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Home My WebLink About20190628Application.pdfREC E IVE D tfilg JUN 28 Pt{ tr: 36 i-1,',,llri i:UiiLlC I rj lLl.iiES CCIh{MlssloN 3E',ffi*@ An TDACORP Company DONOVAN E. WALKER Lead Counsel dwal ker@i dahopower.com June 28,2019 VIA HAND DELIVERY Diane M. Hanian, Secretary ldaho Public Utilities Commission 472 West Washington Street Boise, ldaho 83702 Re: Case No. IPC-E-19-20 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 5t. (83702) P.O. Box 70 Boise, lD 83707 1221West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 S[ryAlker@idahopower. com OVAN E. WALKER (lSB No. 5921) Power Company RECE IVED i0l9 JUH 28 Pll lr: 35 lD,:rlii ir UirLlC ITILITIIS COHMISSION 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 CALCULATIONS. CASE NO. IPC-E-19-20 APPLICATION ldaho Power Company ("ldaho Powe/'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. Idaho Power's 2Ol9lntegrated Resource Plan ("lRP") indicates a first capacity deficit of July 2029, as shown in Attachment 1 . ldaho Power asks for Commission approval of the capacity deficiency period with a first deficit occurring in July 2029. APPLICATION - 1 ) ) ) ) ) ) ln support of its Application, ldaho Power states as follows: 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 !n 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 2019 IRP with the Commission on June 28,2019, in Case No. IPC-E-19-19. ldaho Power's 2019 IRP identifies the first peak-hour deficit occurring in July 2029, as shown in Attachment 1 . As described in the 2019 lRP, ldaho Power utilized capacity expansion modeling, which resulted in a departure from the APPLICATION - 2 practice in previous lRPs of developing resource portfolios to specifically eliminate resource deficiencies identified by a load and resource balance. See ldaho Power's 2019 IRP, p. 3. However, for application to PURPA avoided cost calculations, ldaho Powe/s load and resource balance has been determined based on the preferred portfolio of the 2019 lRP. This first capacity deficit appears on page 28 of the 2019 IRP, Appendix C: Technical Report and the detailed determination of that deficit is contained herewith as Attachment 1. 4. Attachment 1 shows a first capacity deficiency of approximately 42 megawatts ("MW") occurring in July 2029 under the preferred portfolio of the 2019 IRP. ldaho Power requests that a first capacity deficit of July 2029 be utilized for avoided cost calculations for both the SAR and IRP 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, 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 ldaho Power Company 1221West ldaho Street (83702) P.O. Box 70 Boise, Idaho 83707 dwalker@ idahopower. com dockets@ idahopower.com tVichael Darrington Energy Contracts ldaho Power Company 1221West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 mda rri ngto n@ida ho power. com enerqyco dahopower.com APPLICATION - 3 V. CONCLUSION 7. ldaho Power respectfully requests that the Commission issue an order approving the capacity deficiency period in Attachment 1 to be utilized in the Company's avoided cost determinations under the SAR and IRP methodologies, with a first deficit occurring in July 2029. Respectfully submitted this 28th day of June 2019. DONOVAN E. WALKER Attorney for ldaho Power Company APPLICATION - 4 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. 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