20140723notice_of_application_order_no_33079.pdf

Office of the Secretary
Service Date
July 23.2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-14-18
COMPANY’S APPLICATION TO )
IMPLEMENT SOLAR INTEGRATION )NOTICE OF APPLICATION
RATES AND CHARGES.)
)NOTICE OF
)INTERVENTION DEADLINE
)
_______________________________
)ORDER NO.33079
On July 1,2014,Idaho Power Company filed an Application with the Commission
seeking to implement solar integration rates and charges.The Company’s Application includes a
2014 solar integration study as well as the supporting testimony of Philip DeVol and Michael J.
Youngblood.Idaho Power requests that its Application be processed by Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power’s Application maintains,due to
the variable and intermittent nature of solar generation,the Company must modify its system
operations to successfully integrate solar power without impacting system reliability,similar to
wind generation.Idaho Power states that it must provide operating reserves from resources that
are capable of increasing or decreasing dispatchable generation on short notice to offset changes
in non-dispatchable solar generation.The Company asserts the effect of having to hold
operating reserves on dispatchable resources is that the use of those resources is restricted and
they cannot be economically dispatched to their fullest capability.Idaho Power states this results
in higher power supply costs that are subsequently passed on to customers.
YOU ARE FURTHER NOTIFIED that Idaho Power states that it is currently
experiencing very high interest by,and rapid growth of,solar generation projects wishing to
contract with and locate on Idaho Power’s system.The Company maintains the rapid growth of
wind and solar generation has led to the recognition that Idaho Power’s finite capability for
integrating variable and intermittent generation is nearing its limit.This situation is expected to
worsen as wind and solar penetration levels increase,particularly during periods of low customer
demand.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33079
YOU ARE FURTHER NOTIFIED that Idaho Power asserts the costs associated with
solar integration are specific and unique for each individual electrical system based on the
amount of solar generation being integrated and the other types of resources that are used to
provide the necessary operating reserves.In general terms,Idaho Power explains that the cost of
integrating solar generation increases as the amount of nameplate solar generation on the
electrical system increases.The Company states that failure to calculate and properly allocate
solar integration costs to solar PURPA generators when calculating avoided cost rates
impermissibly pushes those costs onto utility customers,making them no longer indifferent to
whether the generation was provided by a PURPA qualifying facility or otherwise generated or
acquired by the Company.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes that a solar integration
charge be established to collect the incremental cost of integration at each 100 MW of solar
generation penetration.The Company proposes that the solar integration costs be set forth in a
tariff schedule specifically established for intermittent generation integration charges.The solar
project’s scheduled operation date and nameplate capacity would determine the charge that
would be imposed through the term of the proposed contract.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission’s web site at www.puc.idaho.ov.Click on the
“File Room”tab at the top of the page,scroll down to “Open Electric Cases,”and then click on
the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code.The Commission
may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 etseq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
must file a Petition to Intervene with the Commission pursuant to this Commission’s Rules of
Procedure 72 and 73,IDAPA 3 1.01.01.072 and -.073.Persons intending to participate must file
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33079 2
a Petition to Intervene no later than fourteen (14)days from the service date of this Order.
Persons desiring to present their views without parties’rights of participation and cross-
examination at hearing are not required to intervene and may present their comments without
prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties afier the deadline for intervention has passed.The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued,Staff will
convene an informal prehearing conference for the purpose of discussing a schedule to process
this case,the service of discovery,and other issues raised by the parties.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene with the Commission no later than fourteen (14)days from the service
date of this Order.
IT IS FURTHER ORDERED that the Commission Secretary issue a Notice of Parties
after the deadline for intervention has passed.
IT IS FURTHER ORDERED that,once the Notice of Parties is issued,Staff convene
an informal prehearing conference to discuss the processing of this case.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33079 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2014.
ATTEST:
MACK A.REDFORD,(
MARSHA H.SMITH,COMMISSIONER
z -
Jean D.Jewel!
Commission Secretary
O:IPC-E-14-l8ks
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33079
PAUL KJELLAND’
SSIONER
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