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HomeMy WebLinkAbout20250605Petition to Reconsider_Alter_Or_Amend Order No. 36622.pdf M.Ah— IQAHO Ro RECEIVED DONOVAN WALKER June 05, 2025 Lead Counsel IDAHO PUBLIC dwalker(a)idaho power.corn UTILITIES COMMISSION June 5, 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-25-13 Idaho Power Company's Application For Authority to Increase Its Rates for Electric Service to Recover Costs Associated With the Hells Canyon Complex Relicensing Project Dear Commission Secretary: Attached for electronic filing, please find Idaho Power Company's Petition for the Commission to Reconsider, Alter, or Amend Order No. 36622 in the above-entitled matter. If you have any questions about the attached documents, please do not hesitate to contact me. Very truly yours, luz ltJ Donovan Walker DW:sg Attachments 1221 W. Idaho St(83702) P.O. Box 70 Boise, ID 83707 DONOVAN E. WALKER (ISB No. 5921) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 dwalker(o-)idahopower.com Attorney 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-25-13 AUTHORITY TO INCREASE ITS RATES ) FOR ELECTRIC SERVICE TO RECOVER ) IDAHO POWER COMPANY'S COSTS ASSOCIATED WITH THE HELLS ) PETITION FOR THE COMMISSION CANYON COMPLEX RELICENSING ) TO RECONSIDER, ALTER, OR PROJECT ) AMEND ORDER NO. 36622 I. INTRODUCTION Idaho Power Company ("Idaho Power" or "Company") respectfully petitions the Idaho Public Utilities Commission ("Commission") to reconsider and/or in the alternative to alter, amend, or rescind its previously issued Order No. 36622 in this proceeding. Because the directed suspension of effective date and additional public notice could now potentially cause additional confusion to customers after the previous notices, implementation of the Power Cost Adjustment ("PCA") and Fixed Cost Adjustment ("FCA") rate changes, as well as the recent filing of the Company's general rate case IDAHO POWER COMPANY'S PETITION - 1 ("GRC") proceeding with its associated press releases and public notice requirements, the Company respectfully requests that the Commission reconsider or determine to alter, amend, or rescind its Order No. 36622; consider this record closed; and issue its final determination and Order on the merits of the record. This petition is based upon Idaho Code §§ 61-624 and 61-626. II. PROCEDURAL BACKGROUND On March 14, 2025, Idaho Power filed an application with the Commission seeking authority to increase customer rates by $29,708,787, effective June 1, 2025, to recover incremental Allowance for Funds Used During Construction ("AFUDC") costs associated with the Hells Canyon Complex ("HCC") hydroelectric facilities relicensing project, contingent upon the outcome of the annual Power Cost Adjustment ("PCA") update filed on April 15, 2025. On April 9, 2025, the Commission issued a Notice of Application, Notice of Intervention Deadline, and Notice of Modified Procedure. Order No. 36355. The Commission granted intervention to the Industrial Customers of Idaho Power ("ICIP") on May 14, 2025. Order No. 36600. Comments were filed by Commission Staff("Staff") and ICIP on May 9, 2025. Staff recommended approval of the Company's request to increase rates concluding: "Staff considers the Company's proposal to recover AFUDC costs associated with the HCC relicensing project reasonable, consistent with regulatory principles, and in the public interest, and therefore recommends its approval." Staff Comment, p 3. In its review, Staff confirmed that the current HCC AFUDC recovery in customer rates is significantly less than the annual accrual, creating an escalation in the total amount that will eventually be transferred to plant-in-service, and without an increase in AFUDC recovery now, customers could see a significant increase when the Company receives the new license IDAHO POWER COMPANY'S PETITION -2 from FERC. Id. Staff was further supportive of the Company's proposal and its timing in conjunction, and contingent upon, the PCA decrease. Id. "Recovering AFUDC at a time when customer rates will decrease in the PCA provides an opportunity for the Company to recover a portion of the AFUDC costs while still providing customers with rate relief. Allowing the Company to collect additional AFUDC related to the relicensing of HCC at this time would significantly reduce the overall impact of a future rate filing when the project is completed and incorporated into rate base." Id. ICIP filed comments opposing the Company's request. In part, ICIP argued that the request was not in the public interest and that the Company failed to comply with the Commission's rules regarding public notice requirements. ICIP Comments, p 1-2. On May 30, 2025, the Commission issued Order No. 36622 suspending the Company's requested effective date of June 1, 2025, until August 1, 2025; directing the Company to issue a new notice to customers regarding the rate request; and extending the public comment period to July 18, 2025. Order No. 36622, p 7-8. The Commission specifically noted it made no findings nor reached any conclusions as to the merits of the Company's Application. Id., at 6. III. PETITION The Commission has the clear authority to alter, amend, or rescind any order or decision it has made at any time. The commission may at any time, upon notice to the public utility affected, and after opportunity to be heard as provided in the case of complaints, rescind, alter or amend any order or decision made by it. Any order rescinding, altering or amending a prior order or decision shall, when served upon the public utility affected, have the same effect as is herein provided for original orders or decisions. Idaho Code § 61-624. IDAHO POWER COMPANY'S PETITION - 3 In addition, the Commission may change or modify an original order by granting, in its discretion, reconsideration. Idaho Code § 61-626. The purpose of reconsideration is to allow parties to bring