Idaho PUC approves lower wind integration rate for Rocky Mountain Power

The Idaho Public Utilities Commission (PUC) recently approved a proposal by Rocky Mountain Power to lower the rate charged to integrate wind energy into its system from $3.06 per megawatt-hour (MWh) to 57 cents per MWh.

The previous integration rate was set in 2008. In its proposal, Rocky Mountain Power told the commission that its analyses had found that wind energy costs had decreased significantly since then.

The Commission also set the solar integration rate at 60 cents per MWh. The company said solar generation had been “insignificant” for its system in the past but is projected to surpass 1,000 megawatts by the end of 2017.

The new rates apply to facilities that qualify for 20-year contracts under the Public Utility Regulatory Policies Act of 1978 (PURPA), which requires regulated utilities to purchase energy from qualifying independent power producers at rates established by the PUC. Wind and solar facilities that are smaller than 100 kilowatts are eligible for 20-year contracts.

The rate is intended to be no higher than the rate at which the utility could generate the power on its own or purchase the energy elsewhere. The integration rate for solar and wind facilities that qualify for power purchase agreements under PURPA is subtracted from the avoided-cost rate paid by the utility.