20191107Application.pdf

ROCKY MOUNTAIN
FOVVER
A OIVISION OF PACIFICOFP
RECEIVED
l0l9 ti0Y -7 All l0: 57
1407 West North Temple, Suite 330
Salt Lake City, Utah 84'116
November 7. 2019
VA OVERNIGHT DELIVERY
Diane Hanian
Commission Secretary
ldaho Public Utilities Commission
I l33l W Chinden Blvd
Building 8 Suite 201A
Boise, Idaho,837l4
Re:CASE NO. PAC-E.I9.I8
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER
TO UPDATE CONTRACTS, LOAD AND GAS FORECASTS USED IN THE
INTEGRATED RESOURCE PLA}I AVOIDED COST MODEL
Dear Ms. Hanian:
Please find enclosed an original and seven (7) copies of Rocky Mountain Power's Application rn
the above referenced matter to update contracts and load and natural gas forecast used as inputs
to the IRP avoided cost model.
lnformal inquiries may be directed to Ted Weston, ldaho Regulatory Manager at (801) 220-
2963.
ery truly yours,
e Stew
Vice President. Regulation
Daniel E. Solander (lSB# 893 I )
1407 West North Temple, Suite 320
Salt Lake City. Utah 841 16
Telephone No. [phone]
Facsimile No. (801) 220-461 5
E-mail: daniel.sola ifi com.com
Attorney for Roclty Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMIVTISSION
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER TO
UPDATE CONTRACTS, LOAD AND GAS
FORECASTS USED IN THE INTEGRATED
RESOURCE PLAN AVOIDED COST
MODEL
CASE NO. PAC-E.I9-18
APPLICATION OF
ROCKY MOUNTAIN POWER
Rocky Mountain Power. a division of PacifiCorp, ("Company"), hereby respectfully
submits this Application to the ldaho Public Utilities Commission, ("Commission"). in compliance
with Order Nos. 32697 and 32802 to update the load forecast, natural gas forecast, and long-term
contract components of the Integrated Resource Plan ("lRP") avoided cost model. In support of
this Application, Rocky Mountain Power states as follows:
1. Rocky Mountain Power provides electric service to retail customers in the states of
ldaho, 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 its prices and terms of electric service to
retail customers pursuant to Idaho Code 6l-129. Rocky Mountain Power provides retail electric
service to approximately 82,000 customers in the state of Idaho.
)
)
)
)
)
I. BACKGROUND
2. Order No. 32697 specified that the inputs to the IRP avoided cost methodology,
utilized to determine the avoided cost for all new Public Utility Regulatory Policies Act of 1978
("PURPA') qualifying facility ("QF") projects that exceed the published rate eligibility cap, will
be updated every two years upon acknowledgement ofthe utility's IRP filing. with the exception
ofthe load and the natural gas forecasts which are to be updated annually by June lst ofeach year.
The Commission ruled:
"We find that, in order to mdinlain the most accurale and up to date refleclion of ct
utility's true avoided cost, utilities musl update fuel price.forecasts and load
forecasts annually between IRP filings. For the sake of consistenry, lhese annual
ugloles should occur simultaneously with SAR updales - on June I ofeach yeor. In
addition, il is appropriate to consider longlerm contract commitments because of
the potential e.ffect that such commitments have on a utility's load and resource
balance. We fnd il reasonable to include longlerm contract considerations in on
IRP Methodologt calculation at such time ds the QF and utility have entered into
a signed contract for the sale and purchase of QF power We further Jind it
dppropriate to consider PUWA contracts lhat have terminated or expired in each
ulility's load dnd resource balance. We find it reasonable that all other variables
and assumptions utilized within the IRP Methodologt remain.fixed berween IRP
filings (every two years). "t
3. Order No. 32802 changed the date ofthe annual update from June l't to October
l5th of each year. lf approved, the load forecast, natural gas forecast. and contract information
presented below will be incorporated into Rocky Mountain Power's IRP avoided cost model.
Consistent with the Commission's prior orders, this methodology will be utilized by the Company
as the starting point for negotiation of its contractual avoided cost rates as of October I 5, 201 9.
2
I OrderNo. 32697,p.22
II. LOAD FORECAST
4. Table I summarizes the Company's July 2019 long-term load forecast, which
shows a slight increase in load compared to the July 2018 load forecast provided in Case No. PAC-
E- I 8-09, which was approved in Commission Order No. 34213.
III. NATURAL GAS PRICE FORECAST
5. The Company's most recent Official Forward Price Curve was prepared on
September 30.2019 C'1909 OFPC"). The price forecast used in the Prior Filing was prepared on
September 28, 2018 ('1809 OFPC'). Table 2 provides the 1909 OFPC natural gas prices
summarized annually by market hub. The 1809 OFPC is also provided for reference only.