any question theretofore determined in the matter to the attention of the Commission in an orderly fashion allowing the Commission the opportunity to modify its decision. Idaho Underground Water Users Assn v. Idaho Power Co., 89 Idaho 147, 404 P.2d 859 (1965); Consumers' Co. v. Public Utilities Commission of Idaho, 40 Idaho 722, 236 P. 732 (1925); Washington Water Power Co. v. Idaho Public Utilities Commission, 101 Idaho 567, 617 P.2d 1242 (1980); Washington Water Power Co. v. Kootenai Environmental Alliance, 99 Idaho 875, 591 P.2d 122 (1979). Despite the fact that the Commission's Rules of Procedure ("RP") regarding reconsideration, RP 331- 333, only refer to reconsideration of a final order of the Commission, the statutory authority for these rules, Idaho Code § 61-626, refers to "an order" of the Commission and does not contain a limitation to final orders. After an order has been made by the commission, any corporation, public utility or person interested therein shall have the right ... to petition for reconsideration in respect to any matter determined therein. Idaho Code § 61-626(1) (emphasis added). Pursuant to the statutory authority, Idaho Power respectfully requests that the Commission reconsider or determine to alter, amend, or rescind its Order No. 36622, consider this record closed, and issue its final determination and Order on the merits of the record. The directed suspension of effective date and additional public notice would likely cause additional confusion to customers, which directly conflicts with the Commission's stated objective to present information in a manner "that would be easily understood by the Company's customers." Order No. 36622, p 6. Of note, the Company filed its GRC on May 30, 2025, issuing a press release that same day, with inserts IDAHO POWER COMPANY'S PETITION -4 scheduled to be delivered in bills issued June 11, 2025, through July 10, 2025. Sending additional notice to customers now, after they have already received notices related to the proposed rate change, and at the same time they are receiving notices related to the Company's GRC, will create unnecessary confusion. The Company respectfully submits that the previously provided notice complies with the governing RPs. ICIP's arguments with respect to RP 122 is misplaced as that rule applies only to a general rate case proceeding, of which this matter is not. Additionally, ICIP has erroneously quoted an outdated and now amended version of RP 125, that rule was specifically amended in 2022 to address and allow the very practice at issue here: a joint notice of multiple rate changes along with the PCA public notice. A. The Combined Notice Complies with RP 125. In the HCC application filed on March 14, 2025, Idaho Power fully described the intended press release and public notice plan for the requested rate increase, in conformance with RP 125. 17. In conformance with RP 125, this Application will be brought to the attention of Idaho Power's customers by means of a press release to media in the Company's service area and a customer notice distributed in customers' bills. However, because the amount of Idaho Power's proposed increase in the case is subject to the expected proposed decrease in the upcoming PCA proceeding, both of which have a proposed effective date of June 1, 2025, the actual proposed rate increase is not yet known. Therefore, the Company intends to bring the contents of both proceedings (this case and the yet-to-be-filed PCA case) to the attention of customers via a combined press release and customer notice once the actual proposed increase is known. The combined notification will provide Idaho Power the opportunity to notify customers of the anticipated proposed net decrease or net neutral rate change associated with both proceedings. Accordingly, the combined customer notice will be distributed over the course of the Company's current billing cycles beginning April 26, 2025, and additionally, to ensure that all customers are notified in a timely manner and have sufficient time to submit comments, Idaho Power will send a direct mail postcard to a subset of customers that receive their bill toward the end of the processing time for the PCA case. Although Idaho Power believes this IDAHO POWER COMPANY'S PETITION - 5 approach best satisfies the spirit of RP 125 while minimizing the opportunity for customer confusion, it requests additional direction if the Commission prefers a different approach to providing customer notice of multiple rate changes proposed to take effect on June 1, 2025. Application p. 9-10. The Company had no malintent or intention to obfuscate the HCC rate increase filing nor to be confusing to customers. Rather, the Company's intent was to provide greater clarity about the net impact of the three filings proposed to go into effect on June 1, 2025, and to provide all necessary information required by the Commission's rules. As verified by Staff's review and comments, an incremental increase in collection of AFUDC costs now is beneficial to customers and in the public interest by ultimately reducing the overall impact to customer rates when relicensing is complete and its costs are incorporated into rate base. Staff Comments p 3. Additionally, Staff was supportive of the Company's proposal and its timing in conjunction, and contingent upon, the PCA decrease stating, "Recovering AFUDC at a time when customer rates will decrease in the PCA provides an opportunity for the Company to recover a portion of the AFUDC costs while still providing customers with rate relief. Allowing the Company to collect additional AFUDC related to the relicensing of HCC at this time would significantly reduce the overall impact of a future rate filing when the project is completed and incorporated into rate base." Id. After calling attention to the means by which the Company intended to comply with the public notice