20210412Staff Letter.pdf

April 12,2021
Emily Wegener Daniel MacNeil
Ted Weston PacifiCorp dba Rocky Mountain Power
PacifiCorp dba Rocky Mountain Power 825 NE Multnomah Street
1407 West North Temple,Suite 330 Portland,OR 97232
Salt Lake City,UT 84116
Re:UPDATES TO CAPACITY DEFICIENCY AND INTEGRATION CHARGES
USED IN DETERMINING AVOIDED COST RATES;ORDER NO.34918 IN
CASE NO.PAC-E-20-13 AND ORDER NO.34966 IN CASE NO.PAC-E-20-14
Dear Ms.Wegener,Mr.Weston,and Mr.MacNeil.
In compliance with Order No.34918 in Case No.PAC-E-20-13,Staff updated the
Surrogate Avoided Resource (SAR)model and re-calculated avoided cost rates’using the first
capacity deficiency date of July 2029.(Please see the attached SAR model titled “Avoided Cost
Model Order No.34918 ver February 9,2021 PAC Capacity Deficiency.”)
The capacity deficiency information is updated in the “Input —RIvIP IRP”tab and the
“Input —Load and Resource”tab.As a result,the avoided cost of capacity will reflect the recently
approved first capacity deficiency date.For example,as shown in Column AG in the “AVOID
NEW”tab,the capacity payment will start in 2029.
On April 5,2021,the Commission issued Order No.34966 in Case No.PAC-E-20-14,
updating the Company’s wind and solar integration charges and changing the format of the
constant single rate for integration costs inside the SAR model to annual rates over the life of
contracts.Staff updated the SAR model to reflect these changes.(Please see the attached SAR
model titled “Avoided Cost Model Order No.34966 ver April 5,2021 PAC Integration Charges.”)
‘Avoided cost rates in the SAR model became effective on February 9,2021,when Order No.34918 was issued.
Idaho Public Utilities Commission
P0 Box 83720,BoIse,ID 83720-0074
Brad Little,Governor
Paul Kjellander,Commissioner
KdsUne Raper,Commissioner
Eric Anderson,Commissioner
11331 W.Chinden Blvd.,Building 8 Suite 201-A,Boise ID
83714 Telephone:[phone] Facsimile:[phone]
April 12,2021
Page 2
Because of the changed integration charge format.Staff deactivated the wind integration
charge in Cell 195 and Cell G67 and the solar integration charge in Cell 196 and Cell G68 on the
“AVOID NEW”tab.Staff also updated the column titles on the “PCp NF HLH LLH Levelized”
tab and the “PCp NF HLH LLH Non-Levelized”tab,accordingly.Going forward,integration
adjustments will be done outside the SAR model using authorized results from the Company’s
latest integration charge case.Authorized integration charges will be included in the avoided cost
rate sheets and will be published on the Commission’s website.
Included arc the two SAR models mentioned above.Attachment A shows the latest
published avoided cost rates for new contracts.Attachment B shows the latest published avoided
cost rates for replacement contracts.Please review these attachments and file a response with the
Commission by April 22,2021,stating whether the updates to the SAR model and the calculations
were made correctly.
Thank you for your cooperation.Please contact Yao Yin (yao.yin(puc.idaho.gov)if you
have any questions.
Sincerely,
ohn Hammond
Deputy Attorney General
Matt Hunter
Deputy Attorney General
Email:emily.wegener(pacificorp.com
[e-mail]
daniel.maenell(rnpacificorp.com