20220413Application.pdf

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POA'ER ,:..rrr friii; i 3 Pi'l l+: lj 1407 West North Temple, Suite 330
Salt Lake City, Utah 84116
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April13,2022
VU ELECTRONIC DELIYERY
Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
I l33l W Chinden Blvd.
Building 8 Suite 20lA
Boise,ID 83714
Re:CASE NO. PAC.E-22-07
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER
REQTJESTING APPROVAL OF TIIE AI\INUAL REVISION TO QF VARIABLE
ENERGY PRICES PURSUAI\IT TO TERMS OF TIIE 1992 AMEI\IDMENTS TO
POWER PIIRCHASE AGREEMENTS BETWEEN PACIFICORP AI\[D IDAHO
QFs
Dear Ms. Noriyuki:
Enclosed for electronic filing in the above referenced matter is Rocky Mountain Power's
application requesting approval of the annual revision to the qualified facility variable energy
prices.
Informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at
(801)220-2e63.
V truly yours,
$^"^.O
Joelle Steward
Senior Vice President, Regulation
Emily Wegener (ISB# I1614)
1407 West North Temple, Suite 320
Salt Lake city, utah 841l6
Telephone No. [phone]
Mobile No. [phone]
Email: Emil),.wegener@Facifi corp.com
Attorneyfor Rocky Mountain Power
IN THE MATTER OF THE APPLICATION OF
ROCKY MOUNTAIN POWER REQUESTING
APPROVAL OF UPDATED VARIABLE ENERGY
PRICES FOR QFs SUBJECT TO TERMS OF THE
1992 AMENDMENTS TO CERTAIN POWER
PTIRCHASE AGREEMENTS
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. PAC-E-22-07
APPLICATION
Rocky Mountain Power, a division of PacifiCorp ("Comp&ny"), in accordance with the
Rules of Procedure of the Idaho Public Utilities Commission ("Commission"), Rule 52 and Order
No. 29316,1 hereby respectfully petitions the Commission for approval of the updated Qualifuing
Facility ("QF") variable energy price pursuant to the terms of the 1992 amendments to certain
Idaho QFs power purchase agreements (the "Application"). In support of this Application, Rocky
Mountain Power represents as follows:
I. INTRODUCTION AI\[D BACKGROUI\ID
l. Rocky Mountain Power is a division of PacifiCorp, ill Oregon corporation, which
provides electric service to retail customers through its Rocky Mountain Power division in the
states of Idaho, Wyoming, and Utah. 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 in Idaho pursuant to Idaho Code $ 6l-129. Rocky Mountain Power is
I In the Matter of the Revision of QF Variable Energt Prices in Accordance with Terms of the I 992 Amendments to
Pawer Purchase Agreements between ldaho QFs and PaciJiCorp, PAC-E-03-10,2004 WL 316976 (Idaho P.U.C.
August 19,2003).
authorized to do business in the state of Idaho providing retail electric service to approximately
85,700 customers in the state.
2. In 2003, the Company notified the Commission of a July 1,2003, revision to the
variable energy price for QFs holding certain power sales contracts with the Company.2 Thirteen
QF contracts were affected by the Commission-approved 1992 Amendment ("Amendment") that
outlined the methodology used for determining the variable energy component of the avoided cost
rate.3
3. Of the thirteen QF contracts originally subject to the Amendment supporting the
annual variable energy rate update, only one QF contract remains in effect. The Marsh Valley
Hydro contract is in effect through February 28, 2028. The other twelve QF contracts that were
originally subject to the 1992 amendment have expired, ten have entered into new PPAs, two did
not seek new contracts.
4. As stated in the 1992 Amendment beginning July l, 2003 and continuing
throughout the term of the power purchase agreements, including any extensions, the variable
energy rate would be the sum of the Company's fuel costs and Colstrip variable Operation and
Maintenance (O&M) cost.a PacifiCorp's fuel costs were defined as the average cost of fuel
consumed in the Utah Division plants, specifically Carbon, Hale, Naughton, Huntington, and
Hunter coal plants.s
5. If any of the specified generating plants do not operate in any calendar year, those
plants are excluded from the calculation of the average cost of fuel. Carbon and Hale coal plants
have subsequently closed and are excluded from the calculation. The average cost of fuel was
2 Id. Order No.29316 at l.3ld.atl-3.
a Id. at l-2.
