20160610Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:YAO YIN
DAPHNE HUANG,DAG
DATE:JUNE 8,2016
SUBJECT:UPDATE TO PUBLISHED AVOIDED COST RATES TO REFLECT AN
UPDATED NATURAL GAS PRICE FORECAST OF THE U.S.ENERGY
INFORMATION ADMINISTRATION (EIA),CASE NOS.AVU-E-16-04,
IPC-E-16-12,PAC-E-16-10
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 avoided cost rate at which PURPA qualifying cogeneration and
small power production facilities (QFs)are paid by Idaho Power,Avista,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 EIA triggered an updated calculation of avoided
cost rates.
UPDATED NATURAL GAS PRICE FORECAST
One of the key input variables in the computation of avoided cost rates in the SAR
methodology is a 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 published in EIA’s Annual Energy Outlook serves as the basis for
computing avoided cost rates.In Order No.32697,the Commission also found that the final
release of Annual Energy Outlook automatically triggers a recalculation of the published avoided
cost rates.In Order No.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.
DECISION MEMORANDUM 1
The Annual Energy Outlook 2016 was released on May 17,2016.A copy of the
relevant natural gas price forecast is attached.
STAFF REVIEW
Commission Staff has recomputed avoided cost rates for Idaho Power,Avista,and
PacifiCorp,using EIA’s most recent natural gas price forecast.Staff provided Idaho Power,
Avista,and PacifiCorp with worksheets on May 27,2016,for review and comment,showing the
computation of the updated avoided cost rates.A copy of the rates computed by Staff for all three
utilities is attached.Due to the lower near-term natural gas price forecast,the new avoided cost
rates for the year of 2016 have decreased approximately 11 to 17%from the previously published
rates for the same year,depending on the generation type.
STAFF RECOMMENDATION
Staff recommends that the attached avoided cost rates for Idaho Power,Avista,and
PacifiCorp be approved with an effective date of June 15,2016.
COMMISSION DECISION
Presented for Commission approval are the updated published avoided cost rates for
Idaho Power,Avista,and PacifiCorp,which have incorporated the natural gas price forecast
published in the release of EIA’s Annual Energy Outlook 2016.The calculation of the fuel cost
adjustment to published avoided cost rates is arithmetic.Does the Commission wish to approve
the changes in rates effective June 15,2016?
M:AVU-E-1 6-04_IPC-E-16-12PAC-E-16-1 Oj’y_djh
Deputy Attorney General
DECISION MEMORANDUM 2
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AVISTA
AVOIDED COST RATES FOR WIND PROJECTS
June 15,2016
$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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 31.16 31.72 33.91 33.86 38.17 39.44 2016 31.16
2 31.43 32.77 33.88 35.93 38.78 40.28 2017 31.72
3 32.19 33.11 35.21 37.02 39.52 41.31 2018 33.91
4 32.56 34.23 36.15 37.94 40.43 42.34 2019 33.86
5 33.52 35.12 37.01 38.91 41.37 43.38 2020 38.17
6 34.33 35.95 37.91 39.87 42.34 44.25 2021 39.44
7 35.10 36.81 38.81 40.83 43.17 44.95 2022 41.19
8 35.90 37.67 39.72 41.67 43.86 45.48 2023 43.60
