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HomeMy WebLinkAbout20250213Application.pdf — IQAW Ro LISA D. NORDSTROM RECEIVED Lead Counsel Thursday, February 13, 2025 InordstrornC�idahopower.com IDAHO PUBLIC UTILITIES COMMISSION February 13, 2025 VIA ELECTRONIC FILING Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A (83714) PO Box 83720 Boise, Idaho 83720-0074 Re: Case No. IPC-E-25-05 In the Matter of the Application of Idaho Power Company for Review of the Company's Current Wildfire Mitigation Plan and Authorization to Defer Newly Identified Incremental Wildfire Mitigation Costs Dear Commission Secretary: Attached for electronic filing, please find Idaho Power Company's Application in the above-entitled matter. If you have any questions about the attached documents, please do not hesitate to contact me. Very truly yours, �(�., .�• �h��-.-ram Lisa D. Nordstrom LDN:sg Attachments LISA D. NORDSTROM (ISB No. 5733) MEGAN GOICOECHEA ALLEN (ISB No. 7623) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 Inordstrom(a�idahopower.com mgoicoecheaallen(a)idahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-25-05 REVIEW OF THE COMPANY'S ) CURRENT WILDFIRE MITIGATION ) APPLICATION AND UPDATE PLAN AND AUTHORIZATION TO DEFER ) NEWLY IDENTIFIED INCREMENTAL ) WILDFIRE MITIGATION COSTS ) Idaho Power Company ("Idaho Power" or "Company"), in accordance with Idaho Code § § 61-524 and -525 and Rule 52, Rules of Procedure' of the Idaho Public Utilities Commission ("Commission" or "IPUC"), respectfully submits its 2025 Wildfire Mitigation Plan ("WMP" or "Wildfire Plan") for review and requests that the Commission issue an order authorizing the Company to defer through calendar year 2025—or until the Company's next general rate case ("GRC") goes into effect—newly identified costs associated with expanded wildfire mitigation efforts, as detailed in the 2025 WMP and discussed in this Application. In conjunction with this request, the Company provides an Hereinafter cited as RP. APPLICATION AND UPDATE - 1 update on existing cost deferral authority associated with vegetation management and insurance costs and requests the Commission confirm that the Company is correctly interpreting its current authority for continued deferral of these previously approved incremental cost categories as provided by Order No and 35717,2 and later extended through the Settlement Stipulation for the Company's 2023 GRC.3 The Company will continue to monitor these previously approved WMP cost categories going forward and will report to the Commission in a future proceeding if deferral authority beyond the time periods addressed in this case is warranted. Idaho Power filed its initial wildfire mitigation cost deferral application in January 2021 and its second wildfire deferral application in October 2022. Since then, the Company has navigated multiple wildfire seasons, using each as an opportunity to evaluate and refine its mitigation strategies. More specifically, the Company has used the recent wildfire seasons to gain insights and knowledge on wildfires and wildfire mitigation activities, identify areas for expanded mitigation efforts, and grapple with cost areas that continue to grow regardless of the Company's best efforts for efficiency—this has been particularly true in the areas of vegetation management and insurance, as discussed more in this Application. In this Application, the Company has assessed its programmatic and personnel needs following one of the most active fire seasons in recent memory and during which the Company issued its first Public Safety Power Shutoff ("PSPS"). After a full evaluation 2 In the Matter of the Application of Idaho Power Company for an Accounting Order Authorizing the Deferral of Incremental Wildfire Mitigation and Insurance Costs, Case No. IPC-E-21-02, Order No. 35077 (Jun. 17, 2021). 