20230613IPC Comments.pdf

DONOVAN WALKER
Lead Counsel
[e-mail]

June 13, 2023

Jan Noriyuki, Secretary
Idaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714

Re: Case No. IPC-E-23-16
Commission Staff’s Petition to Update Colstrip-Related Adjustable Portion of
Avoided Cost Rates for Existing PURPA Contracts

Dear Ms. Noriyuki:

Attached for electronic filing, please find Comments of Idaho Power Company in the
above-entitled matter. If you have any questions about the attached document, please do
not hesitate to contact me.

Sincerely,

Donovan Walker
DEW:cd
Enclosures
RECEIVED
Tuesday, June 13, 2023 3:32:50 PM
IDAHO PUBLIC
UTILITIES COMMISSION
COMMENTS OF IDAHO POWER COMPANY - 1

DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]

Attorney for Idaho Power Company

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 NO. IPC-E-23-16

COMMENTS OF IDAHO POWER
COMPANY

Idaho Power Company (“Idaho Power” or “Company”), in accordance with RP 201,
et seq., and the applicable provisions of the Public Utility Regulatory Policies Act of 1978
(“PURPA”), as well as the Idaho Public Utilities Commission’s (“IPUC” or “Commission”)
Notice of Modified Procedure in this matter, Order No. 35789, hereby respectfully submits
the following Comments.
On May 3, 2023, Commission Staff filed a Petition requesting a Commission Order
to implement an updated avoided cost based on the Colstrip Method for determining the
adjustable portion of avoided cost rates under PURPA. The Colstrip Method was
established by the Commission in Order No. 28708 and applies to certain contracts with
COMMENTS OF IDAHO POWER COMPANY - 2

PURPA Qualifying Facilities (“QFs”) executed from 1990 to 1995.
In the Petition, Commission Staff (1) updated the adjustable portion of the avoided
cost rate utilizing the Colstrip Method; (2) recommended that starting in 2024, Idaho
Power initiate the annual update, rather than Staff; and (3) recommended that starting
with the annual update in 2027, Idaho Power use the NorthWestern Energy
(“NorthWestern”) FERC Form 1 for the annual update, based on the agreement between
Avista Corporation (“Avista”) and NorthWestern to transfer Avista’s 15 percent ownership
in Colstrip Units 3 and 4 to NorthWestern as of December 31, 2025.
Regarding item (1), the update to the adjustable portion of the avoided cost rate
using the Colstrip method, the Company has reviewed Commission Staff’s calculations.
Idaho Power agrees that the calculations made by Staff using the Avista FERC Form 1
data from Calendar Year 2022 are consistent with IPUC Order No. 287081.
Regarding items (2) and (3), Idaho Power does not oppose Staff’s proposal that
Idaho Power initiate the annual update, rather than Staff. Further, Idaho Power agrees
that NorthWestern’s FERC Form 1 data would be used after the effective date of the
Colstrip transfer under the current methodology. However, there may be practical
challenges. Idaho Power’s understanding is that NorthWestern already owns a 30 percent
share of Colstrip Unit 4. For informational purposes, Idaho Power compared the resulting
rate derived from NorthWestern’s Colstrip data based on its current Unit 4 ownership to
the rate Staff derived from Avista’s data. The rate calculated from NorthWestern’s data
was higher than the rate Staff calculated from Avista’s data (approximately $0.91 per
MWh higher). It is unclear to Idaho Power whether NorthWestern will report its shares of

1 The calculation on page 2 of Staff’s Petition labels the calculation as being for the period 7/1/22-6/30/23.
The actual effective dates of the new Colstrip adjustable rate is 7/1/23-6/30/24.
COMMENTS OF IDAHO POWER COMPANY - 3

Colstrip separately after the transfer or aggregated. Idaho Power notes that particularly
if NorthWestern aggregates the Colstrip ownership shares, the data used in the
calculation may differ from Avista’s data used today.
Further, Idaho Power believes it will be able to obtain the FERC Form 1 data from
public sources in time each year to make this annual update. However, if for some reason
the data is not available in time for the update, it may need to explore alternatives. Staff’s
petition indicates that Staff obtained the FERC Form 1 data through email
communications with Avista on April 27, 2023, rather than through public sources.
However, Avista (or NorthWestern) has no obligation or incentive to provide information
to Idaho Power in advance of it being made public generally. Nonetheless, Idaho Power
expects it will be able to access the FERC Form 1 data publicly via the Federal Energy
Regulatory Commission’s website or directly from the utility’s website in time for the
annual update. As Staff notes, if data availability becomes an issue, Idaho Power will
work with Staff to develop a new method for determining the adjustable rate.
Finally, Idaho Power notes that a piece of the information it previously provided
regarding the last expiration date of the existing six contracts that utilize the Colstrip
Method was in error. The last of the six contracts expires May 1, 2031.

Respectfully submitted this 13th day of June, 2023.

DONOVAN E. WALKER
Attorney for Idaho Power Company

COMMENTS OF IDAHO POWER COMPANY - 4

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 13th day of June, 2023, I served a true and correct
copy of the within and foregoing COMMENTS OF IDAHO POWER COMPANY upon the
following named parties by the method indicated below, and addressed to the following:

Dayn Hardie
Deputy Attorney General
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074

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Christy Davenport, Legal Assistant