20110426final_order_no_32234.pdf

Office of the Secretary
Service Date
April 26,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AN ADJUSTMENT TO )
THE PUBLISHED AVOIDED COST RATES )CASE NO.PAC-E-ll-ll
OF PACIFICORP TO REFLECT A CHANGE )
IN THE COMPANY’S COST OF CAPITAL )ORDER NO.32234
_______________________________________________________________________________________________
)
Pursuant to the Public Utility Regulatory Policies Act of 1978 (PURPA)and the
implementing regulations of the Federal Energy Regulatory Commission (FERC),the Idaho
Public Utilities Commission (Commission)has approved a surrogate avoidable resource (SAR)
methodology for calculation of the published avoided cost rates paid to PURPA qualifying
cogeneration and small power production facilities (QFs).Avoided cost rates are the purchase
price paid to QFs for purchases of QF capacity and energy.
On February 28,2011,the Commission issued Order No.32196,the final Order in
PacifiCorp’s recent general rate case (Case No.PAC-E-10-07).An Order on Reconsideration
was issued on April 18,2011 (Order No.32224).The conclusion of PacifiCorp’s general rate
case has triggered computation of new PURPA avoided cost rates.The conclusion of a general
rate case affects avoided cost rates because cost of capital figures established in a general rate
case are used in avoided cost computations in accordance with the approved methodology.
When these new variables are input into the avoided cost model,PacifiCorp’s avoided cost rates
decrease slightly.Commission Staff has computed the revised avoided cost rates for PacifiCorp
using the new cost of capital figures.The revised rates are shown in the attached tables.The
effect of PacifiCorp’s new cost of capital is a decrease in the avoided cost rates of approximately
$3.83 per megawatt-hour (MWh)for a 20-year levelized contract.
COMMISSION FINDINGS
The Commission has reviewed the methodology for calculating published rates for
PURPA QFs,the Commission’s Order changing PacifiCorp’s cost of capital in Case No.PAC-E
10-07 and Staffs revised avoided cost rates for PacifiCorp using the new cost of capital figures.
We find that a change in PacifiCorp’s cost of capital triggers an update of the Company’s
published avoided cost rates.We find Staffs proposed revision to be correct and find it
reasonable to approve the revised rate effective April 26.2011.We further find it reasonable to
implement this change without further notice or procedure.
ORDER NO.32234
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over PacifiCorp,an electric
utility,pursuant to the authority and power granted it under Title 61 of the Idaho Code and the
Public Utility Regulatory Policies Act of 1978 (PURPA).
The Commission has authority under PURPA and the implementing regulations of
the Federal Energy Regulatory Commission (FERC)to set avoided costs,to order electric
utilities to enter into fixed-term obligations for the purchase of energy from qualified facilities
(QFs)and to implement FERC rules.
ORDER
IT IS HEREBY ORDERED and the Commission does hereby approve modification
of PacifiCorp’s published avoided cost rates as depicted in the attached tables to reflect the
change in the Company’s cost of capital approved in Order Nos.32196 and 32224,Case No.
PAC-E-1 0-07.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626.
ORDER NO.32234 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /4
day of April 2011.
PA L KJELL ER,PRESIDENT
MACK A.REDFORD,COMMISSIONER
MARSHA H,SMITH,COMMISSIONER
ATTEST:
iTI/)J ./
Jean D.Jewel(!
Commission Secretary
O:PAC-E-1 1-1 1_ks
ORDER NO.32234 3
PACIFICORP
AVOIDED COST RATES FOR FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
April 26,2011
$/MWh
LEVELIZED NON LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2011 2012 2013 2014 20l5 2016 YEAR RATES
1 21.27 21.59 21.92 22.25 22.58 22.93 2011 18.22
2 21.43 21.75 22.08 22.41 22.75 23.09 2012 18.54
3 21.58 21.90 22.23 22.57 22.91 23.25 2013 18.86
4 21.73 22.05 22.39 22.72 23.07 23.41 2014 19.19
5 21.87 22.20 22.54 22.88 23.22 23.57 2015 19.53
6 22.01 22.35 22.68 23.03 23.37 23.73 2016 19.87
7 22.15 22.49 22.83 23.17 23.52 23.88 2017 20.22
8 22.29 22.63 22.97 23.31 23.67 24.02 2018 20,57
9 22.42 22.76 23.11 23.45 23.81 24.17 2019 20.92
10 22.56 22.90 23.24 23.59 23.95 24.31 2020 21.29
11 22.68 23.03 23.37 23.73 24.08 24.45 2021 21.65
12 22.81 23.15 23.50 23.86 24.22 24.58 2022 22.03
13 22.93 23.27 23.63 23.98 24.34 24.71 2023 22.41
14 23.05 23.39 23.75 24.11 24.47 24.84 2024 22.79
15 23.16 23.51 23.87 24.23 24.59 24.96 2025 23.18
16 23.27 23.63 23.98 24.34 24.71 25.09 2026 23.58
17 23.38 23.74 24.09 24.46 24.83 25.20 2027 23.98
18 23.49 23.84 24.20 24.57 24.94 25.32 2028 24.39
19 23.59 23.95 24.31 24.68 25.05 25.43 2029 24.81
20 23.69 24.05 24.41 24.78 25.16 25.54 2030 25.23
2031 25.66
2032 26.10
2033 26.54
,2034 26.99
2035 27.44
2036 27.91
EFFECTIVE DATE ADJUSTABLE COMPONENT
4/26/2011 38.06
The total avoided cost rate in each year is the sum of the adjustable component and the fixed component from either of the tables abo e.
