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HomeMy WebLinkAbout20250807Comments.pdf RECEIVED August 7, 2025 IDAHO PUBLIC Michael A. Kirkham/ISB # 8939 UTILITIES COMMISSION CITY OF IDAHO FALLS, IDAHO 375 D. Street Idaho Falls, ID 83401 Telephone: (208) 612-8178 Facsimile: (208) 612-8175 Email: mkirkham@idahofalls.gov Attorney for City of Idaho Falls, Idaho BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. GNR-E-25-02 IN THE MATTER OF COMMISSION ) COMMENTS OF THE CITY OF IDAHO STAFF'S APPLICATION FOR ) FALLS, IDAHO, TO COMMISSION APPROVAL OF A FILING PROCESS FOR ) STAFF'S APPLICATION FOR WILDFIRE MITIGATION PLANS ) APPROVAL OF A FILING PROCESS FOR WILDFIRE MITIGATION PLANS Pursuant to the Idaho Public Utilities Commission's ("Commission") Rule of Procedure 203, and the Notice of Modified Procedure issued in this proceeding on July 24, 2025 (Order No. 36686), the City of Idaho Falls, Idaho, ("Idaho Falls") respectfully submits these comments in response to Commission Staff s Application for a Wildfire Mitigation Plan Filing Process ("Application") and Staffs Supplement to Application ("Supplement") in the above- captioned matter. Idaho Falls requests that the Commission exempt electric municipal distribution systems from the proposed cost justification wildfire mitigation plans ("WMPs") requirements. The Wildfire Standard of Care Act ("Act") requires the Commission to ensure that WMPs satisfy certain minimum requirements and requires the Commission to consider the feasibility and cost of implementation of WMPs. See Idaho Code § 61-1804(1). Given that electric municipalities operate with small employee teams and limited technical resources, Staffs proposed cost- COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 1 of 11 justification analysis would create an undue burden for electric municipalities. This burden would lead to increased expenses that,ultimately,would be borne by Idaho Falls's ratepayers.In addition, the need for a cost justification analysis is largely unnecessary—an electric municipality already has natural incentives and mechanisms in place that keep rates low. The Commission can ensure that electric municipalities' WMPs meet the Act's minimum requirements through less burdensome means, such as a resolution from the electric municipality's governing board. In a similar vein, Idaho Falls requests that the Commission ensure that all required information be actually useful and necessary to review and approve WMPs and their annual updates. For example, the requirement to report all fires within a quarter mile of utility infrastructure does not, by itself, reveal wildfire risks. This is especially true for Idaho Falls's service territory, which is entirely an urban and suburban cityscape with a full-service fire department. Idaho Falls's fire department responds to hundreds of fire calls a year. However, only a minute fraction is related to Idaho Falls's electrical utility. Limiting a WMP's requirements to only what would actually be useful in mitigating wildfire risks would encourage electric municipalities to participate in filing WMPs by ensuring that the requirements are reasonable. Finally, Idaho Falls respectfully requests that the Commission establish a schedule for submitting WMPs for approval that will ensure that wildfire mitigation plans can be reviewed and approved by the Commission before the 2026 wildfire season. I. Background In the 2025 legislative session,the Idaho Legislature adopted the Wildfire Standard of Care Act. 2025 Idaho Sess. Laws Ch. 249 (S.B. 1183) (codified as Idaho Code § 61-1801, etseq.). The purpose of the Act was to prepare for and respond to wildfire risks presented by electrical utilities. Idaho Code § 61-1802. The primary mechanism to promote the Legislature's interest in COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 2 of I I minimizing wildfire risks is the requirement for Investor Owned Utilities ("IOU") to prepare a WMP. Idaho Code § 61-1803. In addition to Commission-regulated IOUs, the Act also permits electric corporations that are not public utilities—including electric municipalities like Idaho Falls—to adopt and file WMPs with the Commission. Idaho Code § 61-1803(2)(b). The Commission is then required to approve or reject the WMP within six (6) months. Idaho Code § 61-1804(1). The Act authorizes the Commission to "establish measures for the electric corporation to prepare for