3 In the Matter of the Application of Idaho Power Company for Authority to Increase Its Rates and Charges for Electric Service in the State of Idaho and for Associated Regulatory Account Treatment, Case No. IPC-E-23-11, Order No. 36042 (Dec. 28, 2023). APPLICATION AND UPDATE -2 of the 2024 season, Idaho Power has formed the enclosed list of necessary and justified costs to expand its wildfire program, build necessary expertise, and continue to enhance its wildfire mitigation efforts consistent with industry best practices and tools. The Company respectfully requests the Commission's approval to defer the Idaho jurisdictional share of newly identified incremental operation and maintenance ("O&M") expenses related to wildfire mitigation until identified expenses can be included in base rates or an alternate collection method is established. While the Company believes that the newly identified incremental costs reflect wildfire mitigation costs generally approved for deferral by the Commission in Order Nos. 35077, 35717 and 36042, Idaho Power wishes to provide the Commission with opportunity for timely review of such incremental costs to ensure transparency and alignment going forward. Consistent with the approach in Idaho Power's prior wildfire cost deferral applications, the Company will seek the amortization of these deferred costs, including a review of the actual costs associated with mitigation efforts, in a future Commission proceeding. Idaho Power is not seeking to change customer rates at this time. To assist in the review of this Application and Update, Idaho Power provides the following table of contents: Description Page I. Background 4 II. Forecast of New Incremental O&M for Wildfire Mitigation 7 Quantifying Wildland Fire Risk 9 Situational Awareness 9 Wildfire Mitigation Program & Personnel 11 Enhanced Vegetation Management 13 III. Update on Ongoing Wildfire Mitigation Deferrals 14 IV. Proposed Accounting Treatment 15 V. Modified Procedure 16 VI. Communications 16 VII. Request for Relief 17 APPLICATION AND UPDATE - 3 Additionally, accompanying and in support of this Application is Attachment 1: Idaho Power's 2025 Wildfire Mitigation Plan. I. BACKGROUND Case No. IPC-E-21-02 1. On January 22, 2021, Idaho Power filed its first WMP4 with the Commission, along with a request to defer incremental wildfire-related costs.5 In that application, the Company provided an overview of wildfires in the West, discussed the evolving nature of wildfire risk, introduced the structure and function of the WMP, and estimated costs of wildfire mitigation efforts between 2021 and 2025. Specifically, the Company sorted estimated incremental wildfire mitigation-related O&M expenditures into six categories: Quantifying Wildland Fire Risk; Situational Awareness; Mitigation—Field Personnel Practices; Mitigation—Transmission and Distribution ("T&D"); Enhanced Vegetation Management; and Communications. 2. Idaho Power's application in Case No. IPC-E-21-02 estimated $46.6 million in incremental O&M to implement wildfire mitigation measures. The Company requested the authority to defer the Idaho jurisdictional share of incremental wildfire costs above a base of 2019 actual costs. 3. This application also addressed other wildfire-related costs, namely insurance. The Company noted that it had experienced a marked increase in insurance costs in recent years, largely due to the impact of larger and more frequent wildfires and natural disasters across the U.S. Idaho Power stated its expectation that insurance costs would continue to rise but also stated that insurance costs tend to be volatile, making it 4 Idaho Power Company's Wildfire Mitigation Plan 2021 (Jan. 2021 (V1.0)). 5 See Case No. IPC-E-21-02, Application (Jan. 22, 2021). APPLICATION AND UPDATE -4 difficult to estimate costs more than a year in advance. As a result, the Company did not provide out-year estimates of insurance but requested the authority to defer the Idaho jurisdictional share of annual insurance costs above 2019 levels. 4. Finally, Idaho Power identified capital investments it would make to "harden" its system and infrastructure to wildfire events. The Company did not seek deferral of those investments but rather requested the authority to defer actual depreciation expenses associated with incremental capital investments made under the WMP. 5. On April 8, 2021, Commission Staff filed comments in support of the Company's application, stating: Staff reviewed the Company's Wildfire Plan to reduce the risk posed by wildfires and the proposed accounting treatment and believes they are reasonable. Staff recommends the Commission approve the Company's Application to allow the deferral of prudently incurred incremental O&M costs and depreciation expenses associated with wildfire mitigation.6 6. On June 17, 2022, the Commission issued Order No. 35077 approving the Company's deferral request. In particular, the Commission acknowledged enhanced vegetation management as a critical component of the Company's wildfire mitigation efforts: We have reviewed the Company's forecast of incremental O&M expenses for wildfire mitigation during 2021-2025. The largest portion of this is attributed to incremental vegetation management expenses. We agree that the Company should operate its proposed three-year cycle of enhanced vegetation management activities for four to five years to verify the cycle can be beneficially maintained. As the Company increases its vegetation management activities, we find it reasonable for it to defer its Idaho jurisdictional share above its 2019 actual costs.' 