The URL can be used to link to this page

Home My WebLink About20251027Answer to Petition for Reconsideration.pdf RECEIVED October 27, 2025 C. Tom Arkoosh, ISB No. 2253 IDAHO PUBLIC ARKOOSH LAW OFFICES UTILITIES COMMISSION 913 W. River Street, Suite 450 P.O. Box 2900 Boise, ID 83701 Telephone: (208) 343-5105 Facsimile: (208) 343-5456 Email: tom.arkooshkarkoosh.com Admin copy: erin.cecilkarkoosh.com Attorneys for PotlatchDeltic Corporation BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF COMMISSION Case No. GNR-E-25-02 STAFF'S APPLICATION FOR APPROVAL OF A FILING PROCESS ) POTLATCHDELTIC FOR WILDFIRE MITIGATION PLANS ) CORPORATION'S ANSWER TO PETITION FOR RECONSIDERATION FILED COLLECTIVELY BY KOOTENAI ELECTRIC COOPERATIVE, INC., LOWER VALLEY ENERGY, NORTHERN LIGHTS,INC.,IDAHO COUNTY LIGHT & POWER COOPERATIVE, INC., RAFT RIVER RURAL ELECTRIC COOPERATIVE, INC.,FALL RIVER RURAL ELECTRIC COOPERATIVE,AND UNITED ELECTRIC CO-OP,INC. COMES NOW, POTLATCHDELTIC CORPORATION ("PotlatchDeltic"), by and through its counsel of record, C. Tom Arkoosh of Arkoosh Law Offices, and pursuant to Rule 331.05 of the Commission's Rules of Procedure hereby lodges its Answer to the Petition for Reconsideration or in the Alternative, Request for Clarification of Order No. 36774 ("Petition") filed by the above captioned entities who are referred to collectively herein as the "Cooperative Utilities" or the "Petitioners." POTLATCHDELTIC CORPORATION'S ANSWER TO PETITION FOR RECONSIDERATION FILED COLLECTIVELY BY KOOTENAI ELECTRIC COOPERATIVE,INC.,LOWER VALLEY ENERGY, NORTHERN LIGHTS,INC.,IDAHO COUNTY LIGHT&POWER COOPERATIVE,INC.,RAFT RIVER RURAL ELECTRIC COOPERATIVE,INC.,FALL RIVER RURAL ELECTRIC COOPERATIVE,AND UNITED ELECTRIC CO-OP,INC.—Page 1 INTRODUCTION Petitioners ask the Commission to reconsider two foundational findings in Order No. 36774 (the "Order") regarding the content of wildfire mitigation plans ("WMP"), which plans are to be filed with the Commission for its approval or rejection pursuant to the Wildfire Standard of Care Act(the "Act").' The challenged portions of the Order require that: WMPs must explain how an electric corporation's line design methods reduce the potential for wildfire ignition, including a cost evaluation. And; [A]ll electric corporations must include a cost-benefit analysis in their proposed WMPs that justifies the expenditures for risk mitigation described within.2 Alternatively, the Cooperative Utilities seek the same relief, albeit under the nomenclature of a request for"clarification."' THE COOPERATIVE UTILITIES ARE SEEKING RELIEF IN THE WRONG FORUM PotlatchDeltic respectfully requests the Commission deny the Petitioners' Request for Reconsideration and/or Clarification. The Petitioners are seeking relief from the wrong forum. The Petitioners argue that it is literally'"impossible"for them to comply with the Act.The solution proposed by the Petitioners is to have the Commission defer to "the Filing Parties' governing bodies'attestations" as to compliance.5 However, that solution is prohibited by the Act because only the Commission is authorized to approve or reject WMPs.6 The Cooperative Utilities find 1 Idaho Code§§ 61-1801 et seq. 2 Petition at p.2. s Id. a Petition at Fn 8 on p. 9;"A cost-benefit analysis is not only impossible to perform..." 