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HomeMy WebLinkAbout20220309Order_No_35343.pdf ORDER NO. 35343 1 Office of the Secretary Service Date March 9, 2022 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF ROCKY MOUNTAIN POWER’S APPLICATION FOR APPROVAL OR REJECTION OF THE POWER PURCHASE AGREEMENT WITH COMMERCIAL ENERGY MANAGEMENT, INC. ) ) ) ) ) ) ) CASE NO. PAC-E-21-05 ORDER NO. 35343 On March 3, 2021, Rocky Mountain Power, a division of PacifiCorp (“Company”) requested the Commission approve or reject a replacement Power Purchase Agreement (“PPA”) with Commercial Energy Management, Inc. (“Seller”) for the purchase of energy and capacity. On March 25, 2021, the Commission set deadlines for interested persons to comment on the Application, and for the Company to reply. See Order No. 34975. Staff and the Seller filed comments to which the Company replied. On January 25, 2022, the Commission approved the Company’s PPA, but conditioned its approval upon the Company and Seller executing and filing a conforming amended PPA containing: (1) modification of the definition of Expected Net Output to reflect that the forecast is not updated after contracting and should use the correct amount of 2,310 megawatt-hours per year (“MWh/year”); and (2) correction of the inconsistency of “three months” in Section 4.9.2 of the PPA to state “six months.” See Order No. 35303 at 6. On February 9, 2022, Seller petitioned the Commission to reconsider its Final Order pursuant to Idaho Code § 61-626 (“Petition”). Seller specifically requested the Commission reconsider its imposition of the 90/110 Provision in the PPA. See Petition for Reconsideration at 1. On February 16, 2022, the Company replied to Seller’s Petition for Reconsideration. No cross- petitions were received. With this Order, the Commission grants the Seller’s Petition for Reconsideration to allow for additional consideration of the issues raised by the Seller’s Petition for Reconsideration.1 The Commission will engage in this review in the manner set forth below. 1 To be clear, by this Order the Commission is not granting the specific relief Seller has requested under the conclusion section of the Petition for Reconsideration. Petition at 8. Rather, the Commission has granted reconsideration to allow for a thorough review of whether the Petition for Reconsideration is satisfactory under Rule 331.01 of the Commission’s Rules of Procedure and whether there is merit to the Seller’s arguments. See Idaho Code § 61-626(2) (“If reconsideration be granted, said order shall specify how the matter will be reconsidered”). ORDER NO. 35343 2 COMMISSION FINDINGS AND DISCUSSION The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502, and -503. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and contracts of public utilities and to determine whether they are just, reasonable, preferential, discriminatory, or in violation of any Provision of law, and to fix the same by order. Idaho Code §§ 61-502 and 61-503. In addition, the Commission has authority under the Public Utilities Regulatory Policies Act (“PURPA”) and Federal Energy Regulatory Commission regulations to set avoided costs, to order electric utilities to enter fixed-term obligations for the purchase of energy from QFs, and to implement rules. The Commission may enter any final order consistent with its authority under Title 61 and PURPA. The Commission has the authority to grant or deny reconsideration under Idaho Code § 61-626(2). Reconsideration allows any interested person to bring to the Commission’s attention any question previously determined, and thereby affords the Commission an opportunity to rectify any mistake or omission. See Washington Water Power Co., v. Kootenai Environmental Alliance, 99 Idaho 875, 879, 591 P.2d 122, 126 (1979). The Commission’s Rules of Procedure require a petition for reconsideration to “set forth specifically the ground or grounds why the petitioner contends that the order or any issue decided in the order is unreasonable, unlawful, erroneous or not in conformity with the law.” See IDAPA 31.01.01.331.01. Rule 331.01 further requires the petitioner provide a “statement of the nature and quantity of evidence or argument the petitioner will offer if reconsideration is granted.” Id. A petition must state whether reconsideration should be conducted by “evidentiary hearing, written briefs, comments, or interrogatories.” See Rule 331.03. The Commission finds that additional consideration of the issues raised by the Seller’s Petition for Reconsideration is appropriate. We find that the existing record is sufficient for the Commission to consider the arguments made by the parties in this case. Accordingly, the Commission will grant the Petition for Reconsideration based on the current record only to more fully consider the issues raised by Seller. See Idaho Code § 626(a). After such consideration the Commission will issue a final order on the merits of the Seller’s Petition for Reconsideration. O R D E R IT IS HEREBY ORDERED that the Seller’s Petition for Reconsideration is granted. The Commission will utilize the existing record to fully consider the arguments raised by the Seller ORDER NO. 35343 3 on reconsideration and will issue a subsequent final order on reconsideration on the merits of the Seller’s Petition for Reconsideration. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 9th day of March 2022. ERIC ANDERSON, PRESIDENT JOHN CHATBURN, COMMISSIONER //ABSTAIN TO AVOID CONFLICT// JOHN R. HAMMOND, JR., COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\PAC-E-21-05\orders\PACE2105_final on recon_tb.docx