20191025Application.pdf

ROCKY MOUNTAIN
POVI'ER
a otvlstoN oF PAcrFrcoRP
RECEIVED
'1i9OCT 25 Pl{ 2:0!
Joelle R. Steward
Vice President, Regulation
1407 West North Temple, Suite 330
Salt Lake City, UT 84116
October 25, 2019
VIA OVERNIGHT DELIVERY
Diane Hanian
Commission Secretary
ldaho Public Utilities Commission
I l33l W Chinden Blvd
Building 8 Suite 201,4'
Boise, Idaho, 83714
Re CASE NO. PAC-E.I9.17
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER
TO INCREASE THE BLUE SKY BLOCK VALUE FROM 1OO TO 2O() KILOWATT
HOURS
Dear Ms. Hanian:
Enclosed for filing in the above referenced matter are an original and seven (7) copies of Rocky
Mountain Power's application requesting authority to revise Electric Service Schedule Nos. 70 and
73 - Renewable Energy Rider Optional to increase the block from 100 to 200 kilowatt hours.
Please contact Ted Weston, Idaho Regulatory Affairs Manager at [phone] ifyou have
any questions.
ery truly yours,
leR.S
Vice President, Regulation
Enclosures
Daniel E. Solander (ISB# 8931)
1407 West North Temple, Suite 320
Salt Lake Ciry, Utah 84116
Telephone No. [phone]
Facsimile No. [phone]
E-mail: [e-mail]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER TO
INCREASE THE BLUE SKY BLOCK
VALUE FROM TOO TO 2OO KILOWATT
HOURS
CASE NO. PAC-E.I9.I7
APPLICATION OF
ROCKY MOUNTAIN POWER
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Attorney.for Rocky Mountain Power
Rocky Mountain Power, a division of PacifiCorp ("Company" or "Rocky Mountain
Power"), in accordance with Idaho Code $61-502, $61-503, and RP 052, hereby respectfully
submits this application ("Application") to the Idaho Public Utilities Commission ("Commission")
to increase the standard Blue Sky block size from 100 kilowatt hours ("kWh") to 200 kWh of
renewable energy in Electric Service Schedule No. 70 - Renewable Energy fuder and Schedule
No. 73 - Renewable Energy Ridet Bulk Purchase. In support ofthis Application, Rocky Mountain
Power states as follows:
1. Rocky Mountain Power is a division ofPacifiCorp, an Oregon corporation, which
provides electric service to retail customers through its Rocky Mountain Power division in the
states of Idaho, Utah, and Wyoming. Rocky Mountain Power is a public utility in the state of
Idaho and is subject to the Commission's jurisdiction with respect to terms ofelectric service and
prices to retail customers pursuant to Idaho Code 61- 129. Rocky Mountain Power is authorized
to do business in the state of Idaho and provides retail electric service to approximately 81,000
customers in the state.
I
BACK(;ROUND
2. On March 10, 2000, PacifiCorp dba Utah Power & Light Company filed an
applicationr with the Commission seeking approval ofa new renewable energy tariff, Schedute 70
New Mnd, Geothermal and Solar Power Rider-Optional, which was initially denied2 due to the
Commission's concerns over the premium of $4.75 per 100 kilowatt-hour block.
3. On July lO, 2003, the Company filed3 again requesting approval of the new
renewable energy tariff offering blocks at $1.95 for 100 kilowatt-hours of renewable energy. The
reduced price was the result of substantially lower cost for green energy and lower overall
administrative and marketing costs. Under the tariff, the Company planned on purchasing tradable
renewable credits, and/or bundled power. Including both purchase options benefited customers as
it allowed the Company to pass along lower prices. These credits represented an amount of
renewable energy kWh sent to grid. Commission Order No. 29329 approved the Blue Sky tariff
with a September 1,2003 effective date.
4. The Blue Sky program is offered to Idaho customers through Electric Service
Schedules No. 70 - Renewable Energy Rider and No. 73 - Renewable Energy fuder Bulk Purchase
Option. Participation in the Blue Sky program is optional for customers who want to offset some
of their energy usage requirements with renewable energy by purchasing blocks of bundled
renewable energy certificates, ("RECs"). Currently the tariffs define a block as 100 kWh of
renewable energy, ("Blocks").
5. Renewable energy, as defined by the tariffs, includes bundled power or RECs
derived from the following fuels: wind, solar, geothermal, certified low impact hydro, hydrogen
I Case No. PAC-E-00-01.
2 Order NO. 28406.
3 Case No. PAC-E-O3-09.
2
derived from photovoltaic electrolysis or non-hydrocarbon derivation process, pipeline or
irrigation canal hydroelectric systems, wave or tidal action, or low emissions biomass methane
gas.
