20191122Decision Memo.pdf

DE C ISION N{ENIORANDUIVI
't'o:COMNlISSIONER KIELLANDF]R
CONIMISSIONER RAPER
COIIMIS SIoNER ANDI.],RSON
CONINIISSION SI,CRETARY
COMN{ISSION STAFF
I,EGAL
I'ROlr:DAYN HARDIE
DI.]PUTY ATTORNEY GIINERAL
DATI|: NOVIiI\'II}ERl4,20l9
SUBJECT: IN THE N'IA'I'TER oF ROCKY NIOUNTAIN POIVUR'S PETI'l'loN TO
INCREAST' TIIE BLUE, SKY BLOCK VALUE FRO}I IOO TO 2OO KILOWATT
HOURS; CAStI NO. PAC-FI-19-17.
On October 25, 2019, Rocky Mountain Powcr ("Company"), a division of PacifiCorp,
filed an Application requesting thc Commission's approval to increase the size of each Bluc Sky
Block ("Blue Sky Block" or "Block") offered under Schedule 70-Renewable Energy Rider-and
Schedule 73-Renewable Energy Rider Bulk Purchascs (collectively "Blue Sky program" or
"Program")-from l0O kilowatt hours ("kWh") to 2fi) kWh. The Company requests an effective
date of January l, 2020 and that its Application be processed by Modified Procedure.
THE APPI,ICATION
The Company's Application is submitted in response to changes in thc Renewable
Energy Credit ("REC") market between the inception of the Blue Sky program in 2003 and today.
The average cost of RECs purchased fbr the Program have continued to decrease even as demand
tbr the Program has grown. To meet growing customer demands for the Program and better align
the Program with market conditions, the Company proposes to increase the size of a Block from
100 kwh to 200 kWh but keep the price of each Block the same.l At the Company's proposed
price per Block, customers who sign up for the Program, or continue to be enrollcd, will cover the
incremcntal cost of acquiring the RECs plus the costs associated with oft'cring the Program.
I Undcr Schcdule 70 Blocks cost $1.9-5 each per rxrnth. Under Schcdule 73 bulk purchases ol Blue Sky Blocks can
bc made for $0.70 per Block pcr month plus a Sl,5(D per year fixed chargc il'customers are purchasing a minimum
of 1.212 Bluc Sky Blocks. For purchases ofovcr 750,000 Bluc Sky Blocks. the Company otTers individually
ncgotiated contracts.
DECISION MEMORANDUM
STAFF RECONIMENDATION
Staff recommends the Commission issue a Noticc of Application and Notice of
Modified Procedure. Staff recommends a December l'7, 2019 public comment deadline, and a
December 24,2019 Company reply comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, with public comments due by Decembcr I7,2019 and Company reply comments due
by December 24,2019'!
D ardie
Deputy Attorney General
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2DECISION NTEMORANDUM