PacifiCorp v. Utah Associated Municipal Power System

Docket Nos. EL12-13-000; ER12-336-000

The Federal Energy Regulatory Commission (“FERC”) issued an order today setting for hearing and settlement proceedings PacifiCorp’s complaint against Utah Associated Municipal Power Systems (“UAMPS”), alleging that UAMPS is required to provide operating reserves for the Hunter II generating resource under the transmission services operating agreement (“TSOA”) between PacifiCorp and UAMPS, or when UAMPS fails to self-supply operating reserves for its generating resources, it must pay PacifiCorp for operating reserves at the applicable PacifiCorp tariff rate.

At the center of this complaint is the Hunter II 430 MW coal plant jointly owned by PacifiCorp, UAMPS, and Deseret Generation & Transmission Cooperative and operated by PacifiCorp. PacifiCorp claims it was unaware that UAMPS was not self-supplying operating reserves at Hunter II for many years until the Western Electricity Coordinating Council began requiring weekly supply and reserves schedules be submitted by generating entities to their balancing authority. Once it began receiving UAMPS’ schedules, PacifiCorp realized UAMPS was not self-supplying operating reserves and instead was relying on PacifiCorp for the service. PacifiCorp began billing UAMPS for operating reserves, but UAMPS has refused to pay the charges, now totaling over $800,000, excluding interest.

FERC concluded that PacifiCorp’s complaint raised issues that could not be resolved based on the current record before it, and were more appropriately addressed in the context of a hearing and before a settlement judge.