5 Petition At p. 10. 6 Idaho Code§ 61-1804(1) POTLATCHDELTIC CORPORATION'S ANSWER TO PETITION FOR RECONSIDERATION FILED COLLECTIVELY BY KOOTENAI ELECTRIC COOPERATIVE,INC.,LOWER VALLEY ENERGY, NORTHERN LIGHTS,INC.,IDAHO COUNTY LIGHT&POWER COOPERATIVE,INC.,RAFT RIVER RURAL ELECTRIC COOPERATIVE,INC.,FALL RIVER RURAL ELECTRIC COOPERATIVE,AND UNITED ELECTRIC CO-OP,INC.—Page 2 that the Act is impossible for them to comply with, and their solution is, in turn,prohibited by the very terms of the Act. The Petitioners find themselves in a classic `Catch-22.' Their remedy is not to second-guess the Commission's reasoned approach to implementing the Act, but rather to ask the Legislature to fix the Act's provisions, making their compliance "impossible." It is important to keep in mind, however, that the Cooperative Utilities are not required to do anything by the Act. Cooperative Utility compliance with the Act is entirely voluntary.7 Significantly,the Act makes no distinction between WMPs filed by a public utility or WMPs filed by an electric corporation that is a non-public utility, such as the Petitioners. In other words, the Act does not give the Commission authority to discriminate in its treatment(approval or rejection) of WMPs based on whether the filing entity is a public utility or an electric corporation that is not a public utility, such as the Cooperative Utility Petitioners. The Cooperative Utilities also argue that the Commission's review of the cost and benefits of their proffered WMPs is tantamount to unlawful rate regulation of non-PUC jurisdictional electric cooperatives. In making that argument,the Cooperative Utilities take an incredible leap of logic: [A]ny Commission determination to reject a WMP based on costs associated with a WMP will likely result in the utility revising its WMP to modify those costs to satisfy the Commission's requirements. Commission action requiring unregulated utilities to modify the costs that they incur is effectively rate regulation.8 The Petitioners make the untenable argument that they are being `forced to make a Hobson's choice to either submit to rate regulation ... or forfeit some of the benefits provided by the[Act.]" The Act obviously does not subject Cooperative Utilities to rate regulation by the Commission. Idaho Code§ 61-1803(2)(b). $Petition at p. 6. POTLATCHDELTIC CORPORATION'S ANSWER TO PETITION FOR RECONSIDERATION FILED COLLECTIVELY BY KOOTENAI ELECTRIC COOPERATIVE,INC.,LOWER VALLEY ENERGY, NORTHERN LIGHTS,INC.,IDAHO COUNTY LIGHT&POWER COOPERATIVE,INC.,RAFT RIVER RURAL ELECTRIC COOPERATIVE,INC.,FALL RIVER RURAL ELECTRIC COOPERATIVE,AND UNITED ELECTRIC CO-OP,INC.—Page 3 They remain free to change their retail rates (or not change their retail rates) as they see fit. Furthermore, they seem to have lost sight of the legislative directive to the Commission that any costs associated with an WMP must be "reasonable in order to keep rates affordable to utility customers."9 Despite the preferences and objections of the Cooperative Utilities,the Act unambiguously and inescapably requires the Commission to evaluate WMPs based on "appropriate cost parameters"and"costs that can be justified as just and reasonable."10 