Example 1.A 20-year levelized contract with a 2011 on-line date would receive the following rates:
Years Rate
1 23.69 +38.06
2-20 23.69 +Adjustable component in each year
Example 2.A 4-year non-levelized contract with a 2011 on-line date would receive the following rates:
Years Rate
1 18.22 +38.06
2 18.54 +Adjustable component in year 2012
3 18.86 +Adjustable component in year 2013
4 19.19 +Adjustable component in year 2014
Note:(1)The rates shown in this table have been computed using the Northwest Power and Conservation Councils Fuel Price Forecast
contained in its Sixth Power Plan approved on February 10,2010.See page A1-19,East-Side Delivered prices.(Reference Order No.
30480).(2)The rates shown in this table have been computed using the weighted average cost of capital from PacifiCorps most recent
general rate case.(See Order No.32196).
ATTACHMENT
ORDER NO.32234
CASE NO.PAC-E-1 1-11
PAGE 1OF 2
PACIFICORP
AVOIDED COST RATES FOR NON-FUELED PROJECTS
SMALLER THAN TEN MEGAWATTS
April 26,2011
$/MWh
LEVELIZED NON LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2011 2012 2013 2014 2015 2016 YEAR RATES
1 5628 5966 6338 66.92 70.71 74.79 2011 56.28
2 57.90 61.45 65.08 68.74 72.67 75.92 2012 59.66
3 59.59 63.13 66.81 70.60 74.04 77.00 2013 63.38
4 61.21 64.80 68.57 72.04 75.24 78.09 2014 66.92
5 62.82 66.50 70.03 73.30 76.37 79.16 2015 70.71
6 64.44 67.94 71.30 74.47 77.46 80.22 2016 74.79
7 65.85 69.22 72.48 75.57 78.52 81.30 2017 77.14
8 67.12 70.40 73.59 76.63 79.58 82.40 2018 79.44
9 68.29 71.51 74.65 77.69 80.65 83.51 2019 81.94
10 69.39 72.56 75.69 78.74 81.72 84.61 2020 84.41
11 70.43 73.59 76.73 79.78 82.79 85,72 2021 86.95
12 71.44 74.60 77.74 80.82 83.85 86.78 2022 89.97
13 72.43 75.60 78.75 81.84 84.88 87.82 2023 93.10
14 73.40 76.58 79.74 82.83 85.87 88.82 2024 96.36
15 74.35 77.54 80.70 83.79 86.83 89.79 2025 99.75
16 75.28 78.47 81.62 84.72 87.77 90.74 2026 103.27
17 76.18 79.36 82.52 85.62 88.67 91.69 2027 106.26
18 77.04 80.22 83.38 86.49 89.59 92.63 2028 109.35
19 77.88 81.06 84.22 87.36 90.48 93.55 2029 112.53
20 78.68 81.87 85.06 88.22 91.36 94.45 2030 115.81
2031 119.20
2032 123.74
2033 127.73
2034 131.85
2035 136.12
2036 140.54
Note:(1)The rates shown in this table have been computed using the Northwest Power and Conservation Councils Fuel Price Forecast
contained in its Sixth Power Plan approved on February 10,2010.See page A1-19,East-Side Delivered prices.(Reference Order No,
30480).(2)The rates shown in this table have been computed using the weighted average cost of capital from PacifiCorps most recent
general rate case.(See Order No.32196).
ATTACHMENT
ORDER NO.32234
CASE NO.PAC-E-1i-l 1
PAGE 2 OF 2