6 Case No. IPC-E-21-02, Comments of the Commission Staff at 2 (Apr. 8, 2021). Id., Order No. 35077 at 7-8. APPLICATION AND UPDATE - 5 7. With respect to insurance, the Commission found it reasonable for the Company to defer the Idaho jurisdictional share of incremental insurance costs above the 2019 base level, noting that "[i]nsurance protects the Company and its customers from unforeseen wildfire-related costs which have caused utility bankruptcy in recent years."$ 8. The Commission also found it reasonable for Idaho Power to defer actual depreciation expense associated with incremental capital investments and record such investments in appropriate plant accounts as assets are placed in service. Case No. IPC-E-22-27 9. On October 20, 2022, Idaho Power submitted its second wildfire cost deferral application, requesting the authority to defer an additional $16.2 million in new and expanded wildfire mitigation O&M across seven categories: Quantifying Wildland Fire Risk; Situational Awareness; Mitigation—Field Personnel Practices; Mitigation—T&D; Enhanced Vegetation Management; Communications; and Information Technology.9 Additionally, the Company provided an update on insurance costs and sought confirmation from the Commission that Idaho Power was operating consistent with the Commission's intent in Order No. 35077 to continue to defer the incremental costs associated with insurance. 10. In Order No. 35717, the Commission granted the Company's request to defer additional wildfire mitigation-related O&M, stating: 8 Id. at 8. 9 See In the Matter of Idaho Power Company's Application for Review of the Company's Current Wildfire Mitigation Plan and Authorization to Defer Newly Identified Incremental Wildfire Mitigation Costs, Case No. IPC-E-22-27, Application (Oct. 10, 2022). APPLICATION AND UPDATE -6 We have reviewed the Company's Application and believe its proposals described in its WMP, including the implementation of the PSPS plan, are reasonable and grant the Company's request for a deferred accounting of the associated costs.10 11. The Commission also reiterated its prior decision to allow ongoing deferral of the Company's incremental insurance costs, stating: The Company may defer its Idaho jurisdictional incremental O&M expenses, incremental insurance expenses, and depreciation expenses for its capital expenditures related to the WMP through 2025, or the effective date of rates from the Company's next general rate case, whichever comes first." Case No. IPC-E-23-11 12. In Order No. 36042, the Commission approved the Settlement Stipulation filed in the 2023 GRC, allowing the Company to continue deferring incremental vegetation management and insurance expenses exceeding the 2022 baseline until either the next general rate case or through 2025. II. FORECAST OF NEW INCREMENTAL O&M FOR WILDFIRE MITIGATION 13. Development of the Company's 2025 WMP came on the heels of the most active fire season in recent history. The National Interagency Fire Center ("NIFC") recorded 252 wildfire starts and 1,509,455 acres burned in or near Idaho Power's service area during the 2024 season 12 with 996,76211 acres burned in the State of Idaho. While the number of fire starts was slightly above the 30-year average of 235, the number of acres burned almost doubled the 30-year average of 860,725.14 Drawing from its 1° Case No. IPC-E-22-27, Order No. 35717 at 8 (Mar. 23, 2023). " Id., at 9. 12 Attachment 1 — Idaho Power's 2025 Wildfire Mitigation Plan at 13. 13 National Interagency Coordination Center—Wildland Fire Summary and Statistics Annual Report 2024, at 44. https://www.nifc.gov/sites/default/files/NICC/2- Predictive%20Services/Intelligence/Annual%2OReports/2024/annual report 2024.pdf 14 Attachment 1 — Idaho Power's 2025 Wildfire Mitigation Plan, at 13. APPLICATION AND UPDATE - 7 experiences during 2024's active fire season, Idaho Power conducted a comprehensive evaluation of its entire wildfire program including activities, tools, and personnel, and identified several critical measures to strengthen and enhance its existing efforts. These items fall into four categories: Quantifying Wildland Fire Risk, Situational Awareness, Wildfire Program & Personnel, and Enhanced Vegetation Management. The Company's internal wildfire program and personnel were broken into its own category in this filing to ensure a clear understanding of how the Company intends to grow its internal wildfire team to provide necessary expertise and coverage of wildfire issues. 