9 36.71 38.54 40.53 42.38 44.40 46.00 2024 45.95
10 37.52 39.31 41.22 42.95 44.93 46.46 2025 48.41
11 36.26 39.99 41.78 43.50 45.39 46.83 2026 49.77
12 38,91 40.55 42.32 43.98 45.77 47.23 2027 50.49
13 39.45 41.09 42.80 44.38 46.18 47.64 2028 50.51
14 39.98 41.57 43.21 44.80 46.58 48.02 2029 52.05
15 40.44 41.97 43.63 45.21 46.96 48.40 2030 52.62
16 40.84 42.39 44.04 45.60 47.34 48.77 2031 52.47
17 41.25 42.79 44.42 45.97 47.70 49.16 2032 54.54
18 41.65 43.17 44.79 46.34 48.08 49.53 2033 55.98
19 42.02 43.54 45.15 46.71 48.44 49.90 2034 56.72
20 42.38 43.89 45.51 47.07 48.80 50.27 2035 58.27
2036 59.66
2037 61.50
2038 62.97
2039 64.89
2040 66.63
2041 68.15
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http://www.eia.gov/forecasts/aeo/er/tables_ref.cfm
AV1STA Page 1
AVISTA
AVOIDED COST RATES FOR SOLAR PROJECTS
June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 32.45 31.72 33.91 33.86 39.54 40.84 2016 32.45
2 32.10 32.77 33.88 36.59 40.17 41.69 2017 31.72
3 32.66 33.11 35.63 37.90 40.92 42.72 2018 33.91
4 32.92 34.54 36.79 38.95 41.83 43.76 2019 33.86
5 34.06 35.61 37.78 39.99 42.78 44.81 2020 39.54
6 34.98 36.57 38.77 41.00 43.76 45.69 2021 40.84
7 35.84 37.52 39.74 42.00 44.60 46.40 2022 42.60
8 36.71 38.45 40.70 42.87 45.30 46.93 2023 45.04
9 37.57 39.37 41.55 43.61 45.84 47.47 2024 47.40
10 38.42 40.20 42.27 44.19 46.38 47.94 2025 49.89
11 39.20 40.91 42.86 44.76 46,85 48.31 2026 51.27
12 39.87 41.50 43.43 45.26 47.24 48.73 2027 52.01
13 40.44 42.07 43.94 45.68 47.66 49.14 2028 52.06
14 40.99 42.57 44.36 46.11 48.07 49.53 2029 53.62
15 41.48 43.00 44.80 46.54 48.45 49.92 2030 54.21
16 41.90 43.44 45.23 46.93 48.84 50.30 2031 54.09
17 42.33 43.86 45.62 47.32 49.21 50.68 2032 56.18
18 42.74 44.25 46.01 47.70 49.59 51.06 2033 57.64
19 43.12 44.64 46.38 48.08 49.96 51.44 2034 58.40
20 43.49 45.01 46.75 48.45 50.33 51.82 2035 59.98
2036 61.39
2037 63.26
2038 64.75
2039 66.70
2040 68.47
2041 70.02
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http:/Iwww.eia.govlforecasts/aeo/er/tables_ref.cfm
AVISTA Page 2
AVISTA
AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS
June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 38.44 31.72 33.91 33.86 45.89 47.28 2016 38.44
2 35.21 32.77 33.88 39.65 46.56 48.17 2017 31.72
3 34.81 33.11 37,59 42.00 47.35 49.25 2018 33.91
4 34.60 35.95 39.74 43.59 48.31 50.34 2019 33.86
5 36.53 37.88 41.35 44.97 49.31 51.43 2020 45.89
6 38.00 39.42 42.76 46.22 50.32 52.35 2021 47.28
7 39.25 40.80 44.03 47.40 51.20 53.10 2022 49.14
8 40.42 42.06 45.23 48.42 51.94 53.68 2023 51.67
9 41.52 43.23 46.27 49.27 52.53 54.25 2024 54.13
10 42.58 44.27 47.16 49.96 53.10 54.76 2025 56.72
11 43.52 45.16 47.88 50.62 53.61 55.17 2026 58.19
12 44.34 45.91 48,57 51.20 54.03 55.62 2027 59.04
13 45.04 46.61 49.18 51.68 54.49 56.08 2028 59.19
14 45.69 47.23 49.69 52.18 54.94 56.50 2029 60.85
15 46.28 47.76 50.21 52.67 55.36 56.92 2030 61.56
16 46.79 48.29 50.72 53.12 55.77 57.33 2031 61.54
17 47.29 48.80 51.18 53.56 56.18 57.75 2032 63.74
18 47.78 49.27 51.63 53.98 56.59 58.16 2033 65.31
19 48.23 49.72 52.06 54.41 56.99 58.58 2034 66.18
20 48.66 50.15 52.49 54.82 57.39 58.98 2035 67.87
2036 69.40
2037 71.39
2038 73.01
