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HomeMy WebLinkAbout20240806Decision Memo.pdf DECISION MEMORANDUM TO: COMMISSIONER ANDERSON COMMISSIONER HAMMOND COMMISSIONER LODGE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: CHRIS BURDIN DEPUTY ATTORNEY GENERAL DATE: AUGUST 6, 2024 SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION FOR APPROVAL OF A MARKET PURCHASE AGREEMENT; CASE NO. IPC- E-24-12. On March 18, 2024, Idaho Power Company ("Company"), filed an application ("Application") with the Idaho Public Utilities Commission ("Commission") seeking approval of a market purchase agreement with Powerex Corp. On April 16, 2024, the Commission issued a Notice of Application and Notice of Intervention Deadline. Order No. 36143. No party intervened. On May 10, 2024, a Notice of Parties was issued. On June 6, 2024, the Commission issued a Notice of Modified Procedure establishing a July 23, 2024, initial comment deadline, and an August 6, 2024, reply comment deadline. Petition to Intervene On July 30, 2024,Northwest&Intermountain Power Producers Coalition("NIPPC") filed a Petition to Intervene ("Petition"). The Petition provides in relevant part: NIPPC acknowledges that its Petition to Intervene is filed after the deadline of May 7, 2024, as established by Notice of Application Order No. 36143, but NIPPC submits that there is good cause for out-of-time intervention in this case, as required by IDAPA 31.01.01.073.NIPPC actively participates in RFP proceedings, with a particular focus on the design phase of RFP proceedings, but NIPPC does not normally participate in rate recovery or contract approval proceedings that result from RFPs. NIPPC had understood this proceeding to be such a contract approval proceeding and thus did not plan to intervene or submit comments in this proceeding. Indeed, neither Idaho Power's Application nor the Commission's Notice of Application suggested that this proceeding would address rules governing RFPs on a prospective basis. DECISION MEMORANDUM I However, Staff s Comments filed on July 23, 2024, go beyond conditions of approval to the specific contract at issue in this proceeding and recommend that the IPUC alter its policies governing utility solicitations on a prospective basis. See Staff s Comments at 6-7. Most notably, Staff s Comments state: "Staff recommends that the Commission direct the Company to file a parallel case with the Idaho Commission whenever OPUC policy requires oversight." Id. at 7. Staff further explains that the "purpose of this case would be to obtain Commission approval for the RFP document and the process and criteria used to select resources."Id. Counsel for NIPPC became aware of this recommendation in Staff s Comments on July 29, 2024. NIPPC wishes to intervene to file comments responsive to Staffs recommendation that the IPUC require Idaho Power to file a parallel docket with the IPUC to approve RFPs on a prospective basis. Because NIPPC was unaware until very recently that this proceeding would potentially address major changes in the IPUC's policies governing future RFPs, it is appropriate to grant NIPPC's late intervention now that such issues have been raised. NIPPC agrees to be bound by the existing deadlines established by the Commission's Notice of Modified Procedure Order No. 36218, and intends to file Reply Comments addressing Staffs recommendation for future RFPs on the deadline of August 6, 2024, currently established for the Company's Reply Comments to Staffs Comments. Counsel for Idaho Power has communicated to counsel for NIPPC that Idaho Power does not oppose NIPPC's late intervention provided that NIPPC files its Reply Comments on August 6, 2024, and further provided that Idaho Power is granted one week after that(until August 13, 2024)within which to file a potential reply to NIPPC's Reply Comments, if any. NIPPC does not object to providing Idaho Power with the opportunity to file responsive comments to NIPPC's proposed Reply Comments. Counsel for Staff has communicated to counsel for NIPPC that Staff does not oppose NIPPC's intervention. Petition at 3-4. As of August 2, 2024, no party has objected to the Petition. COMMISSION DECISION Does the Commission wish to grant the Petition? K, C',A- Chris Burdin Deputy Attorney General IALegahELECTRICUPC-E-24-12_Powerex\rnemos\IPCE2412_dec3_cb.docx DECISION MEMORANDUM 2