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HomeMy WebLinkAbout20250825Motion to Object and Answer to Staff.pdf RECEIVED August 25, 2025 Susan P. Weeks, ISB No. 4255 IDAHO PUBLIC James,Vernon, &Weeks, P.A. UTILITIES COMMISSION 1626 Lincoln Way Coeur d'Alene, ID 83834 Telephone: (208) 667-0683 Facsimile: (208) 664-1483 Email: sweeks@jvwlaw.net Attorney for Northern Lights, Inc. Tyler R. Whitney, ISB No. 9722 Cable Huston LLP 1455 SW Broadway, Ste. 1500 Portland, OR 97201-3412 Telephone: (503) 224-3092 Facsimile: (503) 224-3176 Email: twhitney@cablehuston.com Attorney for City of Bonners Ferry BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION In the Matter of the Application of Northern Case No. C 10-E-25-01 Lights, Inc. and the City of Bonners Ferry for an Order Approving a Service Territory APPLICANTS' MOTION TO OBJECT TO Agreement between the Applicants PETITION TO INTERVENE AND ANSWER TO STAFF'S EXPEDITED MOTION TO VACATE COMMENT DEADLINES Pursuant to Rule 75 of the Idaho Public Utility Commission ("Commission") Rules of Procedure, IDAPA 31.01.01.075, Northern Lights, Inc., an Idaho non-profit corporation and electric cooperative ("NLI") and the City of Bonners Ferry, an Idaho municipal corporation ("the City") (together, the "Applicants") respectfully offer this motion to object to Idaho Forest Group LLC ("IFG")'s Petition to Intervene ("Petition"). Further, pursuant to Rule 256, IDAPA 31.01.01.256, Applicants respectfully offer this answer and limited objection to Commission Staff's Expedited Motion to Vacate Comment Deadlines ("Motion"). APPLICANTS'MOTION TO OBJECT TO PETITION TO INTERVENE,AND ANSWER TO STAFF'S EXPEDITED MOTION TO VACATE COMMENT DEADLINES— 1 August 25, 2025 For the reasons discussed below, the Applicants object to IFG's Petition to Intervene ("Petition")as it is untimely. Nor has IFG articulated a direct and substantial interest in the subject matter of this proceeding that would permit intervention.While Applicants do not generally object to Commission Staff's Motion to allow staff additional time to review materials submitted by IFG before Commission Staff must file their comments, any vacatur or change in the comment deadlines should not have the effect of reopening the intervention period and allow IFG to cure its untimely Petition. A. Procedural Background In this proceeding,Applicants seek Commission approval of the Applicants' 1981 service territory agreement under I.C. § 61-333. The Applicants requested modified procedure under Rules 201-204, IDAPA 31.01.01.201-204. The Commission entered a Notice of Applicant and Notice of Modified Procedure on July 31, 2025. The notices identified an initial comment deadline of August 21, and a reply deadline of September 4. Pursuant to Rule 73, any petitions to intervene were due by August 7 (14 days before the initial comment deadline). IFG filed its Petition on August 19. B. Motion to Object to Petition to Intervene 1. IFG's Untimely Petition to Intervene Must Be Denied. Applicants respectfully request that the Commission deny IFG's untimely Petition to Intervene. Except as otherwise provided by Commission order, "petitions to intervene must be filed at least fourteen(14) days before...the deadline for filing initial comments, if the case is being processed by modified procedure under Rules 201-204...," as is the case here. Rule 73. APPLICANTS'MOTION TO OBJECT TO PETITION TO INTERVENE,AND ANSWER TO STAFF'S EXPEDITED MOTION TO VACATE COMMENT DEADLINES—2 August 25, 2025 "Petitions not timely filed must state a substantial reason for delay."Id. (emphasis added). The Commission may deny untimely petitions for failure to state good cause for the delay.Id. IFG's Petition is untimely. Applicants fully complied with Commission rules for submitting their Application, and the Commission provided public notice in the normal course. The Commission's rules required IFG to file its Petition no later than August 714 days before the initial comment deadline. IFG failed to do so. IFG waited until August 19 just two days before the comment deadline—to file its Petition. The Petition is therefore untimely and should be denied. IFG does not even attempt to explain its dilatory filing. Rule 73 states that any untimely petition, such as IFG's, "must state a substantial reason for delay." (Emphasis added). The Petition does not provide any reason—let alone a substantial one—for IFG's failure to timely intervene. See generally, IFG Petition. In fact, IFG falsely certifies that it"timely filed"the Petition.IFG Petition at¶7. The Commission should therefore deny IFG's Petition. To the extent IFG may later try to cite lack of notice for its untimely intervention, that argument fails. In its Comments, IFG complains