2039 75.07
2040 76.97
2041 78.64
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http:llwww eia.govlforecastslaeo!erltables_ref.cfm
AVISTA Page 3
AVISTA
AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS
June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.97 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.29 35.09 36.50 38.24 2018 33.91
4 31.78 33.57 34.76 35.76 37.38 39.25 2019 33.86
5 32.36 34.06 35.33 36.57 38.31 40.26 2020 35.19
6 32.91 34.61 36.04 37.42 39.25 41.12 2021 36.42
7 33.50 35.27 36.79 38.29 40.06 41.80 2022 38.11
8 34.16 35.98 37.59 39.07 40.74 42.30 2023 40.49
9 34.85 36.72 38.30 39.72 41.25 42.81 2024 42.79
10 35.57 37.40 38.92 40.24 41,77 43.26 2025 45.20
11 36.23 37.99 39.42 40.74 42.21 43.60 2026 46,51
12 36.81 38.48 39.91 41.19 42.57 43.99 2027 47.19
13 37.29 38.95 40.34 41.55 42.96 44.38 2028 47.16
14 37.77 39.38 40.70 41.95 43.36 44.74 ‘2029 48.65
15 38.19 39.73 41.08 42.33 43.72 45.11 2030 49.17
16 38.55 40.11 41.46 42.69 44.08 45.47 2031 48.97
17 38.92 40.47 41.80 43.04 44.43 45.83 2032 50.99
18 39.28 40.81 42.15 43.39 44.79 46.19 2033 52.37
19 39.62 41.15 42.48 43.74 45.13 46.55 2034 53.06
20 39.95 41.47 42.82 44.08 45.48 46.90 2035 54.55
2036 55.89
2037 57.68
2038 59.09
2039 60.95
2040 62.64
2041 64.10
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: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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http://www.eia.gov/forecasts/aeo/er/tables_ref.cfm
AVISTA Page 4
AVISTA
AVOIDED COST RATES FOR OTHER PROJECTS
June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 47.77 31.72 33.91 33.86 55.77 57.30 2016 47.77
2 40.05 32.77 33.88 44.40 56.51 58.27 2017 31.72
3 38.16 33.11 40.63 48.38 57.37 59.42 2018 33.91
4 37.20 38.14 44.34 50.81 58.40 60.57 2019 33.86
5 40,37 41.42 46.89 52.72 59.46 61.73 2020 55.77
6 42.69 43.86 48.96 54.34 60.54 62.72 2021 57.30
7 44.55 45.90 50.72 55.80 61.48 63.53 2022 59.31
8 46.20 47.66 52.28 57.04 62.29 64.17 2023 61.99
9 47.68 49.24 53.63 58.08 62.93 64.81 2024 64.61
10 49.04 50.61 54.76 58.93 63.57 65.38 2025 67.34
11 50.24 51.78 55.70 59.73 64.13 65.84 2026 68.98
12 51.29 52.76 56.57 60.43 64.61 66.36 2027 69.98
13 52.18 53.67 57.33 61.02 65.12 66.87 2028 70.29
14 53.01 54.47 57.99 61.62 65.62 67.34 2029 72.12
15 53.75 55.16 58.64 62.20 66.09 67.82 2030 72.98
16 54.39 55.84 59.26 62.74 66.56 68.28 2031 73.13
17 55.02 56.48 59.83 63.26 67.02 68.75 2032 75.50
18 55.62 57.07 60.38 63.76 67.48 69,21 2033 77.25
19 56.17 57.63 60.90 64.26 67.93 69.67 2034 78.30
20 56.70 58.16 61.41 64.73 68.37 70.13 2035 80.16
2036 81.88
2037 84.05
2038 85.85
2039 88.10
2040 90.19
2041 92.05
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http://www.eia.gov/forecasts/aeo/er/tables_ref.cfm
AVISTA Page 5
IDAHO POWER COMPANY
AVOIDED COST RATES FOR WIND PROJECTS
June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.96 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.28 35.09 36.50 38.23 2018 33.91
4 31.77 33.57 34.76 35.76 37.38 39.97 2019 33.86
5 32.35 34.05 35.33 36.56 38.86 41.43 2020 35.19
6 32.90 34.60 36,03 37.85 40.18 42.58 2021 36.42
7 33.48 35.26 37.15 39.05 41.26 43.48 2022 38.11