and address wildfire risk and shall establish the electric corporation's duty to its members and the public."Idaho Code § 61-1805. Once a utility prepares and implements a Commission-approved WMP,the Act provides a rebuttable presumption that a utility was not negligent with respect to the cause of a wildfire. Idaho Code § 61-1806(1). On June 18, 2025, Commission Staff submitted its Application. The Application staggers the timing for IOUs and non-IOUs, like Idaho Falls, to submit a WMP for the Commission's review and approval. Application at 1. Electric municipalities, under this proposed timing schedule, are required to file their WMPs last and, "no earlier than December 1, 2025," if they decide to file one. Id. at 6-7. On July 10, 2025, Commission Staff submitted its Supplement providing additional information and Staff s guidelines and recommendations for the component parts of an acceptable WMP. Supplement at 1. Staff also requested that electric municipalities and cooperatives file a "Need to Know" document detailing the size and complexity of the non-IOU utilities. Id. at 1-2. II. Comments CITY respectfully submits the following comments in response to Staffs Application and Supplement. COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 3 of 11 A. The Commission should adopt separate WMP reporting requirements for electrical municipalities that reflect the size and scope of their impacts on wildfire risks and their sovereign, governmental nature, instead of Staffs recommended one-size-fits- all approach. Electrical municipalities, like Idaho Falls, are governmental sovereignties regulated and directly controlled by their elected governing boards. In Idaho Falls, the elected City Council sets policies and rates for Idaho Falls Power's customers pursuant to the limits imposed by the Constitution of the State of Idaho and Idaho law. The governing boards for electric municipalities responsibly operate and deliver non-profit electrical services to the public, often for a lower cost to consumers than many IOUs.' Electric municipalities, like Idaho Falls, accomplish all this with fewer employees and fewer resources than IOUs have. The Commission should exempt, or at least limit, the WMP information that electric municipalities are required to provide to the Commission. The Act requires that WMPs be developed using approaches and methods that are designed to protect the public's interest and are reflective of and commensurate with the size and complexity of the electric corporation's operations and of the nature of the wildfire risk. Idaho Code § 61-1803(3). However, Staff has recommended more of a one-size-fits-all approach—the recommended requirements do not distinguish IOUs and electrical municipalities. See generally Staff s Supplement to Application ("Supplement"). The proposed process would require electric city systems to provide the Commission with detailed,granular data,monthly targets,cost-benefit analyses,goals,and metrics for each of the components of a WMP.The sheer volume of the proposed feasibility documentation that electric cities would be obligated to provide is extraordinarily burdensome for Idaho Falls. ' Unlike IOUs,the public policy concerns with the potential for monopolistic adoption of unreasonable utility rates that an unscrupulous IOU may adopt are greatly ameliorated because electrical municipalities,like Idaho Falls, are governed by elected representatives.See Idaho Power&Light Co. v Blomquist,26 Idaho 222, 141 P. 1083, 1088 (1914);Kiefer v. City of Idaho Falls,49 Idaho 458,289 P. 81, 83 (1930). In the event that the City Council of Idaho Falls opted to impose unreasonable electric power rates,the Council could be directly removed by its citizens. COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 4 of 11 Idaho Falls is a relatively larger electric municipal system; smaller municipalities and co-ops operate with even smaller employee teams and fewer technical resources than Idaho Falls. As a consequence, the burden placed on smaller electrical municipalities will be even more severe. The anticipated burden of the proposed process diminishes the benefit for all small electrical municipal systems of mitigating wildfire risk through the Commission's WMP process. This burden runs directly counter to the Act's requirement that the Commission adopt review procedures that "are reflective of and commensurate with the size and