35.99 42.43 50.06 58.74 67.90 77.37 2020 41.14
8 41.25 47.25 54.40 62.54 71,05 79.72 2021 92.31
9 45.43 51.16 57.98 65.65 73.56 81.67 2022 93.94
10 48.93 54.47 60.97 68.18 75.65 83.35 2023 96.48
11 5194 57.28 63.44 70.32 77.48 84.96 2024 99.48
12 54.53 59.63 65.57 72.20 79.19 86.50 2025 101.69
13 56.74 61.68 67.44 73.95 80.82 87.95 2026 102.54
14 58.67 63.50 69.19 75.61 82.33 89.34 2027 104.18
15 60.40 65.20 70.84 77.14 83.77 90.69 2028 106.32
16 62.02 66.81 72.37 78.60 85.17 91.99 2029 110.36
17 63.55 68.30 73.82 80.00 86.49 93.25 2030 114.55
18 64.98 69.71 75.20 81.33 87.77 94.53 2031 117.91
19 66.33 71.06 76.52 82.60 89.06 95.75 2032 122.16
20 67.63 72.33 77.77 83.88 90.28 96.88 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 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:I/www.eia.gov/forecasts/aeoltables_ref.cfm
IDAHO POWER COMPANY Page 4
IDAHO POWER COMPANY
AVOIDED COST RATES FOR OTHER PROJECTS
July 30,2014
$!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 35.10
2 33.93 32.32 33.33 36.53 39.61 41.05 2015 32.67
3 33.32 33.09 34.88 37.89 40.08 48.33 2016 31.95
4 33.66 34.26 36.23 38.61 45.54 52.23 2017 34.83
5 34.46 35.40 37.06 43.04 49.00 54.92 2018 38.36
6 35.34 36.18 40.81 46.15 51.59 57.05 2019 40.96
7 35.99 39.36 43.61 48.59 53.71 58.77 2020 41.14
8 38.67 41.84 45.90 50.66 55.46 60.09 2021 64.72
9 40.84 43.93 47.87 52.39 56.85 61.20 2022 65.94
10 42.70 45.76 49.55 53.79 58.03 62.19 2023 68.07
11 44.36 47.34 50.94 55.00 59.08 63.22 2024 70.66
12 45.83 48.67 52.14 56.08 60.14 64.25 2025 72.44
13 47.07 49.84 53.23 57.15 61,19 65.25 2026 72.86
14 48.17 50.90 54.29 58.21 62.21 66.25 2027 74.07
15 49.17 51,93 55.34 59.22 63.21 67.25 2028 75.77
16 50.15 52.95 56.34 60.21 64.20 68.23 2029 79.37
17 51.12 53.91 57.31 61.19 65.17 69.19 2030 83.10
18 52.03 54.85 58.27 62.14 66.11 70.21 2031 86.00
19 52.92 55.77 59.19 63.06 67.10 71.18 2032 89.78
20 53.80 56.66 60.09 64.02 68.05 72.08 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,biogas,landfill gas,or geothermal projects.
Note:The rates shown ri 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/forecastslaeo/tables_ref.cfm
IDAHO POWER COMPANY Page 5