180426 PAC wind telephonic hearing.pdf

Case No. PAC-E-17-07
Contact: Matt Evans
Office: [phone]
Cell: [phone]
www.puc.idaho.gov

PUC to hold telephonic public hearing
over Rocky Mountain Power proposal

BOISE (April 26, 2018) – The Idaho Public Utilities Commission has scheduled a
telephonic public hearing regarding Rocky Mountain Power’s plan to add almost 1 gigawatt
of wind energy and upgrade its transmission system.
The company’s proposal calls for the construction or acquisition of four wind facilities,
along with the construction of or modifications to several transmission facilities, all in
Wyoming.
The company has asked the Commission to approve Certificates of Public Convenience and
Necessity (CPCN) for the projects, which are estimated to cost $2 billion. State law requires
that a public utility obtain a CPCN before constructing certain facilities or infrastructure.
The company has also requested Commission approval for binding ratemaking treatment
of the projects. That would allow Rocky Mountain Power to track the costs and benefits of
the projects, with the difference recovered from customers through the Energy Cost
Adjustment Mechanism until the costs of the new facilities are reflected in customers’ base
rates.
Rocky Mountain Power’s application indicates the wind facilities must be operating by the
end of 2020 to receive the full benefit of federal production tax credits. The company also
contends the projects are dependent on each other; that is, the wind projects are not
economic without the transmission projects and vice versa.
Rocky Mountain Power provides electric service to approximately 75,400 customers in
Idaho. That is approximately 7 percent of its customer base across a service territory that
includes Utah and Wyoming.
The $2 billion cost estimate for the projects would lead to a rate increase of less than 1.9
percent in 2021, which is expected to be the first full year of operation of the new wind
facilities. The projects are expected to save $137 million in avoided costs through 2050,
when the wind facilities are fully depreciated, the company said.
Rocky Mountain’s 2017 Integrated Resource Plan, which was acknowledged by the
Commission in early April 2018, identified wind energy as the “least-cost, least-risk
resource when compared to other energy sources” for reliably meeting customer demand
for the next 20 years.
The wind facilities outlined in Rocky Mountain’s proposal would provide a total generating
capacity of 860 megawatts (MW). Three of the facilities have a generating capacity of 250
MW and one is capable of generating 110 MW.
The transmission projects outlined in the company’s proposal are associated with its
Energy Gateway West transmission project, which calls for the addition of approximately
2,000 miles of transmission lines in order to alleviate congestion on Rocky Mountain’s
transmission system and improve its ability to manage the intermittent load produced by
wind.
The telephonic public hearing is set for May 3 at 6 pm. It is intended to give Rocky
Mountain Power customers a chance to submit oral testimony for the official case record.
To participate, call [phone] and enter passcode 6674832# when prompted.
Rocky Mountain Power's application and exhibits are available on the Commission's
website here. Or go to www.puc.idaho.gov, click on "Open Cases" under the "Electric"
heading and scroll down to case number PAC-E-17-07.