Idaho PUC approves three Rocky Mountain Power wind, transmission projects

The Idaho Public Utilities Commission (PUC) recently approved a Certificate of Public Convenience and Necessity for three new Rocky Mountain Power wind projects and the associated transmission facilities.

The PUC includes procedures for how the utility will cover the project’s estimated cost of $2 billion as well as a cap on recoverable costs. Under Rocky Mountain’s proposal, the projects will be subsidized by federal production tax credits for renewable energy if operational by Dec. 31, 2020. The tax credits would provide customers an economic benefits of approximately $137 million over 30 years, the company said.

The turbines will have a generating capacity of 1,150 megawatts (MW).

The PUC order directs Rocky Mountain Power to track project costs and benefits through the Energy Cost Adjustment Mechanism until they can be included in base rates.

The resource tracking mechanism will include a 9.2 percent return on investment, or a 6.96-percent return on investment after taxes. The costs in these mechanisms will not exceed benefits so customer rates will not increase before the next general rate case.

The PUC order also requires Rocky Mountain Power to bear the risks of any portion of the projects that do not qualify for the production tax credits.

In its order, the PUC said Rocky Mountain Power had provided “substantial and competent” evidence that “seizing this opportunity will result in a better outcome for its customers. However, because the justification is economic in nature, as opposed to purely reliable and safe service, we find that the risk inherent in this business decision should not be entirely borne by the ratepayers.”