HomeMy WebLinkAbout20231024Errata to Application.pdf
1407 W. North Temple, Suite 330
Salt Lake City, UT 84116
October 24, 2023
VIA ELECTRONIC DELIVERY
Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8 Suite 201A
Boise, ID 83714
RE: CASE NO. PAC-E-23-20
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER TO
UPDATE LOAD AND GAS FORECASTS USED IN THE INTEGRATED RESOURCE
PLAN AVOIDED COST MODEL
Errata Filing
Attention: Jan Noriyuki
Dear Ms. Noriyuki:
On October 16, 2023, Rocky Mountain Power (the “Company”) filed an Application in the
above-referenced matter. Since that submission, the Company was made aware of an error of the
effective date on page 2 and on page 9. The effective date should have been January 1, 2024, as
required by Order No. 35274. The Company hereby submits the corrected pages with changes in
redline and a clean copy of the entire application.
Informal questions related to this matter may be directed to Mark Alder, Idaho Regulatory
Manager at (801) 220-2313.
Very truly yours,
Joelle Steward
Senior Vice President, Regulation and Customer & Community Solutions
RECEIVED
Tuesday, October 24, 2023 12:29:33 PM
IDAHO PUBLIC
UTILITIES COMMISSION
ERRATA PAGE 2 AND
ERRATA PAGE 9
Page 2
be updated every two years upon acknowledgement of the utility's IRP filing with the exception
of the load and the natural gas forecasts which are to be updated annually by June 1st of each year.
The Commission ruled:
“We find that, in order to maintain the most accurate and up to date reflection of a
utility's true avoided cost, utilities must update fuel price forecasts and load
forecasts annually between IRP filings. For the sake of consistency, these annual
updates should occur simultaneously with SAR updates - on June 1 of each year. In
addition, it is appropriate to consider long-term contract commitments because of
the potential effect that such commitments have on a utility's load and resource
balance. We find it reasonable to include long-term contract considerations in an
IRP Methodology calculation at such time as the QF and utility have entered into
a signed contract for the sale and purchase of QF power. We further find it
appropriate to consider PURPA contracts that have terminated or expired in each
utility's load and resource balance. We find it reasonable that all other variables
and assumptions utilized within the IRP Methodology remain fixed between IRP
filings (every two years).”1
3. Order No. 32802 changed the due date of the annual update from June 1st to October
15th of each year. If approved, the load forecast, natural gas forecast, and contract information
presented below will be incorporated into Rocky Mountain Power's IRP avoided cost model.
Consistent with the Commission's prior orders, this methodology will be utilized by the Company
as the starting point for negotiation of contractual avoided cost rates as of October 15, 2023January
1, 2024..
II. LOAD FORECAST
4. The Company's May 2023 and May 2022 long-term load forecasts are summarized
in Table 1. The May 2023 load forecast shows overall an increase in load compared to the May
2022 load forecast provided in Case No. PAC-E-22-16, which was subsequently approved by
1 In the matter of the Commission’s review of PURPA QF contract provisions including the Surrogate Avoided
Resources (SAR) and Integrated Resource Planning (IRP) methodologies for calculating avoided cost rates. Case
No. GNR-E-11-03, Order No. 32697, p. 22.
Page 10
approving this updated information for inclusion in the Company’s IRP avoided cost calculations
effective October 15, 2023January 1, 2024.
DATED this 24th day of October 2023.
Respectfully submitted,
ROCKY MOUNTAIN POWER
______________________________
Joe Dallas (ISB# 10330)
825 NE Multnomah Street, Suite 2000
Portland, OR 97232
Telephone: (360) 560-1937
Email: joseph.dallas@pacificorp.com
Attorney for Rocky Mountain Power
CLEAN COPY OF
COMPLETE FILING
Page 1
Joe Dallas (ISB# 10330)
825 NE Multnomah Street, Suite 2000
Portland, OR 97232
Telephone: (360) 560-1937
Email: joseph.dallas@pacificorp.com
Attorney for Rocky Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER TO
UPDATE LOAD AND GAS FORECASTS
USED IN THE INTEGRATED RESOURCE
PLAN AVOIDED COST MODEL
) CASE NO. PAC-E-23-20
)
) APPLICATION OF
)
) ROCKY MOUNTAIN POWER
Rocky Mountain Power, a division of PacifiCorp, (“Company”), hereby respectfully
submits this Application to the Idaho Public Utilities Commission, ("Commission"), in compliance
with Order Nos. 32697 and 32802 to update the load forecast, natural gas forecast, and long-term
contract components of the Integrated Resource Plan ("IRP") avoided cost model. In support of
this Application, Rocky Mountain Power states as follows:
1. Rocky Mountain Power provides electric service to retail customers in the states of
Idaho, Utah, and Wyoming. 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 pursuant to Idaho Code 61-129. Rocky Mountain Power provides retail electric
service to approximately 88,000 customers in the state of Idaho.