complexity of the electric [municipality's] operations and fire risk." Idaho Code § 61-1803(3). The burdensome one-size-fits-all approach recommended by Commission Staff seeks information and analysis that goes beyond what is necessary to evaluate an electric municipality's risk mitigation plan. For example, the requirement that electric municipalities provide a cost- benefit analysis to justify their wildfire risk mitigation expenditures is of particular concern to Idaho Falls. Supplement at 6. Fire risk mitigation is one of many considerations that Idaho Falls makes in providing electricity to its customers. These decisions, like whether to install overhead or underground lines, wood or steel poles, replacing old or outdated equipment, and other routine and normal operations, require a holistic approach of many factors. These factors include reliability, future needs, infrastructure component quality, compatibility of equipment or replacement parts, as well as fire mitigation considerations. As a result, the wildfire cost-benefit analysis will necessarily require examination of these other case-by-case holistic factors that, at best, would not provide any useful information to the Commission regarding Idaho Falls wildfire mitigation efforts and, at worse, effectively allow the Commission a seat at the Council's table for all of Idaho Falls's new line designs and operational upgrades. COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 5 of 11 Alternatives exist to Staff s recommended one-size-fits-all approach. For example, one alternate approach would be to follow the North American Electric Reliability Corporation ("NERC")process of overseeing reliability standards.NERC's processes include periodic positive affirmations of compliance from an electrical municipality's governing board, with periodic spot checks and audits. This process would be less onerous and a less administratively costly method for electrical municipalities to demonstrate compliance. Further, the NERC compliance process is already familiar to many electrical utilities, including Idaho Falls. Staff should also consider that electric municipalities are engaged in non-utility activities that directly reduce the utility side's wildfire risk. For example, Idaho Falls has a robust Ere department with the capability to respond to any reported fire within Idaho Falls's geographic limits within five (5) minutes. The Commission should take into account electrical municipalities with fire departments in setting standards for a city's WMP. This unique fire protection feature, which is provided by Idaho Falls's general tax funds and not electrical utility funds, should play a part in establishing whether an electrical municipality's wildfire mitigation plan meets the requirements of the Act. In short, the one-size-fits-all approach does not take into account the uniqueness of electrical municipalities, like Idaho Falls. The unique characteristics of electrical municipalities should exempt, or at least limit, the WMP information that electric municipalities are required to provide to the Commission. B. Staffs recommendation that utilities report fires is unfairly burdensome to urbanized service areas,like Idaho Falls's geographic limits, and should be rejected. The Commission should also adopt rules that take into consideration the unique fire mitigation efforts that are already a part of what electrical municipalities already do as part of their broad governmental role. Staff s Supplement recommends that"each compliance report contain a COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 6 of 11 list of any fire that occurred within 1/4 mile of the utility's infrastructure or any fire that has burned into the utility's infrastructure during the compliance year, explaining any unofficial or official reported causes of ignition for the fire,the approximate location of the start of the fire, and if there was any damage to company infrastructure, structures, property or any persons." Supplement at 7. As applied to Idaho Falls's concentrated and urbanized service area, this requirement is overly broad,unduly burdensome,and exceeds the requirements of the Act.While Idaho Falls appreciates that this requirement is an apparent compromise from Staff s original position, as applied to Idaho Falls,the effect of the compromise is as if nothing has changed. Idaho Falls's utility infrastructure permeates its