20141121final_order_no_33183.pdf

Office ofthe Secretary
Service Date
November 21,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF PACIFICORP’S )
ANNUAL UPDATE TO LOAD AND GAS )CASE NO.PAC-E-14-09
FORECASTS AND LONG-TERM )
CONTRACTS FOR ITS INCREMENTAL )
COST INTEGRATED RESOURCE PLAN )ORDER NO.33183
AVOIDED COST METHODOLOGY.)
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 an incremental cost Integrated
Resource Plan (IRP)methodology for the calculation of avoided cost rates paid to certain
PURPA qualifying facilities (QFs).Avoided cost rates are the purchase price paid to QFs for
purchases of QF energy and capacity.
In Order Nos.32697 and 32802,the Commission determined that the load forecast
and natural gas forecast inputs to the IRP avoided cost methodology should be updated annually
on October 15 of each year.The Commission stated
We find that,in order to maintain the most accurate and up-to-date reflection
of a utility’s true avoided cost,utilities must update fuel price forecasts and
load forecasts annually —between IRP filings...In addition,it is
appropriate to consider long-term contract commitments because of the
potential effect that such commitments have on a utility’s load and resource
balance...We further find it appropriate to consider PURPA contracts that
have terminated or expired in each utility’s load and resource balance.
Order No.32697 at 22.
On October 14,2014,pursuant to the Commission’s directive,PacifiCorp dba Rocky
Mountain Power submitted its annual updates for fuel prices and load forecasts.The Company
also submitted information regarding new and expiring contracts.
COMPLIANCE FILING
Rocky Mountain Power’s long-term load forecast to be used for the update to the
Company’s IRP avoided cost methodology was prepared in September 2014.The Company’s
most recent Official Forward Price Curve was prepared September 30,2014.
Since the previous JRP methodology update compliance filing made in October 2013,
Rocky Mountain Power has signed 43 long-term contracts with QFs for a total nameplate
ORDERNO.33183
capacity of 893.2 megawatts (MW).Two long-term contracts with a combined nameplate
capacity of 159.8 MW were terminated.
STAFF REVIEW
Staff reviewed the Company’s forecast and contract updates.Staff reported that the
load and gas price forecasts submitted by Rocky Mountain Power reflect the Company’s most
current estimates and were prepared consistent with the methods used in the Company’s IRP.
Staff maintained that the load and gas price forecasts and the long-term contract changes
submitted by the Company comply with the requirements of Order Nos.32697 and 32802.Staff
recommended that the Commission accept the forecasts and contract changes without further
process.
DISCUSSION AND CONCLUSIONS
The Commission has jurisdiction over Rocky Mountain Power pursuant to the
authority and power granted it under Title 61 of the Idaho Code and 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.The Commission is also empowered to
resolve complaints between QFs and utilities and approve QF contracts.
Pursuant to its authority,the Commission has reviewed and considered the filings of
record.We find that Rocky Mountain Power’s filing complies with the directives issued by this
Commission in Order Nos.32697 and 32802.Based upon our review of the totality of the
updates,we accept the updated inputs to Idaho Power’s IRP avoided cost calculation for filing.
ORDER
IT IS HEREBY ORDERED that Rocky Mountain Power’s annual update to its load
and gas price forecast and long-term contract status for purposes of its incremental cost IRP
methodology are accepted,effective October 15,2014.
THIS IS A FINAL ORDER.An 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 §61-626.
ORDERNO.33183 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of November 2014.
ATTEST:
/4
,
Jn D.Jewell
Commission Secretary
O:PAC-E-14-09 ks
/
PAUL KJELLAD1REIDENT
\
MACK A.REDFORD,CO]
AA4S /SL
MARSHA H.SMITH,COMMISSIONER
ORDERNO.33183 3