I. BACKGROUND
2. Order No. 32697 specified that the inputs to the IRP methodology calculation,
utilized to determine the avoided cost for all new Public Utility Regulatory Policies Act of 1978
(“PURPA”) qualifying facility ("QF") projects that exceed the published rate eligibility cap, will
Page 2
be updated every two years upon acknowledgement of the utility's IRP filing with the exception
of the load and the natural gas forecasts which are to be updated annually by June 1st of each year.
The Commission ruled:
“We find that, in order to maintain the most accurate and up to date reflection of a
utility's true avoided cost, utilities must update fuel price forecasts and load
forecasts annually between IRP filings. For the sake of consistency, these annual
updates should occur simultaneously with SAR updates - on June 1 of each year. In
addition, it is appropriate to consider long-term contract commitments because of
the potential effect that such commitments have on a utility's load and resource
balance. We find it reasonable to include long-term contract considerations in an
IRP Methodology calculation at such time as the QF and utility have entered into
a signed contract for the sale and purchase of QF power. We further find it
appropriate to consider PURPA contracts that have terminated or expired in each
utility's load and resource balance. We find it reasonable that all other variables
and assumptions utilized within the IRP Methodology remain fixed between IRP
filings (every two years).”1
3. Order No. 32802 changed the due date of the annual update from June 1st to October
15th of each year. If approved, the load forecast, natural gas forecast, and contract information
presented below will be incorporated into Rocky Mountain Power's IRP avoided cost model.
Consistent with the Commission's prior orders, this methodology will be utilized by the Company
as the starting point for negotiation of contractual avoided cost rates as of January 1, 2024.
II. LOAD FORECAST
4. The Company's May 2023 and May 2022 long-term load forecasts are summarized
in Table 1. The May 2023 load forecast shows overall an increase in load compared to the May
2022 load forecast provided in Case No. PAC-E-22-16, which was subsequently approved by
Commission Order No. 35638. The change in the forecast is primarily due to growth expectations
for industrial and commercial customers in Utah.
1 In the matter of the Commission’s review of PURPA QF contract provisions including the Surrogate Avoided
Resources (SAR) and Integrated Resource Planning (IRP) methodologies for calculating avoided cost rates. Case
No. GNR-E-11-03, Order No. 32697, p. 22.
Page 3
Table 1
Rocky Mountain Power
Load Forecast Update
Annual GWh
Load Forecast - May 2023
Year California Idaho Oregon Utah Washington Wyoming FERC Total
2023 851 3,929 15,682 27,338 4,471 9,549 265 62,083
2024 838 3,933 16,350 28,812 4,493 9,655 250 64,331