Generally gas prices in the 1909 OFPC are down slightly compared to the 1809 OFPC.
IV. CONTRACT TERMINATIONS. EXPIRATIONS ,ANDADDITIONS
6. Since filing Case No. PAC-E- 18-09, the Company has signed [9 long{erm
contracts, including I 5 long-term contracts with qualifying facilities, for a total nameplate capacity
of 680.8 megawatts. Four long-term contracts have expired without renewal and three long-term
contracts were terminated, for a total nameplate capacitv of 57.4 megawatts. Table 3 provides a
list ofsigned and expired or terminated contracts since October I0, 201 8. In addition to the contract
changes referenced, Rocky Mountain Power has had several recent changes to owned assets. As
part of the Energy Vision 2020: initiative, I ,l 50 megawatts of new owned wind resources and 999
megawatts of repowered existing wind resources are under construction to achieve online dates
before the end of 2020. In July 2019, Rocky Mountain Power finalized agreements to take full
ownership of the Foote Creek I wind project, and has begun repowering the facility to achieve
commercial operation in2020.ln September 2019, Rocky Mountain Power finalized contracts to
J
2 https://www.pacifi corp.com/environmenUrenewable-enersv.html.
procure and construct the 239.8 megawatt Pryor Mountain Wind Project which will also achieve
commercial operation in 2020. ln January 2019, Rocky Mountain Power's Naughton 3 unit ceased
coal-fired operations and is undergoing conversion to natural gas-fired operation which will be
completed in 2020.
7. Rocky Mountain Power currently has 2l non-PURPA, long-term power purchase
agreements with a nameplate capacity of 1,688 megawatts, 163 PURPA QF project contracts with
a nameplate capacity of 2,632 megawatts. New contracts, terminated or expired contracts, as well
as new contract pricing are all included in the IRP model on a continuous basis.
4
Table I
Rocky Mountain Power
Load Forecast Update
AnnualGWh
Load Forecast - July m19
California ldaho Oregon tltah Washington WvominS FERC Total
2019
NN
?olL
2022
?s23
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
m3s
2036
2037
2038
2039
887
890
*2
877
873
87r
855
861
855
452
845
&39
833
830
823
819
816
816
810
806
803
3,895
3,980
3,976
3,972
3,952
3,940
3,935
3,940
3,946
3.955
3,950
3,945
3,943
3,94{t
3,942
3,948
3,954
3,967
3,970
3,982
3,994
14,795
t5,072
Ls.220
L5.425
15,580
15,627
15,@9
75,329
15,378
13,474
15,505
15,563
75,626
75,742
75,789
75,813
1S,955
76,015
16,123
16,208
16,294
25,763
26,035
26,133
26,362
26,s90
26,9v
27,L9
27,495
27,W
28,3&
28,6s8
28,865
29,O70
29,312
29,519
29,172
30,030
30,383
30,619
30,934
31,255
4,544
4,5U
4,558
4,539
4,5t2
4,95
4,479
4,472
4,66
4,477
4,464
4,410
4,411
4,493
4489
4,508
4,525
4560
4,510
4,596
4,622
9,9L7
9,886
9,689
9,816
9,7U
9,78
9,145
9,151
9,735
9,748
9,125
9,729
9,139
9,7N
9,774
9,810
9,U7
9,913
9,933
9,978
10,023
298
298
88
298
258
298
87
D7
157
20
20
20
20
20
20
20
20
20
20
20
20
60,098
fi,746
@,756
51,289
51,590
61,963
52,082
52,L45
62,425
62,890
63,171
63,431
63,703
64,185
@,356
@,750
65,747
65,714
66,W
56,523
61,O11
toad For€aast - July 2018
Year
2019
2020
mzl
2022
2023
2024
202s
2026
202'1
2024
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
California ldaho
3,931
