20220628Final_Order_No_35451.pdf

ORDER NO. 35451 1

Office of the Secretary
Service Date
June 28, 2022
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
)
)
)
)
)
)
CASE NOS. AVU-E-22-06
IPC-E-22-16

ORDER NO. 35451

On May 5, 2022, the Staff of the Idaho Public Utilities Commission (“Staff”) 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, with an effective date of July 1, 2022.
In 1999 the Commission established a method 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 Company (“Idaho Power”) and Avista Corporation (“Avista”) are
parties to contracts with Colstrip-related adjustable portions of avoided cost rates.
Staff represented that for those QF contracts with Colstrip-related fuel costs and variable
O&M, future Colstrip variable cost adjustments are calculated using Federal Energy Regulatory
Commission (“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 adjustment for line loss). Staff attached the relevant pages from Avista’s FERC Form
1 to Staff’s Petition as Attachment A.
Based on Staff’s computations, Staff represented that the Colstrip-related adjustable rate
will change from 20.37 mill/kilowatt hour (“kWh”) to 19.13 mill/kWh, effective July 1, 2022.
COMMENTS
A. Avista Comments
Avista received the notice of Staffs petition to the Commission to approve the annual
revision to update the Colstrip-related adjustable portion of avoided cost rates for existing PURPA
contracts. Avista reviewed the new published avoided cost rates and agreed that the calculations
were correct.

ORDER NO. 35451 2

B. Idaho Power Comments
Idaho Power reviewed Staff’s revision to the adjustable portion of the avoided cost rate for
existing PURPA contracts that utilize the Colstrip Method. Idaho Power agreed that the Colstrip
adjustable rate calculation employed by Staff, using data from Avista’s FERC Form 1 from
Calendar Year 2021, was consistent with the method established in Commission Order No. 28708.
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 the record, all submitted materials, and all submitted
comments. Based on its review of the record, and the calculations for the adjustable portion of the
avoided costs using the Colstrip Method, the Commission finds it fair, just, and reasonable to
approve the resulting adjustable rates of 19.13 mill/kWh for existing contracts, effective July 1,
2022.
ORDER
IT IS HEREBY ORDERED that the adjustable portions of the avoided-cost rates for
existing PURPA contracts using the Colstrip Method are changed from 20.37 mill/kilowatt hour
(“kWh”) to 19.13 mill/kWh, effective July 1, 2022.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon 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 and 62-619.

ORDER NO. 35451 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 28th day of
June 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\AVU-E-22-06 IPC-E-22-16\AVUE2206_IPCE2216_final_cb.docx