14. The costs presented below in this Application constitute additional costs (i.e., costs above what was previously forecasted and presented to the Commission in Case Nos. IPC-E-21-02 and IPC-E-22-27). For each category, Idaho Power identifies the need for the additional incremental spending to bolster wildfire mitigation work. 15. In total, Idaho Power requests to defer approximately $23.2 million in incremental O&M expenses associated with new or expanded wildfire mitigation efforts. These estimates are measured on a system-wide basis, but the Company is seeking to defer only the Idaho jurisdictional share of new incremental expenses. Table 1. Forecast of Idaho Power System New Incremental O&M Expenditures Related to Wildfire Mitigation, 2025 ($000s) 2025 Quantifying Wildland Fire Risk D;mamic Risk Modeling Tools I. 2,11131-1 Situational Awareness Ideather Forecasting-System development and support 1 215 Drone Beyond Visual Line of Sight Waiver 1 120 Aerial Drone Inspection Pilot Project $ 214 Standby Helicopter Service $ 358 Wildfire Program&Personnel %iildfire Team Program Labor $ 618 Patrolmen for Wildfire Safety Inspections $ 253 PSPS and Event flanagement Support $ 188 Vegetation Management Transition toVaintain 3-year Vegetation Management Cycle $ 18,522 Enhanced Practices for Distribution Red&Yellow Risk Zones (Pre-Fire Season PatrolslMitigation,Pole Clearing,Removals, WOrk8A $ 715 Forecast New Incremental O&M Expenditures Total S 23,233 APPLICATION AND UPDATE - 8 Quantifying Wildland Fire Risk: 16. Assessing and monitoring wildfire risk is the cornerstone of Idaho Power's wildfire mitigation efforts. Beginning in 2025, the Company is transitioning to a wildfire risk modeling platform that will give Idaho Power more granular insight into wildfire risk across the Company's service area, allow the Company to incorporate weather modeling into risk assessments, and help the Company produce updated risk maps of its service area and transmission corridors. 17. The Company will also expand its fire spread simulation modeling to gain deeper insight into fire behavior and the potential consequence of wildfire ignitions within the Company's service area. Additionally, Idaho Power will be investing in a variety of tools and databases to help the Company assess the efficacy of its wildfire mitigation spending with respect to risk reduction. 18. In 2025, Idaho Power plans to invest approximately $2 million in advanced wildfire risk modeling tools to enhance its wildfire mitigation efforts. Initial risk maps developed in 2020, laid a critical foundation for the Company's programmatic development, operational practices, and infrastructure investments. However, advancements in modeling technology now offer superior capabilities, including real-time weather data and sophisticated fire behavior models for more precise, risk informed decision making. Situational Awareness: 19. Situational awareness plays a vital role in the Company's ability to adequately prepare for and operate during times of heightened wildfire risk. Each wildfire season, through its own experience as well as those of other utilities, Idaho Power learns APPLICATION AND UPDATE - 9 more about how to enhance situation awareness through a variety of means. For the coming fire season and beyond, the Company has identified four (4) areas for expanded situational-awareness efforts. 20. First, Idaho Power has developed a weather tool that allows the Company's atmospheric scientists to combine weather models and other data, thereby enhancing the Company's accuracy with weather modeling and reducing forecast-to-forecast variability. In 2025, the Company will rely on a contractor, the National Center for Atmospheric Research, to complete an evaluation and validation of the data to identify any outlying results and improve focus of the machine learning methodology used to produce forecasts. This ensemble approach also provides information to inform up-to-the-minute decision-making for issuing Fire Potential Index readings and PSPS events. 