entire city,meaning that the quarter-mile requirement virtually blankets Idaho Falls's entire service area. In addition, the requirement to report "fires" is understood to be broader than the term "wildfire." As a consequence, Idaho Falls anticipates that compliance with this recommendation will provide the Commission with hundreds of fire reports from Idaho Falls detailing the various routine domestic and accidental fires that are completely unrelated to utility- caused wildfires that the Act seeks to mitigate against. Not only will this requirement unfairly burden Idaho Falls, but it will likely burden the Commission with irrelevant and distracting documentation that is unrelated to the goal of mitigating wildfires. If Staff desires mechanisms to monitor wildfires that occur in Idaho, less burdensome alternatives exist. For example, the United States Department of the Interior has already created and maintains a rigorous wildfire reporting and tracking tool: the "Integrated Reporting of Wildland-Fire Information (IRWIN)" system. United States Department of the Interior, Wildland Fire Application Information Portal (August 6, 2025) available at https:llwww.wildfire.govl application/irwin-integrated-reporting-wildfire-information. This hourly-updated system is likely COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 7 of 11 far superior to anything that can be accomplished by annualized WMP fire reporting produced by electrical utilities. In any case, the Act limits what the Commission can require an electric corporation to submit in its annual WMP reports. Idaho Code § 61-1803(5). The Commission is limited to "documentation describing the development and adoption of the wildfire mitigation plan's components and measures, the wildfire mitigation expenditures, and the work taken to develop and adopt the plan's components and measures." Id. The Act does not require utilities to report the existence or causes of fires,and Staff s recommendation would constitute an overreach because fire reporting does not assist the Commission in monitoring a utility's WMP adoption efforts, the expenditures made, or work taken to implement components or measures of the WMP. See Idaho Code § 61-1803(5). C. The Commission should workshop annual reporting standards that will be specific in addressing the uniqueness of electric municipalities and other non-IOUs and that will respect electric municipalities' right to govern. The one-size-fits-all requirements proposed by Staff,particularly those that seek to"justify the utility's expenditures," are aligned with the Commission's historic role of overseeing and regulating IOUs to protect rate payers. Supplement at 6. Idaho Falls has no objection to the Commission regulating IOU expenditures through the WMP process. That said, treating electric cities the same as IOUs oversteps the Commission's legal authority. Electric municipalities are not public utilities and are not subject to rate regulation by the Commission. Idaho Code § 61-104; see also, Lamont Bair Enterprises, Inc. v. City of Idaho Falls, 165 Idaho 930, 938 (2019); Snake River Homebuilders Ass'n v. City of Caldwell, 101 Idaho 47, 49 (1980). While the Act permits the Commission to ensure that electrical municipalities' WMPs meet minimum requirements and are feasible, the Act does not authorize the Commission to use the WMP to engage in rate regulation COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 8 of 11 of a city's electric utility. See Idaho Code § 61-1804(1). Requirements that ask an electrical municipality to "justify its expenditures" wades beyond the reasonable check of a city's WMP compliance, as permitted by the Act, and inappropriately opens the door to the Commission reviewing a city's utility rates and operational policies. See Supplement at 6. The Commission can satisfy the requirements of the Act without infringing on an electrical municipality's governing bodies' authority. For example,the Commission could limit its financial inquiries to an electrical municipality by requiring an explanation on how a city's budgetary process is tied to wildfire mitigation. Other options could include obtaining assurance from a governing body, in the form of an official resolution, that the governing body has reviewed the costs associated with its WMP and that the board has determined WMP costs reflect a reasonable balancing of costs with a reasonable reduction of