20160602notice_of_application_order_no_33530.pdf

Office of the Secretary
Service Date
June 2,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-16-1 1
COMPANY’S APPLICATION TO UPDATE )
SOLAR INTEGRATION RATES AND )NOTICE OF APPLICATION
CHARGES )
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33530
On May 6,2016,Idaho Power Company asked the Commission for authority to
update its solar integration rates and charges consistent with its completed 2016 Solar Integration
Study.The Commission now issues notice of the Company’s filing,and notice that the matter
will be processed by Modified Procedure.
BACKGROUND
Electric utilities that integrate solar generation into their systems incur costs based on
the amount of solar generation integrated,and on the other (non-solar)resources used to provide
needed operating reserves.Generally,the average cost of integrating solar generation increases
as the electric system’s nameplate solar generation increases.Where the utility has contracted to
purchase solar power under the Public Utility Regulatory Policies Act (PURPA),the rates for
such power must not exceed the utility’s “avoided cost”—what the utility would have incurred
had it generated or acquired the power elsewhere.If solar integration costs are not calculated
and properly allocated to these PURPA project developers,those costs will be impermissibly
passed onto utility customers in the avoided costs.
In February 2015,the Commission approved a settlement stipulation which
implemented solar integration rates and charges for Idaho Power based on the Company’s first
solar integration study,completed in 2014.The solar integration rates and charges were set forth
in a new tariff Schedule 87,Variable Generation Integration Charges,at the incremental cost of
solar integration for each 100 megawatts (MW)of solar nameplate penetration.The settlement
stipulation provided that Idaho Power would initiate a second solar integration study within the
next year,using a Technical Review Committee (TRC).
The TRC was comprised of Idaho Commission Staff,Oregon Commission Staff,
Idaho Power personnel,and a technical expert designated by each of the parties to the settlement
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33530
stipulation.The TRC developed and finalized a study plan and was involved throughout the
development of the Study Report,completed April 2016.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power seeks Commission approval of
updates to its solar integration costs resulting from the 2016 Solar Integration Study.With its
Application,the Company filed supporting testimonies by Philip B.DeVol,Senior Planning
Analyst with Idaho Power,and Michael J.Youngblood,Idaho Power’s Regulatory Affairs
Projects Manager.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes updated incremental
integration costs at each 100 MW of solar generation penetration,extending out to 1,600 MW.
Application at 5.The costs determined in the 2016 Study are substantially less than those from
the 2014 solar integration study,as shown in the following graph.
Incremental Solar Integration Charge Comparison
(2016$)
$4.66
$45.0
400
$350
C)
CA —2016 Scla.r rit?:5rbon St.udy
$1 50
0 100 200 300 400 600 700
Nameplate Penetration Level of Solar Capacity (MW)
Id.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33530
YOU ARE FURTHER NOTIFIED that the 100 MW incremental costs of solar
integration to 1 600 MW is shown in the following chart:
Proposed Incremental Solar Integration Charge
$uc
0
U
°$5 I
si
$f s&U9S YL O67(I)-
1..)34
p141
1J)9)39r)41 599 P9)(1j 1 9)0 100w 1100 120 30J 00 15 1690
Nameplate Penetration Level of Solar Capacity (MW)
Id.at6.
YOU ARE FURTHER NOTIFIED that Exhibit 4 to Mr.Youngblood’s testimony
contains tables that will replace the current Schedule 87,Sheets 87-9 through 87-15,and create
new Sheets 87-16 through 87-24.Id.The charges in Schedule 87 are amounts to be deducted
from avoided cost rates beginning the year a project comes on-line,and based on the nameplate
capacity penetration level of solar generation at the proposed project’s scheduled operation date.
Id.Each 100 MW increment or penetration level has its own table,set forth in Schedule 87,
which identifies the levelized integration charge and the non-levelized stream of integration
charge amounts listed by year.Id.
YOU ARE FUTHER NOTIFIED that the Company requests that the Commission
approve the updates to the solar integration costs in Schedule 87,Variable Generation Integration
Charges,as set forth in Mr.Youngblood’s Exhibit 4,based on the 2016 Study.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33530 3
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
parties positions in this matter can be adequately presented under Modified Procedure pursuant
to Rules 201 through 204 of the Idaho Public Utilities Commissions Rules of Procedure,IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by no
later than June 30,2016.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written
comments.Written comments concerning this Application shall be mailed to the Commission,
and the Applicant at the addresses reflected below:
Commission Secretary Donovan E.Walker
Idaho Public Utilities Commission Michael J.Youngblood
P0 Box 83720 Idaho Power Company
Boise,ID 83720-0074 1221 West Idaho Street (83702)
P.O.Box 70
Street Address for Express Mail:Boise,ID 83707
E-mail:
472 W.Washington Street
Boise,ID 83702-5918
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the front of this document.These comments must also be sent to Idaho Power at the
e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments,if
necessary,by no later than July 7,2016.
YOU ARE FURTHER NOTIFIED that the Application and exhibits have been filed
with the Commission and are available for public inspection during regular business hours at the
Commission offices.The documents are also available on the Commission’s web site at
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33530 4
:c.ijlupv.Click on the “File Room”tab at the top of the page.scroll down to “Open
Electric Cases.”then click on the case number shown on the fi’ont of this document.
YOU ARE FURTHER NOTIFIED that the Commission has authority over this
matter pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code,specifically
Idaho Code §61-307,and PURPA.The Commission may enter any final Order consistent with
its authority under Title 61 and PURPA.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure.IDAPA 31 .0 1 .01 .000.ci seq.
ORDER
IT IS HEREBY ORDERED that the Application shall be processed by Modified
Procedure.IDAPi\3 1 .01 .01 .201 -.204.Persons interested in submitting written comments in this
matter must do so no later than June 30,2016.
IT IS FURTHER ORDERED that reply comments by ldaho Power,if any,shall be
due July 7,2016.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of June 2016.
PAKJELL .PRESIDENT
KRISTINE RAPER,COMMI STONER
ATTEST:
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7 IJ /
J,éhn D.JewellfI
6mmission Scretary
0:IPC-E-16—11 dh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERO.33530
ERIC ANDERSON,COMMISSIONER