6. For customers to be able to claim they are a renewable energy user, the Company
retires the purchased RECs on the customer's behalf and maintains Green-E certification of the
program to ensure the RECs meet certain quality criteria.
7. PacifiCorp negotiates bulk REC purchases to fulfill the needs of Blue Sk7 Block
and Bulk options to customers across our system. The program is designed to make periodic supply
puchases to match customer purchases and is trued-up after each calendar year. Renewable energy
certificates are WREGIS registered and meet Green-E energy requirements.
8. The Company's preference is to source RECs from within the six states PacifiCorp
serves, followed by the region, i.e. Pacific Northwest or Rocky Mountains, and then the greater
Western Electricity Coordinating Council. Preference is also given to RECs sourced from newer
facilities.
9. Participating customers sign-up voluntarily to pay the incremental cost ofacquiring
the RECs, plus the costs associated with offering the program. Participating customers in the Blue
Sky Block program are billed for their usage at their basic service rate plus an additional, fixed
line item charge for their Block purchase. Currently a single Blue Sky Block is equivalent to 100
kilowatt-hours, or one tenth of a REC, and customers can purchase as many Blocks as they want.
A volume discount is applied for businesses who purchase more than 101 Blocks per month, called
Blue Sky Bulk or Quantity Savings.
10. Schedule 70 provides customers an option to purchase Blocks at $1.95 per month
to offset some or a1l of their energy usage. Schedule 73 provides a bulk purchase option at $0.70
per montl per Block plus a $1,500 per year fixed charge for customers that want to purchase a
minimum of 1,212 Blocks or 121.2 megawatt-hours per year. For purchase commitments over
two years in length or large purchases over 75,000 MWh per year, individually negotiated
arrangements can be available. puNuant to the execution of a written contract.
PROPOSED TARIFF MODIFICATION
11. Rocky Mountain Power supports the development of renewable energy sources.
One of the ways this is accomplished is through the Blue Sky program. The Blue Sky program
was implemented to provide an option for customers who want to be served by renewable energy
to voluntarily puchase RECS to offset some or all of their usage. In an effort to meet growing
customer demands in the renewable energy sector and to better align with market conditions, the
Company is proposing to increase the size of each Blue Sky Block from 100 kwh to 200 kWh of
renewable energy.
12. The Company plans to make similar filings in all six states where the Blue Sky
program is offered. The proposed changes described herein are contingent upon the Company
receiving approval from all six states in order to maintain uniformity in program management
operations.
13. The current Block size and pricing was established in2003 based on average market
REC prices at that time. Over the past several years, the average REC price purchased for the
program has continued to decrease, as reported in the 2018 Blue Sky annual report.
14. The proposed increase to the Blue Sky Block size does not alter individually
negotiated contracts, including any Blue Sky Select contracts currently in place which are used to
facilitate direct purchase of RECs or any future individuaily negotiated agreements.
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15. As of September 2019 there were 1,699 participating Blue Sky Block customers in
Idaho. Several commercial and municipal customers are working towards greer/renewable energy
goals and are looking for other sources to help them meet their goals. The proposed change of
doubling the amount of kilowatt-hours per Block for the same price will help customers increase
the pace at which they can reach those goals. Increasing the size ofBlue Sky Blocks and promoting
the qualifoing initiatives may also prove to be an additional incentive for customers to participate
in the program.
16. There are several indicators suggesting that customers want to support more
renewable energy but may not intuitively understand what a Block represents. The average
purchase size for the Block product across the customer base is around two Blocks. The
recommendation to increase the Block size would better align customer's perception with their
intent. In addition, it would offer customers a lower cost path to matching all, or part, oftheir usage
with renewable energy.
17, The Blue Sky program is self-funded. Funds collected through the tariffs are used
to acquire RECs and cover administration, program growth and maintenance costs. Funds
remaining after REC purchases, program marketing, and administration expenses are made
available to help fund new community-based renewable energy installations through a competitive
grant application process.
18. Increasing the number of kilowatt hours per Block benefits the customers who pay
to voluntarily participate in the Blue Sky program to be served by renewable energy rather than
funding community projects. While these community projects are impactful for the nonprofits and
the communities in which they are built, they do not have the same impact on the REC market that
the Blue Sky program could by increasing the number of the RECs purchased.
5
19. Communications regarding this filing should be addressed to:
Ted Weston
Idaho Regulatory Affairs Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
Salt Lake City, Utah 84116
Telephone : [phone]
Email: ted.weston@ ificom.com
Daniel E. Solander,
Senior Counsel
Rocky Mountain Power
1407 West North Temple, Suite 320
sdt Lake ciry, urah 84116
Telephone: [phone]
Email : daniel.solander@.pacifi com.com
In addition, Rocky Mountain Power requests that all data requests regarding this
Application be sent in Microsoft Word to the following:
By email (prefened): datarequest@pacifi corp.com
By regular mail: Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97212
Informal questions may be directed to Ted Weston, Idaho Regulatory Affairs Manager at
[phone].
