Idaho Power seeks to include non-fuel operations, maintenance expenses in Jim Bridger Power Plant balancing account
As Idaho Power and PacifiCorp moved to convert the Jim Bridger Power Plant to natural gas instead of coal, the former recently filed to include non-fuel operations and maintenance expenses in the facility’s balancing account, and regulators subsequently opened the application up to public comment.
Those comments must be written, but will help the Idaho Public Utilities Commission (PUC) contemplate its next steps. Those will be due no later than Aug. 20, 2024.
For Jim Bridger, located near Rock Springs, Wyo., these changes could represent a chance to extend its lifespan. However, only after gas-fired operations begin will its utility owners need to make capital investments needed for operation. Regardless of the regulators’ decision, non-fuel operation and maintenance expenses will continue – meaning labor expenses, non-labor project costs, contracting, equipment and their associated leases, environmental remediation, administrative costs and more.
A previous balancing account mechanism designed for easier revenue requirement impacts associated with the elimination of coal-fired operations at the plant and full recovery of its coal-related costs by Dec. 31, 2030 was approved by the commission. Idaho Power and PacifiCorp argued that cost recovery mechanism needed adjustment, though, so as to tackle rate volatility that would otherwise remain unaddressed.
Idaho Power owns one-third of the Jim Bridger Power Plant. PacifiCorp owns the other two-thirds. They make joint decisions about the investments and retirement possibilities of the facility.
