20150602Comments.pdf

DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 8370
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF PACIFICORP'S )
APPLICATTON TO APPROVE POWER ) CASE NO. PAC-E-15-06
PURCHASE AGREEMENT WITH BRIGHAM )
YOUNG UNIVERSITY - IDAHO. ) COIvTMENTS OF THE) connMIsSIoN STAFF
)
)
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attomey of record, Daphne Huang, Deputy Attorney General, and in response to the Notice of
Application and Notice Modified Procedure issued May 12,2015, submits the following
comments.
BACKGROUND
On May 1,2015, PacifiCorp dba Rocky Mountain Power (the Company) filed an
Application asking the Commission to approve its Power Purchase Agreement with Brigham
Young University - Idaho (BYU-Idaho). Under the Agreement, BYU-Idaho would sell and the
Company would purchase, electric power generated by BYU's gas/oil fueled generating facility
(Facility) in Rexburg, Idaho.
STAFF COMMENTS JLINE 2,2015
The Company entered into a Power Purchase Agreement (PPA), dated April23, 2015, with
BYU-Idaho pursuant to the terms and conditions of various Commission Orders, and under the
federal Public Utility Regulatory Policies Act (PURPA). Application at 2, citing Order Nos.
32697,32737,32802. Under PURPA, electric utilities must purchase electric power from
"qualifying facilities" (QFs) at rates approved by the applicable state regulatory agency - in Idaho,
this Commission. 16 U.S.C. $ 824a-3; Idaho Power v. Idaho PUC,155 Idaho 780,789,316 P.3d
1278,1287 (2013). The purchase or "avoided cost" rate shall not exceed the "incremental cost" to
the utility, defined as the cost of energy which, o'but for the purchase from [the QF], such utility
would generate or purchase from another source." 16 U.S.C. $ 824a-3(d); 18 C.F.R. $ 292.101(6)
(defining "avoided cost").
The Company states that the BYU-Idaho facility is a co-generation QF under PURPA and
has a nameplate rating of 5.6 MW. Application at 1-3.
"[U]nder the terms of the Agreement, [BYU-Idaho] elected to contract with the Company
for a two-year term from the commercial operation date of the Facility." Id. at 3 . The Company
will pay non-levelized rates for the power provided by BYU-Idaho. Id.
The PPA provides that it will not become effective "until the Commission has approved it
and determined that the prices to be paid for energy and capacity are just and reasonable, in the
public interest, and that the costs incurred by [the Company] for purchasing capacity and energy
from [BYU-Idaho] are legitimate expenses." Id.
The PPA includes provisions regarding the curtailment or disconnection of BYU-Idaho's
facility from PacifiCorp's system. The Company asserts that BYU-Idaho is aware of these
provisions and has accepted them. Id. at 4.
STAFF ANALYSIS
Staff has reviewed the proposed rates and confirms that they are correct and consistent
with Order No. 32817t. All other terms and conditions contained in the proposed Agreement are
consistent with prior Commission orders.
I The rates are generated using Avoided Cost Model Order No. 32817, July 30, 2014 version.
STAFF COMMENTS JUNE 2,2015
RECOMMENDATIONS
Staff recommends that the Commission approve all of the Agreement's terms and
conditions and declare that all payments made by Rocky Mountain Power to Brigham Young
University - Idaho for purchase of energy will be allowed as prudently incurred expenses for
ratemaking purposes.
Respecttully submitted this t)d day ofJune 2015.
Technical Staff: Rick Sterling
Yao Yin
i:umisc:commenr/pace I 5.6djhrpsyy comments
STAFF COMMENTS JUNE 2,2015
CERTIFICATE OF SERYICE
I HEREBY CERTIFY THAT I HAVE THIS 2Nd DAY OF JUNE 2015, SERVED
THE FOREGOING COMMENTS OF TIm COMMISSTON STAtr'F, IN CASE NO.
PAC-E.15-06, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
TED WESTON
ID REG AFFAIRS MANAGER
ROCKY MOUNTAIN POWER
201 S MAIN ST STE 23OO
SALT LAKE CITY UT 84I1I
E-MAIL: [e-mail]
DATA REQUEST RESPONSE CENTER
E.MAIL ONLY:
datarequest@pacifi corp. com
WONNE HOGLE
ROCKY MOUNTAIN POWER
201 S MAIN ST STE 23OO
SALT LAKE CITY UT 8411I
E-MAIL: wonne.hogel@fracifi com.com
CERTIFICATE OF SERVICE