The Commission's Order appropriately and reservedly sets up parameters for accomplishing the legislature's mandate while respecting the autonomy and ratemaking authority of the Cooperative Utilities. It is worth noting, once again,that the Cooperative Utilities are not required to do anything under the Act. If they choose to file an RMP with the Commission, they have then voluntarily acquiesced to the Commission's review of that RMP, which Commission review must be done pursuant to the explicitly required parameters that the legislature mandated in the Act. In other words, the Commission cannot simply and unilaterally alter the very terms of the Act. The Commission is required, by law, to evaluate WMPs based on "appropriate cost parameters" and find that such"appropriate cost parameters"are'justified. . . as reasonable. " The correct forum to address the Cooperative Utilities' objections to the very foundational requirements in the Act is before the Idaho Legislature and not the PUC. 9 Idaho Code§ 61-1802 10 Idaho Code§ 61-1802. POTLATCHDELTIC CORPORATION'S ANSWER TO PETITION FOR RECONSIDERATION FILED COLLECTIVELY BY KOOTENAI ELECTRIC COOPERATIVE,INC.,LOWER VALLEY ENERGY, NORTHERN LIGHTS,INC.,IDAHO COUNTY LIGHT&POWER COOPERATIVE,INC.,RAFT RIVER RURAL ELECTRIC COOPERATIVE,INC.,FALL RIVER RURAL ELECTRIC COOPERATIVE,AND UNITED ELECTRIC CO-OP,INC.—Page 4 The Commission has accomplished a formidable task in a short period of time to implement the Act and accommodate the compressed timetables urged upon it by the many different utilities that are planning to file WMPs. The Cooperative Utilities' objections to the Commission's implementation of the Act are misplaced, overstated, and made before the wrong forum. Their Petition for Reconsideration or in the Alternative for Clarification should therefore be denied. DATED this 27th day of October 2025. ARKOOSH LAW OFFICES C. Tom Arkoosh Attorney for PotlatchDeltic Corporation POTLATCHDELTIC CORPORATION'S ANSWER TO PETITION FOR RECONSIDERATION FILED COLLECTIVELY BY KOOTENAI ELECTRIC COOPERATIVE,INC.,LOWER VALLEY ENERGY, NORTHERN LIGHTS,INC.,IDAHO COUNTY LIGHT&POWER COOPERATIVE,INC.,RAFT RIVER RURAL ELECTRIC COOPERATIVE,INC.,FALL RIVER RURAL ELECTRIC COOPERATIVE,AND UNITED ELECTRIC CO-OP,INC.—Page 5 CERTIFICATE OF MAILING I HEREBY CERTIFY that on the 27th day of October 2025, 1 served a true and correct copy of the foregoing document(s)upon the following person(s)by electronic copy only Idaho Public Utilities Commission Idaho Public Utilities Commission Monica Barrios-Sanchez Adam Triplett Commission Secretary Deputy Attorney General PO Box 83720 PO Box 83720 Boise, ID 83720-0074 Boise, ID 83720-0074 secretgakpuc.idaho.gov adam.triplettkpuc.idaho.gov Rocky Mountain Power Rocky Mountain Power Joe Dallas Mark Alder 825 NE Multnomah, Ste 2000 1407 W North Temple, Ste 330 Portland, OR 97232 Salt Lake City, UT 84116 Joseph.dallaskpacificorp.com mark.alderkpacificorp.com datarequestkpacificorp.com Kootenai Electric Cooperative, Inc. Avista Utilities Michael G. Andrea Anni Glogovac, Counsel for Regulatory Thomas Maddalone Affairs 9015 W Lancaster Rd Elizabeth Andrews, Sr. Manager of Rathdrum, ID 83858 Revenue Requirements mandrea(a,kec.com PO Box 3727 tmaddalonekkec.com 