20151020Comments.pdf

DAPHNE HUANG flfrcfi]vf []
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(208) 334-03r8
IDAHO BAR NO. 8370
Street Address for Express Mail:
472W, WASHINGTON
BOISE, IDAHO 83702.5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF PACIFICORP DBA )
ROCKY MOUNTAIN POWER'S APPLTCATTON ) CASE NO. PAC-E-15-11
TO APPROVE rTS POWER PURCHASE )
AGREEMENT WITH CONSOLIDATED ) COVTMENTS OF THE
IRRIGATION COMPANY. ) COITMTSSTON STAFF
)
)
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Daphne Huang, Deputy Attorney General, and in response to the Notice of
Application and Notice Modified Procedure issued September 29,2015, submits the following
comments.
BACKGROUND
On September 18, 2015, PacifiCorp dba Rocky Mountain Power (Rocky Mountain) filed
an Application asking the Commission to approve its Power Purchase Agreement with
Consolidated Irrigation Company (CIC). Under the Agreement, CIC would sell and Rocky
Mountain would purchase, electric power generated by CIC's facility - a "qualiSing facility"
under the Public Utility Regulatory Policies Act (PURPA) - in Preston, Idaho.
STAFF COMMENTS ocroBER 20,20t5
On September 11, 2015, Rocky Mountain entered into its Agreement with CIC pursuant to
the terms and conditions of various Commission Orders, and under PURPA. Application at2-3,
citing Order Nos. 33305, 30480, Errata to 30480. Under PURPA, electric utilities must purchase
electric power from o'qualifying facilities" (QFO at rates approved by 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, "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").
Rocky Mountain states that CIC's facility is a hydroelectric QF under PURPA with a
capacity rating of 481 kilowatts (kW). Application at 2.
"[U]nder the terms of the Agreement, [CIC] elected to contract with the Company for a
term of approximately 20 years." /d Rocky Mountain agreed to pay non-levelized, Conforming
Energy or Non-Conforming Energy Purchase Prices for the power provided by ClC. Id.
The Agreement 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 and in the
public interest, and that all of the costs incurred by [Rocky Mountain] for purchasing capacity and
energy from CIC are legitimate expenses." Id. at3.
Rocky Mountain anticipates CIC will achieve its commercial operation date before its
effective date. Id.
STAFF ANALYSIS
Staff has reviewed the proposed rates and confirms that they are correct. All other terms
and conditions contained in the proposed Agreement are consistent with prior Commission orders.
RECOMMENDATIONS
Staffrecommends that the Commission approve all of the Agreement's terms and
conditions declare that all payments made by Rocky Mountain Power to Consolidated Irrigation
Company for purchase of energy will be allowed as prudently incurred expenses for ratemaking
purposes.
STAFF COMMENTS ocroBER 20,20t5
Respecttully submitted this 2b
,fh7 day of October 2015.
Technical Staff: Yao Yin
i:umiso:commentVpacel5. I ldjhyy comments
Deputy Attorney General
STAFF COMMENTS ocToBER 20,2015
CERTIFICATE OF SBRVICE
I HEREBY CERTIFY THAT I HAVE THIS 2OTH DAY OF OCTOBER 2015,
SERVED THE FOREGOING COMMENTS OF' THE COMMISSION STAFF, IN
CASE NO. PAC-E-15.11, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
BRUCE GRISWOLD
PACIFICORP
825 NE MULTNOMAH STE I8OO
PORTLAND OR 97232
E-MAIL: bruce. [e-mail]
DATA REQUEST RESPONSE CENTER
E.MAIL ONLY:
datarequest@pacifi corp. com
YVONNE HOGLE
ROCKY MOTJNTAIN POWER
2OI S MAIN ST STE 23OO
SALT LAKE CITY UT 84111
E-MAIL : vvonne.hosel@nacifi corp.com
CERTIFICATE OF SERVICE