wildfire risk. See Idaho Code § 61-1803(3). Or the board could provide the Commission with a manual that prescribes the electrical municipality's methods for new or upgraded line designs that will mitigate fire risk,with a board finding that the guidelines are financially prudent and practicable. See Idaho Code § 61-1804(1). Idaho Falls respectfully encourages the Commission to adopt rules that limit information submissions from electrical municipalities to those that are actually useful and necessary to promote the explicit requirements of the Act and that, at the same time, respects the separate sovereignty of Idaho's cities. Even if Staff s recommended annual MWP reports requirements do not infringe on an electric municipality's separate sovereignty, the recommended MWP requirement goes beyond what is required by the Act. Staffs recommended requirements include cost reporting broken down on a monthly basis, explanations for failure to meet the Act or the Commission's requirements and orders, and the above-described fire reporting. Supplement at 7. In contrast, the COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 9 of 11 Act requires "documentation describing the development and adoption of the wildfire mitigation plan's components and measures, the wildfire mitigation expenditures, and the work taken to develop and adopt the plan's components and measures."Idaho Code § 61-1803(5). The Commission should not issue an order mandating Staff s annual report recommendation. Instead, the Commission should require Staff to coordinate and workshop with all stakeholders to develop requirements that are more useful in mitigating wildfire risks and avoid unnecessary burdens on the Commission and utilities. In particular,the Commission should require specific coordination between Staff and electric municipalities and co-op systems to address the uniqueness of these small,non-IOU electrical utilities that cannot be regulated by the Commission. Idaho Falls respectfully submits that this process will likely reveal to Staff and the Commission that certain exemptions and limitations from WMP annual reporting for electric municipalities are appropriate and consistent with the wildfire mitigation intent of the Act. D. The Commission should establish a WMP filing schedule so that all eligible participants have the opportunity for an approved WMP before the 2026 wildfire Season. Staff has recommended a proposed a staggered schedule for filing WMPs in which IOUs file their WMP first and then, beginning on December 1, 2025, electrical municipalities and all other electrical corporations may file their WMPs. The goal of this plan is to "provide sufficient time for the Commission to review and approve or reject all currently anticipated WMPs before the next fire season,defined as May 10—October 20 each year by the Idaho Department of Lands." Id. at 2.nl. Idaho Falls is concerned, given that Staff anticipates that the Commission will need to review at least twelve (12) WMPs before the beginning of the 2026 fire season. See id. at 6-7. Idaho Falls concedes that the Act permits the Commission to adopt a staggered schedule and may also require that electrical municipalities wait their turn. Idaho Code § 61-1803(2). However, since COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 10 of 11 the Commission may take six months to review or reject a WMP,the December 1, 2025, deadline technically would permit the Commission to approve WMPs submitted on December 1, 2025, at the end of May 2026, after the beginning of the fire season. As a result, Idaho Falls respectfully requests that the filing schedule that the Commission adopts provide electric municipalities with an opportunity to have an approved WMP before May 1, 2026. III. Conclusion Idaho Falls appreciates the opportunity to submit comments for consideration in this proceeding. Idaho Falls respectfully requests that the Commission adopt separate WMP reporting requirements that account for the peculiarities of municipal electrical systems. Such WMP reporting requirements should focus on providing the Commission with information that is useful and necessary to assist electrical municipalities in mitigating against wildfire. The Commission should not adopt any reporting standard that would permit the Commission to evaluate an elected governing body's exercise of sovereign authority to set the rates, policies, or governing