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HomeMy WebLinkAbout20240926Reply Comments.pdf RECEIVED Thursday, September 26, 2024 IDAHO PUBLIC UTILITIES COMMISSION _ ROCKY MOUNTAIN 1407 W.North Temple,Suite 330 POWER. Salt Lake City,UT 84116 A DIVISION OF PACIFICORP September 26, 2024 VIA ELECTRONIC DELIVERY Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd Building 8 Suite 201A Boise, ID 83714 RE: CASE NO. PAC-E-24-09 IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER REQUESTING APPROVAL OF 2024 IDAHO WILDFIRE MITIGATION PLAN Attention: Commission Secretary Pursuant to Commission Order No. 36275 providing public notice of the Company's Application, authorizing the processing of the Application by Modified Procedure, and establishing the procedural schedule please find Rocky Mountain Power's Reply Comments in the above referenced matter. Informal inquiries may be directed to Mark Alder, Idaho Regulatory Manager at(801) 220-2313. Very truly yours, 9k--)a1--D Joe Steward Senior Vice President, Regulation and Customer& Community Solutions Joe Dallas (ISB# 10330) PacifiCorp, Senior Attorney 825 NE Multnomah Street, Suite 2000 Portland, OR 97232 Telephone: (360) 560-1937 Email:joseph.dallaskpacificorp.com Attorney for Rocky Mountain Power BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) CASE NO. PAC-E-24-09 OF ROCKY MOUNTAIN POWER ) REQUESTING APPROVAL OF THE 2024 )REPLY COMMENTS OF IDAHO WILDFIRE MITIGATION PLAN )ROCKY MOUNTAIN POWER I. INTRODUCTION 1. Pursuant to Idaho Code § 61-626 and Rule 331 of the Rules of Procedure of the Idaho Public Utilities Commission (the "Commission"), Rocky Mountain Power, a division of PacifiCorp (the "Company"), hereby submits its reply comments ("Reply Comments"), pursuant to Order No. 36275 issued by the Commission in this proceeding on July 25, 2024. The Company respectfully requests the Commission issue an order approving its 2024-26 Idaho Wildfire Mitigation Plan ("2024 WMP"). II. BACKGROUND 2. On December 29, 2023, the Commission issued an order approving the deferral of Idaho's allocated incremental liability insurance premiums that exceed the amount already in base rates. Order No. 36045 required the Company to submit as a separate filing a final copy of its wildfire mitigation plan for Idaho within 30 days of its completion but no later than April 15,2024. On April 15,2024,the Company submitted its 2024 WMP in compliance with the Order No. 36045 in Case No. PAC-E-23-18. On June 7, 2024 the Company submitted an application requesting Rocky Mountain Power's Reply Comments Page 1 approval of its 2024 WMP. On September 12, 2024, Commission Staff submitted comments on the Company's 2024 WMP. The Company submits these reply comments in response to the comments submitted by Staff. III. REPLY COMMENTS 3. Staff, in their comments,recommended that the Commission acknowledge the 2024 WMP. The Company appreciates Staff's review of the 2024 and agrees with this recommendation. In addition to acknowledgment of the 2024 WMP, Staff had several recommendations.The pages that follow address each of Staff's recommendations: A.WMP Modeling and Least-Cost Least-Risk 4. Staff recommends the Commission order the Company to develop a least-cost least-risk analysis to evaluate its wildfire mitigation projects such as undergrounding lines, covered conductor, etc. PacifiCorp agrees with the underlying objective and is currently developing a risk spend efficiency ("RSE") framework to provide objective guidelines for such an analysis. PacifiCorp plans to use RSE in its future Wildfire Mitigation Plans in Idaho. The specific calculations to determine risk reduction effectiveness are in development based on inputs from PacifiCorp subject matter experts, benchmarking with other utilities, and technical planning with Technosylva, the company which provides software and other support for PacifiCorp's wildfire risk analysis.PacifiCorp plans to provide additional information on its risk reduction effectiveness calculations in its next wildfire mitigation plan following completion of the RSE framework evaluation. 5. Staff recommends the Company be required to provide an analysis and a comparison of alternatives it considered for each project or program when recovery of costs are requested. The Rocky Mountain Power's Reply Comments Page 2 Company is not opposed to providing supporting documentation for wildfire mitigation projects when recovery of cost are requested, likely in a future rate case. However, to hold each wildfire mitigation project up to a heightened standard of prudency, as suggested by Staff, creates an unnecessary regulatory burden for the Company. 6. As mentioned above, the Company is developing a RSE framework, but this is the Company's first WMP in Idaho and the Company must prioritize areas of concern. In addition to Idaho, the Company operates in five other states with thousands of line miles across its territory. To provide an analysis for each project is not practical. In order to help with prioritizing the line segments for system hardening, the Company reviews the terrain and wind event risk scores as described in the Idaho WMR1 The priority of system hardening line rebuild projects or advanced system protection and control projects are focused on areas within the Fire High Consequence Area("FHCA")and on circuits with a higher overall terrain or wind risk score. System Operations projects and Field Operations and Work Practices such as the installation of new relays, use of Enhanced Safety Settings ("ESS"), and installation of fault indicators could be prioritized based on the situational awareness data inputs. The data inputs could be related to the real time weather and risk modeling as described in Section Five: `Situational Awareness' of the 2024 WMP. The Company is continuing to look at the best methods for evaluating wildfire mitigation projects but believes it would be premature to impose additional prudency requirements on the Company at this time. B. Cadence of Filings 7. Staff has several recommendations for the Company regarding the cadence of WMP filings. Staff recommends: 1) the Company create a rolling 5 year WMP, which should also include cost ' See Section One: `Baseline Risk Analysis' of the 2024 WMP Rocky Mountain Power's Reply Comments Page 3 forecasts that display previous year's budget to actual expenses; 2) file a copy of version changes to the WMP with the Commission when they occur, at least every 2 years, for the Commission records; and 3) conduct semi-annual (pre-fire season and post-fire season) wildfire updates with the Commission. 