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HomeMy WebLinkAbout20140530final_order_no_33041.pdfOffice of the Secretary Service Date May 30,2014 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE ANNUAL UPDATE ) TO PUBLISHED AVOIDED COST RATES )CASE NOS.AVU-E-14-04 BASED ON THE UPDATED NATURAL GAS )IPC-E-14-11 PRICE FORECAST OF THE U.S.ENERGY )PAC-E-14-03 INFORMATION ADMINISTRATION (ETA)) )ORDER NO.33041 ______________________________________________________________________________________________ ) 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 published avoided cost rates at which PURPA qualifying cogeneration and small power production facilities (QFs)are paid by Avista,Idaho Power 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. ETA UPDATE TO THE NATURAL GAS PRICE FORECAST One of the key input variables in the computation of published avoided cost rates is the 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 included in ETA’s Annual Energy Outlook serves as the basis for computing published avoided cost rates.In Order No.32697,this Commission stated that each year the final release of the Annual Energy Outlook should automatically trigger a re-calculation of the published avoided cost rates.In Order 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.This clarification was to accommodate the possibility that the final release of EIA data does not occur in time to meet the June 1 effective date. UPDATED PUBLISHED AVOIDED COST RATES Commission Staff recomputed published avoided cost rates for Idaho Power,Avista, and PacifiCorp using ETA’s most recent annual natural gas price forecast.Staff provided Avista, Idaho Power,and PacifiCorp with worksheets on May 22,2014,for review and comment, ORDER NO.33041 1 showing the computation of the updated avoided cost rates.Idaho Power,Avista,and PacifiCorp responded by letter accepting Staff’s avoided cost calculations based on EIA’s Annual Energy Outlook 2014 natural gas price forecast and consistent with the Commission’s approved SAR methodology. FINDINGS AND CONCLUSIONS The Idaho Public Utilities Commission has jurisdiction over Avista Corporation dba Avista Utilities,Idaho Power Company,and PacifiCorp dba Rocky Mountain Power pursuant to the authority and power granted it under Title 61 of the Idaho Code and the Public Utility Regulatory Policies Act of 1978 (PURPA).The Commission has authority under PURPA and the implementing regulations of the Federal Energy Regulatory Commission (FERC)to set avoided costs,to order electric utilities to enter into fixed-term obligations for the purchase of energy from qualified facilities,and to implement FERC rules. Pursuant to its authority,the Commission has reviewed and considered the filings of record.We find that the accuracy of the calculations and the resulting rates disseminated by Staff based upon ETA’s most recent annual natural gas price forecast have not been challenged. The annual update to the SAR methodology’s avoided cost rates is a relatively simple arithmetic re-calculation.We find the updated published avoided cost rates are fair,just,and reasonable. We direct Staff to correct the clerical errors noted by the utilities. ORDER IT IS HEREBY ORDERED that the updates to published avoided cost rates for Avista,Idaho Power,and PacifiCorp are approved,effective June 1,2014. THIS IS A FINAL ORDER.Any person interested in this Order may petition for reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7) days after any person has petitioned for reconsideration,any other person may cross-petition for reconsideration.See Idaho Code §6 1-626. ORDER NO.33041 2 DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this day of May 2014. ATTEST: 7. /..)I it ,1// /,A /// _/- PAUL KJELLATDR,PRESIDENT MARSHA H.SMITH,COMMISSIONER I .I 1A JXl Jdan D.Jewell I Cgmmission Secretary O:AVU-E-14-O4IPC-E-14-1 IPAC-E-14-O3ks MACK A.COMMISSIONER ORDER NO.33041 3 18 . 