requirements of RP 125 in the application, and after having provided compliant notice in conjunction with the PCA filing that occurred on April 15, 2025, the Company's application was not returned for incompleteness as referenced by RP 125.05. Staff reviewed the application and notice and made no comment absent that referenced IDAHO POWER COMPANY'S PETITION -6 above. The subjective determination of whether the combined notice would be confusing to customers is arguably debatable, but none-the-less the Company fully intended compliance with the Commission's rules and included all factual elements required by Rule 125. Specifically, while the notice summarized the net impact of all three proceedings, it also individually described the specific request in each proceeding, briefly explained Idaho Power's need for the additional revenue, included the dollar amounts requested, the proposed overall and individual percentage change from current rates, and the proposed percentage change in revenue for each major customer class, as required by RP 125(01)(a) and 125(01)(b). The notice clarified the application was a proposal and subject to public review and provided the location of materials for review as required by RP 125(01)(c). Further, as required by RP 125(01)(d), the notice informed customers of the opportunity to provide written comments and provided the applicable Case Nos. IPC-E-25-13 (HCC relicensing) and IPC-E-25-20 (PCA) where those comments could be submitted. As required by RP 125(03), the notice was included in customers' regular bill as a bill stuffer and was clearly identified, easily understood, and pertained to the proposed changes. Each required factual element of RP 125 was met. It is important to note that RP 125.03 was recently modified — in 2022 — by the Commission to specifically clarify that joint notices and net rate impact public notice provisions are acceptable in order to make notices of multiple rate changes less confusing to customers, specifically referring to Idaho Power's PCA and FCA filings. This was accomplished by modifying the previously existing RP 125 requirement that notice of rate changes pertain "only' to the proposed rate change by deleting "only". Case No. RUL-U- IDAHO POWER COMPANY'S PETITION - 7 21-01, Negotiated Rulemaking Summary, p 4, IDAPA 31.01.01.125.031 (attached hereto as Attachment 2). The information required by this rule isle must be clearly identified, easily understood, and pertain only to the proposed rate change. Case No. RUL-U-21-01, Rules of Procedure Track Changes Draft, p 22, Rule 125.03 (emphasis added) (attached hereto as Attachment 3). Notably, ICIP in its comments misrepresents RP 125.03 in the record, quoting the previously effective version RP 125, incorrectly holding it out as the current rule. ICIP states: The Company's notice trickery is specifically prohibited in Commission Rule 125(c)(3) [sic] which provides with respect to the content of rate change notices: The information required by this rule is to be clearly identified, easily understood, and pertain only to the proposed rate change. ICIP Comments, p 8 (emphasis added). The above-referenced change to RP 125.03 became effective upon the legislative adjournment sine die of the 2022 Idaho legislature. RUL-U-21-01 . In this case, the Company's efforts were consistent with this prior advocacy and the Commission's change to its rules. The combined notice was intended to be more transparent about the total impact to current rates resulting from the aggregate of cases under review and less confusing to customers. "As currently written, this rule requires the customer notice of a rate change to `pertain only to the proposed rate change.' Idaho Power notes that this is problematic for the utility and confusing for the customer when multiple rate changes are happening at once. Example would be Idaho Power's PCA and FCA. Idaho Power suggested this language be changed to allow the Company to provide customers with a complete and less-confusing perspective on rate changes... Resolution ... Staff revised per Idaho Power Company's recommendation." IDAHO POWER COMPANY'S PETITION - 8 B. Given Current Circumstances the Additional Public Notice Would Now be Likely to Cause Additional Confusion to Customers. Historically the Commission has encouraged the consolidation of rate adjustments around the June 1 annual rate filings and adjustments that correspond to the change to summer rates on June 1. This was the Company's intent with the combined public notice, net rate impact, and proposed June 1 effective date for the PCA, FCA, and HCC. The combined public notice was not meant to be confusing or to hide a rate increase with the PCA decrease. To the contrary and as confirmed by Staff in its comments, recovering AFUDC, which ultimately has a beneficial impact for overall customer rates, at a time when customer rates will decrease in the PCA provides an opportunity for the Company to recover a portion of the AFUDC costs while still providing customers with rate relief. Idaho Power provided the combined PCA, FCA, and HCC public notice, attached hereto as Attachment 1, to customers as described in both the HCC and PCA filing. The PCA and FCA were subsequently approved and implemented on June 1, 2025. Additionally, the Company had previously filed the required 60-day, RP 122 Notice of Intent to File a General Rate Case on March 28, 2025, noting its intent to file a GRC on or after May 30, 2025. The Company did in fact file said GRC on May 30, 2025, along the requisite public notices and press releases for that proceeding. Order No. 36622's May 30, 2025, directed suspension of the June 1, 2025, effective date and additional public notice would now be likely to cause additional confusion to customers after the previous notices, implementation of the PCA and FCA rate changes, as well as the recent filing of the Company's GRC proceeding