20151104final_order_no_33418.pdf

Office of the Secretary
Service Date
November 4,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF PACIFICORP DBA )
ROCKY MOUNTAIN POWER’S ANNUAL )CASE NO.PAC-E-15-13
UPDATE TO LOAD AND GAS FORECASTS )
AND LONG-TERM CONTRACTS FOR ITS )
INCREMENTAL COST INTEGRATED )
RESOURCE PLAN AVOIDED COST )ORDER NO.33418
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 to calculate avoided cost rates paid to certain PURPA
qualifying facilities (QFs).The avoided cost rate is 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 14,2015,per 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’s current long-term load forecast was prepared in May 2015.The
load forecast used in the 2015 IRP was prepared in September 2014.Rocky Mountain’s most
recent Official Forward Price Curve was prepared September 30,2015 (“1509 OFPC”).The
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price forecast currently being used in the IRP method avoided cost calculation was prepared June
30,2015 (“1506 OFPC”).
Since the 2015 IRP.Rocky Mountain has signed 39 long-term contracts.including 37
long-term contracts with QFs for a total nameplate capacity of 644.1 megawatts (MW).Two
long-term contracts,with a combined nameplate capacity of 82.8 MW,were terminated.
STAFF REVIEW
Stati reviewed the Company’s forecast and contract updates.Staff reported that the
load and gas price tbrecasts submitted by Rocky Mountain 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 FINDINGS
The Commission has jurisdiction over Rocky Mountain and the issues raised in this
matter under Title 61 of the Idaho Code and PURPA.The Commission has authority under
PURPA and FERC regulations to set avoided costs,to order electric utilities to enter into fixed-
term obligations for the purchase of energy from QFs.and to implement FERC rules.Also,the
Commission is empowered to resolve complaints between QFs and utilities and to approve QF
contracts.
Pursuant to this authority,we have reviewed and considered the filings of record in
this case.We find that Rocky Mountain’s filing complies with the directives issued by this
Commission in Order Nos.32697 and 32802.Based on our review of the totality of the updates,
we accept the updated inputs to Rocky Mountain’s IRP avoided cost calculation for filing.
ORDER
IT IS HEREBY ORDERED that Rocky Mountain’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 15,2015.
THIS IS A FLNAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
ORDERNO.33418
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of November 2015.
PAUL KJELLANDEaPSIDENT
‘L-a’L/LL
ARSHA H.SMITH,COMMISSIONER
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KRI INE RAPER,COMMISSIONER
ATTEST:
mmission Secretary
O:PAC-E-1 5-I 3djh
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