20171221final_order_no_33952.pdf

Office of the Secretary
Service Date
December 21,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.PAC-E-17-13
OF ROCKY MOUNTAIN POWER TO )
UPDATE THE LOAD AND GAS FORECASTS )
USED IN THE INTEGRATED RESOURCE )ORDER NO.33952
PLAN AVOIDED COST MODEL )
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
qualifyingfacilities (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 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 13,2017,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 July 2017.The
load forecast used in the prior filing was prepared in July 2016.Rocky Mountain's most recent
Official Forward Price Curve was prepared September 29,2017.The price forecast currently
being used in the prior filing was prepared October 12,2016.
*The Company filed an errata on November29,2017.
ORDER NO.33952 1
Since the prior filing,Rocky Mountain has signed 19 long-term contracts,including
18 long-term contracts with QFs,for a total nameplate capacity of 672.2 megawatts (MW).Two
long-term contracts,with a combined nameplate capacity of 4.8 MW,were terminated.
STAFF REVIEW
Staff reviewed the Company's forecasts and contract updates,and recommends the
Commission approve them.Staff noted the 2017 load forecast shows a slight decrease compared
to the 2016 forecast,driven by "reduced industrial class loads,due in large part to lower
commodity prices,and continued gains in energy conservation."Staff Comments at 2.
Regarding the gas price forecast,Staff described that the 2017 forecast has decreased from the
2016 forecast for the same time period,which is consistent with the drop in the U.S.Energy
Information Administration Henry Hub Reference forecasts from 2016 to 2017.Id.Staff
reported that the load and gas price forecasts 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.
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 record in this case,
includingRocky Mountain's filing and Staff's recommendation.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 NO.33952 2
ORDER
IT IS HEREBY ORDERED that Rocky Mountain Power's annual updates to its load
and gas price forecasts and long-term contract status for purposes of its incremental cost IRP
methodology are accepted,effective October 15,2017.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order with regard to any
matter decided in this Order.Within seven (7)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 December 2017.
PAUL KJEl LANDIËR,PRESIDENT
KR15TINERAPER,O ISSIONER
ERIC ANDERSON,COMMISSIONER
A
Diane M.Hanian
Commission Secretary
I:\LegalìLORDERS\PACE1713cc2 Order doc
ORDER NO.33952 3