standards for the operation of a municipal electrical system. Other burdensome requirements,not authorized by the Act, including the annual duty to report fires within a service area, should be rejected. Finally, the Commission should endeavor to provide a process so that all eligible participants can have the opportunity to receive an approved WMP before the 2026 wildfire season. Respectfully submitted this 7th day of August 2025. City of Idaho Falls, Idaho lsl Michael A. Kirkham Michael A. Kirkham City Attorney COMMENTS OF THE CITY OF IDAHO FALLS, IDAHO Page 11 of 11 CERTIFICATE OF SERVICE I HEREBY CERTIFY that I have this 7th day of August 2025, served the foregoing Comments of Idaho Falls, Idaho, upon all parties of record in this proceeding by electronically providing a copy thereof to: Commission Staff: Secretary Monica Barrios-Sanchez Adam Triplett Commission Secretary Deputy Attorney General Idaho Public Utilities Commission Idaho Public Utilities Commission 11331 W. Chinden Blvd. Building 8, PO Box 83720 Suite 201-A Boise, ID 83702-0074 Boise, ID 83714 Email: adam.triplett@puc.idaho.gov Email: secretary@puc.idaho.gov Taylor Thomas Idaho Public Utilities Commission PO Box 83720 Boise, ID 83702-0074 Email: taylor.thomas@puc.idaho.gov Atlanta Power Company: Nick Jones Owner/Operator Atlanta Power Company 235 W. Yuba Vista Drive Atlanta, ID 83716: Email: atlantapower23@outlook.com Avista Corporation: Anni Glogovac Elizabeth Andrews Counsel for Regulatory Affairs Sr. Manager of Revenue Requirements PO Box 3727 PO Box 3727 1411 E. Mission Ave., MSC-13 1411 E. Mission Ave., MSC-27 Spokane, WA 99220-3727 Spokane, WA 99220-3727 Email: anni.glogovac@avistacorp.com Email: liz.andrews@avistacorp.com w/copy to: AvistaDockets@avistacorp.com Bennett Lumber Products, Inc. Idaho Forest Group Manulife Investment Management, CERTIFICATE OF SERVICE Molpus Woodlands Group, Stimson Lumber Company: Pendrey P. Trammell Smith+Malek, PLLC 601 E. Front Ave., Ste. 304 Coeur d'Alene, ID 83814 Email: service@smithmalek.com Kootenai Electric Cooperative: Thomas Maddalone Michael G. Andrea Safety Director for KEC General Counsel for KEC 9014 W. Lancaster Rd. 9014 W. Lancaster Rd. Rathdrum, ID 83858 Rathdrum, ID 83858 Email: taddalone@kec.com Email: mandrea@kec.com CTIA: Matthew DeTura Benjamin Aron Counsel for External and State Affairs Assistant Vice President, State Regulatory 1400 16th Street NW Affairs Suite 600 1400 16th Street NW Washington, DC 20036 Suite 600 Email: MDeTura@ctia.org Washington, DC 20036 Email: BAron@ctia.org Idaho Department of Lands: J.J. Winters Tyre Holfeltz Attorney for the Idaho Department of Lands Wildfire Risk Mitigation Program Manager 300 N. 6th Street, Ste. 103 300 N. 6th Street, Ste. 103 Boise, ID 83702 Boise, ID 83702 Email: jwinters@idl.idaho.gov Email: tolfeltz@idl.idaho.gov Idaho Power Company: Megan Goicoechea Allen Tim Tatum Donovan E. Walker Riley Maloney Lisa C. Lance Connie Aschenbrenner Idaho Power Company Idaho Power Company PO Box 70 PO Box 70 Boise, ID 83707 Boise, ID 83707 Email: mgoicoecheaallen@idaho Email: ttatum@idahopower.com dwalker@idahopower.com rmaloney@idahopower.com Ilance@idahopower.com caschenbrenner@idahopower.com CERTIFICATE OF SERVICE dockets@idahopower.com PotlatchDeltic Corporation: Peter J. Richardson Michele Tyler, Esq. Richardson Adams, PLLC Anna Torma 515 N. 27th St. Wade Semeliss Boise, ID 83702 Brian Schlect, Esq. Email: peter@richardsonadams.com 601 W. First Ave. Ste. 1600 Spokane, WA 99201 Email: michele.tyler@potlatchdeltic.com anna.torma@potlatchdeltic.com wade.semeliss@potlatchdeltic.com brian.schlect@potlatchdeltic.com Risch Pisca, PLLC Attn: Jeremy Pisca 407 W. Jefferson Street Boise, ID 83702 Email: jpisca@rischpisca.com Rocky Mountain Power: Mark Alder Joe Dallas Idaho Regulatory Affairs Manager Senior Attorney 1407 West North Temple, Suite 330 825 NE Multnomah, Suite 2000 Salt Lake City, Utah 84116 Portland, OR 97232 Email: mark.alder@pacificorp.com Email: joseph.dallas@pacificorp.com USTelecom— The Broadband Association: B. Lynn Follansbee Kathleen Slattery Thompson VP Strategic Initiatives and Partnerships for VP, Regulatory and Legal Affairs USTelecom 601 New Jersey Avenue NW 601 New Jersey Avenue NW Suite 600 Suite 600 Washington, DC 20001 Washington, DC 20001 Email: ksthompson@ustelecom.org Email: lollansbee@ustelecom.org lsl Michael A. Kirkham Michael A. Kirkham City Attorney CERTIFICATE OF SERVICE