20031030Application.pdf

STATE OF IDAHO
OFFICE OF THE ATTORNEY GENERAL
LAWRENCE G. WASDEN
October 30 , 2003
Blair Strong
Paine, Hamblen et al
717 W. Sprague Avenue, Suite 1200
Spokane, WA 99201-3505
Doug Young
A vista Utilities
1411 E. Mission
PO Box 3727
Spokane, W A 99220-3727
John Eriksson
Stoel Rives LLP
One Utah Center
201 S. Main Street, Suite 1100
Salt Lake City, UT 84111-4904
Mark Widmer
PacifiCorp
825 NE Multnomah Street
Portland, OR 97232
Barton L. Kline
Idaho Power Company
PO Box 70
Boise, ill 83707-0070
Randy Allphin
Idaho Power Company
PO Box 70
Boise, ill 83707-0070
RE: Case Nos. AVU-O3-8, IPC-O3-, PAC-O3-
The Idaho Public Utilities Commission in Order No. 29124, Case No. GNR-02-1 ordered
several changes to the variables and manner in which avoided cost rates are to be computed for
projects smaller than 10 MW. Among the ordered changes were abandonment of the utility first
deficit year, changes in cost variables associated with a combined cycle combustion turbine and
changes in the manner and in which fuel costs are determined.
More specifically for fuel costs, the Commission chose to adopt the medium fuel price forecast
prepared by the Northwest Power and Conservation Council (formerly the Northwest Power
Planning Council) along with the method for establishing the starting year gas price and
escalation rate proposed by the Idaho Independent Energy Producer s witness Trippel. Order
No. 29124 states that natural gas prices can be updated when a new Northwest Power and
Conservation Council forecast becomes available.
Contracts & Administrative Law Division, Idaho Public Utilities Commission
O. Box 83720, Boise, Idaho 83720-0074, Telephone: [phone], FAX: [phone], E-mail: Ipuc((j)puc.state.id.
Located at 472 West Washington St., Boise, Idaho 83702
Avoided Cost Update
October 30, 2003
Page 2
A new fuel price forecast was prepared by the Council on April 22, 2003. Staff has used this
forecast to compute new avoided cost rates for projects smaller than 10 MW accqrding to the
revised methodology spelled out in Order No. 29124. A copy of the revised fuel Plice forecast
computation of starting year gas price and escalation rate, and computation of the avoided cost
rates is attached.
Please review the accuracy of the computations and file your respective responses with the
Commission on or prior to November 21 2003. The case caption is as follows:
IN THE MATTER OF THE REVISION AND UPDATED CALCULATION OF
THE AVOIDED COST RATES FOR A VISTA CORPORATION DBA A VISTA
UTILITIES, FOR IDAHO POWER COMPANY AND FOR P ACIFICORP DBA
UTAH POWER AND LIGHT COMPANY.
Thank you for your cooperation. Please feel free to contact me or Rick Sterling if you have any
questions.
Sincerely;
Scott D. Woodbury ,~=~n
Deputy Attorney General
[phone]
Enclosure