with its associated press releases and public notice requirements. IDAHO POWER COMPANY'S PETITION - 9 IV. REQUEST FOR STAY AND ADDITIONAL PROCEDURE Idaho Power respectfully requests that the Commission stay the immediate additional notice requirement directed by Order No. 36622 and place this matter on its next available decision meeting for determination at least as to the requested stay. The HCC case, having been properly noticed for Modified Procedure by Order No. 36535 on April 9, 2025, and having comments submitted by Staff and the only intervening party, ICIP, as well as reply comments by Idaho Power, was fully submitted for Commission decision on the merits of the record. Idaho Power urges the Commission to reconsider or determine to alter, amend, or rescind Order No. 36622's additional notice requirement and comment period, consider this record closed, and issue its final determination and Order on the merits of the record. V. CONCLUSION The HCC is a unique and valuable asset to the Company and to its customers. It is currently used and useful and incredibly valuable in providing reliable, low-cost service to the public. The inclusion of AFUDC costs associated with the required FERC relicensing of the HCC has been previously examined and determined to be in the public interest and a benefit to customers by ultimately reducing the overall rate impact of the relicensing efforts and more directly allocating current costs to current customers. This was additionally reviewed and confirmed in this case by Staff as continuing to be "reasonable, consistent with regulatory principles, and in the public interest." Idaho Power's intent with the combined PCA, FCA, and HCC public notice and net customer rate impact was truly meant to be more transparent and less confusing to customers. Despite ICIP's hyperbole, it was done not to be deceiving, play tricks, or to IDAHO POWER COMPANY'S PETITION - 10 hide anything from customers. Such combined public notice and rate impact is consistent with the Company's long history of June 1 rate adjustments and updates, as well as its previous advocacy meant to be transparent and non-confusing to customers as evidenced by the Company's participation in the Commission's 2021 Rules of Procedure revisions in RUL-U-21-01 and the Commission's revisions thereof. The Company has consistently been open and transparent about sharing anticipated public notices with Staff ahead of filings for review, comment, and input prior to filing and release. The Company fears that Order No. 36622's additional notice and comment period directives risk causing more or additional confusion than what currently may exist and may have the impact of a proposed solution that is worse than the perceived problem it is aimed at solving. Idaho Power will obviously abide by the Commission's directives but respectfully urges the Commission to reconsider or determine to alter, amend, or rescind Order No. 36622's additional notice requirement and comment period, consider this record closed, and issue its final determination and Order on the merits. Respectfully submitted at Boise, Idaho, this 5t" day of June, 2025. DONOVAN E. WALKER Attorney for Idaho Power Company IDAHO POWER COMPANY'S PETITION - 11 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 5t" day of June 2025 1 served a true and correct copy of IDAHO POWER COMPANY'S PETITION FOR THE COMMISSION TO RECONSIDER, ALTER, OR AMEND ORDER NO. 36622 upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Hand Delivered Chris Burdin U.S. Mail Deputy Attorney General Overnight Mail Idaho Public Utilities Commission FAX 11331 W. Chinden Blvd., Bldg No. 8 FTP Site Suite 201-A (83714) X Email chris.burdin(a_puc.idaho.gov PO Box 83720 Boise, ID 83720-0074 Industrial Customers of Idaho Power Hand Delivered Peter J. Richardson U.S. Mail Richardson Adams, PLLC Overnight Mail 515 N. 27t" Street FAX Boise, Idaho 83702 FTP Site X Email Peter(a-richardsonadams.com Dr. Don Reading Hand Delivered 280 S. Silverwood Way U.S. Mail Eagle, Idaho 83716 Overnight Mail FAX FTP Site X Email dread ing(cDmindspring.com Stacy Gust, Regulatory Administrative Assistant IDAHO POWER COMPANY'S PETITION - 12 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-25-13 IDAHO POWER COMPANY ATTACHMENT 1 y Idaho Power Requests Rate Decrease in Annual PCA Filing Idaho Power has filed the Power Cost Adjustment(PCA),the final piece of its annual spring cost adjustments with the Idaho Public Utilities Commission(IPUC).As a net result of the PCA, the Fixed Cost Adjustment(FCA),and an additional filing related to relicensing the Hells Canyon Complex(HCC),all Idaho customers will see a price decrease. A typical Idaho residential customer using 950 kilowatt- hours(kWh)per month will see an overall monthly decrease of 8.26%,or approximately$9.97—the combined impact of the following: • The PCA calls for a decrease of$94.8 million,or 5.89%,for Idaho customers.The PCA is a cost-recovery tool that passes on both the benefits and costs of supplying energy to Idaho Power customers.This year's PCA requests a monthly bill decrease of$5.79 for the average Idaho residential customer. • The annual FCA,filed March 14, requested a decrease of $40.66 million.The FCA applies only to residential and small commercial customers and adjusts prices based on changes in energy use per customer during the previous year. For the average Idaho residential customer,the FCA requested a monthly bill decrease of$6.36. • The HCC relicensing request,filed March 14,proposed an increase of$29.7 million to recover ongoing financing costs associated with the project. For the average Idaho residential customer,the request would result in a monthly bill increase of$2.18. If approved as filed,this combined price decrease will take effect June 1.The impact of these filings for all Idaho customers is shown in the table below.The actual percentage will depend on