20220617Final_Order_No_35436.pdf

ORDER NO. 35436 1

Office of the Secretary
Service Date
June 17, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER
REQUESTING APPROVAL OF THE
ANNUAL REVISION TO QF VARIABLE
ENERGY PRICES PURSUANT TO TERMS
OF THE 1992 AMENDMENTS TO POWER
PURCHASE AGREEMENTS BETWEEN
PACIFICORP AND IDAHO QFS
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CASE NO. PAC-E-22-07

ORDER NO. 35436

On April 13, 2022, Rocky Mountain Power, a division of PacifiCorp (“Company”), applied
for Commission approval to update the variable energy portion of avoided cost rates for Qualifying
Facilities (“QFs”) under the Public Utility Regulatory Policies Act of 1978 (“PURPA”) with the
1992 Amendment (“Amendment”) to certain Idaho QFs’ power purchase agreements. Specifically,
the Company requested Commission approval for a variable energy rate of $22.44 per megawatt
hour (“MWh”).
The Company represented that thirteen QF contracts were affected by the Amendment that
outlined the methodology used for determining the variable energy component of the avoided cost
rate. However, the Company stated that only one QF contract affected by the Amendment remains
in effect, the Marsh Valley Hydro contract, which is effective through February 28, 2028.
The Company represented that the variable energy rate is calculated as the sum of the
Company’s fuel costs and Colstrip variable Operation and Maintenance (“O&M”) cost, with the
fuel costs defined as the average cost of fuel consumed in the Utah Division plants, specifically
the Naughton, Huntington, and Hunter coal plants. The Company represented that the variable
O&M costs were set based on the variable costs associated with the operation of the coal power
generating facility Colstrip, excluding the generation tax and the line loss adjustments. Based on
that calculation, the Company proposed that the variable energy rate applicable to deliveries
commencing July 1, 2022, extending through June 30, 2023, should be $22.44 per MWh.
STAFF COMMENTS
Staff reviewed the variable energy rate of the avoided cost rate for PacifiCorp contracts
with 1992 amendments contained in the Application and believed that the proposed rate was
correct and complied with Commission Order No. 29316. Staff noted that the average cost of fuel
was calculated using the data reported in the Company’s FERC Form 1, resulting in a variable
ORDER NO. 35436 2

energy rate of $22.44 per MWh. Staff recommended that the Commission approve the variable
energy rate of $22.44 per MWh applicable to the energy delivered under the Marsh Valley Hydro
contract, commencing July 1, 2022, extending through June 30, 2023.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company, an electric utility, under Title 61 of
the Idaho Code and PURPA. The Commission has authority under PURPA and Federal Energy
Regulatory Commission (“FERC”) regulations to set avoided costs, to order electric utilities to
enter fixed-term obligations for the purchase of energy from QFs, and to implement FERC rules.
Having reviewed the record, the Commission finds that the Company correctly calculated
its proposed revision to the adjustable portion of the avoided cost rate in its QF contracts with the
1992 Amendments. We find the resulting adjusted rate to be fair, just, and reasonable.
ORDER
IT IS HEREBY ORDERED that the variable energy rate for deliveries from July 1, 2022,
through June 30, 2023, for Company QF contracts having the 1992 Amendments shall be $22.44
per MWh.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code §§ 61-
626 and 62-619.

ORDER NO. 35436 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 17th day of
June 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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