that Applicants did not provide it with service or courtesy copies of the Application.IFG Comments at 5.1 To be clear,Applicants fully complied with Commission rules for filing and serving the Application. No statute or rule required Applicants to provide a copy of the Application to IFG or any other customer. The Commission provided public notice of the Application just like it does in every other proceeding. IFG has 1 The Applicants reserve their right to reply to the substance of IFG's Comments in accordance with the comment deadlines. APPLICANTS'MOTION TO OBJECT TO PETITION TO INTERVENE,AND ANSWER TO STAFF'S EXPEDITED MOTION TO VACATE COMMENT DEADLINES—3 August 25, 2025 timely intervened in numerous Commission proceedings over the years,2 so the Commission's notice procedure is clearly sufficient to timely apprise IFG of ongoing proceedings in which it may have an interest. Nor is lack of actual notice sufficient grounds to excuse the delay. Rule 73 requires a "substantial reason" for the delay. The Commission provided notice of the Application to the public—including IFGin the normal course. It issued Order No. 36695 (Notice of Application and Notice of Modified Procedure) on its publicly available website. It also issued a news release advising the public of the comment deadline. If merely failing to receive actual notice of the comment deadline was a"substantial reason"justifying untimely intervention, then every untimely petition to intervene would be granted. The exception would swallow the rule.And IFG is not some unsophisticated party unfamiliar with the Commission or the need to monitor its dockets. IFG routinely intervenes in cases before the Commission in a timely fashion in order to protect its interests. It simply failed to do so here. 2. IFG Has Not Satisfied the Substantive Requirements to Intervene. Even if the Petition was timely, IFG does not meet the required standard to intervene. To intervene, a party must prove it has a"direct and substantial interest" in the proceeding. Rule 72. IFG argues the standard is satisfied in two respects: (1)the proceeding could directly affect IFG's ongoing appeal of its litigation against the City; and(2) the proceeding "could directly or indirectly impact IFG's electric rates and/or quality of electric service."IFG Petition at¶4. Neither argument holds water. 2 See, e.g., Case No.AVU-E-25-01 (Feb. 21, 2025 IFG petition to intervene); Case No.AVU-E-23-01; Case No.AVU-E-21-01; Case No.AVU-E-19-04; Case No.AVU-E-18-03; Case No.AVU-E-17-09; Case No.AVU-E-17-01; Case No.AVU-E-14-06. APPLICANTS'MOTION TO OBJECT TO PETITION TO INTERVENE,AND ANSWER TO STAFF'S EXPEDITED MOTION TO VACATE COMMENT DEADLINES—4 August 25, 2025 In 2023, IFG sued the City under Idaho Code § 50-325, arguing that the City's rates were unjust, unreasonable, and discriminatory. IFG also sought a declaration that—in the absence of a PUC-approved service territory agreement—it could choose what utility it took service from. The district court granted the City's motion to dismiss that claim at the pleading stage.3 On appeal, the Idaho Supreme Court will only review whether IFG can choose its service provider in the absence of a PUC-approved service territory agreement. Thus, no matter how the appellate court rules on that issue, there is no possible conflict with the Commission approving the Applicant's agreement. A hypothetical helps expose the disjunction between the appeal and this proceeding. Imagine that the Commission stays this proceeding until the Idaho Supreme Court rules, and the court agrees with IFG that, in the absence of a PUC-approved service territory agreement, IFG is free to choose its provider. The outcome of this proceeding would be the exact same as if it were never stayed. Idaho law empowers the City and NLI to enter into a service territory agreement confirming that IFG is within the City's service territory, and to seek Commission approval of that agreement. The Commission's analysis is identical whether the matter is taken up now or in two years after the appeal is complete. This example exposes the flawed nature of IFG's argument.Any ruling in the pending appeal will have no effect on the Commission's ultimate evaluation of whether to approve a service territory agreement between the Applicants. IFG's true concern appears to be that its appellate issue will become moot if the Commission approves the 1981 agreement. IFG elevates litigation tactics over substantive concerns. IFG's whole complaint was that the Applicants had not received Commission approval s The court also ruled in the City's favor on every other claim IFG asserted in the litigation. APPLICANTS'MOTION TO OBJECT TO PETITION TO INTERVENE,AND ANSWER TO STAFF'S EXPEDITED