MODIFIED PROCEDURE
20. Rocky Mountain Power believes that a hearing is not necessary to consider the
issues presented herein and respectfirlly requests that this Application be processed under Modified
Procedure; i.e., by written submissions rather than by hearing, RP 201. If, however, the
6
COMMUNICATIONS
Commission determines that a technical hearing is required, the Company stands ready to prepare
and present testimony in such hearing.
REOUEST FOR RELIEF
21. The Company respectfully requests that the Commission issue an order authorizing
the Company to increase the Blue Sky Block from 100 kWh to 200 kWh of renewable energy
credits with no increase to the Block price, as shown in Electric Service Schedules No. 70 -
Renewable Energy Rider and No. 73 - Renewable Energy Rider Bulk Purchase Option, provide
as Attachment A to the Application.
WHEREFORE, Rocky Mountain Power respectfully requests that the Commission issue
an order authorizing that this matter be processed under Modified Procedure and approve changing
the Block size from 100 kwh to 200 kWh of renewable energy credits with a January l, 2020,
effective date.
DATED this 25h day of September 2019.
Respectfully submitted,
ROCKYMOUNTAIN POWER
1fij^
Daniel E. Solander
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone No. [phone]
Facsimile No. [phone]
E-mail: daniel.solander@pacifi com.com
Attorney for RoclE Mountain Power
7
ROCKY MOUNTAIN
POA'ER
A OIVISION OF PACIFrcOAP
I.P.U.C. No. I Fifth Revision ofSheet No. 70.1
Canceling Fourth Revision ofSheet No.70.l
ROCKY MOUNTAIN POWER
ELECTRIC SE,RVICE SCHEDULE NO. 70
STATE OF IDAHO
Renewable Energy
Rider - Optional
AVAILABILITY: In all territory served by the Company in the state of Idaho
APPLICATION: To Customers receiving service under the Company's Electric Senice
Schedules.
ADMINISTRATIONT Funds received from Customers under this Schedule will cover program
costs and match Renewable Energy purchases to Block purchases. Funds not spent after covering program
costs and matching Renewable Energy purchases may be used to fund Qualilying Initiatives as defined
below.
BLOCK: I Block equals 200 kwh of Renewable Energy.
CHARGE PER BLOCK: $1.95 per month
MONTHLY BILL: The Monthly Bill shall be the number of Blocks the Customer has agreed to
purchase multiplied by the Charge per Block. The Monthly Bill is in addition to all other charges contained
in Customer's applicable tariff schedule. This rider's Monthly Bill shall be applied to the Customer's billing
regardless of actual energy consumption.
RENEWABLE ENERGY: Renewable Energ3r includes bundled power or Renewable Energy
Credits (RECs) derived from the following fuels:
o wind;. solar
o geolhermal energy;
o certified low impact hydroelectric;
r hydrogen derived from photovoltaic electrolysis or a non-hydrocarbon derivation process;
o pipeline or irrigation canal hydroelectric systems;
o wave or tidal action; and
(Continued)
Submitted Under Case No. PAC-E- I 9- l 7
ISSUED: October 24. 2019 EFFECTIVE: January l, 2020
ROCKY MOUNTAIN
FOVI/ER
A ONTSTON Of PACTFTCOAP
I.P.U.C. No. 1 Fourth Revision of Sheet No. 73.1
Canceling Third Revision of Sheet No. 73.1
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO.73
STATE OF IDAHO
Renewable Enerry
Rider - Optional
Bulk Purchase Option
AVAILABILITY: In all territory served by the Company in the state of Idaho
APPLICATION: To Customers receiving service under The Company's non-residential
Electric Service Schedules.
ADMINISTRATION: Funds received liom Customers under this Schedule will cover
program costs and match Renewable Energy purchases to Block purchases. Funds not spent after
covering program costs and matching Renewable Energy purchases to Block purchases may be
used to fund QualiSing Initiatives as defined below.
BLOCK: 1 Block equals 200 kWh of Renewable Energy. This program requires a
minimum purchase of 1,212 Blocks per year. For the purpose of qualifuing for this Schedule,
Customers with multiple sites can sum their Block purchases across all Pacific Power and Rocky
Mountain Power service territories to meet the minimum purchase requirement.
CHARGE PER BLOCK: $0.70 per month
Plus $1,500.00 per year fixed charge
For Purchase commitments over two years in length or large purchases over 75,000 MWh
per year, individually negotiated arrangements may be available, pursuant to the execution of a
written contract.