3,9v
1928
3,932
1938
3,946
3,9,10
3939
3941
3949
3,9$
3,947
3,944
3,958
3,9s8
3,966
3,9n
3,992
3,995
4,W
40ls
Oreton
15,051
15,126
15,191
ls,276
15,306
15,384
15,380
15,094
15,747
15,261
15,295
15,348
15,408
15,5m
15,516
15,581
15,649
t5,761
15,7*
15,875
t,tah
25,033
25,754
25,r72
25,328
25,543
25,W
25,973
26 111
26,2
26,477
26,471
26,498
26,503
26,6t6
26.6t7
26,132
26,U9
27,69
27,143
27,109
27,81
WYoming
9,921
9,781
9,623
9,573
9,598
9,664
9,601
9,@2
9,W
9,W
9,633
9,680
9,651
9,693
9,Br
9,724
9,7@
9,8s8
9,&10
9,862
9,932
FERC
320
319
316
372
311
308
306
169
36
36
36
36
36
36
36
36
36
36
36
Total
59,708
59,T10
59,619
59,424
60,085
60,503
60,509
60,415
60,556
@,759
@,n5
@ 921
@,974
6t,270
61,337
61,551
61,8t7
62,31L
62,423
62,145
63,707
877
880
870
863
857
853
u4
838
832
830
824
819
813
811
80s
802
8m
8m
796
795
793
washington
4,575
4,376
4,W
4,531
4s31
4 S39
4,572
4,574
4,533
4,562
4,570
4,592
4,61.5
4.656
4,674
4,7@
4,746
4,799
4,824
4,AU
4,n2
)
Load5 a re net of D5M
Table 2
Rocky Mountain Power
Natural 6as Price Update
5/MMBtu
Offical Forward Pri.e Curve - {1909) - G/30/2019
Y@t
2019(a)
2020
2021
2022
2023
2024
2025
2027
2028
2029
2030
2031
2032
2033
203/
2035
2036
2037
2038
Opel Gas
lndex
$2.28
$2 02
$2 03
$2.14
$2 4a
$2 69
$3.12
$3 34
$3.66
$4.00
$4.27
s4.58
$4.8s
$4.93
$5.20
$s 41
$5.49
$5 88
$6 17
Sumas
lndex
$3 22
$2 15
$2.07
$212
$2.40
$2.73
$3.05
u.s7
$3.2s
$3.62
$3.92
v.20
s4.50
$4 66
s4.71
s5.06
$5.17
s5.13
$5.s1
s5.76
Stanfeld
lndex
$2. r5
$1.89
$1.90
$2.03
$2.28
$2.s1
$2.84
$3 00
$3.19
$3 50
$3.86
$4 13
$4.40
$4.73
$4.81
$5.08
$5.30
$5.37
$5.77
$6.0s
San Juan
lndex
$1.90
51 76
$ 1.91
$2.04
s2.68
$2.88
$3.10
$3.62
$3.94
$4.2o
$4 49
$4 76
$4.82
$5.04
s5.29
$5.73
$6.01
Henry Hub
lndex
$2.42
$2 42
$2 45
$2.54
$2 88
$3.52
s3.69
$3.96
s4.29
s4.57
$4.80
$s.08
$5 36
$5.35
$s.s9
$5.80
$5.88
$6.23
$6.s6
AECO lndex
s1 63
s1.36
$1.42
$1.s6
$1.82
$2 10
$2.40
$2 56
$2.82
$3 15
83.44
$3.66
s3 91
s4.16
s4.15
$4.3s
$4.42
$4.48
$4.82
$5.10
SOCALBOR
lndex
s2.76
$2.44
$2.38
$2.47
s2.63
$3.10
$3.29
$3.50
$3.85
$4 17
$4.42
$4.72
$4.97
$5.05
s5.31
$5.53
s5.60
$6.2s
Olficel Fo^vard Prlce Curve
ry
Year
201S(a)
2020
2021
2022
2023
2024
2026
2027
202A
2029
2030
2031
2032
2033
zau
2035
2036
2037
2038
lnd€x
s2.29
s2.08
$2.14
$2.6s
$3.17
$3.64
$4.00
t4.20
s4 17
$4.12
$4.44
$5 01
$5.34
35.68
96.05
$6.40
s6.17
$6.26
$6.64
$7.15
lndex
$2.50
$1.92
$1.92
$2 30
$3.66
63 88
$3.83
93.77
$4.09
$4.63
v.92
$5 21
$5.54
$5.81
$s.40
$5 41
55 70
s6.16
lndex
$2.06
$1.85
s1.98
s2 57
s3.14
$3.62
$4_ 19
$4. 15
$4. 1o
$4.42
$4.99
$5 32
$s.64
$5 94
$6.29
$6.06
s6.15
$6.54
$7.05
lndex
$2.14
$2.01
$2 10
$3.16
s3.61
$3.98
s4 19
s4.17
$4.13
$4.46
$5 03
$5.37
$5 69
$6.05
$6 37
$6.10
$6 17
$6 55
$7 06
lndex
$2.79
$2 64
$3.1s
$3.66
$4.20
$4.53
$4 77
s4 76
$4.12
$5.09
s5.65
s5.89
$6.56
$6.81
$6.47
56.51
$6 91
$7 46
lndex
$3.06
$2.45
$2.50
$2 93
$3 39
$3.87
s4.26
s4 49
$4.47
$4.42
s4.76
$s.36
$5.71
$6.01
$6.39
$6 73
$6 46
$6.54
$6.95
s7.50
AECO lndex
$1 51
$1 m
$1 ,t6
$2.01
52.56
$3.'13
$3.48
$3.74
$3.72
$3.65
$3.98
$4.53
$4 80
$5.09
$5 41
$5.65
ss.26
$5 2s
$5.55
s6.03
(a) 2019 Forecast gas prices are for November and December only
6
Table 3
Rocky Mountain Power
Long-Term Contracts
Total Signed Mw 680.8
