20210630Final_Order_No_35096.pdf

ORDER NO. 35096 1

Office of the Secretary
Service Date
June 30, 2021

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF COMMISSION
STAFF’S PETITION TO UPDATE
COLSTRIP-RELATED ADJUSTABLE
PORTION OF AVOIDED COST RATES FOR
EXISTING PURPA CONTRACTS
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CASE NOS. IPC-E-21-14
AVU-E-21-05

ORDER NO. 35096

On May 13, 2021, Commission Staff (“Staff”) filed a Petition requesting a Commission
Order implementing the annual update to the Colstrip-related adjustable portion of the published
avoided cost rates for certain Qualifying Facilities (“QF”) under the Public Utility Regulatory
Policies Act of 1978. The annual update to the Colstrip Method is proposed to take effect on July
1.
On May 21, 2021, the Commission issued a Notice of Petition and Notice of Modified
Procedure setting comment deadlines.
On May 25, 2021, Avista Corporation dba Avista Utilities (“Avista”) filed comments.
On June 11, 2021, Idaho Power Company (“Idaho Power”) filed comments. Staff (“Staff”) did
not file reply comments.
Having reviewed the record, the Commission approves Staff’s Petition as discussed
herein.
THE PETITION
In 1999 the Commission established a methodology for the annual adjustable-rate
portion of avoided costs for those Qualifying Facility (“QF”) contracts using variable costs
associated with Colstrip, a coal-fired generating facility in southeast Montana. See Order No.
28708, Case No. GNR-E-99-01. Idaho Power and Avista are parties to contracts with Colstrip
Method rates. Rocky Mountain Power no longer has contracts with Colstrip Method rates. For
QF contracts with Colstrip-related fuel costs and variable O&M, future Colstrip variable cost
adjustments are calculated using FERC Form 1 Colstrip Unit Coal Costs per megawatt hour
(“MWh”) and adding $2.00/MWh (the average variable O&M cost of Colstrip, plus 20¢/MWh for
generation taxes, plus a five percent (5%) adjustment for line loss). Relevant pages from Avista’s
FERC Form 1 are attached to Staff’s Petition as Attachment A. Staff represented that based on its

ORDER NO. 35096 2
calculations the Colstrip-related adjustable rate will change from 16.55 mill/kilowatt hour (“kWh”)
to 20.37 mill/kWh, effective July 1, 2021.
COMMENTS
1. Avista Comments
Avista supported Staff’s changes to the Colstrip-related adjustable rate from 16.55
mill/kWh to 20.37 mill/kWh taking effect July 1, 2021.
2. Idaho Power Comments
Idaho Power agreed that the calculations used by the Staff for Idaho Power using the FERC
Form 1 data from Calendar Year 2020 are consistent with IPUC Order No. 28708. Idaho Power
represented that it has 6 contracts that utilize the Colstrip Method, the last of which will expire in
September 2030.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over Avista and Idaho Power under the authority and
power granted it under Title 61 of the Idaho Code and PURPA. The Commission has authority
under PURPA and the FERC’s implementing regulations to set avoided costs, to order electric
utilities to enter fixed-term obligations for the purchase of energy from qualified facilities, and to
implement FERC rules.
The Commission has reviewed and considered the record. Avista and Idaho Power
confirm Staff’s application of updated data to the preexisting methodology. We find, based upon
our review of the calculations for the adjustable portion of the avoided costs calculated using the
Colstrip Method, that the resulting adjustable rates for existing contracts are fair, just, and
reasonable.
O R D E R
IT IS HEREBY ORDERED that the adjustable portions of the avoided-cost rates for
existing PURPA contracts using the Colstrip Method are changed effective July 1, 2021, from
16.55 mill/kWh to 20.37 mill/kWh.
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 regarding any matter
decided in 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.

ORDER NO. 35096 3
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30th day
of June 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-21-14_AVU-E-21-05\IPCE2114_AVUE2105_final order_jh