The Utah Wind Working Group (UWWG) believes there are currently opportunities to encourage wind power development in the state by seeking changes to the avoided cost tariff paid to qualifying facilities (QFs). These opportunities have arisen as a result of a recent re-negotiation of Pacificorp’s Schedule 37 tariff for wind QFs under 3 MW, as well as an ongoing examination of Pacificorp’s Schedule 38 tariff for wind QFs larger than 3 MW. It is expected that decisions made regarding Schedule 38 will also impact Schedule 37. Through the Laboratory Technical Assistance Program (Lab TAP), the UWWG has requested (through the Utah Energy Office) that LBNL provide technical assistance in determining whether an alternative method of calculating avoided costs that has been officially adopted in Idaho would lead to higher QF payments in Utah, and to discuss the pros and cons of this method relative to the methodology recently adopted under Schedule 37 in Utah. To accomplish this scope of work, I begin by summarizing the current method of calculating avoided costs in Utah (per Schedule 37) and Idaho (the “surrogate avoided resource” or SAR method). I then compare the two methods both qualitatively and quantitatively. Next I present Pacificorp’s four main objections to the use of the SAR method, and discuss the reasonableness of each objection. Finally, I conclude with a few other potential considerations that might add value to wind QFs in Utah.
Bolinger, Mark and Wiser, Ryan, "An Examination of Avoided Costs in Utah" (2005). All U.S. Government Documents (Utah Regional Depository). Paper 18.