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HomeMy WebLinkAbout20241029Decision Memo.pdf DECISION MEMORANDUM TO: COMMISSIONER ANDERSON COMMISSIONER HAMMOND COMMISSIONER LODGE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: MICHAEL DUVAL DEPUTY ATTORNEY GENERAL DATE: OCTOBER 29, 2024 SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY'S COMPLIANCE FILING TO UPDATE THE CUSTOMER SURCHARGE TO COLLECT INCREMENTAL COSTS OF DISTRIBUTION UNDERGROUNDING OF THE NEW 138 KV TRANSMISSION LINE IN THE WOOD RIVER VALLEY AND ESTABLISH NECESSARY REGULATORY ACCOUNTING TREATMENT; CASE NO. IPC-E-24-22. On May 31, 2024, Idaho Power Company ("Company") submitted a compliance filing requesting the Idaho Public Utilities Commission ("Commission") update the surcharge paid by Blaine County, Idaho customers for distribution undergrounding related to the new 138 kV Wood River Valley Transmission Line as required by Order No. 35452 ("Filing"). The Company requested issuance of the final order with rates effective by December 1, 2024.1 On July 9, 2024, the Commission issued a Notice of Filing and Notice of Intervention Deadline. Order No. 36251. No parties intervened. On August 23, 2024, the Commission issued a Notice of Virtual Public Workshops and Notice of Modified Procedure establishing public and Company reply comment deadlines. Order No. 36297. As of October 23, 2024, four public comments have been filed.2 On October 16, 2024, the Company submitted a Motion to Suspend Procedural Schedule ("Motion").The Company's Motion stated that the comment period was based upon an assumption that the distribution line would be energized in November of 2024. However, the Company stated that events outside of its control had delayed this energization. The Company asked that the 1 The Filing stated that the Company expected the line"to be energized in November 2024,placing the distribution surcharge on customers'bills beginning December 2024"unless the project was delayed.Filing at 17-18. 2 None of the public comments filed in this case oppose the Company's proposed suspension. DECISION MEMORANDUM 1 Commission suspend the comment period and schedule until the line is completed and energized. Once this was accomplished, the Company stated that it would file a motion for the Commission to institute a new schedule in the case. STAFF RECOMMENDATIONS Prior to its Motion, the Company informed Commission Staff("Staff') of the issues with the proposed schedule, and Staff has no objection to the proposed suspension. Based on the project's uncertain completion date and final cost, Staff does not believe that it can make an accurate recommendation to the Commission at this time.For this reason, Staff joins the Company in recommending that the case schedule be suspended for up to six (6) months or until the Company files a motion to reinstate a case schedule—whichever comes first. If the Commission does not believe that a suspension is warranted at this time, Staff asks for the comment period to be postponed by two weeks. Staff recommends that the Commission: 1. issue an interlocutory order staying this case until the Company shall file a motion to reinstate the case schedule or until six months from the issuance of the interlocutory order—whichever comes first; or 2. order that the deadline for public and reply comments be moved to November 8, 2024, and November 22, 2024, respectively. COMMISSION DECISION 1) Does the Commission wish to issue an interlocutory order staying this case until the Company files a motion to reinstate the case schedule or until six months from the issuance of the interlocutory order—whichever comes first? 2) If no stay is granted, does the Commission wish to order that the deadline for public and reply comments be moved to November 8, 2024, and November 22, 2024, respectively? 3) Anything else? Michael Duval Deputy Attorney General I ALegaITLECTRIOW-E-24-22_WoodRiver\memos\IPCE2422_dec3_md.docx DECISION MEMORANDUM 2