20220728Final_Order_No_35475.pdf

ORDER NO. 35475 1

Office of the Secretary
Service Date
July 28, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On April 9, 2021, Idaho Power Company (“Company”) filed Case No. IPC-E-21-09 and
applied for Commission approval of its First Capacity Deficiency Date determination for avoided
cost calculations under the Public Utility Regulatory Policies Act of 1978 (“PURPA”) based on
its Second Amended 2019 Integrated Resource Plan (“IRP”).
On February 4, 2022, the Company filed an Amended Application, seeking to implement
a First Capacity Deficiency Date of July 2023.
On May 25, 2022, the Commission issued Order No. 35415, approving a First Capacity
Deficiency Date of July 2023. Order No. 35415.
On May 31, 2022, the Commission issued Order No. 35422 in Case No. GNR-E-22-01,
approving the natural gas forecast update from U.S. Energy Information Administration (“EIA”)
Annual Energy Outlook to be effective on June 1, 2022. The Order also directed that “[u]pon
issuance of this Order, and to conform to our decision in Order No. 35415, Idaho Power’s SAR
rates should be updated to reflect Idaho Power’s new capacity deficiency date in the summer of
2023.” Order No. 35422 at 3.
On June 13, 2022, Staff updated the SAR Model and the avoided cost rates, using the First
Capacity Deficiency Date approved by Order No. 35415 in Case No. IPC-E-21-09 and the natural
gas forecast approved by Order No. 35422 in Case No. GNR-E-22-01, and sent both the Model
and the rates to the Company for verification.
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF THE CAPACITY
DEFICIENCY TO BE UTILIZED FOR
AVOIDED COST CALCULATIONS

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CASE NO. IPC-E-21-09

IN THE MATTER OF COMMISSION
STAFF’S APPLICATION TO UPDATE
INPUTS TO THE “SURROGATE
AVOIDED RESOURCE” METHOD
AVOIDED COST RATES
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CASE NO. GNR-E-22-01

ORDER NO. 35475

ORDER NO. 35475 2

On June 13, 2022, the Company filed a Comment Letter with the Commission, confirming
that the rates for both updates were correct.
Having reviewed the record and Staff’s recommendation, we now issue this Order
approving the Company’s updated avoided cost rates, effective as of June 1, 2022.
STAFF COMMENTS AND BACKGROUND
Staff noted that under ideal circumstances, the SAR-based rates would have been updated
first to reflect the new First Capacity Deficiency Date authorized in Order No. 35415, and then
updated again to reflect the natural gas forecast authorized with an effective date of June 1, 2022.
However, because the updated Capacity Deficit Date was approved on May 25, 2022, and standard
practice involves several additional weeks for the Company to verify the rates in the SAR Model
after each update is authorized by the Commission, it was not practical to process each set of rates
separately due to the short time between the two orders. After the issuance of Order No. 35415,
Staff notified the Company it was processing both updates concurrently and asked to be notified
if rates were required that reflect only the updated First Capacity Deficiency Date for the period
between May 25, 2022, and June 1, 2022. Staff did not receive a request from the Company.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, 61- 502,
and 61-503. The Commission has the power to “supervise and regulate every public utility in the
state and to do all things necessary to carry out the spirit and intent of the [Public Utilities Law].”
Idaho Code § 61-501. The Commission also 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 fixed term obligations for the purchase of energy from QFs, and to
implement FERC rules.
Having reviewed the record, we find that Staff correctly calculated the Company’s avoided
cost rates based on the Company’s updated capacity deficiency date in the summer of 2023
approved in Order No. 35415 and the updated natural gas forecast approved in Order No. 35422.
We find the updated rates to be fair, just, and reasonable.
O R D E R
IT IS HEREBY ORDERED that the updated avoided cost rates to reflect the Company’s
updated capacity deficiency date in the summer of 2023 and the updated natural gas forecast are
approved, effective as of June 1, 2022.

ORDER NO. 35475 3

//abstain to avoid conflict//
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 § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 28th day of
July 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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