8. Rocky Mountain Power regularly evaluates each wildfire mitigation plan across its six-state service territory and does not object to regularly updating the Idaho plan and providing updates to the commission on a regular basis,however the Company has several recommendations. i. Rolling 5-Year WMP 9. While RMP understands the value of a long-term perspective,it is important to note that WMP in Idaho is new. The WMP for Idaho is still evolving, and the landscape at the end of five years could look vastly different. To adapt to these changes, the Company recommends a three-year cadence for the Idaho WMP, with a corresponding three-year planning horizon. This more frequent triennial filing schedule will allow the Company to incorporate both small and significant updates, ensuring the plan remains relevant, adaptable, and effective. Rocky Mountain Power is already updating its Utah and Wyoming WMP on a triennial filing schedule. Aligning Idaho to that schedule will ensure that the same changes for the other states are captured in Idaho's WMP. ii. Filing Version Changes with the Commission 10. As the Company plans to establish its WMP with a three-year perspective, the requirement for filings with the Commission more frequently than three years is not necessary. Adopting a triennial filing schedule will allow the Company to provide updates only when significant updates to Idaho's WMP have been made and avoid unnecessary filings that may not be the best use of Commission, stakeholder, or Company resources. Rocky Mountain Power's Reply Comments Page 4 Mr. Semi-Annual Wildfire Updates 11. The Company believes that updates twice a year or even once a year is not currently warranted due to no FHCA areas currently being identified within the Company's Idaho service territory and no Public Safety Power Shutoff("PSPS") events to date. However, if future models indicate the emergence of FHCA areas in Idaho, or an increase in PSPS events, the Company is open to transitioning to annual updates, should the Commission deem it necessary. Until an FHCA area is identified, RMP believes that the triennial WMP filing, which will include updates on the status of WMP in Idaho, will adequately address any wildfire updates required for Idaho's plan. C. Potential Backup Power Program and Labor Forecast 12. The Company agrees with Staff's recommendation to seek approval from the Commission before expanding a backup power rebate program into Idaho. In addition, Staff recommends the Commission order the Company to include a line item in the cost forecast for internal labor of the wildfire safety department. The Company is not opposed to providing wildfire safety internal labor costs but does not break down the Wildfire Safety Department into line item details. The below table shows the cost of the Wildfire Safety Department for 2024, 2025, and 2026. The table only represents Idaho's share of the costs. Table 1: Idaho Wildfire S fety Internal Labor Cost Actuals Jan-Au 2024 $ 11,500 Forecasted 2024 $ 23,000 Projected 2025 $ 121,333 Projected 2026 $ 126,187 Rocky Mountain Power's Reply Comments Page 5 D. Additional Staff Recommendations i. Risk Models 13. Staff is concerned about overlapping modeling methods that could result in unnecessary costs. The Company is not opposed to exploring cost-saving opportunities while monitoring potential FHCA areas in Idaho. However, the FireSight model and the Company's meteorology models serve different functions. The FireSight model is used to identify high-risk circuits where certain vegetation management strategies and system hardening projects are implemented,as described in the WMP. The Company's meteorology group uses a different model to provide a daily forecast based on real-time data to determine the current short-term fire potential. Forecasts are used to help guide operations during periods of elevated risk. While a short-term forecast by meteorology may trigger additional vegetation work, this type of targeted activity is distinct from the program level strategies which are guided by the FireSight modelling tool. ii. Industry Collaboration 14. Staff has raised concerns about costs for industry collaboration. Rocky Mountain Power is committed to maintaining collaboration with other industry groups, which is crucial for staying up to date with the latest advancements and best practices. This collaboration ultimately benefits our operations and,by extension, our customers. Rocky Mountain Power will continue to seek a balance between cost-efficiency and the valuable insights gained through these collaboration efforts. iii. PSPS and Wildfire Systems Operations Procedure ("SOP") 15. Finally, Staff notes that they will work with the Company on establishing proper communication with the Commission in the event of a potential PSPS. The Company currently Rocky Mountain Power's Reply Comments Page 6 has procedures in place for communicating emergencies and power outages to the Commission and agrees that a similar procedure for PSPS and Wildfire SOP would be beneficial and will work with Staff to establish this procedure. IV. CONCLUSION 16. Rocky Mountain Power respectfully requests that the Commission issue an order approving the 2024 WMP. DATED this 26th day of September, 2024 Respectfully submitted, ROCKY MOUNTAIN POWER z c . Joe Dallas (ISB# 10330) 825 NE Multnomah, Suite 2000 Portland, OR 97232 Telephone: (503) 560-1937 Email: Joseph.dallasgl2acificor2.com Attorney for Rocky Mountain Power Rocky Mountain Power's Reply Comments Page 7