21. Second, Idaho Power will pursue a waiver from the Federal Aviation Commission to operate drones beyond the visual line of sight ("BVLOS"). Today, the Company's drones cannot be operated out of the line of site of its pilots, thereby limiting the reach and usefulness of drones for conducting inspections and performing other wildfire-related and infrastructure assessments. The BVLOS waiver would allow drone operators to inspect Idaho Power facilities in more remote and hard-to-reach locations, which would allow the Company to collect high-quality data, enhancing the efficiency of inspections. 22. Third, Idaho Power will also begin an aerial drone inspection pilot project to explore more standardized use of drones for line and facility inspections. This pilot program will evaluate the value of fully integrating drones into the wildfire program by beginning with specific areas of focus to determine necessary workflows for completing APPLICATION AND UPDATE - 10 the inspections and whether drone data collection can match or surpass the quality of in- person inspections. 23. Finally, the Company is expanding its contract for standby helicopter service. This standby service was incredibly valuable during the 2024 fire season to enable accurate and rapid assessment of the Company's infrastructure following storms and to determine if any debris or other obstructions had impacted Idaho Power's lines. In recent years, the Company has encountered growing difficulties in securing helicopter availability on short notice during the summer months, a time characterized by heightened wildfire risks and the potential for major outages in remote areas. Expanding the standby service over the peak months of wildfire season ensures availability during this critical time, enabling enhanced situational awareness, faster response times, reduced impacts, and more timely restoration for customers. 24. The amounts listed above—totaling $907,000 for 2025—are incremental to the Company's prior deferral and reflect additional expenditure beyond the situational awareness costs previously presented to the Commission. Wildfire Mitigation Program & Personnel 25. Idaho Power's wildfire mitigation program has grown significantly in the last few years. For much of this time, the Company operated with existing personnel who were reallocated to perform wildfire functions. One of the key lessons from the past year is that wildfire work is truly a year-round effort that requires dedicated staff to prepare for, manage, and learn from each wildfire season.15 While the Company adheres closely to 15 Idaho Power's 2025 Wildfire Mitigation Plan at 17 ("Idaho's wildfire season is defined by Idaho Code § 38-115 as extending from May 10 through Oct. 20 each year, or as otherwise extended by the Director of the Idaho Department of Lands ("IDL").") APPLICATION AND UPDATE - 11 the official wildfire season in Idaho running from May 10 to October 20, the work to mitigate risks, maintain readiness and analyze lessons learned extends well beyond these months. In 2025, the Company will add key personnel to ensure adequate expertise and coverage in several areas. 26. To strengthen Idaho Power's wildfire mitigation efforts, the Company will hire additional personnel to support critical functions essential for reducing wildfire risk and enhancing system safety. The new roles include Wildfire Mitigation Specialists, who will oversee the development, implementation, and compliance of wildfire mitigation programs and projects. Their responsibilities will encompass managing risk modeling activities, leading technology pilot initiatives, supporting system hardening efforts, and formulating comprehensive fire response strategies. They will also play a role in overseeing fuel reduction initiatives, conducting detailed risk assessments, and fostering collaboration with both internal teams and external stakeholders to continuously improve mitigation strategies. 27. In addition, Idaho Power will employ Patrolmen dedicated to performing critical safety inspections of power lines in wildfire prone areas. Their duties will include conducting pre-season patrols to proactively identify potential hazards, performing thorough post-incident assessments to evaluate infrastructure integrity following wildfire events, and utilizing drone-based inspections to detect and address ignition risks that may not be visible through traditional methods. 