a customer's classification and the rate they pay. 2025 Pate Filings Percentage Change from Current Billed Pevenue Revenue Overall Small Large Large Filing Change Percentage Residential General General z Irrigation (millions) Impact Service Service I Power PCA -$94.78 -5.89% -4.80% -3.98% -6.57% -8.11% -5.87% FCA -$40.66 -2.53% -5.28% -5.39% N/A N/A N/A HCC $29.70 1.85% 1.82% 1.84% 1.88% 1.83% 1.90% Combined 4105.74 -6.57% -8.26% -7.53% -4.69% -6.27% -3.97% Impact 3 Includes lighting schedules;2 Includes special contracts;3 Totals may not sum due to rounding The PCA has two main components:a balancing account for power costs incurred the previous year and an estimate of what energy will cost in the coming year.The balancing account brings last year's anticipated costs in balance with costs actually incurred the previous April through March. The estimate reflects Idaho Power's anticipated fuel costs, purchased power costs,and customer benefits from sales of surplus energy for the coming April through March. The decrease in this year's PCA is largely attributed to the completed recovery of 2023 deferred power costs, which was ordered by the IPUC to be recovered over two years.Another contributing factor was increased sales of renewable energy credits,which helps to offset power costs for customers. Neither Idaho Power nor its shareholders receive any financial return from the PCA—money collected is used to recover costs or credit benefits associated with annual fluctuations in power costs. Opportunities for Public Review Idaho Power's filings are subject to public review and approval by the IPUC.Copies of the applications are available to the public at the IPUC offices(11331 W.Chinden Blvd. Building 8,Suite 201-A,Boise,ID 83714), Idaho Power offices,on idahopower.com,or at the IPUC website, _.10.gov. Customers may also subscribe to the IPUC's RSS feed to receive periodic updates via email.Written comments regarding Idaho Power's applications associated with the PCA(Case No. IPC-E-25-20)or HCC relicensing(Case No. IPC-E-25-13)may be filed with the IPUC(puc.idaho.gov/form/ca>._ _....,ant). t ^` _MR - 9M ®Printed on recycled paper. 02025 Idaho Power 31180--0329 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-25-13 IDAHO POWER COMPANY ATTACHMENT 2 NEGOTIATED RULEMAKING—WRITTEN SUMMARY Pursuant to I.C. § 67-5220(3)(f), the Idaho Public Utilities Commission(IPUC)provides the following written summary of unresolved issues, key information considered, and conclusions reached during and as a result of the negotiated rulemaking in Case No. RUL-U-21-01. Background On January 16, 2020, Idaho Governor Brad Little issued Executive Order No. 2020-01 "Zero- Based Regulation." The Executive Order directs agencies to review their administrative rules over a five-year period and gives the Division of Financial Management(DFM) authority to "develop a standardized process for the required retrospective analysis."Executive Order No. 2020-01 directs an agency wishing to renew a rule chapter to take the following steps: The agency must perform a retrospective analysis of the rule chapter to determine whether the benefits the rule intended to achieve are being realized, whether those benefits justify the costs of the rule, and whether there are less-restrictive alternatives to accomplish the benefits. This analysis should be guided by the legislative intent articulated in the statute or act giving the agency the authority to promulgate the rule. ...Agencies should start the new rulemaking from a zero-base and not seek to simply reauthorize their existing rule chapter without a critical and comprehensive review.... The Executive Order notes that the purpose for each finalized rule chapter is that it"reduce the overall regulatory burden, or remain neutral, as compared to the previous rule chapter."In short, Executive Order No. 2020-01 directs each agency to look at its statutory authority to promulgate rules and cut down its rules to more cleanly and clearly achieve the statute-based purpose of those rules. DFM published a schedule for agencies to review their rules over a five-year period. For 2021, the IPUC is scheduled to review its procedural rules, IDAPA 31.01.01. Procedural overview At its May 11, 2021 decision meeting, the Commission directed Commission Staff(Staff) to submit the necessary forms to publish a Notice of Negotiated Rulemaking in the Administrative Bulletin. The Commission authorized Staff to conduct negotiated rulemaking consistent with I.C. § 67-5220 and Executive Order No. 2020-01. A Commission docket was subsequently opened, and the Notice of Negotiated Rulemaking was published in late May 2021. The Notice of Negotiated Rulemaking scheduled a public meeting for June 29, 2021 and explained how written comments could be submitted. 1 On June 21, 2021,the IPUC posted a track-changes Word document with proposed changes to the IPUC's procedural rules. .tune 29, 2021 negotiated rulemaking meeting The negotiated rulemaking meeting was attended by the following persons: - Idaho Power Company: Lisa Nordstrom and Connie Aschenbrenner - Rocky Mountain Power/PacifiCorp: Stephanie Barber-Renteria and Ted Weston - DIM: Colby Cameron and Matthew Reiber - Commission Staff: Matt Hunter, Stephen Goodson, Donn English, Jan Noriyuki, and Adam Rush The table below summarizes the rule-by-rule discussion at the July 29, 2021 meeting. Regarding the "Resolution" column, Staffs Commission-delegated authority allows Staff to consider stakeholder recommendations and resolve the recommendations to the extent necessary to prepare a new draft of IDAPA 31.01.01. The three-member Commission will review the first and second drafts of IDAPA 31.01.01—as well as this written summary, Executive Order 2020-01, and DFM's related memorandums to agencies. The Commission will then determine where it agrees with Staffs resolutions to stakeholder recommendations. The Commission may also choose to modify Staff s proposed draft of IDAPA 31.01.01 as it thinks best. Under the"Resolution" column, "Resolved"means Staff has reached a conclusion regarding the stakeholder recommendation. "Unresolved"means Staff has not yet reached a conclusion. Stakeholder Rule Number(s) Stakeholder Resolution Recommendation DIM/ IDAPA DFM stated that Rule 401 is Staff agrees with DFM's recommendation. Idaho Power 31.01.01.401 not necessary because I.C. § Company 67-5206 provides that the OAG rules automatically apply to an agency and need not be adopted. See IDAPA 04.11.01.050. DIM explained that contrary to Staffs theory, Rule 401 was not accidently left out of the 2019 rule revision but was in fact removed by DIM during the publication process. Idaho Power disagreed with DFM's recommendation, arguing that Rule 401 rovides clari . 