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HomeMy WebLinkAbout20230510Notice_of_Application_Order_No_35775.pdfNOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35775 1 Office of the Secretary Service Date May 10, 2023 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF ROCKY MOUNTAIN POWER’S APPLICATION 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. ) ) ) ) ) ) ) ) CASE NO. PAC-E-23-14 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35775 On April 18, 2023, Rocky Mountain Power, a division of PacifiCorp (“Company”), applied for Commission approval to update the Qualifying Facility (“QF”) variable energy price pursuant to the terms of the 1992 amendments (“Amendment”) to certain Idaho QFs power purchase agreements (“Application”). Specifically, the Company requested Commission approval for a variable energy rate of $24.85 per megawatt hour. The Company requested that its Application be processed by Modified Procedure with an effective date for the new variable energy rate of July 1, 2023. The Commission now provides Notice of the Application and sets public comment and Company reply comment deadlines. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company indicates thirteen QF contracts were affected by the Amendment outlining the method used to determine the variable energy component of the avoided cost rate for QF contracts. The Company represents that only one QF contract affected by the Amendment remains in effect— Marsh Valley Hydro contract—which is effective through February 28, 2028.1 YOU ARE FURTHER NOTIFIED that the Company represents 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.2. The Company represents the variable O&M costs were set based 1 The remaining 12 QF contracts originally subject to the Amendment have expired, among which ten have entered into new PPAs and two did not seek new contracts. 2 The Amendment defines fuel costs “as the average cost of fuel consumed in the Utah Division plants, specifically Carbon, Hale, Naughton, Huntington, and Hunter coal plants.” Application at 2. The Amendment specifies that any plant that does not operate in a calendar year will be removed from the average fuel cost calculation. Since Carbon and Hale plants are now closed, the Company removed these from its calculation. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35775 2 on the variable costs associated with the operation of the coal power generating facility Colstrip, excluding the generation tax and the line loss adjustments. YOU ARE FURTHER NOTIFIED that based on that calculation, the Company proposes the variable energy rate applicable to deliveries commencing July 1, 2023, through June 30, 2024, should be $24.85 per megawatt hour. YOU ARE FURTHER NOTIFIED that the Application is available for public inspection during regular business hours at the Commission’s office. All documents are also available on the Commission’s website at www.puc.idaho.gov. Click on the “ELECTRIC” icon, select “Open Cases,” and click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code. YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq. NOTICE OF MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter, and that it will proceed under Modified Procedure pursuant to Rules 201-204 of the Commission’s Rules of Procedure, IDAPA 31.01.01.201-.204. The Commission notes that Modified Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this Application may file a written comment explaining why the person supports or opposes the Application. Persons who would like a hearing must specifically request a hearing in their written comments. Persons interested in filing written comments must do so by May 24, 2023. Comments must be filed through the Commission’s website or by e-mail unless computer access is unavailable. To comment electronically, please access the Commission’s website at www.puc.idaho.gov. Click the “Case Comment Form” and complete the form using the case number as it appears on the front of this document. To file by e-mail, persons must e-mail the comments to the Commission Secretary and the Company at the e-mail addresses listed below. If computer access is unavailable, then comments may be mailed to the Commission and Company at these addresses: NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35775 3 For the Idaho Public Utilities Commission: Commission Secretary Idaho Public Utilities Commission P.O. Box 83720 Boise, ID 83720-0074 secretary@puc.idaho.gov Street Address for Express Mail: 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, ID 83714 For Rocky Mountain Power: Mark Alder Rocky Mountain Power 1407 West North Temple, Suite 330 Salt Lake City, UT 84116 mark.alder@pacificorp.com Joe Dallas PacifiCorp 825 NE Multnomah Street, Suite 2000 Portland, OR 97232 joseph.dallas@pacificorp.com Data Request Response Center PacifiCorp 825 Multnomah, Suite 2000 Portland, OR 97232 datarequest@pacificorp.com YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by May 31, 2023. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set, the Commission will consider this matter on its merits and enter its final order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing. ORDER IT IS HEREBY ORDERED that the Company’s Application be processed by Modified Procedure, Rules 201-204. Persons interested in filing written comments must do so by May 24, 2023. The Company must file any reply comments by May 31, 2023. IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 35775 4 DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 10th day of May 2023. ERIC ANDERSON, PRESIDENT JOHN R. HAMMOND JR., COMMISSIONER EDWARD LODGE, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\PAC-E-23-14 QFs\orders\PACE2314_Ntc_App_Mod_md.docx