20170815Comments.pdf

DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-007 4
[phone]
IDAHO BAR NO. 8370
IN THE MATTER OF THE APPLICATION FOR
APPROVAL OF A POWER PURCHASE
AGREEMENT BETWEEN PACIFICORP DBA
ROCKY MOUNTAIN POWER AND BRIGHAM
YOUNG UNIVERSITY . IDAHO.
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Street Address for Express Mail
472 W . WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. PAC.E.17.O8
COMMENTS OF THE
COMMISSION 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 of Modified Procedure issued in Order No. 33818, submits the following
comments.
BACKGROUND
On July 12,2017, PacifiCorp dba Rocky Mountain Power (the Company) filed an
Application asking the Commission to approve its renewed Power Purchase Agreement (PPA)
with Brigham Young University - Idaho (BYUI). Under the PPA, BYUI would sell, and the
Company would purchase, electric energy generated from BYUI's gas/oil fueled generating
facility in Rexburg, Idaho.
On June 29,2017, the Company and BYUI entered into a renewed PPA under the terms of
various Commission Orders and the federal Public Utility Regulatory Policies Act (PURPA).
1STAFF COMMENTS AUGUST 15,2OI7
Application at2, citing, Order Nos. 32697 ,32737 ,32802. The Commission approved the initial
PPA between the Company and BYUI in June 2015, by Order No. 33317. Application at 2. The
initial PPA is scheduled to terminate September 27,2017 . Id.
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 Powerv. Idaho PUC,l55 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); I 8 C.F.R . 5 292.101(6) (defining ooavoided
cost"),
The Company states that the BYUI facility is a QF under PURPA and has a nameplate
rating of 5,600 kilowatts (kW), or 5.6 megawatts (MW). Application at 7-2.
BYUI "elected to renew its QF PPA with the Company for a twenty-year term." Id. at 4.
The Company will pay BYUI "non-levelized, Conforming Energy or Non-conforming Energy
Purchase Prices for Net Output adjusted for the month and On-Peak Hours or Off-Peak Hours."
Id. The Company and BYUI agree that "should the Facility exceed 5.6 [average megawatts
(aMW)] on a monthly basis, [the Company] will accept the energy ("Inadvertent Energy") that
does not exceed the Maximum [Generator Interconnection Agreement] Delivery Rate, but will not
purchase or pay for the InadvertentBnergy." 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 [BYUI] are legitimate expenses." 1d
The PPA includes provisions regarding the curtailment or disconnection of BYUI's facility
from the Company's system. The Company asserts that BYUI knows of these provisions and has
accepted them. Id. at 5.
STAFF ANALYSIS
Staff has reviewed the proposed rates and confirms they are correct. All other terms and
conditions contained in the proposed Agreement are consistent with prior Commission orders.
2STAFF COMMENTS AUGUST 15,2017
STAFF RECOMMENDATION
Staff recommends that the Commission approve all of the Agreement's terms and
conditions and declare that all payments made by PacifiCorp to Brigham Young University of
Idaho for purchase of energy from the gas and oil fueled generating facility will be allowed as
prudently incurred expenses for ratemaking purposes.
Respectfully submitted this r '; lr day of August 2017
lu lL
h.. Daphne Huang
Deputy Attorney General
Technical Staff: Yao Yin
Rachelle Farnsworth
i :umisc:comments/pace I 7, 8djhrfl y comments
JSTAFF COMMENTS AUGUST I5,2OI7
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS l5th DAY OF AUGUST 2017,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. PAC-E-I7-08, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
TED WESTON
ROCKY MOLINTAIN POWER
I4O7 WEST NORTH TEMPLE STE 330
SALT LAKE CITY UT 84116
E-MAIL: ted.weston@,pacifi corp.com
DATA REQUEST RESPONSE CENTER
E.MAIL ONLY:
datareq uest@pacifi com. com
DANIEL E SOLANDER
ROCKY MOLTNTAIN POWER
I4O7 WEST NORTH TEMPLE STE 320
SALT LAKE CITY UT 841 16
E-MAIL: [e-mail]
SECRE Y
CERTIFICATE OF SERVICE