2 DFM All rules in the DFM recommended the IPUC At the meeting, Staff noted that DFM's proposal IPUC's remove the language of each would be cumbersome to implement because the procedural rules rule that was effectively the IPUC's procedural rules differ considerably that are same as a rule in the OAG from the OAG's procedural rules. Staff also effectively the procedural rules and noted that DFM's proposal would require same as rules in incorporate the OAG rule by practitioners before the IPUC to continually the OAG's reference. DFM noted that reference two separate procedural rule chapters procedural rules with the IPUC's current edits, when determining the IPUC's procedure. It is (IDAPA the IPUC is unlikely to Staff s opinion that this would not reduce the 04.11.01) achieve a 20-percent word overall regulatory burden on utility companies. count reduction in the rule chapter. To achieve this goal, No stakeholder expressed support for adopting DFM recommended the IPUC the Rules of the Attorney General, and Idaho incorporate by reference the Power Company and PacifiCorp expressed OAG rules that are effectively opposition to the proposal for the same reasons the same as an IPUC rule. expressed by Staff. Regarding the 20-percent word count reduction goal, Staff notes that the IPUC eliminated 100 percent of the IPUC's two safety regulation chapters (IDAPA 31.11.01 and IDAPA 31.71.01) from IDAPA, instead adopting these rule chapters by order. If these word count reductions are added to the approximately 5 percent word count reduction anticipated in the IPUC's procedural rules, the IPUC is on track to cut more words than if 20 percent of the words had been cut from the IPUC's two safety regulation chapters and the IPUC's procedural rules. PacifiCorp/ IDAPA Staff s proposed changes to Staff kept the original language in Idaho Power 31.01.01.133.02 sub-parts (a.) and(b.)could 31.01.01.133.02. Company increase the complexity of getting tariffs reviewed and approved by the Commission. This could especially be an issue when timeframes are tight and a tariff needs to be a roved as soon as possible. Idaho Power IDAPA As currently written, this rule Staff kept the revised language. Company 31.01.01.125.01 requires the utility to keep copies of its application to change rates at its regional offices, and to notify 3 customers (via the customer notice) that the application is available at this location. Idaho Power proposed that this requirement be eliminated because there is almost no demand for applications at the regional office, and because the vast majority of people have access to the application online. Idaho Power IDAPA As currently written, this rule Staff revised per Idaho Power Company's Company 31.01.01.125.03 requires the customer notice recommendation. of a rate change to"pertain only to the proposed rate change."Idaho Power notes that this is problematic for the utility and confusing for the customer when multiple annual rate changes are happening at once. Example would be Idaho Power's PCA and FCA. Idaho Power suggested this language be changed to allow the Company to provide customers with a complete and less-confusing perspective on rate changes. Idaho Power IDAPA This rule requires all utilities Staff agrees with Idaho Power's concerns and Company 31.01.01.016.03 to "designate a person as their will keep the requirement. agent to be served with summons and complaints," and the utility"shall be responsible for maintaining on file with the Commission Secretary the current name, mailing address and email address of the person designated as the agent to receive service." Staff proposed to cut this requirement in its initial draft. Idaho Power pointed out that this rule has value because when that designated agent 4 leaves employment or moves into a new role, the utility can quickly update that information with the Commission. This helps the utility avoid missing summons and complaints. Idaho Power IDAPA Under Rule 41.02, only two Staff agrees with Idaho Power's Company 31.01.01.041.02 people may be designated as a recommendation that this rule reflect the party's representative for Commission's current practice. How exactly this purposes of service or receipt recommendation will be incorporated into the of official documents. Idaho next proposed draft of IDAPA 31.01.01 has not Power noted that it has been been resolved. the practice for some time for the Commission to allow more than two representatives for the purpose of service, but no more than two could be designated to receive paper/hard copies. Idaho Power recommended the Commission modify this rule to reflect the Commission's current practices or increase the number of allowed representatives. Idaho Power IDAPA Under the current rule, Staff agrees with Idaho Power and will keep the Company 31.01.01.043 partnerships, corporations, current language of Rule 43. associations, etc. must be represented by an attorney in "quasi-judicial proceedings" before the Commission. Staff proposed replacing the language of Rule 43 with the "Representation of Parties" language in the OAG's procedural rules. Idaho Power opposed this change, preferring the current language. Idaho Power noted that Staff s proposed language eliminates the distinction between"administrative proceedings" and"quasi- judicial proceedings" and allows (among other things) 5 associations to be represented before the Commission by non-attorneys. Idaho Power noted that it would be preferable for associations to continue to be represented by attorneys, given the procedural and substantive complexity of the Commission's subject area. Idaho Power IDAPA Rule 61 was modified by Staff for now will keep the language as revised Company 31.01.01.061.04 Staff to allow for electronic in the most current draft. filing; but Rule 61.04 authorizes the Commission Secretary to require an electronic filing to be filed in printed form. Idaho Power inquired what the standard would be for requiring a printed filing. Idaho Power expressed its preference that there be a standard. Idaho Power IDAPA Idaho Power recommended Staff agrees with Idaho Power. However, Staff Company 31.01.01.063.02 this rule be modified to allow has not determined how best to modify the rule service of discovery to be to achieve the goal described by Idaho Power in accomplished by providing this current rulemaking process parties access to cloud drives. Idaho Power noted that this is already a regular practice at the IPUC. Idaho Power IDAPA Idaho Power noted that if Staff intends to keep the current language of Company 31.01.01.067 and Staff modified the Rule 43. .233 "representation of parties" rule (Rule 43), these rules should also be modified because both rules require the attorney for the party to state in writing that the material is protected by law from public inspection. Idaho Power IDAPA Idaho Power suggested the Staff understands and appreciates Idaho Power's Company 31.01.01.076 Commission add to this rule concerns. Rule 244 was deleted, and Rule 47 (or a different rule) standards was revised to encompass standards of behavior of behavior for public for public witnesses and already establishes witnesses. Idaho Power noted standards of behavior at public hearings. Staff that in recent years the noted at the negotiated rulemaking meeting that 6 behavior of the public at it is the Commission's prerogative to determine hearings has steadily what degree of civility must be practiced at deteriorated. public hearings. Idaho Power IDAPA Idaho Power inquired what Staff explained at the negotiated rulemaking Company 31.01.01.165 Staff was seeking to achieve meeting that the Executive Order No. 2020-01 by completely removing Rule directs the Commission to "determine whether 165. the benefits of the rule intended to achieve are being realized,whether those benefits justify the costs of the rule, and whether there are less restrictive alternatives to accomplish the benefits."Rule 165 restates I.C. § 61-617A. Idaho Power IDAPA Idaho Power noted that Staff retained the original wording. Company 31.01.01.272 Staff s modifications to this rule replace "enter into"with "sign." Idaho Power expressed concern that this could open the door to Commission Staff reaching an oral agreement with a party without prior notification of the Commission and all other parties. 7 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-25-13 IDAHO POWER COMPANY ATTACHMENT 3 for the changes,the changes do not ge inte take effect until approved by order. (4-5-00) 02. Notice of Application. Within twenty-one (21) days of the date of any application to change any rate, fare,toll, charge,or classification,or any rule,regulation or contract relating to or affecting any rate,fare,toll, rental,charge,classification,or service, or in any privilege or facility,the Commission Secretary gill should issue a notice of application to all interested persons (see Rule 39.021, unless notice is issued pursuant to under modified procedure or the application is earlier approved or described by order. (4-5-00) 03. Suspension of Proposed Rate Changes. At any time before proposed changes take effect pu+sxant to under Sections 61-307,Idaho Code and Rule 123.01 of this rule,the Commission may suspend the effectiveness of the changes PUBUffil to under Sections 61-622,Idaho Code.Whenever the Commission suspends proposed changes for less than the maximum period of suspension allowed by statute,it may extend the period of the suspension to the statutory maximum consistent with the statutory standards. (7-1-93) 124. DESIGNATION AS GENERAL RATE CASE IN NOTICE OF APPLICATION(RULE 124). When a notice of application designates a proceeding as a general rate case,all persons are theieby put upon on notice that the following are at issue and the Commission may make decisions addressing them,whether the notice explicitly repeats the following or not: (7-1-93) 01. Revenue Requirement. The utility's Idaho intrastate revenue requirement, and every component of it,both rate base and expense, are at issue. The Commission may grant,deny, or modify the revenue requirement requested and may find a revenue requirement different from that proposed by any party is just,fair and reasonable. (7-1-93) 02. Rates, Charges, and Service. The rates and charges of all Idaho retail customers, both recurring and non-recurring,including those of special contract customers,are at issue,and every component of every existing and proposed rate and charge is at issue. The Commission may approve, reject or modify the rates and charges proposed and may find that rates and charges different from those proposed by any party are just,fair and reasonable. (7-1-93) a. The Commission may approve, reject or modify existing or proposed relationships between and among rates and charges within, between or among customer classes or rate groupings and may approve, reject or modify existing or proposed relationships among and between customer classes or rate groupings. (7-1-93) b. The Commission may abolish, reduce or create rate blocks or categories of rates and charges, abolish,create or reduce components of rates and charges,abolish,reduce or create customer classes or rate groupings, and abolish,reduce or create absolute or relative differences among and between existing classes or rate groupings of customers. (7-1-93) C. The tariffs, practices, rules and regulations, service, instrumentalities, equipment, facilities, classifications, and customer relations of the utility are at issue,and the Commission may address any of them in its order. (7-1-93) 125. NOTICES TO CUSTOMERS OF PROPOSED CHANGES IN RATES(RULE 125). 