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HomeMy WebLinkAbout20250807Joint Comments.pdf -Ral— mq% Ro MEGAN GOICOECHEA ALLEN RECEIVED Corporate Counsel August 7, 2025 mgoicoecheaallen6a�idahopower.com IDAHO PUBLIC UTILITIES COMMISSION August 7, 2025 VIA ELECTRONIC MAIL Commission Secretary Idaho Public Utilities Commission 11331 West Chinden Blvd., Building 8 Suite 201-A Boise, Idaho 83714 Re: Case No. GNR-E-25-02 Commission Staff's Application for Approval of a Filing Process for Wildfire Mitigation Plans Dear Commission Secretary: Attached for electronic filing are Joint Utility Comments in the above-entitled matter. If you have any questions about the attached comments, please do not hesitate to contact me. Very truly yours, nn����^^ - n I I l Megan Goicoechea Allen MGA:sg Enclosures 1221 W. Idaho St(83702) P.O. Box 70 Boise, ID 83707 MEGAN GOICOECHEA ALLEN (ISB No. JOE DALLAS (ISB No. 10330) 7623) PacifiCorp Idaho Power Company 825 NE Multnomah Street 1221 West Idaho Street (83702) Suite 2000 P.O. Box 70 Portland, Oregon 97232 Boise, Idaho 83707 Telephone: (360) 560-1937 Telephone: (208) 388-2664 joseph.dallas@pacificorp.com Facsimile: (208) 388-6936 mgoicoecheaallen@idahopower.com Attorney for Rocky Mountain Power Attorney for Idaho Power Company ANNI GLOGOVAC, PRO HAC VICE COUNSEL Avista Corporation 1411 E. Mission Avenue P.O. Box 3727 Spokane, Washington 99220 Telephone: (509) 495-7341 anni.glogovac@avistacorp.com Attorney for Avista Corporation BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF COMMISSION ) STAFF'S APPLICATION FOR ) CASE NO. GNR-E-25-02 APPROVAL OF A FILING PROCESS ) FOR WILDFIRE MITIGATION PLANS ) JOINT UTILITY COMMENTS COMES NOW, Avista Corporation, dba Avista Utilities, Idaho Power Company, and PacifiCorp dba Rocky Mountain Power (collectively referred to as the "Joint Utilities"), in accordance with the Idaho Public Utilities Commission's ("Commission") Rules of Procedure 201-204, and the Notice of Modified Procedure in this matter, Order No. 36686, hereby respectfully submits the following Joint Comments. JOINT UTILITY COMMENTS - 1 I. BACKGROUND 1. On June 18, 2025, Commission Staff ("Staff") submitted an application to the Commission requesting that the Commission issue an order establishing a filing process for Wildfire Mitigation Plans ("WMPs") that will be submitted for approval under the Wildfire Standard of Care Act ("WSCA"), which went into effect on July 1, 2025. The WSCA, codified as Idaho Code, Title 61, Chapter 18, requires the Commission to review and approve or reject annual WMPs within six months of submittal, ensuring the minimum requirements of Idaho Code §61-1803 are met, while also considering: 1) the consistency of the plan with the public health, safety, and welfare, 2) the feasibility of the plan and the cost of its implementation, and 3) the degree to which the plan adequately minimizes wildfire risk and proposes to respond to wildfires that do occur.' Idaho Code §61-1804. Additionally, as part of the application submitted on June 18, 2025, Staff signaled its intent to file a supplemental document on July 10, 2025, to include: 1) Staff's proposed guidelines outlining additional minimum requirements to be included within WMPs, and 2) Staff's proposed "Need to Know Document"for electric municipalities and cooperatives to file with the Commission to aid in Staff's review of each respective WMP.2 2. Also submitted on June 18, 2025, Staff filed a motion proposing staggered filing dates for electric utilities' WMPs to allow for a regulatory process to be developed as part of this docket, including a discussion regarding the annual review of WMPs, the components to be included within a WMP and its associated compliance report pursuant to Idaho Code §61-1803(3-5), and other recommendations such as investor-owned utilities meeting with the Commission for annual updates. ' Staff s Application for a Wildfire Mitigation Plan Filing Process,page 3. '-Id.,page 5 JOINT UTILITY COMMENTS - 2 3. On June 30, 2025, Staff hosted a workshop with electric utilities to discuss the application submitted on June 18, 2025, as well as a draft of Staff's proposed WMP guidelines, compliance reports, filing dates, Commission review, and handling of WMP costs. Following this workshop, the Joint Utilities submitted feedback to Staff regarding certain proposals that were discussed. 