28. Furthermore, a PSPS and Wildfire Event Management Specialist will be added to provide critical support during wildfire seasons and PSPS events. This specialist will serve as a central point of coordination and communication, helping to ensure smooth APPLICATION AND UPDATE - 12 and effective information flow between Idaho Power, internal employees, customers, and affected communities. Their role will be pivotal in maintaining operational efficiency, enhancing emergency response efforts, and ensuring that timely, accurate information reaches all stakeholders during critical events. 29. These positions are vital to sustaining Idaho Power's ongoing efforts to reduce wildfire risk and enhance public safety. The total cost for these new positions in 2025 is $1,059,000, as shown in the table above. Enhanced Vegetation Management: 30. As Idaho Power has explained in its prior wildfire deferrals, vegetation management is both imperative to the Company's wildfire mitigation efforts and a source of significant challenge. The availability of qualified labor has diminished while demand for vegetation management services has grown across the Western United States. Importantly, the vegetation management companies hired by Idaho Power and other utilities are not simple arborists or landscapers. Vegetation management companies qualified to work near electrical lines and equipment require special certifications and training. The limited number of companies offering such qualified services are in high demand in many Western states, and especially in California where labor rates are higher. Higher turnover among skilled equipment operators, combined with the growing demand for pruning techniques that require climbing, has created a need for more contract crews than originally anticipated. 31. To help address these challenges, the Company has hired an internal three- person vegetation management crew to help reduce ongoing pruning costs, improve production levels, and mitigate rising expenses associated with contracted services. This APPLICATION AND UPDATE - 13 initial crew will serve as a pilot program, allowing Idaho Power to evaluate its performance and cost-effectiveness. The results of the pilot program will help determine the long-term viability of internal crews and whether future expansion is warranted. Based on updated projections, the Company estimates an additional $18.5 million will be required for vegetation management to achieve a three-year pruning cycle. 32. Additionally, the Company will continue to invest in Enhanced Vegetation Management practices in Tier 3 and Tier 2 wildfire risk zones.16 Enhanced practices include annual patrols to identify pruning needs before trees contact power lines; mid- cycle pruning for fast-growing trees; increased incentives to customers that own trees that consistently regrow more rapidly than the three-year cycle (so-called "cycle buster" trees); clearing and sterilizing soil around select distribution poles; and post-trimming audits on all pruned trees in Tier 3 and Tier 2 wildfire risk zones. 33. In total, the Company forecasts spending an additional $19.2 million on vegetation management in 2025. III. UPDATE ON ONGOING WILDFIRE MITIGATION DEFERRALS 34. A feature of the Company's Commission-authorized 2023 GRC settlement was ongoing authority to defer vegetation management and insurance costs either through the end of 2025 or until the effective date of new rates in the Company's next GRC, whichever came first. Subsequently, the Company made a limited-scope rate filing, which was not contemplated by the 2023 GRC settlement, related to a limited set of revenue requirement categories. Given the limited nature of that case, of which vegetation 16 Idaho Power's 2025 Wildfire Mitigation Plan, Section 3.2.2. Establishing Wildfire Risk Zones at 35. (Based on quantitative modeling and qualitative adjustments, "[tjiers are established which, if exceeded, would classify an area as Tier 2 (elevated risk) or Tier 3 (higher risk). ... Idaho Power color-codes the tiers—yellow for Tier 2 and red for Tier 3 wildfire risk zones.") APPLICATION AND UPDATE - 14 management and insurance costs were outside the scope, the Company does not believe that proceeding would have precipitated termination of its deferral authority earlier than the end of 2025. 