120717 PAC wind integration rate.pdf

Case No. PAC-E-17-11
Final Order No. 33937
Contact: Matt Evans
[phone] office
[phone] cell
www.puc.idaho.gov

PUC approves lower wind integration rate for
Rocky Mountain Power system, implements
rate for solar integration
BOISE (Dec. 7, 2017) – State regulators have approved a Rocky Mountain Power proposal
to significantly lower the rate charged to integrate wind energy into its system.
The new wind integration rate approved by the Idaho Public Utilities Commission is 57
cents per megawatt-hour (MWh). The previous rate was $3.06 per MWh.
The Commission also set the solar integration rate at 60 cents per MWh.
These rates apply to facilities that qualify for 20-year contracts under the Public Utility
Regulatory Policies Act of 1978 (PURPA).
Intended to spur the development of domestic energy, PURPA requires regulated utilities
to purchase energy from qualifying independent power producers at rates established by
state commissions.
In Idaho, facilities smaller than 100 kilowatts and powered by intermittent sources such as
wind and solar are eligible for 20-year contracts at the published rate set by the Idaho
Public Utilities Commission.
The rate is referred to as the avoided-cost rate because it is intended to be no higher than
the rate at which the utility could generate the power on its own, or the rate at which the
utility could purchase the energy elsewhere.
The integration rate for solar and wind facilities that qualify for power purchase
agreements under PURPA is deducted from the avoided-cost rate paid by the utility.
In its proposal to the Commission, Rocky Mountain Power said its analysis had found that
the costs of wind energy and its integration had fallen significantly since 2008, when the
previous integration rate was set.
The company said solar generation on its system has been “insignificant” in the past but is
expected to exceed 1,000 megawatts by the end of 2017.
The Commission’s order and other documents related to the case can be found on the
commission’s website at www.puc.idaho.gov, or here. Under the “Electric” heading, click on
“Open Cases,” and scroll down to Case No. PAC-E-17-11.
Interested parties may petition for reconsideration by no later than Dec. 19. Petitions for
reconsideration must set forth specifically why the petitioner contends that the order is
unreasonable, unlawful or erroneous. Petitions should include a statement of the nature
and quantity of evidence the petitioner will offer if reconsideration is granted.
Petitions can be delivered to the commission at 472 W. Washington St. in Boise, mailed to
P.O. Box 83720, Boise, ID, 83720-0074, or faxed to 208-334-3762.