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LEVELIZED NON-LEVELIZED CONTRACT ON-LINE YEAR LENGTH CONTRACT NON-LEVELIZED (YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES 1 3796 35,58 3490 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://ww.eia.gov/forecasts/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 ONLlNE YEAR LENGTH CONTRACT NON-LEVELIZED (YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES 1 64.38 62.38 62.09 65.41 69.39 72.44 2014 64.38 2 63.42 62.24 63.68 67.32 70.86 72.75 2015 62.38 3 63.01 63.21 65.44 68.90 71.54 73.52 2016 62.09 4 63.54 64.58 66,99 69.82 72.36 74.21 2017 65.41 5 64.53 65.92 68.02 70.75 73.09 75.01 2018 69.39 6 65.61 66.89 69.00 71.54 73.88 75.91 2019 72.44 7 66.44 67.82 69.86 72.37 74.75 76.77 2020 73.08 8 67.26 68.64 70.70 73.24 75.58 77,47 2021 75.26 9 68.01 69.46 71.57 74.06 76.26 78.11 2022 76.64 10 68 76 70.30 72.40 74.75 76.90 78.75 2023 78.92 11 69.52 71.09 73.10 75.40 77.53 79.49 2024 81.67 12 70.26 71.77 73.75 76.03 78.24 80.30 2025 83.62 13 70.90 72.41 74.38 76.72 79.02 81.13 2026 84.20 14 71.50 73.02 75.07 77.47 79.80 81.98 2027 85.57 15 72.08 73.68 75.79 78.23 80.61 82.87 2028 87.44 16 72.70 74.38 76.52 79.00 81.44 83.75 2029 91.21 17 73.35 75.07 77.27 79.80 82.28 84.64 2030 95.11 18 74.00 75.78 78.03 80.59 83.11 85.59 2031 98.19 19 74.67 76.50 78.79 81.39 84.01 86.51 2032 102.15 20 75.35 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 Energy Outlook 2014 released May 7,2014.See Annual Energy Outlook 2014,Table 18,Mountain Data, http:Ilwww.eia.gov/forecasts/aeo/tables_ref.cfm IDAHO POWER COMPANY Page 2 IDAHO POWER COMPANY AVOIDED COST RATES FOR NON-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 6181 5978 59.45 62.73 66.67 69.68 2014 61.81 2 60.84 59.62 61.02 64.62 68,12 69.97 2015 59.78 3 60.41 60.57 62.76 66.18 68.79 70.73 2016 59.45 4 60.92 61.92 64.29 67.09 69.59 71.40 2017 62.73 5 61.90 63.24 65.31 67.99 70.30 72.18 2018 66.67 6 62.96 64.20 66.28 68.78 71.07 73.06 2019 69.68 7 63.77 65.11 67.11 69.58 71.92 73.90 2020 70.28 8 64.58 65.92 67.94 70.43 72.73 74.58 2021 72.42 9 65.31 66.72 68.80 71.24 73.40 75.21 2022 73.76 10 66.04 67.54 69.60 71.92 74.02 75.83 2023 76.00 11 66.79 68.32 70.29 72.55 74.63 76.56 2024 78.70 12 67.51 68.99 70.93 73.16 75.33 77.35 2025 80.61 13 68.14 69.61 71.54 73.84 76.09 78.16 2026 81.15 14 68.73 70.21 72.21 74.58 76.86 79.00 2027 82.47 15 69.29 70.85 72.93 75.32 77.66 79.87 2028 84.30 16 69.90 71.54 73.64 76.08 78.48 80.74 2029 88.02 17 7054 72.22 74.37 76.86 79.30 81.61 2030 91.88 18 71.18 72.92 75.12 77.64 80.12 82.56 2031 94.91 19 71.83 73.63 75.87 78.43 81,01 83.46 2032 98.82 20 72.50 74.33 76.62 79.26 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 Energy Outlook 2014 released May 7,2014.See Annual Energy Outlook 2014,Table 18,Mountain Data, http:/lwww.eia.gov/forecasts/aeoltablesref.cfm IDAHO POWER COMPANY Page 3 IDAHO POWER COMPANY AVOIDED COST RATES FOR 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 79.79 7801 77.95 8150 8572 8901 2014 79.79 2 78 93 77.98 79.65 83.53 87.30 89.43 2015 78.01 3 78.63 79.06 81.52 85.21 88.09 90.32 2016 77.95 4 79.27 80.54 83,18 86.25 89.03 91.12 2017 81.50 5 80.36 81.97 84.32 87.28 89.86 92.03 2018 85.72 6 81.53 83.05 85.40 88.18 90.76 93.04 2019 89.01 7 82.47 84.08 86.35 89.11 91.73 94.00 2020 89.89 8 83.39 85.00 87.30 90.07 92.66 94.80 2021 92.31 9 84.22 85.91 88.27 91.00 93.45 95.55 2022 93.94 10 85.06 86.84 89.19 91.79 94.18 96.28 2023 96.48 11 85.92 87.73 89.98 92.52 94.90 97.12 2024 99.48 12 86.74 88.50 90.72 93.24 95.71 98.03 2025 101.69 13 87.47 89.22 91.44 94.03 96.57 98.94 2026 102.54 14 88.15 89.92 92.21 94.87 97.44 99.89 2027 104.18 15 88.81 90.66 93.02 95.70 98.34 100.86 2028 106.32 16 89.51 91.43 93.83 96.56 99.26 101.83 2029 110.36 17 90.24 92.21 94.65 97.44 100.18 102.80 2030 114.55 18 90.97 92.99 95.49 98.31 101.09 103.83 2031 117.91 19 91.70 93.79 96.33 99.18 102.07 104.83 2032 122.16 20 92.45 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 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/forecasts/aeo/tables_ref.