PacifiCorp signs new power purchase deals with Kennecott

PacifiCorp d/b/a Rocky Mountain Power on Sept. 13 asked the Utah Public Service Commission for approval of a power purchase agreement under which it would buy qualifying facility (QF) power from Kennecott Utah Copper LLC.

As a “purchasing utility” under Utah code, PacifiCorp is obligated to purchase power from qualifying facilities pursuant to the Public Utility Regulatory Policies Act of 1978.

The agreement with Kennecott Utah Copper provides for the sale to PacifiCorp of energy to be generated by Kennecott up to 31.8 MW, from a waste heat-fired cogeneration facility of Kennecott. The agreement is for a term of 12 months: Jan. 1, 2014 through Dec. 31, 2014.

The agreement constitutes a “New QF Contract” under the PacifiCorp Inter-jurisdictional Cost Allocation Protocol, previously filed with the commission. According to the terms of the protocol, the costs of the QF provisions would be allocated as a system resource,  unless any portion of those costs exceed the cost PacifiCorp would have otherwise incurred acquiring comparable resources.

The existing QF PPA, dated September 2012, between PacifiCorp and Kennecott expires on Dec. 31, 2013. Therefore, the parties desire that no time lapse between the expiration of that agreement and the approval of the new agreement, PacifiCorp said.

Kennecott Utah Copper owns, operates, and maintains a waste heat-fired steam cogeneration facility located in and about the town of Magna, Utah, and located within the County of Salt Lake with a nameplate capacity rating of 31.8 MW ­­­­­­­­­and expected average monthly output of about 18.5 MW.

This first deal is called the “smelter” agreement. Also on Sept. 13, PacifiCorp/Rocky Mountain Power filed a second application for approval of a PPA with Kennecott Utah Copper. In this case, the seller owns, operates, and maintains a waste heat-fired steam cogeneration facility located in and about the town of Magna with a nameplate capacity rating of 7.54 MW ­­­­­­­­­and expected average monthly output of about 5.4 MW. This is another QF and this PPA deal also runs for calendar 2014.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.