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HomeMy WebLinkAbout20250724Comments.pdf _ ROCKY MOUNTAIN 1407 W.North Temple,Suite 330 POWER. Salt Lake City,UT 84116 A DIVISION OF PACIFICORP RECEIVED July 24, 2025 July 24, 2025 IDAHO PUBLIC UTILITIES COMMISSION VIA ELECTRONIC DELIVERY Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd Building 8 Suite 201A Boise, ID 83714 RE: CASE NO. GNR-E-25-01 IN THE MATTER OF COMMISSION STAFF'S APPLICATION FOR APPROVAL OF AN OVEERSIGHT PROCESS FOR THE ACQUISITION OF LARGE SUPPLY-SIDE ELECTRICAL RESOURCES Attention: Commission Secretary Pursuant to Commission Order No. 36662, authorizing Idaho Public Utilities Commission Staff s Application to be processed by Modified Procedure and establishing the procedural schedule, please find Rocky Mountain Power's Comments in the above referenced matter. Informal inquiries may be directed to Mark Alder, Idaho Regulatory Manager at(801) 220-2313. Very truly yours, )A 9LO-1-D Joelle Steward Senior Vice President, Regulation Joe Dallas (ISB# 10330) PacifiCorp, Senior Attorney 825 NE Multnomah Street, Suite 2000 Portland, OR 97232 Email:joseph.dallas(a)pacificorp.com Attorney for Rocky Mountain Power BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF COMMISSION ) CASE NO. GNR-E-25-01 STAFF'S APPLICATION FOR APPROVAL ) OF AN OVEERSIGHT PROCESS FOR THE ) COMMENTS OF ROCKY MOUNTAIN ACQUISITION OF LARGE SUPPLY-SIDE ) POWER ELECTRICAL RESOURCES ) Pursuant to Rule 202.01(d) of the Rules of Procedure of the Idaho Public Utilities Commission("Commission") and the Commission's July 1, 2025,Notice of Modified Procedure, PacifiCorp d/b/a Rocky Mountain Power ("Rocky Mountain Power" or the "Company") hereby submits comments in the above-referenced case. I. BACKGROUND 1. On March 31, 2025, Idaho Public Utilities Commission Staff("Staff') applied for the Commission to issue an order directing each utility to apply for and receive Commission approval for each new request for proposal ("RFP") prior to issuing it for the acquisition of large supply-side resources. Staff supported its application with an attachment that outlined the requirements for utility RFP. 2. On April 16, 2025, Commission Order No. 36549 provided public notice of the Company's Application and also provided notice of intervention deadline. On May 13, 2025, Notice of Parties was issued with Northwest & Intermountain Power Producers Coalition, Idaho Power Company, Rocky Mountain Power, and Avista Utilities identified as parties to the case. On Page 1 June 23, 2025, Commission Order No. 36649, conditionally granted Micron Technology, Inc's petition to intervene. On July 1, 2025, Commission Order No. 36662 authorized processing of the Application by Modified Procedure,and established the procedural schedule allowing persons who would like to file written comments to have until July 24, 2025, response parties from all parties due August 21, 2025, and Staff reply comments due by September 4, 2025 II. ROCKY MOUNTAIN POWER COMMENTS 3. Prior to Staff's application, the Company and Staff met, and the Company shared its recommendations based on its experience with RFP oversight in other states in which it operates. PacifiCorp appreciates Staff's outreach prior to the application as well as the opportunity to provide comments on the application. 4. Overall, the Company is supportive of Staff's application and proposed RFP oversight process. PacifiCorp believes that these rules strike a reasonable balance of allowing opportunity for Commission oversight of RFPs prior to issuance while not imposing undue restriction and transaction costs. The Company has additional suggestions for the Commission's consideration based on prior experience: 5. For the waiver process described in section 2(a)of page two of Attachment A to the Application, staff allows for a waiver process to be for "rare situations." The Company believes that the language pertaining to the waiver process should be evaluated on a case-by-case basis in order to facilitate situations such as time-limited, economic opportunities that are incompatible with a RFP process.Accordingly,PacifiCorp would recommend a slight revision that removes the language referencing"rare situations." 6. In addition, section 2(c) of the waiver process on page two, limits the waiver process to "unsolicited" economic-based opportunities. The Company believes that there may be Page 2 economic-based opportunities that could stem from bilateral outreach.In these cases,the Company would like the opportunity to pursue a waiver to avoid missing the opportunity to pursue such an opportunity that could result in benefits to customers. Accordingly, PacifiCorp would strongly recommend that the reference to the term "unsolicited"be removed from this section. 7. Section I(d) provides that the Commission retains discretion to require the use of an Independent Evaluator("IE"). PacifiCorp supports this provision, as it allows the Commission to determine on a case-by-case basis whether the nature of a specific RFP justifies retention of an IE. Furthermore, in instances where an IE is required, the provision allows the scope of the IE's involvement to be tailored to the specific characteristics of the RFR However, when an IE is required, the associated costs may be unrecoverable by the utility. These costs may be considered unforeseeable and therefore cannot predicted in a general rate case test year. Additionally, they may not qualify for traditional regulatory deferral treatment. To address this concern, PacifiCorp recommends that the rule include a mechanism for cost recovery of IE expenses. One potential approach would be to authorize utilities to file for deferral of IE-related costs, subject to a subsequent prudence review and recovery in a future proceeding. III. REOUEST FOR RELIEF 8. The Company appreciates the effort and outreach Staff has taken to put together this proposal. In particular, PacifiCorp greatly appreciates the efforts undertaken by Staff to proactively meet with the Company and other stakeholders. PacifiCorp respectfully requests that Staff and the Commission consider the proposed revision submitted above. Page 3 DATED this 24th day of July 2025. Respectfully submitted, ROCKY MOUNTAIN POWER Joe Dallas (ISB# 10330) PacifiCorp, Senior Attorney 825 NE Multnomah Street, Suite 2000 Portland, OR 97232 Email:joseph.dallas&pacificorp.com Attorney for Rocky Mountain Power Page 4