20210521Notice_of_Petition_Order_No_35050.pdf

NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35050 1

Office of the Secretary
Service Date
May 21, 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

NOTICE OF PETITION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35050

On May 13, 2021, the Staff of the Idaho Public Utilities Commission petitioned the
Commission to approve the annual update to the Colstrip-related adjustable portion of published
avoided cost rates for existing Public Utility Regulatory Policies Act of 1978 (“PURPA”)
contracts.
The Commission now sets deadlines for commenting on the Petition.
NOTICE OF PETITION
YOU ARE HEREBY NOTIFIED that 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.
YOU ARE FURTHER NOTIFIED that Idaho Power Company (“Idaho Power”) and
Avista Corporation (“Avista”) are parties to contracts with Colstrip Method rates. Rocky
Mountain Power no longer has contracts with Colstrip Method rates.
YOU ARE FURTHER NOTIFIED that for those 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.
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35050 2

YOU ARE FURTHER NOTIFIED that as computed by Staff, the Colstrip-related
adjustable rate will change from 16.55 mill/kilowatt hour (“kWh”) to 20.37 mill/kWh, effective
July 1, 2021.
YOU ARE FURTHER NOTIFIED Staff believes that a hearing is unnecessary to
consider the issues and requests this Petition be processed under Modified Procedure, i.e., by
written submissions rather than by hearing. See Commission Rule of Procedure 201, et seq.
YOU ARE FURTHER NOTIFIED that the Petition is available for public inspection
during regular business hours at the Commission’s office. These documents are also available on
the Commission’s web site at www.puc.idaho.gov. Click on the “ELECTRIC” tab at the top of
the home page, then select “Open Cases,” and then locate and click on the case number as shown
on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically Idaho
Code §§ 61-501 to 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission’s Rules of Procedure, IDAPA
31.01.01.201 through .204. The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that anyone desiring to state a position on this
Petition must file a written comment in support or opposition with the Commission within 21 days
of the service date of this Order. The comment must explain why the person supports or opposes
the Petition. Persons desiring a hearing must specifically request a hearing in their written
comments. Comments must be filed through the Commission website or by email unless computer
access is unavailable. To comment electronically, please access the Commission’s home page at
www.puc.idaho.gov. Click the “Consumer” tab on the Commission’s webpage and then “Case
Comment Form” and complete the form using the case number as it appears on the front of this
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35050 3

document. To file by email, the customer must email the comments to the email addresses listed
below. In addition to submitting the comments to the Commission Secretary, the customer must
also email the Staff and utilities at the email addresses listed below. If computer access is
unavailable, then comments may be mailed to the Commission, Staff, and utilities at these
addresses:

For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714
[e-mail]

For Commission Staff:

John R. Hammond Jr.
Mike Louis
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]
[e-mail]

For Idaho Power:

Donovan E. Walker
Michael Darrington
Energy Contracts
Idaho Power Company
1221 West Idaho Street 83702
P.O. Box 70
Boise, ID 83707-0070
[e-mail]
[e-mail]
[e-mail]
[e-mail]

For Avista:

Michael Andrea
Clint Kalich
Avista Utilities
1411 E. Mission
P.O. Box 3727
Spokane, WA 99220-3727
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that Staff must file any reply comments within 28
days of the service date of this Order.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its Order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.

NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35050 4

ORDER
IT IS HEREBY ORDERED that Staff’s Petition be processed by Modified Procedure,
Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written comments
must do so within 21 days of the service date of this Order. The Commission Staff must file any
reply comments within 28 days of the service date of this Order.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 34781,
issued September 17, 2020. All pleadings should be filed with the Commission electronically and
shall be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 21st day
of May 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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