4. On July 10, 2025, Staff submitted a supplement to the application submitted on June 18, 2025, ("Staff's Supplemental Filing") to propose "Commission WMP Guidelines" pursuant to the minimum requirements in Idaho Code §61-1803(3)(a)(g) and the proposed "Need to Know Document" for electric municipalities and cooperatives to file with each WMP.3 Moreover, Staff's Supplemental Filing requests that the Commission require each utility to include Staff's recommended components, some of which reflect feedback from the Joint Utilities, within their respective WMPs, as outlined in the accompanying Exhibit No. 1. Staff's Supplemental Filing also discussed rolling WMPs, additional components to include within a WMP, amendments to WMPs, and compliance reports. II. JOINT UTILITY COMMENTS 5. While largely supportive of the recommendations set forth in Staff's original and supplemental filings, the Joint Utilities appreciate the opportunity to offer these comments to respond to and address those aspects of Staff's proposals where adjustment, expansion, or clarification is warranted as more fully described below. 3 Staff s Supplement to Application,page 1. JOINT UTILITY COMMENTS - 3 A. Staff Proposal No. 5 Requiring Each Compliance Report to Identify Monthly Targets with Estimated Costs and Monthly Actuals with Actual Costs for Measurable Targets, Goals, and Metrics for Components of its WMP, Explaining Where Each Component Within the Compliance Report Ties to its Approved WMP. 6. The Joint Utilities understand Staff's desire for each utility to identify monthly targeted and estimated costs and connecting each of these metrics within the annual compliance report to the most recently approved WMP. However, many mitigation initiatives undertaken in a WMP are multi-month undertakings with constant variability over the course of a given year. Factors that lead to this variability include but are not limited to construction and permitting timelines, contractor availability, seasonal access, and operational prioritization. WMPs have historically set targets at an annual level as opposed to monthly targets, providing a more accurate representation of what will be accomplished in each timeframe. The Joint Utilities are concerned that a requirement to include monthly targets would create unnecessary risk for the Joint Utilities by artificially making it appear that a utility is out of compliance with their Commission-approved WMP, including the figures stated therein, and therefore jeopardizing the liability protections afforded to a Commission-approved WMP by Idaho Code. Accordingly, the Joint Utilities instead propose that compliance reports focus specifically on annual targets, which best align with a WMP's overall objective— identifying and implementing wildfire risk measures throughout a plan's cycle and, more specifically, during each of the years therein. If Staff wishes to review monthly results of each utility's wildfire mitigation efforts, that data could be separately provided with the understanding that, aside from merely being a part of an overall total, the individual figures would not be associated with specific monthly targets outlined in a WMP. JOINT UTILITY COMMENTS -4 B. Staff Proposal No. 8 Requiring Each Electric Utility's Notice to Interested Entities to Include Information About How to Participate in the Commission's Proceeding, the Case Number, and Provide a Copy of the Notice to the Commission in its Filing. 7. The Joint Utilities are supportive of Staff's proposal and, more specifically, that each utility's notice to interested entities should include information about how such entities can participate in the Commission's proceeding. The Joint Utilities believe that informing interested entities of their respective WMP's submission to the Commission is an important way to encourage feedback that can support the continued development of each utility's WMP over time. Additionally, directing that such feedback be submitted within the applicable utility docket will help create a more complete record for the Commission and all stakeholders' review and consideration. C. Staff Proposal No. 9 Requiring Each WMP to Represent at a Minimum a Three-year Rolling Plan. 8. Staff believes it is important to have a rolling WMP as it shows the projections of mitigation efforts and estimated expenditures over an extended period of time.' Accordingly, Staff has proposed that each WMP represent at a minimum a three- year rolling plan to allow Staff to review the projected expenses for multiple years as the plan is implemented. In support of this approach, Staff points to Commission Orders wherein the cadence of WMP filings or forecasts in support thereof for each of the Joint Utilities have been discussed.5 Notably, however, these Commission Orders do not specifically contemplate a rolling three-year cycle of any of the Joint Utilities' WMPs. 