8 34.14 36.27 38.21 40.06 42.14 44.15 2023 40.49
9 35.09 37.25 39.15 40.90 42.82 44.79 2024 46.10
10 36.01 38.11 39.93 41.57 43.46 45.34 2025 48.56
11 36.84 38.86 40.57 42.21 44.01 45.77 2026 49.92
12 37.56 39.48 41.18 42.76 44.46 46.24 2027 50.65
13 38.16 40.06 41.71 43.21 44.93 46.70 2028 50.67
14 38.73 40.58 42.16 43.68 45.39 47.11 2029 52.21
15 39.24 41.02 42.61 44.13 45.81 47.52 2030 52.78
16 39.68 41.46 43.05 44.55 46.22 47.92 2031 52.64
17 40.12 41.89 43.46 44.95 46.62 48.32 2032 54.71
18 40.54 42.28 43.85 45.34 47.01 48.71 2033 56.15
19 40.92 42.67 44.23 45.73 47.39 49.10 2034 56.89
20 41.30 43.03 44.60 46.10 47.77 49.48 2035 58.44
2036 59.83
2037 61.68
2038 63.15
2039 65.07
2040 66.82
2041 68.34
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http://www.eia.gov/forecasts/aeo/er/tables_ref.cfm
IDAHO POWER COMPANY Page 1
IDAHO POWER COMPANY
AVOIDED COST RATES FOR SOLAR PROJECTS
June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.96 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.28 35.09 36.50 38.23 2018 33.91
4 31.77 33.57 34.76 35.76 37.38 46.73 2019 33.86
5 32.35 34.05 35.33 36.56 44.05 52.31 2020 35.19
6 32.90 34.60 36.03 42.00 48.86 56.25 2021 36.42
7 33.48 35.26 40.55 46.18 52.48 59.18 2022 38.11
8 34,14 39.12 44.19 49.47 55.29 61.41 2023 40.49
9 37.51 42.33 47.15 52.10 57.50 63.29 2024 76.63
10 40.39 45.01 49.57 54.21 59.38 64.85 2025 79.54
11 42.83 47.24 51.56 56.05 60.97 66.13 2026 81.36
12 44.90 49.11 53.31 57.62 62.30 6732 2027 82.54
13 46.65 50.76 54.82 58.94 63.53 68.41 2028 83.03
14 48.22 52.20 56.10 60.17 64.65 69.38 2029 85.05
15 49.59 53.44 57.30 61.28 65.65 70.28 2030 86.10
16 50.79 54.60 58.39 62.29 66.58 71.13 2031 86.44
17 51.90 55.66 59.38 63.22 67.44 71.93 2032 89.01
18 52.93 56.62 60.29 64.09 68.26 72.68 2033 90.95
19 53.86 57.51 61.14 64.90 69.02 73.40 2034 92.20
20 54.72 58.34 61.95 65.67 69.75 74.08 2035 94.27
2036 96.19
2037 98.57
2038 100.58
2039 103.05
2040 105.35
2041 107.44
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http:IIwww.eia.gov/forecasts/aeo/erltables_refcfm
IDAHO POWER COMPANY Page 2
IDAHO POWER COMPANY
AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS
June 15,2016
$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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.96 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 3311 34.28 35.09 36.50 38.23 2018 33.91
4 31.77 33.57 34.76 3576 37.38 46.08 2019 33.86
5 32.35 34.05 35.33 36.56 43.54 51.25 2020 35.19
6 32.90 3460 36.03 41.60 48.02 54.92 2021 36.42
7 33.48 35.26 40.22 45.49 51.40 57.65 2022 38.11
8 34.14 38.85 43.61 48.55 54.02 59.73 2023 40.49
9 37.28 41.84 46.37 51.01 56.07 61.49 2024 73.67
10 39.97 44.34 48.64 52.99 57.84 62.95 2025 76.54
11 42.25 46.43 50.49 54.70 59.33 64.16 2026 78.30
12 44.19 48.17 52.13 56.17 60.57 65.28 2027 79.45
13 45.83 49.72 53.54 57.41 61.72 66.30 2028 79.89
14 47.30 51.07 54.75 58.57 62.78 67.22 2029 81.86
15 48.59 52.24 55.87 59.62 63.72 68.08 2030 82.87
16 49.71 53.32 56.90 60.57 64.60 68,87 2031 83.16
17 50.76 54.32 57.83 61.45 65.42 69.63 2032 85.68
18 51.73 55.22 58.70 62.27 66.19 70.35 2033 87.57
19 52.60 56.07 59.50 63.04 66.92 71.04 2034 88.77