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 2018 2019 YEAR RATES 1 5486 5272 5228 55.46 59.30 62.20 2014 54.86 2 53.83 52.51 53.81 57.30 60.69 62.44 2015 52.72 3 53.35 53.42 55.50 58.81 61.31 63.14 2016 52.28 4 53.82 54.72 56.98 59.67 62,06 63.76 2017 55.46 5 54.75 55.99 57.95 60.53 62.72 64.49 2018 59.30 6 55.76 56.90 58.87 61.26 63.45 65.33 2019 62.20 7 56.53 57.77 59.66 62.02 64.25 66.12 2020 62.69 8 57.30 58.53 60.44 62.83 65.02 66.75 2021 64.72 9 57.99 59.29 61.26 63.59 65.64 67.33 2022 65.94 10 58.68 60.07 62.02 64.23 66.22 67.91 2023 68.07 11 59.39 60.81 62.67 64.81 66.79 68.59 2024 70.66 12 60.07 61.43 63.26 65.38 67.44 69.35 2025 72.44 13 60.66 62.02 63.84 66.03 68.16 70.11 2026 72.86 14 61.20 62.58 64.47 66.72 68.89 70.92 2027 74.07 15 61.73 63.19 65.15 67.42 69.65 71.75 2028 75.77 16 62.31 63.83 65.82 68.15 70.43,72.58 2029 79.37 17 62.91 64.48 66.52 68.90 71.22 73.41 2030 83.10 18 63.52 65.14 67.24 69,64 72.00 74.32 2031 86.00 19 64.14 65.82 67.95 70.39 72.85 75.19 2032 89.78 20 6477 66.50 68.66 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,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://www.eia.gov/forecasts/aeo/tables_refcfm IDAHO POWER COMPANY Page 5 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 3510 35.45 3476 3483 3836 4096 2014 3510 2 3527 3512 34.79 3653 3961 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 39.38 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://w.eia.gov/forecasts/aeo/tables_ref.cfm AVISTA Page 1 AVISTA AVOIDED COST RATES FOR SOLAR PROJECTS June 1,2014 $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)2014 2015 2016 2017 2018 2019 YEAR RATES 1 3510 3673 3606 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 $/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 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 5232 55.18 2023 56.75 11 44,60 46.91 48,36 50.06 53.00 55.89 2024 59.17 12 45.46 4765 49.08 50.78 53.75 56.67 2025 6079 13 46.19 4833 49.76 51.54 54.53 57.45 2026 61.04 14 46.85 4896 5048 52.33 55.31 5825 2027 62.07 15 47.47 4963 5122 5311 5611 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 5774 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:I/www.cia.gov/forecastslaeo/tables_ref.cfm AVISTA 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 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 33.10 34.88 37.90 40.08 41.60 2016 31.95 4 33.66 34.27 36.23 38.62 40.70 42.08 2017 34.83 5 34.46 35.41 37.07 39.34 41.22 42.68 2018 38.36 6 35.35 36.19 37.86 39.94 41.81 43.38 2019 40.96 7 36.00 36.94 38.52 40.58 42.49 44.04 2020 41.14 8 36.65 37.58 39.19 41.26 43.13 44.54 2021 42.85 9 37.22 38.23 39.88 41.90 43.63 45.00 2022 43.76 10 37.80 38.89 40.53 42.42 44.09 45.45 2023 45.56 11 38.40 39.52 41.07 42.89 44.54 46.02 2024 47.82 12 38.98 40.04 41.55 43.35 45.08 46.66 2025 49.27 13 39.46 40.51 42.02 43.89 45.69 47.32 2026 49.35 14 39.91 40.97 42.55 44.48 46.32 48.02 2027 50.22 15 40.34 41.49 43.13 45.08 46.98 48.75 2028 51.56 16 40.82 42.04 43.71 45.71 47.67 49.49 2029 54.81 17 41.34 42.60 44.32 46.37 48.36 50.23 2030 58.18 18 41.86 43.18 44.95 47.03 49.07 51.06 2031 60.72 19 42.40 43.78 45.59 47.70 49.84 51.85 2032 64.13 20 42.96 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 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://w.eia.gov/forecasts/aeoltables_ref.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-LINE YEAR LENGTH CONTRACT NON-LEVELIZED (YEARS)2014 2015 2016 2017 2018 2019 - YEAR RATES 1 35 10 5182 5137 34.83 3836 4096 2014 35.10 2 43.14 51.60 4341 36.53 39.61 5095 2015 51.82 3 4568 46.43 41.86 3790 46.43 5489 2016 5137 4 43.27 44.64 41.66 43.19 50.28 57.13 2017 34.83 5 42.43 44.01 45.09 46.70 52,78 58 83 2018 38.36 6 42.23 46.43 47.63 49.19 54.74 60.30 2019 40.96 7 44.42 48.38 49.58 51.20 56.41 61 55 2020 61.73 8 46 24 49.94 51 23 52.94 57.83 62.52 2021 63.74 9 4775 51.32 52.71 54.43 58.95 63.36 2022 64.95 10 4909 52.59 54.01 5563 59 92 64 15 2023 67.07 11 50 33 53.72 55.08 5668 60.82 65.00 2024 69.64 12 51.44 54.68 5603 57.64 61.74 6590 2025 71.41 13 52.40 55.54 56.90 58.60 