20170726Application.pdf

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DONOVAN E. WALKER
Lead Counsel
[e-mail]
July 26, 2017
VIA HAND DELIVERY
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Case No. IPC-E-17-12
Capacity Deficiency to be Utilized for Avoided Cost Calculations - ldaho
Power Company's Application
Dear Ms. Hanian
Enclosed for filing in the above matter please find an original and seven (7)
copies of ldaho Power Company's Application.
very yours,
Donovan E. Walker
DEW:csb
Enclosures
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
Re
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
dwa lker@ id a hopower. com
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Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OF THE CAPACITY
DEFICIENCY TO BE UTILIZED FOR
AVOI DED COST CALCU LATIONS.
CASE NO. rPC-E-17-12
APPLICATION
ldaho Power Company ("ldaho Power" or "Company"), in accordance with RP 52,
the applicable provisions of the Public Utility Regulatory Policies Act of 1978 ('PURPA'),
and ldaho Public Utilities Commission ("Commission") Order Nos. 32697, 33084, and
33159, hereby respectfully submits this Application requesting an order for approval of
the capacity deficiency period to be utilized for the Company's avoided cost
calculations. ldaho Power's 2017 lntegrated Resource Plan ("lRP") indicates a first
capacity deficit of July 2026, as shown in Table 1 below. ldaho Power asks for
Commission approval of the capacity deficiency period with a first deficit occurring in
July 2026. ln support of its Application, ldaho Power states as follows:
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APPLICATION - 1
I. INTRODUCTION
1. ln Order No. 32697, the Commission directed that a case be initiated
outside of each utility's IRP filing for the establishment of the capacity deficiency period
to be utilized in the utility's Surrogate Avoided Resource ('SAR") methodology.
[W]e find it reasonable and fair to subject each utility's
determination of capacity deficiency to further scrutiny.
Therefore, when a utility submits its lntegrated Resource
Plan to the Commission, a case shall be initiated to
determine the capacity deficiency to be utilized in the SAR
Methodology. The capacity deficiency determined through
the IRP planning process will be the starting point, and will
be presumed to be correct subject to the outcome of the
proceeding.
Order No. 32697, p.23.
2. ln Order No. 33159, the Commission found it just and reasonable to utilize
the same first capacity deficit determination for purposes of the incremental cost IRP
methodology. The Commission stated
ln calculating a QF's ability to contribute to a utility's need for
capacity, we find it reasonable for the utilities to only begin
payments for capacity at such time that the utility becomes
capacity deficient. lf a utility is capacity surplus, then
capacity is not being avoided by the purchase of QF power.
By including a capacity payment only when the utility
becomes capacity deficient, the utilities are paying rates that
are a more accurate reflection of true avoided cost for the
QF power.
Order No. 33159, p.7.
II. CAPACIW DEFICIENCY PERIOD
3. ldaho Power filed its 2017 IRP with the Commission on June 30,2017, in
Case No. IPC-E-17-11. ldaho Power's 2017 IRP identifies the first peak-hour deficit
occurring in July 2026, as shown in Table 1 below. This table also appears on page 60
of the 2017 lRP, Appendix C: Technical Report. As described in the 2017 lRP, peak-
APPLICATION - 2
hour load deficits are determined using 90th percentile water and 95th percentile peak-
hour load conditions. ldaho Power's 2017 lRP, p. 94
Table 1
Peak-hour monthly deficits with existing DSM and existing resources
4. Table 1 shows a first capacity deficiency of approximately 34 megawatts
('MW") occurring in July 2026 underthe preferred portfolio of the 2017 lRP. The first
energy deficit of 143 MW under the preferred portfolio occurs in July 2029. See 2017
lRP, Appendix C: Technical Report, p. 106. ldaho Power requests that a first capacity
deficit of July 2026 be utilized for avoided cost calculations for both the SAR and lRP
methodologies.
III. MODIFIED PROCEDURE
5. ldaho Power believes that a hearing is not necessary to consider the
issues presented herein and respectfully requests that this Application be processed
under Modified Procedure, i.e., by written submissions rather than by hearing. RP 201
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APPLICATION - 3
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ef seg. lf, however, the Commission determines that a technical hearing is required, the
Company stands ready to prepare and present its testimony in such hearing
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
6. Communications and service of pleadings with reference to this
Application should be sent to the following:
Donovan E. Walker
Regulatory Dockets
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
dwalker@ idahopower. com
dockets@ idahopower. com
Michael Darrington
Energy Contracts
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
mdarrinqton@ idahopower.com
e ne rqyco ntracts@ id a h op owe r. co m
V. CONCLUSION
7. ldaho Power respectfully requests that the Commission issue an order
approving the capacity deficiency period in Table 1, above, to be utilized in the
Company's avoided cost determinations under the SAR and IRP methodologies, with a
first deficit occurring in July 2026.
Respectfully submitted this 26th day of July 2017.
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DONOVAN E. WALKER
Attorney for ldaho Power Company
APPLICATION - 4