01. Contents of Customer Notice of a Change in Rates A public utility must notify its customers whenever it requests to change rates. (4-7-11) a. If a utility is requesting requests a rate increase, the fie to ear-1. et+ste+neF.ate customer notice shA must briefly iffelude-o bFWeatplan won-of-ex_)lam the udlity's need for additional revenue and the dollar amount requested and_. The notice sha- give the proposed overall percentage change from current rates as well as the proposed percentage increase in revenue for each major customer class. (4-7-11) b. If the utility is requesting requests a rate decrease, ..sue a eustome;-nottee to eite#t eusienwo The customer notice shall must inelude a bFief briefly e*Plannuea-e€explain the reason for the decrease, the overall dollar amount of the proposed decrease, and the proposed percentage decrease for each major customer Section 000 Page 21 SGoodson_05132021 class. (4-7-11) C. The customer notice shall make it eleaf_must clarify that the application is a proposal, subject to public review and a Commission decision. It shall also inform customers that a copy of the utility's application is available for public review at the offices of both the Commission and the utility,and on the Commission's homepage at*www.puc.idaho.gov. (2-15-14) d. The customer notice shall inform customers that they may file written comments r-egarding about the utility's application may be filed with the Commission. It shall also inform customers that they may subscribe to the Commission's RSS feed(Subsection 039.03)to+eeeive for periodic updates via email e mail about the ease. (2- 15-14) 02. Timing of Notice for Trackers or Annual Cost Adjustments. Tracker adjustments oeeasioned prompted by federal action that result in o� tre F►+-dc r- ittefeease 4i rate m rate change may be brought to customers'the attention of oustomers in compliance with this rule after approval by the Commission. Other tracker or annual cost adjustment cases that result in an a rate increase On nitcs remain subject to tlw this iule's advance notice requirements &"Avanee-noticesontait+ed4ff4hk tale.Other tracker or annual cost adjustment cases that result in a rate decrease in rates may be brought to 4*-customers' attention of eustAtes in compliance with this rile after being approved by the Commission. (4-7-11) 03. Timely Distribution of Customer Notices. The customer notices Fefelved-to referenced in Subsection 125.01 may be mailed separately to customers or included in the customer's regular bill as a bill stuffer. At the customer's option,the customer notice may be provided electronically. The information required by this rule "must be clearly identified,easily understood,and pertain enly to the proposed rate change. The utility must start distributing, DiSkiblltietl of--customer notices shah ^^m mence when the utility it files its application or as soon as possible thereafter. (2-15-14) 04. Press Release.In instances covered by Subsection 125.01,the utility shall also send a press release with at least the same information presented in the customer notices to all newspapers,radio, and television stations listed on the Commission's news organization list for that utility. The press releases shall be mailed or delivered simultaneously with filing of the application. (5-8-09) 05. Filling of a Press Release nd Ea.stomer Hee. A eop"1 the-press release ►td eu iornef tteiiee shall be filed with flie applicaiian. (5-8-09) 06:05. Purposes and Effects of This Rule.The pw:peses of Subsections 125.01 through 4285 125.04 of the- ruIPV e.to are intended to encourage wide dissemination to customers of information concerning proposed rate changes l'er utility:WA* Less These subsections do not expand,contract,or otherwise modify customers to-ereete-due F0ee,S er-etherproe.�kWfll-+igbts in eu-.itomer44vf-e?fmnding sotitractitt",'-otherwise rnedifying4he notice and due process rights of^�or�::s under the Public Utilities Law and the Commission's Rules of Procedure,IDAPA 31.01.01.Accordingly,Subsections 125.01 through 125.05 of-this-role create no individual due process or_.procedural rights for in any customer ee that would give rise to a due process or other procedural claim cognizable by the Commission.;bW A public utility's failure to comply with Subsections 125.01 through 125.05 of this rule can be grounds for returning an application for incompleteness. (5-8-09) 126. APPLICATION TO APPROVE INTERCONNECTION AGREEMENTS(RULE 126). 01. Uncontested Agreements. A telephone corporation may file an applio tion for apply to the Commission to approve voluntarily negotiated, adopted or amended interconnection agreements pursuant to under Section 252 of the federal Telecommunications Act of 1996,http://www.fcc.gov/telecom.html.The Commission 1M ae% act on adopted or negotiated interconnection agreements and uncontested amendments to previously approved agreements with the assistance of afi-Commission Staff s ex parte recommendation. of the'Corms .^ Staff. (5-8- 09) 02. Contested Agreements. Petitions to arbitrate, mediate or otherwise resolve interconnection disputes between or among telecommunication carriers shall be processed under Rule 53. (3-16-04) Section 000 Page 22 SGoodson_05132021