Only a reasonable estimate of contracted QFs be assumed to reach commercial operation. Schedule 37 rates not be calculated by the Schedule 38 computer model. Rates properly account for the value of the Production Tax Credit (PTC). Rates include PacifiCorp’s transmission costs. All Utah QFs be allowed the option of being paid either a renewable rate (based on the costs of PacifiCorp’s next deferrable renewable resource regardless of resource type) or a non-renewable rate. The Renewable Energy Coalition represents the interests of renewable QFs in Utah, Idaho, Oregon, Washington and Wyoming. The Renewable Energy Coalition and Utah Clean Energy proposed significant modifications to Rocky Mountain Power’s proposals. Lowering Schedule 37 rates by using a complex computer methodology and assuming all QFs that have asked for contracts (hundreds of megawatts have been proposed) will be built, which lower prices. Keeping the renewable energy certificates generated by QFs, but only when the QF was paid a renewable rate. This means that when Rocky Mountain Power is building wind generation, then a wind QF could defer its new wind facility (and be paid a higher rate based on the new wind) whereas different types of renewable resources (solar, hydro, waste, etc.) would not be able to defer that new wind project and would defer the next planned thermal generating facility at a much later date (and would therefore be paid a lower price). Limiting avoided cost rates to the same resource type that the company planned to acquire in its most recent integrated resource plan, and specifically not allow renewable resources to defer other types of renewable resource. Rocky Mountain Power made a number of proposed modifications to its avoided cost price methodology, including: /cdn.vox-cdn.com/uploads/chorus_image/image/64603812/df753faa64.0.jpeg "rocky mountain power price ut")
Rocky Mountain Power is obligated to purchase power from QFs by the federal Public Utility Regulatory Policies Act (PURPA), but state commissions like the Utah Commission have broad discretion in approving the methodology that utilities can use to calculate prices paid to these non-utility owned renewable and cogeneration power producers. Rocky Mountain Power will now offer renewable resources of the same kind or type a renewable avoided cost rate based on the costs of a similar or a “like” renewable resource. On January 23, 2018, the Utah Public Service Commission (Utah Commission) adopted updates and revisions to Rocky Mountain Power’s avoided cost pricing methodologies for qualifying facility (QF) resources.
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