20140408final_order_no_33015.pdf

Office of the Secretary
Service Date
April 8.2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF PACIFICORP DBA ROCKY )CASE NO.PAC-E-13-12
MOUNTAIN POWER FOR APPROVAL OF )
ITS CAPACITY DEFICIENCY PERIOD TO )
BE UTILIZED IN THE COMPANY’S SAR )ORDER NO.33015
METHODOLOGY.)
_____________________________________________________________________________________________
)
In Order No.32697,the Commission directed that a case be initiated outside of each
utility’s Integrated Resource Plan (IRP)filing for the establishment of the capacity deficiency
period to be utilized in the utility’s SAR methodology.On October 15,2013,PacifiCorp dba
Rocky Mountain Power (Rocky Mountain Power)filed an Application requesting that the
Commission approve its updated capacity deficiency periods to be utilized in its SAR avoided
cost methodology.
On November 27,2013,the Commission issued a Notice of Application and set a
deadline for intervention.Order No.32934.No person or party petitioned to intervene in this
matter.On January 24,2014,the Commission issued a Notice of Modified Procedure setting a
comment deadline of February 28,2014,and a reply deadline of March 7,2014.Order No.
32970.Staff was the only party to file comments.
By this Order,we approve Rocky Mountain Power’s proposed capacity and energy
deficit determinations to be utilized in the Company’s SAR methodology.
THE APPLICATION
On April 30.2013,Rocky Mountain Power filed its 2013 IRP with the Commission.
The 2013 IRP includes the results of the Company’s capacity balance.Rocky Mountain Power
states that the capacity balance is calculated for summer peak loads only.The Company reports
that the capacity balance is developed by determining firm resource capacity available at the
annual system peak load hour,plus a 13%planning reserve margin.The study reports that the
Company is capacity deficient in 2013.The capacity deficit is 824 MW starting in 2013 and
increases to 2,308 MW by 2022.
The Company reports in its IRP that,“during on-peak periods,the first energy
shortfall appears in July 2018 and by 2022 available system energy falls short of monthly loads
in January,July,August,and October.”2013 IRP,Figure 5.5;Application at 5.Rocky
ORDER NO.33015 1
Mountain Power maintains that updating the peak and energy balances to reflect the Company’s
most recent load forecast and recent changes in long-term contracts would not alter the identified
deficit years.
COMMENTS
Staff reviewed the capacity and energy deficits proposed by Rocky Mountain Power.
Staff agreed with the Company’s proposal for purposes of SAR methodology avoided cost
computations.Therefore,Staff recommended the Commission approve a first deficit year
assumption of 2013 for capacity and a first deficit year assumption of 2018 for energy.
No other person or party filed comments.
FINDINGS AND CONCLUSIONS
The Idaho Public Utilities Commission has jurisdiction over Rocky Mountain Power,
an electric utility,and the issues raised in this matter 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.
The Commission has reviewed the record in this case,including Order No.32697,
Rocky Mountain Power’s Application and the comments of Commission Staff.In Case No.
GNR-E-11-03,the Commission found it fair and reasonable to subject each utility’s IRP
determination of capacity deficiency to further scrutiny for purposes of use within the SAR
methodology.Order No.32697 at 23.The Company’s 2013 IRP was filed with the Commission
on April 30,2013.The Commission accepted Rocky Mountain Power’s 2013 IRP on September
11,2013.’
The Company’s 2013 IRP identifies capacity deficits beginning in 2013 and energy
deficits beginning in 2018.No additional modifications were made by the Company based on its
most recent forecasts and/or long-term contract status.Staff agreed with Rocky Mountain
Power’s deficiency calculations as they relate to avoided cost calculations within the SAR
methodology.
On March 31,2014,Rocky Mountain Power filed a “2013 IRP Update”with the Commission.However,the
Company has not filed a corresponding update for this case.Consequently,the Commission’s tindings and
conclusions in the present proceeding are based solely on the record before it.
ORDER NO.33015 2
The Company’s assessment of its capacity and energy deficiencies are unchallenged.
In utilizing the capacity deficiency identified in the Company’s IRP planning process as a
starting point,we previously stated that the IRP determinations will be presumed to be correct”
subject to the outcome of the present proceeding.Id.Based on the foregoing,we find it fair and
reasonable to approve Rocky Mountain Power’s capacity deficiency and energy deficiency
proposal to be used in the Company’s SAR methodology.Consistent with these findings,we
approve the SAR methodology avoided cost rates as computed by Staff and included as
Attachment A to this Order.
