20140730notice_of_application_order_no_33085.pdf

Office of the Secretary
Service Date
July 30,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
PACIFICORP DRA ROCKY MOUNTAIN )CASE NO.PAC-E-14-06
POWER FOR APPROVAL OF A POWER )
PURCHASE AGREEMENT WITH LOWER )NOTICE OF APPLICATION
VALLEY ENERGY,INC.)
)NOTICE OF
)MODIFIED PROCEDURE
)
________________________________
)ORDER NO.33085
On July 3,2014,PacifiCorp dba Rocky Mountain Power filed an Application with the
Commission requesting that the Commission approve a Power Purchase Agreement between
Rocky Mountain Power and Lower Valley Energy,Inc.,for the sale and purchase of electric
energy produced by the Lower Valley hydroelectric project located in Afton,Wyoming.Rocky
Mountain Power requests that its Application be processed by Modified Procedure.
NOTICE OF APPLICATION
A.Background
YOU ARE HEREBY NOTIFIED that Lower Valley owns,operates,and maintains
three run of river hydroelectric generating facilities in Lincoln County,Wyoming —two are
located on Swift Creek and one is located on the culinary water system located in/near 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”—has a nameplate capacity of 225 kW.
YOU ARE FURTHER NOTIFIED that,on May 22,2009,PacifiCorp and Lower
Valley entered into a Power Purchase Agreement (PPA)regarding the Upper Facility for a three-
year term,expiring on May 1,2012.The Commission approved the PPA in July 2009.Order
No.30864.In February 2010,the Company and Lower Valley executed a Revised and Restated
Power Purchase Agreement to include generation from the Lower Facility.The Commission
approved the revised agreement on February 25,2010,by Minute Order.In May 2011,
PacifiCorp and Lower Valley sought another revision of the PPA.The parties requested that the
Commission add output from the newly constructed Culinary Facility and extend the term of the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33085
entire contract through September 1,2014.The Commission approved the addition of the
Culinary Facility and extension of the contract term on August 10,2011.Order No.32323.
B.The Agreement
YOU ARE FURTHER NOTIFIED that PacifiCorp and Lower Valley executed an
agreement on June 17,2014,pursuant to the terms and conditions of the various Commission
Orders applicable to this PURPA agreement for a hydroelectric resource.Under the terms of the
PPA,Lower Valley elected to contract with Rocky Mountain for a two-year term using non
levelized published avoided cost rates established at the time of the PPA under Order No.32817
for energy deliveries of less than 10 average megawatts (aMW).
YOU ARE FURTHER NOTIFIED that the nameplate rating of the facilities as a
whole is 1.7 MW.Lower Valley has attested and documented through its generation profile that
its facilities will not exceed 10 aMW on a monthly basis.Should the facilities exceed 10 aMW
on a monthly basis,Rocky Mountain will accept the energy that does not exceed the maximum
facility delivery rate (inadvertent energy),but will not purchase or pay for the inadvertent
energy.Furthermore,this PURPA agreement includes the 90-110 performance band as required
by Commission Order No.29632.
YOU ARE FURTHER NOTIFIED that PURPA QF generation must be designated as
a network resource on Rocky Mountain’s system,which requires the Company’s merchant
function to submit a Transmission Service Request on behalf of the facilities to PacifiCorp
transmission.Submission of this request occurred on May 29,2014.Upon resolution of any and
all required upgrades,if necessary,to acquire network transmission capacity for the facilities’
delivery of energy and upon execution of the PPA,the facilities may then be designated as a
network resource.
YOU ARE FURTHER NOTIFIED that Lower Valley has also been made aware of
and accepted the provisions of the PPA regarding curtailment or disconnection of its facilities
should certain operating conditions develop on the Company’s system.Section 6 of the PPA
defines the condition for curtailment and obligations of Lower Valley in the event of curtailment.
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 project for purchases of energy “are
just and reasonable,in the public interest,and that the costs incurred by [Rocky Mountain
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33085
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
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 Tuesday,August 19,2014.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 83720-0074 Salt Lake City,UT 84111
E-Mail:daniel.solander(pacificorp.com
Street Address for Express Mail:
Ted Weston
472 W.Washington Street Rocky Mountain Power
Boise,ID 83702-59 18 201 South Main,Suite 2300
Salt Lake City,UT 84111
E-Mail:ted.weston(ä)pacif1corIicorn
These 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 “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33085 3
appears on the front of this document.These comments must also be sent to Rocky Mountain
Power at the e-mail addresses listed above.
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 and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices.The Application is also available on the
Commission’s web site at wv.puc.idaho.ov.Click on the “File Room”tab at the top of the
page,scroll down to ‘Open Electric Cases,”and then click on the case number as shown on the
front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in these cases 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 31.01.01.000,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 August 19,2014.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33085 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this ‘
day of July 2014.
PAUL KJELLAN E ,PRESIDENT
MACK A.REDFOR ,OMMISSIONER
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MARSHA H.SV1ITH,COMMISSIONER
ATTEST:
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Jei D.Jewell
Commission Secretary
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33085 5