MOTION TO VACATE COMMENT DEADLINES—5 August 25, 2025 for the 1981 service territory agreement.4 Applicants are now doing exactly what IFG contended they should have done previously. Rather than gladly accept that development, IFG now protests because approving the agreement would moot this one appellate issue.5 IFG's claim that this "could directly and prejudicially affect the outcome"of its appeal is simply wrong.An issue only becomes moot when there is no longer a live dispute for the court to adjudicate. Thus, any dismissal on mootness grounds is because there is no longer a live dispute between it and the City—which is a good thing for both parties.And to be clear, IFG's litigation strategies have no bearing on the Commission's duty to "review and approve or reject contracts between municipalities and cooperatives"under the ESSA. I.C. § 61-333(1). IFG's second justification for intervention is equally unavailing. IFG claims that PUC approval of Applicant's 1981 service territory agreement may somehow impact its rates or service quality. There is absolutely zero basis for this claim. The City has provided electric service to IFG's Moyie Springs Mill for decades; NLI has never served that facility. Commission approval of the Applicants' 1981 service territory agreement merely maintains the status quo. There is no conceivable way in which this proceeding will affect the quality of service provided to IFG's Moyie Springs Mill. PUC approval will likewise have no impact on rates.Again, Applicants merely seek Commission approval of the status quo. Thus, approving the 1981 agreement will not affect rates. 4 See, e.g., Decl. of Andrew P. Moratzka in Support of Idaho Forest Group LLC's Comment,Ex. B at 8 ("IFG counters that `I.C. § 61-333 requires that any service territory agreement between the City and a power cooperative be(1)filed with the PUC and(2)approved by the PUC, after notice and opportunity for hearing . . . ."'). 5 To be clear,IFG has appealed numerous trial court rulings, including the court's ruling after a bench trial that the City's rates are just and reasonable.Those issues will not be affected in any way by Commission approval of the Application. APPLICANTS'MOTION TO OBJECT TO PETITION TO INTERVENE,AND ANSWER TO STAFF'S EXPEDITED MOTION TO VACATE COMMENT DEADLINES—6 August 25, 2025 IFG has failed to prove that it has a"direct and substantial interest" in this proceeding. The Commission should therefore deny the Petition. C. Answer to Expedited Motion to Vacate Comment Deadlines IFG submitted its Petition and Initial Comments on August 19—two days before the initial comment deadline. Commission Staff requested more time to review those materials before determining whether they have any bearing on Staff's initial comments.Applicants do not object to Commission Staff's request for additional time to complete that review. However, any modification of the comment deadline to facilitate Staff review should not reopen the intervention period. IFG had a full and fair opportunity to timely intervene in this docket and failed to do so. Commission Staff's need for more time to review materials should not allow IFG to cure its untimely intervention and violation of Commission Rules. Applicants therefore request that any order granting Staff's motion to vacate the current comment deadlines be limited in nature, and clarify that the intervention period for this docket has already closed. Dated this 25th day of August, 2025. NORTHERN LIGHTS, INC. By: /s/Susan R Weeks Susan P. Weeks Attorney for Northern Lights, Inc. CITY OF BONNERS FERRY By: s/ Tyler R. Whitney Tyler R. Whitney Attorney for City of Bonners Ferry APPLICANTS'MOTION TO OBJECT TO PETITION TO INTERVENE,AND ANSWER TO STAFF'S EXPEDITED MOTION TO VACATE COMMENT DEADLINES—7 August 25, 2025 Certificate of Service I hereby certify that I have this 25th day of August, 2025 served the foregoing Applicants' Motion to Object to Petition to Intervene, and Answer to Staff's Expedited Motion to Vacate Comment Deadlines, in Case No. C10-E-25-01,by emailing a copy thereof to the following: Commission Secretary Idaho Forest Group Idaho Public Utilities Commission Andrew P. Moratzka(pro hac vice pending) 427 W. Washington Street Stoel Rives LLP Boise, ID 83702 33 South 6 h Street secretary@puc.idaho.gov Minneapolis, MN 55402 andrew.moratzka@stoel.com Commission Staff W. Christopher Pooser Adam Triplett Alaina Harrington Idaho Public Utilities Commission Stoel Rives LLP P.O. Box 83720 101 S. Capitol Blvd., Suite 1900 Boise, ID 83720-0074 Boise, ID 83702 adam.triplett@puc.idaho.gov christopher.pooser@stoel.com alaina.harrington@stoel.com sl Tammi Broskoski Tammi Broskoski Legal Assistant to Tyler R. Whitney Certificate of Service