35. In the Company's estimation, the Commission's order in the 2023 GRC allows for continued deferral of both vegetation management and insurance costs through 2025. The base amount for deferred vegetation management costs is $24,848,875, and for deferred insurance costs, it is $14,489,412. Any costs exceeding these amounts will continue to be deferred until the earlier of the Company's next general rate case or through 2025.17 The Company will continue to monitor these costs going forward and will report to the Commission in a future proceeding if deferral authority beyond the time periods address in this case is warranted. 36. The Company offers this update to ensure aligned understanding of the Commission's intent and to ensure a difference of interpretation is clarified at the earliest convenience, such that the Company can properly account for expenses via the cost deferral mechanism. IV. PROPOSED ACCOUNTING TREATMENT 37. Idaho Power seeks authorization from the Commission to defer, for future amortization, the Idaho jurisdictional share of incremental wildfire mitigation O&M expenses until these costs can be included in base rates or an alternate collection method. The estimated O&M presented in this Application reflects new and expanded activities and costs that are not duplicative of the costs presented in the Company's prior wildfire cost deferral filings or in the 2023 GRC. Idaho Power will continue to measure all " Case No. IPC-E-23-11, Direct Testimony in Support of Settlement Stipulation of Timothy E. Tatum at 13 (filed Oct. 27, 2023). APPLICATION AND UPDATE - 15 actual wildfire-related costs from 2022 base levels, as authorized by the Commission in Order No. 36042. 38. The Company will track actual expenses beginning January 1, 2025, and proposes to record such incremental O&M amounts that would be subject to the deferral in accordance with the Code of Federal Regulations to the Federal Energy Regulatory Commission ("FERC") Account 182.3 (Other Regulatory Assets). The detailed costs and recovery method of the costs associated with the Company's wildfire mitigation efforts will be addressed in a future regulatory proceeding. V. MODIFIED PROCEDURE 39. Idaho Power believes that it would be appropriate to process this case by means of modified procedure (i.e., by written submission rather than by hearing) in accordance with the provisions of RP 201, et seq. However, if the Commission prefers another procedure for processing this case, Idaho Power will present its case in support of the relief requested in this Application. VI. COMMUNICATIONS 40. Communications and service of pleadings, with reference to this Application should be sent to the following: Lisa D. Nordstrom Kelley Noe Megan Goicoechea Allen Regulatory Consultant Idaho Power Company Idaho Power Company P.O. Box 70 P.O. Box 70 Boise, Idaho 83707 Boise, Idaho 83707 Inordstrom(a-)idahopower.com knoe(o-)-idahopower.com mgoicoecheaallen(a)_idahopower.com dockets(a)idahopower.com APPLICATION AND UPDATE - 16 VII. REQUEST FOR RELIEF 41. In ongoing consideration of the growing threat of wildfires in the West, Idaho Power continues to examine its own practices, the practices of others, and industry lessons learned to advance and implement effective wildfire mitigation measures. Taking action to reduce the risk of wildfires is critical for Idaho Power's customers, the communities in which the Company operates, and investors who provide capital to the Company. 42. To that end, Idaho Power has reviewed its wildfire mitigation efforts and identified several new and expanded actions to further reduce wildfire risk, which have been incorporated into the 2025 WMP presented in this case. 43. The additional incremental O&M costs identified in this Application are vital to ensuring that Idaho Power can implement necessary wildfire mitigation measures across its service area. To continue to serve its customers safely and reliably through the current fire season and beyond, the Company requests Commission confirmation of Idaho Power's current authority to defer incremental vegetation management and insurance costs as measured from a 2022 cost base and authorization to defer for later ratemaking treatment the Idaho jurisdictional share of certain newly identified incremental O&M costs associated with the actions and measures identified in this Application and beginning January 1, 2025. DATED at Boise, Idaho, this 13t" day of February 2025. LISA D. NORDSTROM Attorney for Idaho Power Company APPLICATION AND UPDATE - 17 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-25-05 IDAHO POWER COMPANY ATTACHMENT NO. 1 IDAHO POWER'S 2025 WILDFIRE MITIGATION PLAN