20141121final_order_no_33182.pdf

Office of the Secretary
Service Date
November 21,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S ANNUAL UPDATE TO LOAD )CASE NO.IPC-E-14-25
AND GAS FORECASTS AND LONG-TERM )
CONTRACTS FOR ITS INCREMENTAL )
COST INTEGRATED RESOURCE PLAN )ORDER NO.33182
AVOIDED COST METHODOLOGY.)
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 an incremental cost Integrated
Resource Plan (JRP)methodology for the calculation of avoided cost rates paid to certain
PURPA qualifying facilities (QFs).Avoided cost rates are the purchase price paid to QFs for
purchases of QF energy and capacity.
In Order Nos.32697 and 32802,the Commission determined that the load forecast
and natural gas forecast inputs to the IRP avoided cost methodology should be updated annually
on October 15 of each year.The Commission stated
We find that,in order to maintain the most accurate and up-to-date reflection
of a utility’s true avoided cost,utilities must update fuel price forecasts and
load forecasts annually —between IRP filings....In addition,it is
appropriate to consider long-term contract commitments because of the
potential effect that such commitments have on a utility’s load and resource
balance....We further find it appropriate to consider PURPA contracts that
have terminated or expired in each utility’s load and resource balance.
Order No.32697 at 22.
On October 14,2014,pursuant to the Commission’s directive,Idaho Power Company
submitted its annual updates for fuel prices and load forecasts.The Company also submitted
information regarding new and expiring contracts.
COMPLIANCE FILING
Idaho Power’s most recent load forecast is dated September 9,2014,and is the same
load forecast that will be used in Idaho Power’s 2015 IRP.This recent load forecast shows,on
average,a slight decrease in Idaho Power customer loads when compared to the October 7,2013,
load forecast.
ORDERNO.33182
The Company updates its natural gas price forecast to reflect the most recent U.S.
Energy Information Administration (ETA)natural gas price forecast.The October 2014 gas
forecast,planned for use in the 2015 IRP.is the nominal EtA forecast for Henry Hub in
compliance with the direction from Order No.32980.It indicates,on average,a slight decrease
in the average annual natural gas forecast prices over the next 20 years in comparison to the ETA
2013 natural gas price forecast.
Idaho Power currently reports three non-PURPA,long-term power purchase
agreements:Elkhorn Valley Wind (101 megawatts (MW)),Raft River Geothermal (18 MW)and
Neal Hot Springs Geothermal (30 MW).Idaho Power currently has 133 signed contracts with
PURPA QF projects with a total nameplate capacity of 1.302 MW.This is an increase of 30 new
contracts,and 524 additional MW of PURPA QF generation above the amounts reported this
time last year.This includes 11 new solar contracts currently pending approval at the
Commission and 2 large solar contracts,Grand View (80 MW)and Boise City Solar (40 MW).
recently approved by the Commission.See Order Nos.33179 and 33180.The 524 additional
MW of QF generation also includes several Idaho hydro QF contracts,as well as 6 new Oregon
solar QF contracts (totaling 60 MW)and 5 new Oregon wind QF contracts (totaling 50 MW).
STAFF REVIEW
Staff reviewed the Company’s forecast and contract updates.Staff reported that the
load and gas price forecasts submitted by Idaho Power reflect the Company’s most current
estimates and were prepared consistent with the methods used in the Company’s IRP.Staff
maintained that the load and gas price forecasts and the long-term contract changes submitted by
the Company comply with the requirements of Order Nos.32697 and 32802.Staff
recommended that the Commission accept the forecasts and contract changes without further
process.
DISCUSSION AND CONCLUSIONS
The Commission has jurisdiction over Idaho Power pursuant to the authority and
power granted it under Title 61 of the Idaho Code and 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
ORDERNO.33182 2
and to implement FERC rules.The Commission is also empowered to resolve complaints
between QFs and utilities and approve QF contracts.
Pursuant to its authority,the Commission has reviewed and considered the filings of
record.We find that Idaho Power’s filing complies with the directives issued by this
Commission in Order Nos.32697 and 32802.Based upon our review of the totality of the
updates,we accept the updated inputs to Idaho Power’s IRP avoided cost calculation for filing.
ORDER
IT IS HEREBY ORDERED that Idaho Power’s annual update to its load and gas
price forecast and long-term contract status for purposes of its incremental cost IRP methodology
are accepted,effective October 15,2014.
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.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 1f
day of November 2014.
ATTEST:
O:IPC-E-I 4-25ks
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MACK A.RED ;OMM SSIONER
MARSHA H.SMITH,COMMISSIONER
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ORDERNO.33182 3