5 Id. atz (quoting Order No. 28708).
2
calculated using the data reported in the Company's FERC Form 1. In the event that the FERC
Form I ceases to include the cost of fuel or net generation data, comparable data based upon the
Company's normal accounting practices shall be used.
6. Pursuant to Order No. 23738,6 variable O&M costs were set based on the variable
costs associated with the operation of Colstrip, a coal power generating facility in southeast
Montana excluding the generation tax and the line loss adjustments.
II. VARIABLE ENERGY RATE
7. The average cost of fuel consumed at the Utah Division coal plants for calendar
year 2021 is $20.93 per megawatt hour, as summarized in Attachment No. I filed with this
Application. The variable operation and maintenance expense set for Colstrip generating facility
is $1.51 per megawatt hour. Therefore, the Company proposes that the variable energy rate
applicable to deliveries commencing July 1,2022, extending through June 30, 2023,is$22.44 per
megawaff hour. Attachment No. I summarizes the calculation with references to the relevant pages
from the Company's FERC Form I for the year ending December 31,2021.
III. COMMUNICATIONS AND SERVICE OF PLEADINGS
Communications regarding this Application should be addressed to:
Ted Weston
Rocky Mountain Power
Idaho Regulatory Affairs Manager
1407 W. North Temple, Suite 330
Salt Lake city uT 841l6
Telephone: [phone]
E-mail: ted.weston@pacifi corp.com
Emily Wegener
1407 West North Temple, Suite 320
salt Lake city, urah 841l6
Telephone No. (801 ) 220-4526
Mobile No. [phone]
6 In re ldaho Power Company, Case No. PPL-E-89-3ruPL-E-89-5, 1991 WL 501613 (Idaho P.U.C. June 17, l99l).
J
Email: [e-mail]
In addition, Rocky Mountain Power respectfully requests that all data requests regarding this
matter be addressed to:
By e-mail (preferred): [e-mail]
By regular mail:
PacifiCorp
Data Request Response Center
825 NE Multnomah, Suite 2000
Portland, OR 97232
Informal inquires also may be directed to Ted Weston at [phone].
IV. MODIFIED PROCEDURE
Rocky Mountain Power 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 in accordance with RP 201 et seq-
v. REQUEST FOR RELTEF
Rocky Mountain Power respectfully requests Commission Orders authorizing this matter
to be processed by Modified Procedure and approving the variable energy rate of $22.44 per
megawatt hour commencing July l, 2022, through June 30, 2023, for certain Idaho QFs power
purchase agreements subject to Commission Order No. 29316.
Dated this 13ft day of April2022.
Respectfully submitted,
ROCKY MOLINTAIN POWER
egener 614)
Suite 320
Salt 6
Telephone No. [phone]
Mobile No. [phone]
Email: Emily.wegener@pacifi corp.corn
Attorneyfor Roclgt Mountain Power
4
Naughton
Fuel Cost ($) $ 2,803,260
2021 FERC FORM 1 - Pao.402 Lln. 20
Generation (tufwl{) 2,596,446
2o2l FERC FORM 1 - PEgs 4oi! Linc 12
Average Fuel Cost ($/MWX1
Variable O&M
TotalVariable Energy Rate for 202212023
PaclflCorp
Total Variable Energy Rate
1or202212023
Huntington
$ 132,962,64f
6,263,658 7,796,581
For deliveries commencing July 1, 2O2?efiending through June 30, 2023
13 PacifiCorp/QFs ontracts with approved 1992 amendment language
Hunter
$ 137,919,167
Totals
$ 348,68s,091
16,656,685
$ 20.93
$ 1.s1
$ 22.4
/MVtFl
/MWH
/MWl{