l-on8 Term Contracts signed since the October 10, 2018 Filing
No,Contract Nameplate (MW)Start Date End Date
7
2
3
4
5
6
7
8
9
10
11
72
13
14
15
16
L7
18
19
Cedar Springs Wind PPA
Cove Mountain Solar 2 PPA
ExxonMobilQF
.l Bar Ranch QF
Kennecott Smelter Non Firm QF
Kennecott Refinery Non Firm QF
Tata Chemicals QF PPA
Roseburg Forest Produds - Weed QF
Slate Creek Hydro QF
COID Siphon QF
Yakima Tieton Cowiche qF
Cedar Springs lllWind PPA
Roseburg Forest Products - Dillard QF PPA
Loyd FeTy QF PPA
Stahlbush lsland Farms QF PPA
Paul Luckey qF PPA
Grant PUD Meaningful Priority
Kennecott Smelter Non Firm QF
Kennecott Refinery Non Firm QF
199.40
722.O
107./m
0.1
31.8
6.20
30.0
10.0
4.2
6.00
7.47
133.3
20.0
0.065
1.6
0,05
168.60
31.8
6.20
20201101
202007 07
2019 0101
2018 11 01
2019 0101
2019 0101
2019 0101
2019 0101
2019 0101
20270107
2019 0101
20201101
2019 0101
2079 07 07
2019 06 01
2019 06 01
2020 0101
2020 0101
2020 0101
2M0 7729
2045 10 30
2020 0101
2020 10 31
2020 01 01
2020 0101
203812 31
2029 01 01
20340101
20220701
20210101
2W 7729
2034 0101
2020 06 30
202L0537
2020 7237
202012 37
2020 72 31
2020 72 37
Long Term Contracts Expired or Terminated since the October 10, 2018 Filing
No.Contract Nameplate (MW)Oate
r
2
3
4
6
7
RouBh & Ready LumberCompany QF (expired)
Thanyn Hydro aka Green River Hydro QF (expired)
Surprise Valley Electrification QF PPA (terminated)
Foote Creek lll wind QF (expired
Ballard Hog Farms QF (expired)
Foote Creek lBPAWind Sale (terminated)
Foote Creek I EWEB Storage Agreement (terminated)
1.28
0.4{l
3.65
24.8
0.05
18.56
8.6s
2018 11 30
2018 7237
2079 0477
2079 07 37
2019 10 31
2019 07 24
2019 07 24
Total Terminated MW 57.4
7
T-
V. COMMUNICATIONS
Daniel E. Solander
Senior Counsel
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake City, Utah 841l6
Telephone: [phone]
Email: Daniel.solander@oacifi corp.com
In addition, Rocky Mountain Power requests that all data requests regarding this Application be
sent in Microsoft Vy'ord to the following:
By email (preferred): datareouest@oacifi com.com
By regular mail: Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Ponland, Oregon 97232
Informal questions may be directed to Ted Weston, Idaho Regulatory Affairs Manager at (801)
220-2963.
VI. MODIFIED PROCEDURE
9. The Company believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under Modified
Procedure; i.e., by written submissions rather than by hearing. RP 201 et seq.
8
8
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 841 I 6
Telephone : (80 l) 220-29 63
Email: ted.weston@oacifi corp.com
VII. REOUEST FOR RELIEF
WHEREFORE, Rocky Mountain Power hereby respectfully submits its updated load
forecast, natural gas forecast, and contract information in compliance with the Commission's
directives in Order Nos. 32697 and 32802 and requests that the Commission issue an order
approving this updated information for inclusion in the Company's IRP avoided cost calculations
with an October 15, 201 9 effective date.
DATED this 7th day ofNovember.20l9.
Respectfully submitted,
ROCKY MOT]NTAIN POWER
Qil fuh
Daniel E. Solander
1407 West North Temple, Suite 320
Salt Lake City, Utah 841 l6
Telephone No. [phone]
Facsimile No. [phone]
E-mail: daniel.solander@pacifi com.com
Attorney for Roclcy Mountain Power
I