20230523Notice_of_Petition_Order_No_35789.pdf

NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35789 1
Office of the Secretary
Service Date
May 23, 2023
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-23-16

NOTICE OF PETITION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35789

On May 3, 2023, 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. Staff requested its Petition be processed by Modified Procedure with an effective date
of July 1, 2023.
The Commission now sets deadlines for commenting on the Petition.
NOTICE OF PETITION
YOU ARE HEREBY NOTIFIED that 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.
YOU ARE FURTHER NOTIFIED that Idaho Power Company (“Idaho Power”) has
contracts with Colstrip-related adjustable portion of avoided cost rates. The last Idaho Power
contract expires in September 2030.
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 adjustment
for line loss). Relevant pages from Avista Corporation’s (“Avista”) FERC Form 1 are attached to
Staff’s Petition as Attachment A.
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35789 2
YOU ARE FURTHER NOTIFIED that as computed by Staff, the Colstrip-related
adjustable rate will change from 19.13 mill/kilowatt hour (“kWh”) to 21.67 mill/kWh, effective
July 1, 2023.
YOU ARE FURTHER NOTIFIED that because Idaho Power is the last Idaho regulated
utility using Colstrip-related adjustable rates for certain contracts, Staff proposes that Idaho Power
be directed to file future updates instead of Staff. Staff also proposes that Idaho Power use data
from Avista’s FERC Form 1 until it is no longer possible and at that point, use data from
NorthWestern Energy’s FERC Form 1 for the remainder of the necessary updates (unless data
availability becomes an issue).1
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 website 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 numbers 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.
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, including Idaho Power, 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

1 On January 16, 2023, Avista entered into an agreement with Northwestern Energy (“NorthWestern”) and will transfer
its 15 percent ownership in Colstrip Units 3 and 4 to NorthWestern, effective December 31, 2025. Petition at 2. If data
availability becomes an issue, Staff recommends Idaho Power work with Staff to develop a new method.
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35789 3
their written comments. Comments must be filed through the Commission’s 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 “Case Comment Form” and complete the form using
the case number as it appears on the front of this document. To file by e-mail, persons must e-mail
the comments to the Commission Secretary and the Company at the e-mail addresses listed below.
If computer access is unavailable, then comments may be mailed to the Commission and Company
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, ID 83714
[e-mail]

For Commission Staff:

Dayn Hardie
Mike Louis
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]
[e-mail]

For Idaho Power:

Donovan Walker
Camille Christen
Idaho Power Company
1221 West Idaho Street 83702
P.O. Box 70
Boise, ID 83707-0070
[e-mail]
[e-mail]
[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. 35789 4
ORDER
IT IS HEREBY ORDERED that Staff’s Petition be processed by Modified Procedure.
Persons interested in submitting written comments must do so within 21 days of the service date
of this Order. Staff must file any reply comments within 28 days of the service date of this Order.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, 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 24th day of
May 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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