62.69 66.79 2026 71.82 14 53.25 56.34 57.79 5957 63.61 67.70 2027 73.01 15 5405 57.15 58,69 6051 6454 6862 2028 74.69 16 54.85 57.97 59.56 61 45 65.47 6954 2029 78.28 17 5566 58.78 60.43 62.38 66.39 70.45 2030 81 99 18 5645 59.58 61,30 63.29 67.30 71.43 2031 84.88 19 57.24 60.39 62.15 64.18 68.26 72.36 2032 88.64 20 58.02 61.18 6298 65.12 69.18 7324 2033 92.59 2034 96.19 2035 100.04 2036 106.78 2037 10991 2038 111.92 2039 11667 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 2014 released May 7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data, http Ilwww.eia.gov/forecasts/aeo/tables_ref.cfm AVISTA Page 5 PACIFICORP 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. L.EVELIZED NON-LEVELIZED CONTRACT ON-LINE YEAR LENGTH CONTRACT NON-LEVELIZED (YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES 1 3790 35.52 34.83 37.75 41.33 4398 2014 37.90 2 36.75 35 19 36,24 39.48 4260 44.08 2015 35.52 3 36.16 35.98 37.81 40.86 43.10 44.66 2016 34.83 4 36.52 3717 39.18 41.60 43.73 45.16 2017 37.75 5 37.34 3833 40.03 42.34 44.27 45.77 2018 41.33 6 38.24 39.13 40.84 42.97 44.88 46.49 2019 43.98 7 38.91 39.89 41.52 43.62 45.58 47.17 2020 44.20 8 39.57 40 55 42.20 44.32 46.23 47.69 2021 45.96 9 40.16 41.21 42.91 44.98 4675 48.17 2022 46.90 10 40.75 41.89 43.58 45.51 4722 48.64 2023 48.75 11 41.37 42.53 44,13 46.00 47.69 49.22 2024 51.06 12 41.96 4307 44,63 46.47 4825 49.88 2025 52,56 13 4246 4356 45.11 47.02 48.88 50.55 2026 52.69 14 42.92 44.03 45.65 47.63 49 52 51.26 2027 53.60 15 4337 44.56 46.25 48.24 50 19 52.00 2028 55.00 16 4386 45.13 46.84 48.89 50.89 5275 2029 58.29 17 4439 4569 47.46 49.56 5160 5351 2030 61.71 18 44.93 4629 48.10 50.23 52 31 54.34 2031 64.30 19 4548 46.89 48.75 50.91 53.09 55.14 2032 67.77 20 46.05 4750 4939 51.65 5384 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 Energy Outlook 2014 released May 7,2014.See Annual Energy Outlook 2014,Table 18,Mountain Data, http’//w.eia.gov/forecasts/aeo/tabIes_ref cfrn 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 6374 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 64.78 68.23 7086 72.83 2016 61.43 4 62.89 6393 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 7320 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 68.11 69.65 71.74 74.08 76.22 78.06 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://www.eia.gov/forecasts/aeo/tables_ref.cfm PACIFICORP Page 2 PACIFICORP AVOIDED COST RATES FOR NON-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 6123 5919 5885 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 6773 69.70 71.94 7401 7593 2024 78.04 12 6694 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 8046 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 7533 7788 80.45 8291 2032 98,08 20 71.97 73.81 7608 7873 81.32 8377 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 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 Ilwww.eia.gov/forecasts/aeo/tables_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 7699 78.65 82.51 8627 88.38 2015 77.03 3 77.65 7807 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 8672 88.96 91.49 93.85 96.05 2024 98.37 12 8575 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 8892 91 20 9384 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 9555 98.23 100.79 2029 109.17 17 89.27 91.23 93.66 96.43 99.16 101.77 2030 113.33 18 90.00 9202 94.51 97.32 100.08 102.82 2031 116.68 19 90.75 9283 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://ww.eia.gov/forecasts/aeo/tables_ref.cfm PACIFICORP Page 4 PACIFICORP 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 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 61.01 62.83 64.94 66.99 68.90 2025 71.94 13 60.24 61.60 63.41 65.59 67.72 69.67 2026 72.36 14 60.79 62.16 64.05 66.29 68.45 70.48 2027 73.56 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 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 2014 released May 7,2014.See “Annual Energy Outlook 2014,Table 18,Mountain Data, http’//ww.eia.gov/forecasts/aeoftables_ref.cfm PACIFICORP Page 5