ORDER
IT IS HEREBY ORDERED that Rocky Mountain Power’s capacity and energy
deficiency periods to be used in the Company’s SAR methodology be approved,as more fully
described herein.
IT IS FURTHER ORDERED that the updated SAR avoided cost rates become
effective upon issuance of this Order.
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.
ORDERNO,33015 3
DONE by Order of the Idaho Public Utilities Commission at Boise.Idaho this
day of April 2014.
PXtJL KJEL AN]i PRESIDENT
MACK A.RED RD,CO lONER
U L’h-’LI Qf-L—-
MARSHA H.SMITH,COMMISSIONER
ATTEST:
JL/
Jean D Jewell
Cbmmission Secretary
O:PAC-E-13-I 2ks3
ORDERNO.33015 4
PACIFICORP
AVOIDED COST RATES FOR WIND PROJECTS
April 8,2014
S/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects 100 kW or smaller.
LEVELIZED NON-LEVELIZED
CON T RACT ON-LiNE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 3188 3321 3816 4079 44.22 46.66 2014 31.88
2 32.52 35.59 39.42 42,44 45.39 47.60 2015 33.21
3 34.26 37.19 40.90 4374 46.38 48.85 2016 3816
4 35.71 38.75 42.18 44.82 47.55 50.25 2017 40.79
5 37.16 40,10 43.27 45.99 48.85 51.60 2018 44.22
6 38.45 41.26 4442 47.24 50.12 52.67 2019 46,66
7 39.59 42.43 45.63 48,46 51.17 53.60 2020 48.61
8 40.73 43.63 46.80 49.50 52.09 54.42 2021 51.66
9 41.89 44.79 47.82 5041 52.91 55.13 2022 55,18
10 43.01 45.80 4872 51.23 53.62 55.81 2023 58.13
11 44.00 4671 49.54 51.96 54.31 56.49 2024 59.48
12 44.89 47.54 50.26 52.65 54.98 57.15 2025 6092
13 45.70 48.27 50.95 53.32 55.63 57.82 2026 62.30
14 46.43 48.96 51.62 53.97 56.29 58.50 2027 63.28
15 47 12 49,63 52.26 54.61 56.96 59.20 2028 6505
16 47.77 50.27 52.89 55.27 57.63 59.93 2029 67.01
17 48.40 50.90 53 53 55.92 58.34 60.72 2030 69.02
18 49.02 51.53 54.17 56,61 59.09 61.54 2031 71 50
19 49.64 52.15 54.83 57.33 59.88 62.40 2032 7437
20 50.24 52.79 55.52 58.08 60,69 63.30 2033 77.39
2034 81 39
2035 86.41
2036 91.67
2037 9711
2038 10333
2039 107.02
Note:These rates will be further adjusted with the applicable integration charge.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)’s Annual Energy
Outlook 2013 released May 2,2013.See “Annual Energy Outlook 2013,All Tables,Energy Prices by Sector and Source,Mountain,
Reference case”at http://www.eia.gov/oiaf/aeo/tablebrowser/.
PACIFICORP Page 1
Attachment A
Order No.33015
Case No.PAC-E-13-12
PACIFICORP
AVOIDED COST RATES FOR SOLAR PROJECTS
April 8,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects 100 kW or smaller.