2025 830 3,929 17,203 29,761 4,455 9,705 244 66,126
2026 825 3,929 17,561 30,915 4,437 9,689 242 67,599
2027 821 3,926 18,697 32,532 4,412 9,701 117 70,206
2028 819 3,926 20,325 35,625 4,401 9,716 - 74,812
2029 813 3,909 21,786 36,002 4,374 9,673 - 76,556
2030 811 3,897 22,668 36,845 4,358 9,636 - 78,215
2031 808 3,882 23,648 37,222 4,346 9,633 - 79,538
2032 807 3,871 23,991 37,150 4,337 9,620 - 79,776
2033 803 3,849 23,248 37,257 4,311 9,604 - 79,071
2034 801 3,832 23,375 37,355 4,302 9,597 - 79,263
2035 800 3,819 23,560 37,488 4,301 9,597 - 79,564
2036 799 3,811 23,819 37,694 4,317 9,615 - 80,057
2037 795 3,795 24,021 37,778 4,318 9,594 - 80,299
2038 793 3,788 24,293 38,027 4,335 9,608 - 80,844
2039 792 3,785 24,583 38,317 4,359 9,632 - 81,467
2040 793 3,787 24,911 38,640 4,399 9,670 - 82,199
2041 792 3,781 25,195 38,962 4,422 9,680 - 82,832
2042 794 3,791 25,510 39,648 4,468 9,721 - 83,931
Load Forecast - May 2022
Year California Idaho Oregon Utah Washington Wyoming FERC Total
2022 882 3,952 15,524 26,990 4,550 9,499 277 61,673
2023 870 4,024 16,729 27,717 4,574 9,570 275 63,760
2024 868 4,004 18,770 28,501 4,577 9,645 274 66,640
2025 862 4,009 19,905 29,160 4,537 9,912 272 68,656
2026 858 4,019 20,252 29,760 4,513 9,906 270 69,577
2027 858 4,025 21,471 30,146 4,501 9,863 141 71,005
2028 859 4,036 23,158 30,611 4,507 9,928 23 73,122
2029 855 4,033 23,676 31,011 4,490 9,892 23 73,980
2030 854 4,035 23,872 31,268 4,486 9,938 23 74,476
2031 854 4,038 24,723 31,574 4,487 9,921 23 75,621
2032 855 4,047 25,167 31,979 4,506 9,985 24 76,563
2033 852 4,044 24,021 32,332 4,504 9,965 24 75,743
2034 853 4,047 24,230 32,823 4,521 9,966 24 76,463
2035 853 4,048 24,464 33,365 4,542 9,966 24 77,262
2036 854 4,059 24,768 34,041 4,584 10,000 25 78,330
2037 848 4,060 25,007 34,612 4,606 9,994 25 79,152
2038 843 4,071 25,290 35,274 4,647 10,012 25 80,162
2039 838 4,084 25,571 35,932 4,688 10,034 25 81,173
2040 834 4,101 25,898 36,662 4,736 10,079 25 82,336
2041 823 4,104 26,149 37,310 4,746 10,073 26 83,230
Loads are net of Demand Side Management
Page 4
III. NATURAL GAS PRICE FORECAST
5. The Company’s most recent Official Forward Price Curve (“OFPC”) was prepared
on September 29, 2023 (“2309 OFPC”). The price forecast used in Case No. PAC-E-22-16 was
prepared on September 30, 2022 (“2209 OFPC”). Table 2 provides the 2309 OFPC natural gas
prices summarized annually by market hub. The 2209 OFPC is also provided for reference only.
With the exception of Sumas, where gas prices are up slightly, the gas prices in the 2309 OFPC
are relatively unchanged or down slightly over most forecast years compared to the 2209 OFPC.
Page 5
Table 2
Rocky Mountain Power
Natural Gas Price Update
$/MMBtu
Offical Forward Price Curve (2309) - 09/29/2023
Year Opal Gas Index Sumas Index Stanfield Index San Juan Index
Henry Hub
Index AECO Index
SOCALBOR
Index
2023(a) $5.01 $6.87 $3.78 $3.80 $3.01 $1.92 $5.31