20 53.42 56.85 60.26 63.77 67.62 71.69 2035 90.79
2036 92.66
2037 94.99
2038 96.95
2039 99.36
2040 101.61
2041 103.65
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http:/Iwww.eia.gov/forecastslaeoler/tables_ref.cfm
IDAHO POWER COMPANY Page 3
IDAHO POWER COMPANY
AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS
June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.96 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.28 35.09 36.50 38.23 2018 33.91
4 31.77 33.57 34.76 35.76 37.38 50.67 2019 33.86
5 32.35 34.05 35.33 36.56 47.07 58.65 2020 35.19
6 32.90 34.60 36.03 44.41 53.93 64.22 2021 36,42
7 33.48 35.26 42.54 50.34 59.03 68.33 2022 38.11
8 34.14 40.79 47.68 54.95 62.96 71.47 2023 40.49
9 38.93 45.30 51.82 58.63 66.06 74.07 2024 94.45
10 42.95 49.03 55.19 61.59 68.67 76.22 2025 97.62
11 46.32 52.13 57.97 64.12 70.86 78.01 2026 99.69
12 49.18 54.72 60.38 66.28 72.70 79.62 2027 101.15
13 51.61 57.00 62.46 68.12 74.37 81.08 2028 101.91
14 53.75 58.98 64.24 69.78 75.88 82.37 2029 104.20
15 55.63 60.69 65.87 71.29 77.22 83.56 2030 105.54
16 57.27 62.26 67.34 72.64 78.45 84.66 2031 106.16
17 58.78 63.69 68.67 73.88 79.59 85.69 2032 109.02
18 60.16 64.98 69.89 75.02 80.65 86.66 2033 111.25
19 61.40 66.16 71.01 76.09 81.64 87.57 2034 112.80
20 62.56 67.26 72.06 77.08 82.57 88.43 2035 115.17
2036 117.39
2037 120.09
2038 122.41
2039 125.20
2040 127.83
2041 130.25
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: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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http://www.eia.gov/forecasts/aeo/erltablesjef.cfm
IDAHO POWER COMPANY Page 4
IDAHO POWER COMPANY
AVOIDED COST RATES FOR OTHER PROJECTS
June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.96 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.28 35.09 36.50 38.23 2018 33.91
4 31,77 33.57 34.76 35.76 37.38 44.30 2019 33.86
5 32.35 34.05 35.33 36.56 42.18 48.38 2020 35.19
6 32.90 34.60 36.03 40.50 45.73 51.32 2021 36.42
7 33.48 35.26 39.33 43.61 48.44 53.52 2022 38.11
8 34.14 38.09 42.04 46.08 50.55 55.19 2023 40.49
9 36.64 40.50 44.26 48,06 52.20 56.62 2024 65.62
10 38.81 42.52 46.10 49.66 53.64 57.81 2025 68.37
11 40.67 44.22 47.60 51.06 54.86 58.79 2026 70.02
12 42.25 45.63 48.93 52.26 55.87 59.72 2027 71.04
13 43.59 46.90 50.09 53.27 56.82 60.58 2028 71.36
14 44.80 48.01 51.08 54.22 57.70 61.35 2029 73.21
15 45.86 48.96 52.00 55.10 58.49 62.08 2030 74.09
16 46.78 49.86 52.86 55.89 59.24 62.76 2031 74.26
17 47.65 50.69 53.64 56.63 59.93 63.42 2032 76.64
18 48.46 51.45 54.36 57.33 60.60 64.04 2033 78.41
19 49.20 52.16 55.04 57.99 61.22 64.64 2034 79.47
20 49.88 52.82 55.69 58.61 61.83 65.21 2035 81.35
2036 83.08
2037 85.27
2038 87.08
2039 89.36
2040 91.46
2041 93.34
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http:I/www.eia.govlforecasts/aeoler/tables_ref.cfm
IDAHO POWER COMPANY Page 5
PACIFICORP
AVOIDED COST RATES FOR WIND PROJECTS
June 15,2016
$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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.97 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.28 35.09 36.50 38.24 2018 33.91
4 31.77 33.57 34.76 35.76 37.38 39.25 2019 33.86