LEVELIZED NON LEVELIZED
CONTRACT ONLINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 5772 59.43 6476 6778 71.60 74.44 2014 57.72
2 58.54 61.99 66.21 69.62 72.97 7558 2015 59.43
3 60.46 63.78 67.87 71.10 74.15 77.02 2016 64.76
4 62.08 65.51 69.33 72.37 75.51 78.61 2017 6778
5 63.71 67.04 70.60 73,71 76.99 80.14 2018 71.60
6 65.17 68.37 71.92 75.15 78.43 81.40 2019 74.44
7 66.47 69.70 73.30 76.54 79.66 82.50 2020 76.80
8 6777 71.07 74.64 77.75 80.75 83.50 2021 80.26
9 69.09 72.39 75.82 78.83 81.73 84.38 2022 84.21
10 70.37 73.56 76.89 79.81 82.62 85.23 2023 87,58
11 71.51 74.62 7786 8069 83.46 86 07 2024 89.36
12 72.55 75.60 78,74 81.54 84.29 86.89 2025 91.23
13 73.50 76,48 7957 82.36 85.10 87.71 2026 93.06
14 74.37 77.31 80.38 83.15 85.90 88.55 2027 94.49
15 75,20 78.12 81.17 8395 86.72 8939 2028 9671
16 75.99 78.90 81.94 8474 8753 9027 2029 99,14
17 7675 79.66 8271 85.53 88.38 91.20 2030 101.62
18 77.49 80.41 83.48 86.34 89.26 92.16 2031 104.58
19 78.23 81.16 84.27 87.19 90.18 93.15 2032 107.94
20 78.96 81.93 85.08 88.07 91.12 94.18 2033 111,44
2034 115.94
2035 121.47
2036 127.25
2037 133.21
2038 139.96{2039 144.19
Note:These rates will be further adjusted with the applicable integration charge.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)’s Annual Energy
Outlook 2013 released May 2,2013.See “Annual Energy Outlook 2013,All Tables,Energy Prices by Sector and Source,Mountain,
Reference case”at http://w’w.eia.govJoiaf/aeo/tablebrowseri.
PACIFICORP Page 2
PACIFICORP
AVOIDED COST RATES FOR NON-SEASONAL HYDRO PROJECTS
April 8,2014
SIMWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON-LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS>2014 2015 2016 2017 2018 2019 YEAR RATES
1 5521 56.89 62.17 65.16 68.94 71.74 2014 55.21
2 56.02 59.43 63.61 66.98 70.29 72.86 2015 56 89
3 57.91 61.19 65.25 68.45 71.45 74.28 2016 62.17
4 59.52 62.92 66.69 69.69 72.79 75.86 2017 65.16
5 61.13 64.42 67.95 71.02 74.26 77,37 2018 68.94
6 62.58 65.74 69.25 72.44 75.68 78.61 2019 71.74
7 63.86 67.05 70.61 73.81 76.89 79.70 2020 74.06
8 65.15 68.40 71.94 75.00 77.97 80.67 2021 77.48
9 66.45 69.71 73.10 76.07 78.94 81.54 2022 81.39
10 67.71 7087 74.15 7704 79.80 82.37 2023 84.72
11 68.84 71.91 75.11 7790 80.63 83 19 2024 86.46
12 6986 72.87 75.97 78.73 81.45 84 00 2025 88.29
13 70 81 73 74 76,80 79.54 82 24 84.81 2026 90.07
14 71.66 74.56 77.59 80.32 83.03 85.63 2027 91.46
15 72.47 75.35 78.36 81.10 83.83 86.46 2028 93.64
16 73.25 76.12 79.12 81.88 84,63 87.32 2029 96.02
17 74.00 76.87 79,88 82.66 85.46 88.24 2030 98.45
18 74.73 77.61 80.64 83.46 86.33 89.19 2031 101.37
19 75.45 78.35 81.41 84,29 8724 90.17 2032 104.68
20 76.17 79.10 82.21 85.16 88.17 91.18 2033 108.14
2034 112.59
2035 118.07
2036 123.79
2037 129.71
2038 136,40
2039 140.58
Note’The rates shown in this table have been computed using the U S.Energy Information Administration (EIA)s Annual Energy
Outlook 2013 released May 2,2013.See Annual Energy Outlook 2013,All Tables,Energy Prices by Sector and Source,Mountain,
Reference case at http://www.eia.gov/oiaf/aeo/tablebrowser/.
PACIFICORP Page 3
PACIFICORP
AVOIDED COST RATES FOR SEASONAL HYDRO PROJECTS
April 8,2014
S/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS)2014 2015 2016 2017 2018 2019 YEAR RATES
1 72.79 74.73 80.27 83.52 87.58 90.65 2014 72,79
2 73.72 77.39 81.84 85.47 8905 91.90 2015 74.73
3 75.74 79.28 83.60 87.07 90.34 9345 2016 80.27
4 7747 81.12 85.17 88.44 91.81 95.16 2017 83.52
5 79.19 82.75 86.55 89,89 93.40 96.79 2018 87.58
6 80.75 84.18 87.96 91.42 94.95 98.16 2019 90.65
7 82.15 85.61 89.44 92.92 96.28 99.36 2020 93.25
8 83.55 87.07 90.88 94.22 97.47 10046 2021 9695
9 8496 88.49 92 16 95.40 98.55 101,44 2022 101 14
10 8632 89.75 9331 96,48 9953 10239 2023 104.75
11 8755 90.91 94,38 9745 100.47 103.32 2024 106,79
12 8868 91.97 95.34 9839 101.39 104.23 2025 108,91
13 8972 92.93 9627 99,30 102.28 105.15 2026 11100
14 9067 93.85 97.16 100.18 103.18 10607 2027 112.70
15 91.58 94.74 9803 101,05 104.08 10700 2028 11518
16 92.44 95.59 9888 101.93 104.97 107.97 2029 117.89
17 93.28 96.43 99.73 102.80 105.90 108.97 2030 120.63
18 94.10 97.26 100.58 103.69 106.86 11002 2031 123,87
19 94.91 98.09 101.44 104.62 107.86 111.09 2032 127.52
20 95.71 98.92 102.32 105.57 108.87 112.19 2033 131.31
2034 136.10
2035 141.92
2036 148.00
2037 154.27
2038 161,32
[2039 165,87
Note:A “seasonal hydro project”is defined as a generation facility which produces at least 55%of its annual generation during the
months of June,July,and August.Order 32802.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)’s Annual Energy
Outlook 2013 released May 2,2013.See “Annual Energy Outlook 2013,All Tables,Energy Prices by Sector and Source,Mountain,
Reference case”at http’//www.eia.gov/oiaf/aeo/tablebrowser/
PACIFICORP Page 4
PACIFICORP
AVOIDED COST RATES FOR OTHER PROJECTS
April 8,2014
$/MWh
New Contracts and Replacement Contracts without Full Capacity Payments
Eligibility for these rates is limited to projects smaller than 10 aMW.
LEVELIZED NON LEVELIZED
CONTRACT ON-LINE YEAR
LENGTH CONTRACT NON-LEVELIZED
(YEARS>2014 2015 2016 2017 2018 2019 YEAR RATES
1 48.40 49.98 55,17 5805 6173 6442 2014 4840
2 49 16 5247 56.55 59.82 63.02 65.49 2015 49.98
3 51.01 54.19 58.15 61.24 64.14 66.86 2016 55.17
4 52.57 55.86 59.54 62.44 65.43 68.39 2017 58 05
5 54.13 57.32 60.75 63.72 66.85 69.85 2018 61.73
6 55.54 58.59 62.00 65.08 68.23 71 04 2019 64.42
7 56 78 59.87 63.32 66.42 69.39 72.08 2020 66.64
8 5802 61.17 64.60 67.56 70.41 73.01 2021 69.95
9 59.28 62.44 65.73 6858 71.34 73.83 2022 73.74
10 60.50 63.55 6673 69.51 72 16 74.62 2023 76,96
11 61.59 64.56 67.65 7033 7295 7540 2024 78.59
12 62,58 65.48 68.47 71.12 73.72 76 16 2025 80.30
13 63.48 66.31 6926 71.89 74.47 76.93 2026 81.97
14 64.30 6709 70 01 72.63 75.23 77 71 2027 83.24
15 65 07 67 85 70.74 73.37 75.99 78,51 2028 85.30
16 65.82 68.57 71.47 74,11 7675 79.33 2029 87.56
17 66.53 69.29 72.19 74.86 77.55 80.21 2030 89.86
18 67.23 70.00 72.91 75.62 78.38 81.12 2031 92.65
19 67.92 70.70 73.65 76.42 79.25 8207 2032 95.84
20 68.60 71.42 74.42 77.26 80.15 83.04 2033 99.16
2034 103.48
2035 108.83
2036 11442
2037 12020
2038 12675
2039 130.78
Note.“Other projects”refers to projects other than wind,solar,non-seasonal hydro,and seasonal hydro projects.These “Other projects”
may include (but are not limited to>:cogeneration,biomass,biogas,landfill gas,or geothermal projects.
Note:The rates shown in this table have been computed using the U.S.Energy Information Administration (EIA)’s Annual Energy
Outlook 2013 released May 2,2013.See “Annual Energy Outlook 2013,All Tables,Energy Prices by Sector and Source,Mountain,
Reference case”at http’//www.eia.gov/oiaf/aeo/tablebrowser/
PACIFICORP Page 5