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HomeMy WebLinkAbout20180426press release.pdf'Idaho Public Utilities Commission c......non........, P.O.Box 83720,Bolse,10 83720-0074 Paul Kjellender,commissionerKristineRaper,CommissionerEritAnderson,Commissloner Case No.PAC-E-17-07 Contact:Matt Evans Office:(208)334-0339 Cell:(208)520-4763 www.puc.idaho.gov PUC to hold telephonic public hearing over Rocky Mountain Power proposal BOISE (April 26,2018)-The Idaho Public Utilities Commission has scheduled a telephonic public hearing regarding Rocky Mountain Power's plan to add almost 1 gigawatt of wind energy and upgrade its transmission system. The company's proposal calls for the construction or acquisition of four wind facilities, along with the construction of or modifications to several transmission facilities,all in Wyoming. The company has asked the Commission to approve Certificates of Public Convenience and Necessity (CPCN)for the projects,which are estimated to cost $2 billion.State law requires that a public utility obtain a CPCN before constructing certain facilities or infrastructure. The company has also requested Commission approvalfor bindingratemakingtreatment of the projects.That would allow Rocky Mountain Power to track the costs and benefits of the projects,with the difference recovered from customers throughthe Energy Cost AdjustmentMechanism until the costs of the new facilities are reflected in customers'base rates. Rocky Mountain Power's application indicates the wind facilities must be operating by the end of 2020 to receive the full benefit of federal productiontax credits.The company also contends the projects are dependenton each other;that is,the wind projects are not economic without the transmission projects and vice versa. Rocky Mountain Power provides electric service to approximately75,400 customers in Idaho.That is approximately7 percent of its customer base across a service territory that includes Utah and Wyoming. The $2 billion cost estimate for the projects would lead to a rate increase of less than 1.9 percent in 2021,which is expected to be the first full year of operation of the new wind facilities.The projects are expected to save $137 million in avoided costs through2050, when the wind facilities are fully depreciated,the company said. Rocky Mountain's 2017 Integrated Resource Plan,which was acknowledged by the Commission in early April 2018,identified wind energy as the "least-cost,least-risk resource when compared to other energy sources"for reliablymeeting customer demand for the next 20 years. The wind facilities outlined in Rocky Mountain's proposalwould providea total generating capacity of 860 megawatts (MW).Three of the facilities have a generatingcapacity of 250 MW and one is capable of generating 110 MW. The transmission projects outlined in the company's proposal are associated with its Energy Gateway West transmission project,which calls for the addition of approximately 2,000 miles of transmission lines in order to alleviate congestion on Rocky Mountain's transmission system and improveits ability to manage the intermittent load producedby wind. The telephonic public hearing is set for May 3 at 6 pm.It is intended to give Rocky Mountain Power customers a chance to submit oral testimonyfor the official case record. To participate,call (800)920-7487 and enter passcode 6674832#when prompted. Rocky Mountain Power's application and exhibits are available on the Commission's website here.Or go to www.puc.idaho.gov,click on "Open Cases"under the "Electric" heading and scroll down to case number PAC-E-17-07.