5 32.36 34.05 35.33 36.57 38.30 40.82 2020 35.19
6 32.91 34.61 36.03 37.41 39.69 42.05 2021 36.42
7 33.49 35.27 36.79 38.66 40.83 43.01 2022 38.11
8 34.15 35.97 37.89 39.71 41.75 43.72 2023 40.49
9 34.84 36.98 38.85 40.58 42.46 44.40 2024 42.79
10 35.79 37.87 39.66 41.27 43.13 44.97 2025 48.49
11 36.63 38.63 40.32 41.92 43.70 45.43 2026 49.85
12 37.37 39.26 40.94 42.49 44.17 45.91 2027 50.57
13 37.98 39.86 41.49 42.96 44.66 46.38 2028 50.59
14 38.57 40.39 41.95 43.44 45.13 46.82 2029 52.13
15 39.09 40.84 42.41 43.91 45.56 47.24 2030 52.71
16 39.54 41.30 42.87 44.34 45.98 47.65 2031 52.56
17 39.98 41.74 43.28 44.75 46.39 48.07 2032 5463
18 40.41 42.14 43.68 45.15 46.80 48.47 2033 56.07
19 40.81 42.53 44.07 45.55 47.19 48,87 2034 56.80
20 41.19 42.91 44.45 45.93 47.58 49.26 2035 58.36
2036 59.75
2037 61.59
2038 63.06
2039 64.98
2040 66.73
2041 68.25
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http:Ilwww.eia.gov/forecasts/aeo/er/tables_ref.cfm
PACIFICORP Page 1
PACIFICORP
AVOIDED COST RATES FOR SOLAR PROJECTS
June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.97 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.28 35.09 36.50 38.24 2018 33.91
4 31.77 33.57 34.76 35.76 37.38 39.25 2019 33.86
5 32.36 34.05 35.33 36.57 38.30 45.99 2020 35.19
6 32.91 34.61 36.03 37.41 43.83 50.71 2021 36.42
7 33.49 35.27 36.79 42.06 47.95 54.20 2022 38.11
8 34.15 35.97 40.74 45.68 51.13 56.84 2023 40.49
9 34.84 39.41 43,94 48.58 53.63 59.03 2024 42.79
10 37.88 4225 46.55 50.90 55.75 60.85 2025 78.80
11 40.45 44.63 48.70 52.91 57.52 62.34 2026 80.61
12 42.63 46.62 50.58 54.62 59.01 63.70 2027 81.78
13 44.48 48.37 52.19 56.06 60.37 64.94 2028 82.26
14 46.12 49.90 53.58 57.39 61.60 66.03 2029 84.26
15 47.57 51.22 54.85 58.60 62.70 67.04 2030 85.31
16 48.83 52.44 56.02 59.68 63.71 67.97 2031 85.64
17 49.99 53.56 57.07 60.68 64.65 68.86 2032 88.19
18 51.07 54.57 58.04 61.61 65.53 69.68 2033 90.13
19 52.04 55.51 58.94 62.48 66.36 70.47 2034 91.36
20 52.95 56.38 59.79 63.30 67.14 71.21 2035 93.42
2036 95.32
2037 97.69
2038 99.69
2039 102.15
2040 104.44
2041 106.52
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http://www,eia,govlforecasts/aeo/er/tables_ref.cfm
PACIFICORP Page 2
PACIFICORP
AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS
June 15,2016
$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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.97 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.28 35.09 36.50 38.24 2018 33.91
4 31.77 33.57 34.76 35.76 3738 39.25 2019 33.86
5 32.36 34.05 35.33 36,57 38.30 45.49 2020 35.19
6 32.91 34.61 36.03 37.41 43.43 49.87 2021 36.42
7 33.49 35.27 36.79 41.73 47.26 53.11 2022 38.11
8 34.15 35.97 40.47 45.10 50.22 55.56 2023 40.49
9 34.84 39.17 43.44 47.80 52.54 57.61 2024 42.79
10 37.68 41.83 45.88 49.97 54.52 59.31 2025 75.86
11 40.08 44.05 47.89 51.84 56.18 60.70 2026 77.62
12 42.12 45.90 49.64 53.44 57.57 61.98 2027 78.75
13 43.85 47.54 51.16 54.79 58.84 63.13 2028 79.19
14 45.39 48.97 52.45 56.04 60.00 64.16 2029 81.15
15 46.74 50.21 53.65 57.17 61.03 65.12 2030 82.14
16 47.92 51.36 54.74 58.19 61.99 66.00 2031 82.43
17 49.02 52.41 55.73 59.14 62.88 66.84 2032 84.93