CHARGE: The Charge can be billed either monthly, twice yearly or annually and shall be
the number of Blocks the Customer has agreed to purchase multiplied by the Charge per Block,
plus the $1,500 yearly fixed charge divided between the customer's billing choice (monthly, twice
yearly or annually) and added to the Customer's standard bill. The Charge is in addition to all
other charges contained in Customer's applicable tariff schedule. This rider's Charge shall be
applied to the Customer's billing regardless of actual energy consumption.
(continued)
FILED: October 24, 2019 EFFtrCTIVE: January l. 2020
Submitted Under Case No. PAC-E- I 9- l 7
ROCKY MOUNTAIN
PcnA'ER
A ONlSlOl,l Oa ClFlcoit
I.P.U.C. No. I Ie*rtF[!@Revision of Sheet No. 70.1
Canceling Thi+*lggg![Revision of Sheet No. 70.1
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO. 70
STATE OF IDAHO
Renewable Energy
Rider - Optional
AVAILABILITY: In all territory served by the Company in the state of Idaho.
APPLICATION: To Customers receiving service under the Company's Electric Service
Schedules.
ADMINISTRATION: Funds received from Customers under this Schedule will cover program
costs and match Renewable Energy purchases to Block purchases. Funds not spent after covering program
costs and matching Renewable Energy purchases may be used to fund Qualifing Initiatives as defined
below.
BLOCK: I Block equals -l{+2!qkWh of Renewable Energy
CHARGE PER BLOCK: $1.95 per month
MONTHLY BILL: The Monthly Bill shall be the number of Blocks the Customer has agreed to
purchase multiplied by the Charge per Block. The Monthly Bill is in addition to all other charges contained
in Customer's applicable tariff schedule. This rider's Monthly Bill shall be applied to the Customer's billing
regardless of actual energy consumption.
RENEWABLE ENERGY: Renewable Energy includes bundled power or Renewable Energy
Credits (RECs) derived from the following firels:o wind;o solarc geothermal energy;e certified low impact hydroelectric;. hydrogen derived from photovoltaic electrolysis or a non-hydrocarbon derivation process;o pipeline or inigation canal hydroelechic systems;. wave or tidal action; and
(Continued)
Submitted Under,{d+ie€{,€tt€F}H;!#Case No. PAC-E-l9- I 7
ISSUED:@ EFFECTIVE: @
Y ROCKY MOUNTAIN
tro\A'ER
A OrVrStOir Oa pctftcoFP
I.P.U.C. No. I Fe*rth-!!$lRevision of Sheet No. 70.1
Canceling Thirdfggg[Revision of Sheet No. 70.2
SubmittedUnder@
ISSUED:@ EFFECTIVE:@
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO.73
STATE OF IDAHO
Renewable Enerry
Rider - Optional
Bulk Purchase Option
AVAILABILITY; In all territory served by the Company in the state of ldaho.
APPLICATION: To Customers receiving service under The Company's non-residential
Electric Service Schedules.
ADMINISTRATION: Funds received from Customers under this Schedule will cover
progr.rm costs and match Renewable Energy purchases to Block purchases. Funds not spent after
covering progrirm costs and matching Renewable Energy purchases to Block purchases may be
used to fund Qualifying Initiatives as defined below.
BLOCK: I Block equals 2*00 kWh of Renewable Energy. This progrzrm requires a
minimum purchase of @1,212 Blocks) per year. For the
purpose of qualifing for this Schedule, Customers with multiple sites can sum their Block
purchases across all Pacihc Power SFt i€h+-eompary-and Rocky Mountain Power service
territories to meet the minimum purchase requirement.
CHARGE PER BLOCK: $0.70 per month eer-+00*I\4+leekPlus $1,500.00 per year fixed charge
For Purchase commitments over two years in length or large purchases over 75,000 MWh
per year, individually negotiated arrangements may be available, pursuant to the execution of a
w tten contract.
ROCKY MOUNTAIN
Pol'I'ER
A OtVtStOt{ Of PAC|FTCOiP
LP.U.C. No. I Thir*@l!_Revision of Sheet No. 73.1
Canceling Secen*lf!!4lRevision of Sheet No. 73.1
CHARGE: The Charge can be billed either monthly, twice yearly or annually and shall be
the number of Blocks the Customer has agreed to purchase multiplied by the Charge per Block,
plus the $1,500 yearly fixed charge divided between the customer's billing choice (monthly, twice
yearly or annually) and added to the Customer's standard bill. The Charge is in addition to all
other charges contained in Customer's applicable tariff schedule. This rider's Charge shall be
applied to the Customer's billing regardless of actual energy consumption.
(continued)
Submitted Under Ad+ie€-l€fteFNe.-H2case No. PAC-E- I 9- I 7
I Ulnn,@ EFFECTIVE:@