2024 $4.48 $5.37 $3.51 $3.86 $3.39 $2.19 $5.07
2025 $4.55 $5.25 $3.83 $4.08 $3.95 $2.74 $5.31
2026 $4.41 $4.89 $3.95 $4.16 $4.09 $3.01 $5.24
2027 $4.53 $4.90 $4.47 $4.46 $4.55 $3.79 $5.20
2028 $4.69 $5.09 $4.94 $4.75 $4.95 $4.43 $5.20
2029 $5.08 $5.51 $5.30 $5.08 $5.17 $4.83 $5.57
2030 $5.15 $5.61 $5.39 $5.13 $5.14 $4.90 $5.66
2031 $5.22 $5.72 $5.51 $5.24 $5.19 $4.94 $5.78
2032 $5.33 $5.86 $5.66 $5.37 $5.30 $5.02 $5.94
2033 $5.55 $6.18 $5.90 $5.60 $5.50 $5.20 $6.18
2034 $5.71 $6.36 $6.12 $5.81 $5.66 $5.33 $6.42
2035 $5.81 $6.31 $6.26 $5.96 $5.76 $5.42 $6.56
2036 $5.92 $6.41 $6.42 $6.12 $5.91 $5.52 $6.72
2037 $6.25 $6.72 $6.79 $6.47 $6.24 $5.79 $7.09
2038 $6.47 $6.93 $7.02 $6.70 $6.47 $5.98 $7.32
2039 $6.80 $7.29 $7.41 $7.08 $6.82 $6.27 $7.71
2040 $7.23 $7.93 $7.84 $7.49 $7.23 $6.66 $8.14
2041 $7.59 $8.30 $8.23 $7.88 $7.63 $6.99 $8.53
2042 $7.99 $8.71 $8.64 $8.30 $8.12 $7.37 $8.95
(a) 2023 Forecast gas prices are for November and December only
Offical Forward Price Curve (2209) - 09/30/2022
Year Opal Gas Index Sumas Index Stanfield Index San Juan Index
Henry Hub
Index AECO Index
SOCALBOR
Index
2023(a) $5.32 $4.61 $4.62 $5.08 $5.26 $3.59 $5.92
2024 $4.64 $3.99 $3.64 $4.49 $4.74 $3.31 $5.38
2025 $4.54 $3.98 $3.62 $4.43 $4.65 $3.54 $5.46
2026 $4.69 $4.47 $4.35 $4.69 $4.86 $4.15 $5.37
2027 $4.78 $4.85 $4.94 $4.88 $4.99 $4.60 $5.23
2028 $4.78 $4.84 $4.97 $4.92 $5.05 $4.60 $5.26
2029 $4.85 $4.89 $5.08 $5.03 $5.15 $4.68 $5.38
2030 $4.99 $5.04 $5.25 $5.20 $5.37 $4.80 $5.55
2031 $5.11 $5.17 $5.38 $5.33 $5.49 $4.95 $5.68
2032 $5.48 $5.58 $5.66 $5.62 $5.74 $5.29 $5.97
2033 $5.75 $5.83 $5.95 $5.90 $6.03 $5.56 $6.27
2034 $5.83 $5.90 $6.05 $6.01 $6.12 $5.63 $6.38
2035 $5.92 $5.99 $6.14 $6.10 $6.23 $5.73 $6.46
2036 $5.86 $5.93 $6.12 $6.08 $6.19 $5.68 $6.43
2037 $6.10 $6.12 $6.40 $6.36 $6.47 $5.92 $6.72
2038 $6.37 $6.37 $6.69 $6.66 $6.81 $6.18 $7.03
2039 $6.65 $6.64 $7.01 $6.97 $7.15 $6.46 $7.34
2040 $6.78 $6.78 $7.17 $7.15 $7.32 $6.60 $7.51
2041 $7.14 $7.11 $7.53 $7.50 $7.71 $6.95 $7.87
2042 $7.45 $7.42 $7.85 $7.82 $8.07 $7.25 $8.20
(a) 2023 Forecast gas prices are for November and December only
Page 6
IV. CONTRACT TERMINATIONS, EXPIRATIONS, AND ADDITIONS
6. Since filing Case No. PAC-E-22-16, the Company has signed 29 long-term
contracts, including 23 long-term contracts with qualifying facilities, for a total nameplate capacity
of 1,717.6 megawatts. Five long-term contracts have terminated or expired without renewal for a
total nameplate capacity of 63.4 megawatts. Table 3 provides a list of signed and expired or
terminated contracts since October 1, 2022.
7. Rocky Mountain Power currently has 46 non-PURPA, long-term power purchase
agreements with a nameplate capacity of 4,806 megawatts, and 163 PURPA QF contracts with a
nameplate capacity of 2,206 megawatts. New contracts, terminated or expired contracts, as well
as new contract pricing are all updated in the IRP model on a continuous basis.