'Id., page 3. 5 See generally,Order No. 36042,TPC-E-23-11,Order No.36405,PAC-E-24-09, and Order No. 35909, AVU-E-23- 01. JOINT UTILITY COMMENTS - 5 9. The Joint Utilities are aligned with Staff's proposal to submit multi-year WMPs to demonstrate the evolution of mitigation efforts and expenditures. However, the Joint Utilities believe a static planning cycle is the most effective approach and propose that the calendar years within these multi-year WMPs remain fixed, as exemplified in Table 1 below. Updates to intervening years would occur during annual WMP update filings. The Commission's approval should similarly follow a calendar year basis, applying retroactively to the beginning of each calendar year. Table 1: Proposed WMP Planning Cycle Inaugural WMP Filed WMP Update Filed WIMP Update Filed Inaugural WMP Filed in Fall 2025 in Fall 2026 in Fall 2027 in Fall 2028 Covers 2026-2028 Covers 2027-2028 Covers 2028 Covers 2029-2031 10. This static approach allows Staff to review annual projections for multiple years while aligning with typical annual planning and budgeting processes. It also avoids the administrative complexities and operational uncertainties of a rolling plan while still ensuring that each utility's wildfire mitigation efforts are adequately detailed. 11. If the Commission decides to pursue a rolling three-year plan, the Joint Utilities have significant concerns. While the Joint Utilities understand the desire for a flexible and responsive planning process, a rolling plan introduces a potentially unacceptable level of ambiguity that could ultimately hinder effective wildfire mitigation efforts and create a significant administrative burden. 12. The current lack of precedent for a rolling three-year plan in our regulatory environment reflects the inherent complexities and risks that such type of plan presents. If a rolling three-year plan is ultimately required, the Joint Utilities urge the Commission to provide a clear framework for how compliance will be measured and how conflicts JOINT UTILITY COMMENTS - 6 between different versions of the WMP will be resolved. Of critical importance requiring resolution: • Confusion Over Compliance Standards: A rolling plan creates a "pancaking effect" where multiple versions of the WMP can exist simultaneously. This raises the critical question of which WMP is the definitive standard for a given year. If a new plan is filed with updated targets but an earlier plan covering the same year has already been approved, which set of targets should the utility pursue? This ambiguity makes it nearly impossible to consistently track progress and could lead to disputes over performance metrics. • Hindered Investment and Planning: Wildfire mitigation efforts require long-term capital investments. A rolling plan introduces instability that could jeopardize these projects. A multi-year project approved in one WMP cycle could be put on hold or canceled if a subsequent filing is denied. This stop-and-start planning is not only inefficient but also undermines the stable, long-term commitment needed for effective risk reduction. • Increased Administrative and Regulatory Burden: The logistical challenge of managing multiple WMP versions would be immense for both utilities and Staff. Tracking compliance would require reviewing an ever-growing stack of documents, which would increase working hours and costs for all parties. 13. The Joint Utilities ask the Commission to consider these potential pitfalls and, if a static planning cycle as proposed above is not adopted, at a minimum, provide clear guidance on how to navigate the potential ambiguity of Staff's proposed cycle of rolling three-year plans. JOINT UTILITY COMMENTS - 7 D. Staff Proposal No. 11 Accepting Exhibit No. 1 as the Commission's WMP Guidelines for Each Electric Corporation's WMP Filings. 14. While the Joint Utilities are generally supportive of the content and requirements included within Exhibit No. 1 of Staff's Supplemental Filing, some minor refinement and restructuring is needed in a few areas. To this end, the Joint Utilities request that the discussion surrounding de-energization not include requested de- energizations by first responders or occurrences where a planned de-energization occurs for maintenance, circuit hardening or activities of a similar nature which, although may be part of a utility's broader wildfire mitigation efforts, should be considered standard operational practices. Additionally, in explaining how recommendations from other federal, state, and county agencies were considered in developing each of the Joint Utilities' vegetation management standards, it is important to acknowledge that the Joint Utilities operate within the constraints of specific easements or right-of-way and are required to comply with National Electrical Safety Code standards. Accordingly, the Joint Utilities recommend that this explanation be limited to only recommendations from these agencies relating to surface fuels, fuel reduction, or fuels adjacent to infrastructure. 15. The Joint Utilities also recommend that the requirements contained in Staff's Supplemental Filing Exhibit No. 1 be enumerated in a manner consistent with the subsections of Idaho Code §61-1803(3), particularly with regard to the section labeled "Preventative Actions and Programs." Staff's Proposal would duplicate a number of different mitigation efforts that the Legislature separately identified with the subsections of Idaho Code §61-1803(3). Restructuring Staff's proposal regarding "Preventative Actions and Programs" will better enable each utility's WMP to more easily facially demonstrate compliance with the requirements of the WSCA, reduce the potential for JOINT UTILITY COMMENTS - 8 confusion as to what exact action the utility plans to take as part of a given effort, and appropriately reflects the likely intent of the legislature in drafting the WSCA - namely, that the identification of "preventative actions and programs" was intended to have independent meaning distinct from the mitigations such as "standards, procedures, and schedules" related to asset inspections, power line de-energization, and vegetation management, as evidenced by Idaho Code §61-1803(3)'s separate listing of these elements. As such, the Commission's requirements for Preventative Actions and Programs should not include any mitigations that already are encompassed by the other subsections of Idaho Code §61-1803(3). 16. Finally, the Joint Utilities raise concern with Staff's "least cost, least risk" formulation in analyzing selected methods of line design. This language does not appear in Idaho Code §61-1803(3)(e). To the extent that Staff's formulation would exceed or impose additional restrictions beyond the reasonable balancing of mitigation cost versus mitigation benefit mandated by the WSCA, the Joint Utilities oppose the insertion of a "least cost, least risk" mitigation selection requirement. E. Staff Proposal No. 13 Order That Any Amendments to WMPs Would Not Have Retroactive Approval. 17. The Joint Utilities disagree with Staff's proposal that amendments to WMPs should not have retroactive effect, specifically as it pertains to the operational realities of executing a WMP or maintaining the ability to be innovative throughout a WMP's plan year while simultaneously complying with the WSCA and being eligible for the liability benefit contained therein. The Joint Utilities should be encouraged to act swiftly when real-time circumstances dictate as much, or to reduce wildfire risk if a more efficient or cost-effective approach is identified after a WMP is approved, as opposed to waiting until JOINT UTILITY COMMENTS - 9 a subsequent year's submission to incorporate new information or approaches into the plan. Absent an opportunity to amend a WMP, which would still be subject to the Commission's review and approval, the WSCA actually encourages delay in innovation or efficiency through the incentive to not compromise the liability protections afforded through a utility's strict adherence with a Commission-approved WMP. F. Staff Proposal No. 14 Requiring the Electric Corporation to File its Compliance Report One-year and 60 Days After its WMP is Approved, Detailing its Compliance with its Previously Approved WMP in the Docket that Approved its WMP. 18. The Joint Utilities appreciate Staff's understanding of the timing concerns previously raised regarding Staff's originally proposed timeframe for submitting annual compliance reports. While the Joint Utilities acknowledge Staff's most recently proposed timeframe of when a compliance report is to be submitted generally resolves the concerns previously raised, a compliance report's deadline being tied to when that year's WMP was approved creates the potential for unnecessary variability in these annual reports' due dates. As such, the Joint Utilities instead recommend that compliance reports be submitted on a staggered basis with due dates being the first day of April, May, and June of each year for Idaho Power Company, Rocky Mountain Power, and Avista Corporation, respectively, and consist only of WMP results from the prior calendar year, thereby aligning with the proposed timeframe in which each approved WMP would be in effect. G. Staff Proposal No. 15 Requiring Electric Utilities Provide a Compliance Status Update with its Annual WMP Filing, Detailing its Compliance and Updates on Meeting its Measurable Targets/Goals to Help Inform Any Changes to its New WMP. 19. While the Joint Utilities support Staff's recommendation that each annual WMP filing include a status update on progress toward the measurable targets and goals set forth in their most recently approved WMP, the Joint Utilities emphasize that, given JOINT UTILITY COMMENTS - 10 the timing of when these status updates are likely to be prepared, several amounts may rely upon forecasted components until the conclusion of wildfire season. If Staff prefers that only known and measurable amounts as of the preparation of each WMP be provided as part of this status update, the Joint Utilities respectfully request that this requirement be modified accordingly. H. Staff Proposal No. 16 Requiring That Each Compliance Report Contain a List of Any Fire That Occurred Within '/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. 20. Although the Joint Utilities appreciate Staff having modified this requirement from the proposal originally put forth,6 the revised proposal's current form still results in an overly broad and burdensome requirement. Specifically, the Joint Utilities are unclear if this proposed requirement not being limited to areas of heightened wildfire risk intends to help Staff identify asset vulnerability, customer impact or some other metric, which makes trying to provide the information in a useful manner challenging. Moreover, a requirement to report all official causes of fires that occurred within a '/4 mile of a utility's infrastructure would necessitate a utility having to file a public records request for each occurrence, assuming the lead investigative agency is even known and willing to release their report. More problematic, however, is the requirement for the Joint Utilities to determine what qualifies as an "unofficial" cause of such fires - an exercise that would amount to speculation and could involve disclosing information that investigative agencies prefer not be made public. 'Staff s Supplement to Application,page 4. JOINT UTILITY COMMENTS - 11 21. In the alternative, the Joint Utilities propose modifying this requirement to limit reporting obligations to only those fires that burned more than 1 acre, are either known to the utility or reported by the National Interagency Fire Center, and that occur within a heightened wildfire risk area and within '/4 mile of a utility's infrastructure during the compliance year, and to include only those causes that are publicly available through the National Interagency Fire Center as of the date of the compliance report's compilation. I. Other 22. Although not contemplated within Staff's recommendations, Idaho Code §61-1803(3)(g)(iii) requires that landowners be compensated at fair market value if live marketable timber is identified for removal from timber company land adjacent to an electric corporation's right-of-way. Given the potential cost recovery and rate impact concerns associated with the uncertainty of this requirement, the Joint Utilities believe that clarifying how "fair market value" is to be determined would help reduce future confusion and potential landowner frustration. Additionally, the Joint Utilities believe that collaboration among all stakeholders to develop or identify either a working list of timber companies or a centralized resource that maps timber company land would be a valuable tool in supporting compliance with this requirement. III. CONCLUSION 23. The Joint Utilities appreciate the extensive work by Staff to develop the proposed filing process and WMP guidelines contained within Staff's application establishing this docket as well as Staff's Supplemental Filing. Apart from the adjustments noted above, the Joint Utilities believe that Staff's proposed WMP requirements provide a reasonable framework to support an efficient regulatory process, facilitate operational JOINT UTILITY COMMENTS - 12 readiness to execute upon the components of each utility's respective WMP, and ensure compliance with the requirements of the WSCA. Accordingly, the Joint Utilities respectfully request that the Commission adopt Staff's proposed WMP requirements, subject to the above-stated modifications, and look forward to continued collaboration with Staff and other stakeholders as WMPs continue to evolve. DATED at Boise, Idaho this Th day of August 2025. U% I W�uq MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company (Awy��9� ANNI GLOGOVAC Attorney for Avista Corporation JOE DALLAS Attorney for PacifiCorp JOINT UTILITY COMMENTS - 13 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 7t" day of August 2025 1 served a true and correct copy of Joint Utility Comments upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Hand Delivered Adam Triplett U.S. Mail Deputy Attorney General Overnight Mail Idaho Public Utilities Commission FAX 472 West Washington (83702) X Email adam.triplett(abpuc.idaho.gov P.O. Box 83720 Boise, Idaho 83720-0074 Avista Corp. Hand Delivered Anni Glogovac U.S. Mail Elizabeth Andrews Overnight Mail Avista Corporation FAX P.O. Box 3727 X Email 1411 East Mission Avenue anni.glogovac(a)avistacorp.com Spokane, WA 99220-3727 Liz.and rews(a�avistacorp.com avistadocketsC@avistacorp.com Bennett Lumber Products, Inc. Hand Delivered Idaho Forest Group U.S. Mail Manulife Investment Management Overnight Mail Molpus Woodlands Group FAX Stimson Lumber Company X Email service(a-)-smithmalek.com c/o Pendrey P. Trammell Smith & Malek, PLLC 601 E. Front Ave., Ste. 304 Coeur d' Alene, ID 83814 City of Idaho Falls Hand Delivered Michael Kirkham U.S. Mail City Attorney Overnight Mail 375 D. Street FAX Idaho Falls, Idaho 83401 X Email mkirkharnC@idahofalls.gov JOINT UTILITY COMMENTS - 14 Stephen Boorman Hand Delivered City of Idaho Falls, Idaho — Idaho Falls U.S. Mail Power Overnight Mail P.O. Box 50220 FAX 140 S. Capital Avenue X Email sboorman(ja�ifpower.org Idaho Falls, Idaho 83402 Idaho Department of Lands Hand Delivered J.J. Winters U.S. Mail Idaho Department of Lands Overnight Mail 300 N. 6th Street, Ste. 103 FAX Boise, Idaho 83702 X Email iwinters(c�idl.idaho.gov Tyre Holfeltz Hand Delivered Idaho Department of Lands U.S. Mail Wildfire Risk Mitigation Program Overnight Mail Manager FAX 300 N. 6th Street, Ste 103 X Email tholfetz(a)-idl.idaho.gov Boise, ID 83702 Kootenai Electric Cooperative Hand Delivered Michael Andrea U.S. Mail Kootenai Electric Cooperative, Inc. Overnight Mail 9014 W Lancaster Rd FAX Rathdrum, ID 83858 X Email mandrea(akec.com Thomas Maddalone Hand Delivered Kootenai Electric Cooperative U.S. Mail 9014 W. Lancaster Rd. Overnight Mail Rathdrum, ID 83858 FAX X Email tmaddalone(a_kec.com PotlatchDeltic Corporation Hand Delivered Peter Richardson U.S. Mail Gregory M. Adams Overnight Mail Richardson Adams, PLLC FAX 515 N. 27th Street X Email peter richardsonadams.com Boise, Idaho 83702 JOINT UTILITY COMMENTS - 15 Michele Tyler Hand Delivered Anna Torma U.S. Mail Wade Semeliss Overnight Mail Brian Schlect FAX PotlatchDeltic Corporation X Email 601 W. First Ave., Ste. 1600 Michele.tyler(a)potlatchdeltic.com Spokane, WA 99201 Anna.torma(ja�potlatchdeltic.com Wade.semeliss(cDpotlatchdeltic.com Brian.schlect(c�potlatchdeltic.com Jeremy Pisca Hand Delivered Risch Pisca, PLLC U.S. Mail 407 W. Jefferson Street Overnight Mail Boise, Idaho 83702 FAX X Email jpisca rischpisca.com Rocky Mountain Power Hand Delivered Joe Dallas U.S. Mail Rocky Mountain Power Overnight Mail 825 NE Multnomah, Suite 2000 FAX Portland, OR 97232 X Email Joseph.dallas(a�pacificorp.com Mark Alder Hand Delivered Idaho Regulatory Affairs Manager U.S. Mail Rocky Mountain Power Overnight Mail 1407 West North Temple, Suite 330 FAX Salt Lake City, Utah 84116 X Email mark.alder(a)_pacificorp.com Stacy Gust Regulatory Administrative Assistant JOINT UTILITY COMMENTS - 16