Avoided-Cost PPAs

The Utah Public Service Commission has granted a solar developer’s motion to suspend indefinitely any further action in several consolidated dockets under which an electric utility, Rocky Mountain Power (RMP), was seeking approval of new power purchase agreements (PPAs) with a couple of the developer’s solar projects.

The developer, sPower, had informed RMP of its intent to build two new solar facilities, Glen Canyon Solar A and Glen Canyon Solar B, in the southern part of the state. The parties proceeded to negotiate PPAs for each project using avoided-cost pricing principles as enunciated in the Public Utility Regulatory Policies Act of 1978. However, Glen Canyon later petitioned the commission for an order that would require RMP to “influence” its parent company, PacifiCorp, with respect to the parent’s transmission function as it relates to determining costs pertinent to interconnection of the Glen Canyon facilities with RMP.

But the commission declined to issue such a directive, explaining that transmission-related matters such as those raised by Glen Canyon were solely within the province of the Federal Energy Regulatory Commission (FERC). Given that there was as yet no timeline for FERC’s resolution of the transmission questions, Glen Canyon decided that it would be best to hold the proffered PPAs with the utility in abeyance until such time as the FERC rules in the matter. There being no objection to the requested stay from RMP, the commission agreed that there was no point in going forward with consideration of the PPAs at the present time.

The commission reminded the parties that they must file a new motion to lift the stay or otherwise resurrect the proceeding if and when they opt to move ahead with the PPAs. (Docket Nos. 17-035-26 et al.)