20070628notice_of_modified_procedure.pdf

Office of the Secretary
Service Date
June 28, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
ROCKY MOUNTAIN POWER FOR AN
ORDER REVISING CERTAIN
OBLIGATIONS TO ENTER INTO
CONTRACTS TO PURCHASE ENERGY
GENERATED BY WIND-POWERED SMALL
POWER GENERATION QUALIFYING
FACILITIES
CASE NO. P AC-O7-
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT/PROTEST DEADLINE
On April 23 , 2007, PacifiCorp dba Rocky Mountain Power (PacifiCorp; Company)
filed an Application with the Idaho Public Utilities Commission (Commission) requesting a
change in the Company s PURPA obligations for wind QFs. PacifiCorp proposes restoring the
cap on entitlement to published avoided cost rates for wind-powered small power generation
facilities that are qualifying facilities (QFs) under Sections 201 and 210 of the Public Utility
Regulatory Policies Act of 1978 (PURPA) from the current level of 100 kW to 10 average
megawatts per month (10 aMW), subject to the following condition, among others:
5. Clarifying the rules governing the entitlement to published rates to
prevent all QFs, whether wind or non-wind, capable of delivering more
than 10 aMW per month from structuring or restructuring into smaller
projects for the purpose of qualifying for the published avoided cost
rates; and
Published Rate Eligibility - Disaggregation
Idaho Power and A vista have recommended adoption of a rule nearly the same as
that adopted by the Oregon Public Utility Commission preventing multiple projects owned by
the same person from receiving the published avoided cost rates, if located at the same site.
PacifiCorp recommends that the approach recommended by Idaho Power in Case No. IPC-07-
04 be applied to PacifiCorp purchases as well. PacifiCorp contends that wind projects are
uniquely able to reconfigure themselves into various legal ownerships solely for economic
reasons, without disturbing or affecting in any way the project site or structural design. In some
circumstances, other generating technologies, it notes, may have similar capabilities. Such
projects under common ownership that reconfigure themselves into multiple projects of a smaller
capacity, PacifiCorp contends, should not qualify for published avoided costs in Idaho. Rather
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
these projects, it contends, should negotiate directly with the Company to determine the
appropriate avoided cost price to be paid for energy delivered to PacifiCorp taking into account
the specific attributes ofthe project.
Additionally, while fundamental economic differences in the avoided costs and wind
integration costs exist for different utilities, PacifiCorp contends a uniform approach among
Idaho jurisdictional utilities is particularly useful to avoid unneeded incentives favoring one
utility over another solely due to different QF rules that might apply to different utilities.
On May 15 2007, the Commission issued a Notice of Petition in Case No. PAC-
07 -07.
YOU ARE HEREBY NOTIFIED that the Commission has reviewed and considered
the Company s Petition in Case No. PAC-07-07 and has preliminarily found that the public
interest regarding the issue of "disaggregation " i., the utility proposal to prevent QFs from
disaggregating large QF projects into smaller projects to qualify for published avoided cost rates
available to QFs smaller than 10 MW may not require a hearing to consider the issue presented
and that the disaggregation issue may be processed under Modified Procedure i.e., by written
submission rather than by hearing. Reference Commission Rules of Procedure IDAP A
31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the disaggregation issue raised by PacifiCorp
in Case No. PAC-07-07 has also been raised by Avista in Case No. A VU-07-02 and by
Idaho Power Company in Case No. IPC-07-04.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the disaggregation issue raised by PacifiCorp in Case No. PAC-07-
and the Commission s related use of Modified Procedure is Friday, July 27, 2007. Persons
desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing on
the disaggregation issue in this proceeding unless it receives written protests or comments
opposing the use of Modified Procedure and stating why Modified Procedure should not be used.
Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and enter its
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
Order without a formal hearing. If comments or protests are filed within the deadline, the
Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it. Reference IDAP
31.01.01.204.
YOU ARE FURTHER NOTIFIED that the Petition in Case No. PAC-07-07 may
be viewed at the Commission s website www.puc.idaho.gov by clicking on "File Room" and
Electric Cases " or is available for public inspection during regular business hours at the offices
of the Idaho Public Utilities Commission, 472 West Washington, Boise, Idaho and the Idaho
offices of Pacifi Corp.
YOU ARE FURTHER NOTIFIED that written comments concerning the issue of
disaggregation should be mailed to the Commission and the Company at the addresses reflected
below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Dean Brockbank
Senior Counsel
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: dean.brockbank~pacificorp.com
472 W. Washington Street
Boise, ID 83702-5983
Brian Dickman
Manager, Idaho Regulatory Affairs
Rocky Mountain Power
201 S. Main Street, Suite 2300
Salt Lake City, UT 84111
E-mail: brian.dickman~pacificorp.com
All comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov . Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to PacifiCorp at the e-mail addresses listed above.
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
DATED at Boise, Idaho this .9. 'tf,day of June 2007.
. -
/t~t
Je rl D. Jewell
Cbkmission Secretary
blslN:PAC-07-07 sw3
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE