20131122Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF

FROM: KRISTINE SASSER
DEPUTY ATTORNEY GENERAL

DATE: NOVEMBER 15, 2013

SUBJECT: ROCKY MOUNTAIN POWER’S APPLICATION FOR APPROVAL OF
CAPACITY DEFICIENCY, CASE NO. PAC-E-13-12

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, 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.
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 2022 available system energy falls short of monthly loads in
January, July, August, and October.” 2013 IRP, Figure 5.5; Application at 5. Rocky 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.
DECISION MEMORANDUM 2
The Company requests that the Commission approve Rocky Mountain Power’s
identified capacity deficiency periods to be utilized in its SAR calculation. The Company further
requests that its Application be processed by Modified Procedure.
STAFF RECOMMENDATION
Staff has reviewed Rocky Mountain Power’s Application and recommends that it be
processed by Modified Procedure. Staff further recommends that the Commission allow parties
who claim a direct and substantial interest to intervene. After the deadline for intervention has
passed, Staff will convene an informal conference with the parties and recommend further
procedure to the Commission.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application setting a 14-day deadline
for intervention?

M:PAC-E-13-12_ks