Page 7
Table 3
V. COMMUNICATIONS
8. Communications regarding this filing should be addressed to:
Rocky Mountain Power
Long‐Term Contracts
Long Term Contracts signed since the October 2022 Filing
No. Contract
Qualifying Facility
(QF) Nameplate (MW) Start Date End Date
1 Green River Solar I and II w battery storage PPA 400 6/15/2025 6/14/2045
2 Buckaroo Solar 1 OR CSP QF PPA 2.4 12/29/2023 12/28/2043
3 Buckaroo Solar 2 OR CSP QF PPA 3.0 12/29/2023 12/28/2043
4 Linkville Solar, LLC OR CSP QF PPA 2.8 10/1/2023 4/30/2043
5 Pilot Rock Solar 1 OR CSP QF PPA 2.0 9/30/2025 5/24/2043
6 Pilot Rock Solar 2 OR CSP QF PPA 3.0 9/30/2025 12/30/2042
7 Cherry Creek Solar, LLC OR CSP QF PPA 0.4 12/31/2022 12/30/2042
8 Whiskey Creek Solar, LLC OR CSP QF PPA 0.2 12/31/2022 12/30/2042
9 Hay Creek Solar, LLC OR CSP QF PPA 0.6 12/31/2022 12/30/2042
10 ExxonMobil Power and Gas Services QF PPA 98.0 1/1/2023 12/31/2023
11 Wocus Marsh Solar, LLC OR CSP QF PPA 0.9 12/30/2022 12/29/2042
12 Cedar Creek Wind, LLC PPA 151.8 6/30/2024 6/29/2049
13 Larry Oja and Christie Oja QF PPA 0.2 2/1/2023 1/31/2043
14 Tesoro Refiniing & Marketing QF PPA 25.0 1/1/2023 12/31/2023
15 Faraday Solar B LLC PPA 525.0 9/30/2025 4/30/2046
16 Faraday Energy Storage LLC PPA 150.0 6/1/2026 4/30/2046
17 Oregon Environmental Industries (Dry Creek Landfill) QF PPA 2.9 3/6/2023 7/30/2024
18 Lacomb Irrigation District QF PPA 0.8 4/1/2023 3/31/2038
19 Sunset Ridge Solar, LLC OR CSP QF PPA 2.3 9/26/2023 9/25/2043
20 Hornshadow Solar, LLC PPA 100.0 6/30/2025 6/29/2050
21 Hornshadow Solar II, LLC PPA 200.0 6/30/2025 6/29/2050
22 Pine Grove Solar, LLC OR CSP QF PPA 1.4 8/29/2023 8/28/2043
23 Round Lake Solar, LLC OR CSP QF PPA 1.0 8/29/2023 8/28/2043
24 Orchard Knob Solar, LLC OR CSP QF PPA 2.3 10/5/2023 10/4/2043
25 Antelope Creek Solar, LLC OR CSP QF PPA 2.3 8/4/2023 8/3/2043
26 7 mile Solar, LLC OR CSP QF PPA 1.0 10/5/2023 10/4/2023
27 Kennecott Utah Copper - Refinery QF PPA 6.2 1/1/2024 12/31/2024
28 Kennecott Utah Copper - Smelter QF PPA 31.8 1/1/2024 12/31/2024
29 City of Albany QF PPA 0.7 10/10/2023 4/10/2024
Total Signed MW 1,717.6
Long Term Contracts Expired or Terminated since the October 2022 Filing
No. Contract
Qualifying Facility
(QF) Nameplate (MW) Date
1 Finley Bioenergy QF 4.8 11/15/2022
2 Mountain Energy, Inc QF 0.05 12/31/2022
3 Sunnyside Solar LLC QF 4.99 1/13/2023
4 eBay QF 0.52 2/13/2023
5 Sunnyside Cogeneration Associates QF 53.00 8/31/2023
Total Terminated MW 63.4
Page 8
Mark Alder
Idaho Regulatory Affairs Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
Salt Lake City, Utah 84116
Telephone: (801) 220-2313
Email: mark.alder@pacificorp.com
Joe Dallas (ISB# 10330)
825 NE Multnomah Street, Suite 2000
Portland, OR 97232
Telephone: (360) 560-1937
Email: joseph.dallas@pacificorp.com
In addition, Rocky Mountain Power requests that all data requests regarding this Application be
sent in Microsoft Word to the following:
By email (preferred): datarequest@pacificorp.com
By regular mail: Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97232
Informal questions may be directed to Mark Alder, Idaho Regulatory Affairs Manager at (801)
220-2313.
VI. MODIFIED PROCEDURE
9. The Company 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. RP 201 et seq.
VII. REQUEST FOR RELIEF
WHEREFORE, Rocky Mountain Power hereby respectfully submits its updated load
forecast, natural gas forecast, and QF contract information in compliance with the Commission's
directives in Order Nos. 32697 and 32802 and requests that the Commission issue an order
Page 9
approving this updated information for inclusion in the Company’s IRP avoided cost calculations
effective January 1, 2024.
DATED this 24th day of October 2023.
Respectfully submitted,
ROCKY MOUNTAIN POWER
______________________________
Joe Dallas (ISB# 10330)
825 NE Multnomah Street, Suite 2000
Portland, OR 97232
Telephone: (360) 560-1937
Email: joseph.dallas@pacificorp.com
Attorney for Rocky Mountain Power