18 50.03 53.36 56.65 60.01 63.71 67.62 2033 86.82
19 50.95 54.25 57.50 60.84 64.50 68.37 2034 88.01
20 51.81 55.07 58.30 61.61 65.24 69.08 2035 90.02
2036 91.87
2037 94.19
2038 96.14
2039 98.54
2040 100.78
2041 102.80
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http:Ilwww.eia.gov/forecasts/aeo/er/tables_ref.cfm
PACIFICORP Page 3
PACIFICORP
AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS
,June 15,2016
$/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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.97 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.28 35.09 36.50 38.24 2018 33.91
4 31.77 33.57 34.76 35.76 37.38 39.25 2019 33.86
5 32.36 34.05 35.33 36.57 38.30 49.01 2020 35.19
6 32.91 34.61 36.03 37.41 46.24 55.76 2021 36,42
7 33.49 35.27 36.79 44.04 52.11 60.72 2022 38.11
8 34.15 35.97 42.41 49.17 56.61 64.49 2023 40.49
9 34.84 40.82 46.91 53.24 60.15 67.57 2024 42.79
10 39.10 44.81 50.57 56.52 63.11 70.11 2025 96.49
11 42.68 48.13 53.59 59.32 65.59 72.21 2026 98.55
12 45.70 50.91 56.20 61.69 67.66 74.08 2027 99.99
13 48.26 53.33 58.44 63.71 69.53 75.76 2028 100.73
14 50.53 55.44 60.36 65.53 71.20 77.24 2029 103.01
15 52.51 57.27 62.11 67.17 72.69 78.59 2030 104.32
16 54.24 58.94 63.69 68.63 74.05 79.82 2031 104.93
17 55.83 60.45 65.11 69.98 75.30 80.98 2032 107.77
18 57.28 61.82 66.42 71.21 76.46 82.05 2033 109.99
19 58.59 63.08 6762 72.36 77.54 83.06 2034 111.52
20 59.80 64.24 68.74 73.43 78.55 84.01 2035 113.87
2036 116.08
2037 118.75
2038 121.06
2039 123.83
2040 126.44
2041 128.84
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: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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http://w.eia.gov/forecasts/aeo/er/tablesjef.cfm
PACIFICORP Page 4
PACIFICORP
AVOIDED COST RATES FOR OTHER PROJECTS
June 15,2016
$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)2016 2017 2018 2019 2020 2021 YEAR RATES
1 28.34 31.72 33.91 33.86 35.19 36.42 2016 28.34
2 29.97 32.77 33.88 34.50 35.78 37.23 2017 31.72
3 31.18 33.11 34.28 35.09 36.50 38.24 2018 33.91
4 31.77 33,57 34.76 35.76 37.38 39.25 2019 33.86
5 32.36 34.05 35.33 36.57 38.30 44.13 2020 35.19
6 32.91 34.61 36.03 37.41 42.34 47.59 2021 36.42
7 33.49 35.27 36.79 40.83 45.38 50.16 2022 38.11
8 34.15 35.97 39.72 43,53 47.75 52.11 2023 40.49
9 34.84 38.53 42.10 45.69 49.60 53.76 2024 42.79
10 37.13 40.67 44.07 47.43 51.20 55.12 2025 67.87
11 39.07 42.47 45.68 48.95 52.54 56.24 2026 69.52
12 40.73 43.96 47.10 50.25 53.66 57.29 2027 70.53
13 42.14 45.30 48.33 51.34 54.70 58.25 2028 70.84
14 43.40 46.47 49.38 52.36 55.66 59.10 2029 72.68
15 44.51 47.48 50.37 53.30 56.52 59.90 2030 73.55
16 45.48 48.42 51.28 54.15 57.32 60.65 2031 73.71
17 46.38 49.29 52.10 54.94 58.07 61.36 2032 76.09
18 4723 50.09 52.86 55.68 58.78 62.03 2033 77.85
19 47.99 50.83 53.58 56.38 59.45 62.68 2034 78.90
20 48.71 51,52 54.26 57.04 60.09 63.30 2035 80.78
2036 82.50
2037 84.68
2038 86.49
2039 88.75
2040 90.84
2041 92.72
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 2016,released May 17,2016.See Annual Energy Outlook 2016,Table 3.8 Energy Prices by Sector-Mountain at
http:/Iwww.eia.gov/forecasts/aeo/er/tablesjef.cfm
PACIFICORP Page 5