20030721Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:JULY 21, 2003
SUBJECT:CASE NO. PAC-03-9 (PacifiCorp)
ELECTRIC SERVICE SCHEDULE NO.
NEW WIND, GEOTHERMAL & SOLAR POWER RIDER - OPTIONAL
On July 11 , 2003 , PacifiCorp dba Utah Power & Light Company filed a request with
the Idaho Public Utilities Commission (Commission) for approval of a new renewable energy
tariff, Schedule 70 - New Wind, Geothermal & Solar Power Rider. Under the proposed
program, residential and non-residential customers can purchase newly developed wind
geothermal and solar power energy at a premium of $1.95 per 100 kilowatt-hour block. The
premium is in addition to the normal billed rate which includes but is not limited to a basic
charge as well as energy and delivery charges. The premium covers the costs of the program.
These costs include the incremental costs of the new renewable energy, marketing costs and
program administration. Under the proposed Schedule 70 tariff, consumers can choose the
number of blocks to purchase, which is not dependent on the amount of energy used.
Currently PacifiCorp offers this option, called Blue Sky, to consumers in four other
states - Oregon, Utah, Washington and Wyoming. The Company s Blue Sky enrollment roster
includes over 11 500 customers. Qualified customers may apply for or terminate from Schedule
70 anytime during the year. The Company will not accept enrollments for customer accounts
that have a time payment agreement in effect or have received one or more disconnect notices or
have been disconnected within the last 12 months.
Under the Company s proposed tariff, PacifiCorp plans to purchase tradable
renewable credits (green tags) and/or bundled power to satisfy the requirements. Including both
DECISION MEMORANDUM
purchase options, the Company states, is beneficial to customers as it allows the Company to
pass along lower prices. In addition, it is beneficial to the Company, as it allows for the more
efficient balancing of purchases and sales and will minimize the risk of not achieving a zero net
gain or loss at the program life. Green tags represent an amount of renewable kilowatt/hours
sent to grid, displacing less environmentally friendly energy.
As set forth in the tariff Schedule, new wind, geothermal or solar power energy will
be delivered within two years of when the energy is purchased by the customer. Tradable
renewable credits will be delivered within 18 months of when energy is purchased by the
customer. PacifiCorp will keep interested parties informed of purchases for the program on a
twice per year basis. If there is not availability at the right price to purchase at a level (capped
within the $1.95 retail price) then PacifiCorp will attempt to make purchases at the next level.
The reports will summarize purchases and note reasons for choosing a "tier" and, if applicable
foregoing more preferred options in light of available tag supply.
As reflected in its filing, PacifiCorp states that several environmental organizations
including Renewable Northwest Projects and the Land and Water Fund of the Rockies endorse
the Company s program which meets Renew 2000 standards. Renew 2000 standards were
established by a collaboration of interested regional utilities and environmental organizations to
ensure that optional renewable energy products offered to consumers in the Northwest met
minimum content standards, thus protecting and assuring consumers that such products provide
benefit to the environment.
The wind energy purchased on behalf of the Company s Blue Sky customers is in
addition to renewable energy investments PacifiCorp has made to serve all its customers.
Currently, Blue Sky wind energy purchases come from Foot Creek IV in Wyoming; from wind
farms in Condon and Klondike, Oregon; and from the Stateline Wind Facility on the Oregon-
Washington border. All renewable energy generation linked to the program at minimum will
come from facilities that went online post-January 2000.
COMMISSION DECISION
PacifiCorp requests approval of a proposed optional renewable energy tariff for
residential and non-residential customers. Under the tariff, customers can purchase 100 kilowatt
hour blocks of new wind, geothermal or solar power for a charge per block of $1.95 per month.
The Company has recommended an effective date of September 1 , 2003. Staff recommends that
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the Company s filing be processed pursuant to Modified Procedure. Does the Commission find
Modified Procedure acceptable in this case?
Scott D. Woodbury
bls/M:P ACEO309 sw
DECISION MEMORANDUM