20030718Application.pdf

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825 E. Multnomah
Portland, Oregon 97232
[phone]
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UTILITiES COMf'~ISS!ON
July 1 2003
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Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702
RE: Annual notice of revision of QF variable energy prices
In accordance with the terms of the 1992 Amendments to Power Purchase Agreements between
Idaho QFs and PacifiCorp, PacifiCorp is required to provide the Commission notice of changes
if any, to the variable energy price. The Amendments outline the methodology for the variable
energy price in Section 3, subparagraphs (a) through (c).
Beginning July 1 , 2003 and continuing throughout the term of the power purchase
agreement, including any extensions , the variable energy rate shall be calculated in
accordance with the following methodology:
a) the variable energy rate shall be the sum of the Buyer s (PacifiCorp)
fuel cost and the variable O&M cost.
b) Buyer s fuel cost shall be the average cost of fuel consumed in Buyer
Utah Division, specifically the Carbon, Hale, Naughton, Huntington
and Hunter generating plants. If any of the specified plants does not
operate as a coal-fired power plant in any calendar year, such plant
shall be excluded from the calculation of the average cost of fuel. The
average cost of fuel shall be calculated using the data reported in
Buyer s FERC Form 1. For 1990, Buyer s fuel costs are reported at
pages 402-403 , lines 12 and 21of the FERC FOlID 1. In the event that
, the FERC Form 1 ceases to include the cost of fuel or net generation
data, comparable data based upon Buyer s normal accounting practices
shall be used.
c) Buyer s variable O&M cost shall be calculated using the methodology
adopted by the Idaho Public Utilities Commission in Order No. 23738
for determining the variable avoided O&M cost of the Surrogate
A voidable Resource, excluding the State of Montana generation tax andthe line loss adjustment.
This methodology and subsequent Commission Order No. 23738 results in the following prices
effective July 1 2003:
1) The sum of PacifiCorp' s fuel cost and variable O&M cost is $0.010 17 / kWh
2) PacifiCorp s calculated fuel cost for the Utah Division plants is $0.00866/kWh
3) The variable O&M component results from the Idaho Public Utilities Commission Order
28708 which fixes the variable O&M component at $0.00151/kWh
The variable energy rate applicable to deliveries commencing July 2003 extending through
June 30 2004 shall be $0.01017 /kWh.
If you have questions regarding this notice, please contact John Younie at this office at (503)
813-5960.
Sincerely,
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John R. Lowe, Manager
QF Contracts