20180108notice_of_application_order_no_33960.pdf

Office of the Secretary
Service Date
January 8,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.PAC-E-17-14
OF ROCKY MOUNTAIN POWER FOR )
APPROVAL OF POWER PURCHASE )NOTICE OF APPLICATION
AGREEMENT BETWEEN PACIFICORP )AND THE CITY OF PRESTON,IDAHO )NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.33960
On December 22,2017,Rocky Mountain Power applied to the Commission for an Order
approving or rejecting its proposed Power Purchase Agreement (PPA)with the City of Preston,
Idaho.Rocky Mountain Power explains the proposed PPA would replace an agreement with an
existing "qualifying facility"(QF)under the Public Utility Regulatory Policies Act (PURPA).
Application at 3.The prior agreement expired on December 31,2017.Id.at 3-4.Since the prior
agreement has expired and the proposed PPA is not yet effective,the Company also seeks
permission to continue buying the QF's power under the prior agreement until the Commission
approves or rejects the proposed PPA.The Company states it and the QF have agreed that the
price the Company pays for power after 2017 will be trued-up to the price it would have paid if
the proposed PPA had been in effect.Id at 4.
The Commission now issues this Notice of Application and Notice of Modified Procedure
setting comment and reply deadlines.The Commission also grants the Company permission to
buy power from the QF under the prior agreement until the proposed PPA is approved or rejected,
with prices paid after 2017 being trued-up to the price that would have been paid under the
proposed PPA.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Rocky Mountain Power explains the proposed PPA
is a renewal contract with an existing 400 kilowatt hydroelectric QF under PURPA.Id at 3.The
proposed PPA would replace a prior agreement that was in effect from 1982 until it expired on
December 31,2017.Id at 3-4.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33960 1
YOU ARE FURTHER NOTIFIED that the Company asks to continue buying power under
the prior agreement's terms until the Commission approves or rejects the proposed PPA.Id The
Company states it and the QF "have agreed that the price paid after December 31,2017 would
then be trued-up to the price that would have been paid under the new [PPA],in order to hold [the
Company's]customers harmless from the extension."Id
YOU ARE FURTHER NOTIFIED that Rocky Mountain Power indicates the proposed
PPA complies with this Commission's Order Nos.36297,32737,and 32802 from Case No.GNR-
E-11-03.Id.at 3.Rocky Mountain Power further states the QF elected to contract for a 20-year
term with prices as set forth in Exhibit F to the proposed PPA,except as otherwise indicated.Id
YOU ARE FURTHER NOTIFIED that Rocky Mountain Power explains the proposed
PPA will not take effect until the Commission approves it and determines:
the prices paid for energy and capacity are justand reasonable,in the public interest,
and that costs incurred by the Company for purchasing energy and capacity are
legitimate expenses,all of which the Commission will allow the Company to
recover in Idaho rates in the event other jurisdictions deny recovery of their
proportionate share of said expenses.
Id
YOU ARE FURTHER NOTIFIED that in sum,Rocky Mountain Power asks that (1)the
Application be processed under Modified Procedure;(2)the Company be allowed to continue to
buy power from the QF under the prior agreement until the Commission approves or rejects the
new PPA,after which the price paid will be trued-up to the price that would have been paid under
the new PPA;(3)the Commission approve or reject the new PPA with the City of Preston without
change or modification;and (4)the Commission declare that the avoided cost prices under the new
PPA are justand reasonable and in the public interest,"and that the Company's incurrence of such
costs are legitimate expenses,all of which the Commission will allow Rocky Mountain Power to
recover in rates in Idaho in the event otherjurisdictionsdeny recovery of their proportionate share
of said expenses."Id.at 5.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices.These documents are also available on the Commission's web site at
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33960 2
www.pucjdaho.gov.Click on the "File Room"tab at the top of the page,then select "Electric
Cases"and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically Idaho Code §§
61-502 and 61-503.The Commission has authority under PURPA and the implementing
regulations of the Federal Energy Regulatory Commission (FERC)to set avoided costs,to order
electric utilities to enter into fixed-term obligations for the purchase of energy from qualified
facilities and to implement FERC rules.The Commission may enter any final Order consistent
with its authority under Title 61 and PURPA.
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.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter,and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure,IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by no later
than 21 days from the service date of this Order.The comment must contain a statement of
reasons supporting the comment.Persons desiring a hearing must specifically request a hearing
in their written comments.Written comments concerning this Application shall be mailed to the
Commission and the Company at the addresses reflected below:
Commission Secretary Ted Weston,Idaho Regulatory Affairs
Idaho Public Utilities Commission Manager (Suite 330)
PO Box 83720 Daniel Solander,Senior Counsel (Suite 320)
Boise,ID 83720-0074 Rocky Mountain Power
1407 West North Temple
Street Address for Express Mail:Salt Lake City,UT 84116
E-Mail:[e-mail]
472 W.Washington Street [e-mail]
Boise,ID 83702-5918
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33960 3
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at www.gue.idaho.gov.Click the "Case Comment or Question
Form"under the "Consumers"tab,and complete the comment form using the case number as it
appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,by no later than 14 days from the deadline for comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its Order
without a formal hearing.If written comments are received within the time limit set,the
Commission will consider them and,in its discretion,may set the same for formal hearing.
DISCUSSION AND FINDINGS
The Company asks to be allowed to buy the QF's output under the terms of the prior
agreement until this Commission issues a decision on the proposed PPA.The Company and the
QF have agreed to true-up the price paid after 2017 to the price that would have been paid under
the proposed PPA.The parties'agreement to true-up the price paid after 2017 to the price the
Company would have paid under the proposed PPA will protect the Company's customers and
hold them harmless.We expect the Company to anticipate the expiration of contracts so that
exceptions such as this are unnecessary.However,because the proposed treatment holds
ratepayers harmless,we approve the parties'request to continue under the terms of the expired
agreement.The rates paid by the Company to the QF will be trued-up upon approval of the
proposed agreement.
ORDER
IT IS HEREBY ORDERED that the Application of Rocky Mountain Power be processed
by Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested in
submitting written comments must do so no later than 21 days from the service date of this Order.
The Company may file a reply no later than 14 days from the deadline for comments.
IT IS FURTHER ORDERED that the Company be permitted to continue to buy power
from the QF under the expired agreement's terms until this Commission issues a decision on the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33960 4
proposed PPA,with the price paid after December 31,2017,to be trued-up to the price that would
have been paid under the new PPA.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this S
day of January 2018.
PÄUL KJ LDA DER,PRESIDENT
KRI ÎINE RAPER,C ;ONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
liegal\LORDERS\PACEl714_cc1_notcofappmodproced.docx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33960 5