20110622notice_of_application_order_no_32269.pdf

Office of the Secretary
Service Date
June 22,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
PACIFICORP DBA ROCKY MOUNTAIN )CASE NO.PAC-E-11-15
POWER FOR APPROVAL OF A REVISED )
POWER PURCHASE AGREEMENT )NOTICE OF APPLICATION
BETWEEN PACIFICORP AND LOWER )
VALLEY ENERGY,INC.)NOTICE OF
)MODIFIED PROCEDURE
)
____________________________________
)ORDER NO.32269
On May 19,2011,PacifiCorp dba Rocky Mountain Power filed a request with the
Commission to amend the Power Purchase Agreement (PPA,Agreement)between PacifiCorp
and Lower Valley Energy,Inc.(Lower Valley)dated May 6,2011.On June 17,2011,Rocky
Mountain Power filed a supplement to its original request.The parties seek to amend the
Agreement originally approved by the Commission on July 16,2009.Order No.30864.The
Commission finds it appropriate to process Rocky Mountain Power’s request by Modified
Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Lower Valley owns,operates and maintains
three run of the river hydroelectric generating facilities in Lincoln County,Wyoming —two are
located on Swift Creek and one is located on the existing culinary water system for the town of
Afton.The Swift Creek facilities were completed in 2009 and have maximum capacities of 940
kW (the “Upper Facility”)and 535 kW (the “Lower Facility”).The third facility —the “Culinary
Facility”—is the subject of Rocky Mountain Power’s request for an amendment.The project
will be a “qualifying facility”(QF)under the applicable provisions of the federal PURPA.
A.The Agreement
YOU ARE FURTHER NOTIFIED that the Culinary Facility was completed in
December 2010,and has a maximum capacity of 225 kW.Rocky Mountain Power represents
that Lower Valley purchases firm point-to-point transmission from Bonneville Power
Administration (BPA)in amounts sufficient to deliver output from all three facilities via a single
scheduled delivery to Rocky Mountain Power at Goshen,Idaho.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32269 1
YOU ARE FURTHER NOTIFIED that Rocky Mountain Power requests Commission
approval of amendments to the Agreement to:(1)add a provision for the purchase of net output
from the new Culinary Facility;(2)extend the term of the Agreement from May 1,2012 to
September 1,2014;(3)provide that the Culinary Facility receive the published avoided cost rates
of Order No.322341;and (4)provide that the “Upper Facility”and “Lower Facility”receive the
published avoided cost rates of Order No.32234 commencing on May 1,2012,the expiration
date of the existing Agreement.
YOU ARE FURTHER NOTIFIED that,although each facility is a separate qualifying
facility (QF)pursuant to PURPA,Lower Valley intends to operate its Upper Facility,Lower
Facility and Culinary Facility as a single generating facility under a single power purchase
agreement.Rocky Mountain Power and Lower Valley represent that purchasing and selling
power for all three facilities under a single PPA is the most efficient means of effectuating the
sale and delivery of net output from these facilities for two reasons:(1)the use of one
Agreement reduces costs in generating monthly statements and processing monthly payments for
both Rocky Mountain Power and Lower Valley and (2)because Lower Valley delivers net
output from the three facilities via a single point-to-point transmission reservation,the three
projects arrive at Rocky Mountain Power’s system via a single schedule that is amenable to
treatment by Rocky Mountain Power as a single resource.Supplement at 4.
YOU ARE FURTHER NOTIFIED that various requirements have been placed on
Lower Valley in order for Rocky Mountain Power to accept energy deliveries from the Culinary
Facility.Rocky Mountain Power states that it will monitor Lower Valley’s compliance with
these requirements.Id.at 5.Lower Valley has selected seven days after Commission approval
of the Agreement as its Commercial Operation Date for the Culinary Facility.
YOU ARE FURTHER NOTIFIED that,by its own terms,the Agreement will not
become effective until the Commission has approved all of the terms and conditions and declares
that all payments made by Rocky Mountain Power to the facilities for purchases of energy “are
just and reasonable,in the public interest,and that the costs incurred by [Rocky Mountain
Power]for purchases of capacity and energy from [Lower Valley]are legitimate expenses,all of
which the Commission will allow [Rocky Mountain Power]to recover in rates in Idaho in the
Order No.32234 revised Rocky Mountain Power’s published avoided cost rates pursuant to a change in cost of
capital triggered by the result of Rocky Mountain Power’s most recent general rate case,PAC-E-1O-07.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32269 2
event other jurisdictions deny recovery of their proportionate share of said expenses.”
Agreement ¶2.1.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing for this Application and will proceed under
Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities
Commission’s Rules of Procedure,IDAPA 31.01.01.201 through .204.The Commission notes
that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on the
Application may file a written comment in support or opposition with the Commission no later
than twenty-one (21)days from the service date of this Order.The comment must contain a
statement of reasons supporting the comment.Persons desiring a hearing must specifically
request a hearing in their written comments.Written comments concerning the Application shall
be mailed to the Commission and Rocky Mountain Power at the addresses reflected below:
Commission Secretary Daniel E.Solander
Idaho Public Utilities Commission Rocky Mountain Power
P0 Box 83720 201 South Main,Suite 2300
Boise,ID 83 720-0074 Salt Lake City,UT 84111
E-Mail:[e-mail]
Street Address for Express Mail:
Ted Weston
472 W.Washington Street Rocky Mountain Power
Boise,ID 83702-5918 201 South Main,Suite 2300
Salt Lake City,UT 84111
E-Mail:[e-mail]
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 Rocky Mountain Power at the e-mail addresses
listed above.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32269 3
YOU ARE FURTHER NOTIFIED that Rocky Mountain Power may file reply
comments (if necessary)no later than twenty-eight (28)days from the service date of this
Order.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider the Application on its merits and
enter an Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices.The Application is also available on the Commission’s web site at
www.puc.idaho.Rov by clicking on “File Room”and then “Electric Cases.”
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction 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 and to implement FERC rules.
YOU ARE FURTHER NOTIFIED that all proceedings regarding the Application
will be conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000,et
seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than twenty-one (21)days
from the service date of this Order.
IT IS FURTHER ORDERED that Rocky Mountain Power may file reply comments
no later than twenty-eight (28)days from the service date of this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32269 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of June 2011.
PAUL K LLANI5,PRESIDENT
/
MACK A.REDFORD,COMMISSIONER
4kL /f&L
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jei D.Jewell c
Côinmission Secretary
O:PAC-E-1 1-15_ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32269 5