20170726notice_of_application_order_no_33821.pdf

Office of the Secretary
Service Date
July 26,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.PAC-E-17-06
OF PACIFICORP DBA ROCKY MOUNTAIN )
POWER FOR BINDING RATEMAKING )NOTICE OF APPLICATION
TREATMENT FOR WIND REPOWERING )
)NOTICE OF
)INTERVENTION DEADLINE
)ORDER NO.33821
On July 3,2017,PacifiCorp dba Rocky Mountain Power applied for a Commission
determination on the Company's plan to upgrade,or "repower,"its existing wind resources;and
approval of associated ratemaking treatment.The Company claims that repowering its wind
resources will increase production,reduce costs,and qualify the Company for federal production
tax credits (PTCs).The Company estimates that upgrades to the system will increase output by
about 19%with no additional facilities.The Company estimates that the project will cost
approximately $1.13 billion.Because of the large scale of the project,the Company is seeking
Commission approval prior to starting the project.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company proposes to modernize most of
its wind generation resources located in Wyoming,Washington,and Oregon.Collectively,the
facilities represent a total of 999.1 megawatts (MW)of installed capacity (594 MW,Wyoming;
304.6 MW,Washington;and 100.5 MW,Oregon).Upgrades include longer blades,and new
nacelles with higher-capacity generations.The Company estimates that these changes will result
in an 11%to 35%increase in wind generation.
YOU ARE FURTHER NOTIFIED that the Company claims that the repowering will
allow for greater control over quality and voltage,allowing for greater reliability.Additionally,
the Company states that the repowering will extend the useful life of each plant by
approximately 10 years,without the cost and complication of permitting and constructing new
facilities.The Company states an intention to file a new depreciation case in 2019 to reset the
30-year depreciable life of the repowered facilities.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33821 1
YOU ARE FURTHER NOTIFIED that the Company states that PTCs for its existing
facilities began expiring in 2016,and will continue to expire through 2020.1 To requalify for
PTCs,the Company can repower the wind plant,and meet the IRS 80/20 test-the fair market
value of the retained property is no more than 20%of the facility's total value after installation
of the upgrade.The Company's proposal meets this requirement.The Company estimates that
to meet installation timelines,it will need Commission approval for the project by December 29,
2017,and likewise requests such a processing timeline.
YOU ARE FURTHER NOTIFIED that the Company requests binding ratemaking
treatment.It proposes to track repowered wind project expenses using a resource tracking
mechanism as a component of the Company's Energy Cost Adjustment Mechanism (ECAM),
until the costs and benefits are fully included in base rates.The Company proposes that
customers receive 100%of the benefit of incremental energy generated from the projects.Once
fully in base rates,only the incremental fluctuations associated with production and PTCs would
continue to be tracked in the ECAM.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure
72 and 73,IDAPA 31.01.01.072 and -.073.Persons intending to participate at the hearing must
file a Petition to Intervene no later than August 8,2017.Persons desiring to present their views
without parties'rights of participation and cross-examination are not required to intervene and
may present their comments without prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed.The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued,the
Commission's Staff will convene an informal prehearing conference at the Commission's offices
for the parties to discuss a schedule to process this case and other issues as may be raised by the
parties.
I For PTCs that have already expired,the Company states that it has purchased "safe-harbor"equipment that will
allow it to qualify for 100%of the value of available PTCs if the repowered units are operational by 2020.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33821 2
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Rocky Mountain's representatives in this matter:
Ted Weston Yvonne Hogle
Idaho Regulatory Affairs Manager Assistant General Counsel
Rocky Mountain Power Rocky Mountain Power
1407 West North Temple,Suite 330 1407 West North Temple,Suite 320
Salt Lake City,Utah 84116 Salt Lake City,Utah 84116
E-mail:[e-mail] E-mail:[e-mail]
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene with the Commission no later than August 8,2017.After that,Staff shall
convene an informal conference with the parties to discuss appropriate scheduling of this case
going forward.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July2017.
PAUL KJELLANDÈL PRESIDENT
KR TINE RA MMISSIONER
EIÛC ANDERSON,CÕÙMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
O:PAC-E-17-06 bk
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33821 3