1411 E Mission Ave, MSC 27 Spokane, WA 99220 Anni._lg_o_ov�ackavistacorp.com Liz.andrews(c avi stacorp.com USTelecom—The Broadband Idaho Department of Lands Association J.J. Winters, Attorney B. Lynn Follansbee, VP Strategic Tyre Holfeltz, Wildfire Risk Initiatives 300 N 6ch St, Ste 103 Katheleen Slattery Thompson, VP Reg. Boise, ID 83702 &Legal Jwinterskidl.idaho.gov 601 New Jersey Ave NW, Ste 600 tholfeltz(,,idl.idaho.gov Washington, DC 20001 ksthomp son(rustelecom.org lfollansbeekustelecom.org POTLATCHDELTIC CORPORATION'S ANSWER TO PETITION FOR RECONSIDERATION FILED COLLECTIVELY BY KOOTENAI ELECTRIC COOPERATIVE,INC.,LOWER VALLEY ENERGY, NORTHERN LIGHTS,INC.,IDAHO COUNTY LIGHT&POWER COOPERATIVE,INC.,RAFT RIVER RURAL ELECTRIC COOPERATIVE,INC.,FALL RIVER RURAL ELECTRIC COOPERATIVE,AND UNITED ELECTRIC CO-OP,INC.—Page 6 Idaho Power Company City of Idaho Falls Megan Goicoechea Allen Idaho Falls Power Donovan E. Walker Stephen Boorman, Interim General Lisa C. Lance Manager Tim Tatum PO Box 50220 Riley Maloney 140 S Capital Ave Connie Aschenbrenner Idaho Falls, ID 83402 PO Box 70 sboorman&ifpower.org Boise, ID 83707 mgoicoecheaallen&idahopower.com City of Idaho Falls dwalkergidahopower.com Idaho Falls Power llancegidahopower.com Michael A. Kirkham, City Attorney ttatum&idahopower.com 375 "D" Street rmaloney&idahopower.com Idaho Falls, ID 83401 caschenbrenner&idahopower.com mkirkham(&ifpower.org dockets&idahopower.com Bennett Lumber Products, Inc. CTIA Idaho Forest Group Matthew DeTura, Counsel for External Manulife Investment Management Affairs Molpus Woodlands Group Benjamin Aron, Assistant VP State Stimson Lumber Company Regulatory c/o Pendrey P. Trammell 1400 16th St NW, Ste 600 Smith&Malek, PLLC Washington, DC 20036 601 E Front Ave, Ste 304 mdetura(a)ctia.org Couer d'Alene, ID 83814 baron&ctia.org service&smithmalak.com Northern Lights, Inc. Atlanta Power Company Claire Babcock Nick Jones PO Box 269 325 W Yuba Vista Dr Sagel, ID 83860 Atlanta, ID 83716 Claire.babcockknli.coop Atlantapower23goutlook.com Lower Valley Energy Clearwater Power Co. Jon Hougland Telly Stanger PO Box 188 230 Hatwai Rd Afton, WY 83110 Lewiston, ID 83501 jhou-lg andklvenerg_ m tstanger&clearwaterpower.com POTLATCHDELTIC CORPORATION'S ANSWER TO PETITION FOR RECONSIDERATION FILED COLLECTIVELY BY KOOTENAI ELECTRIC COOPERATIVE,INC.,LOWER VALLEY ENERGY, NORTHERN LIGHTS,INC.,IDAHO COUNTY LIGHT&POWER COOPERATIVE,INC.,RAFT RIVER RURAL ELECTRIC COOPERATIVE,INC.,FALL RIVER RURAL ELECTRIC COOPERATIVE,AND UNITED ELECTRIC CO-OP,INC.—Page 7 Idaho County Light&Power Lost River Electric Cooperative Cooperative, Inc. Brad J. Garnett Chad Black 305 Pine St PO Box 617 Mackey, ID 83251 Malta, ID 83342 Brad(a�lrecoop.com cblackgrrelectric.c om Fall River Rural Electric Cooperative United Electric Co-Op, Inc. Bryan L. Case Michael Darrington 1150 N 3400 E 1330 21St St Ashton, ID 83420 Heyburn, ID 83336 Bryan.casegfallriverelectric.com mdarrin tg onguec.coop PotlatchDeltic Corporation Peter J. Richardson 515 N. 27th St Boise, ID 83702 petergrichardsonadams.com C. Tom Arkoosh POTLATCHDELTIC CORPORATION'S ANSWER TO PETITION FOR RECONSIDERATION FILED COLLECTIVELY BY KOOTENAI ELECTRIC COOPERATIVE,INC.,LOWER VALLEY ENERGY, NORTHERN LIGHTS,INC.,IDAHO COUNTY LIGHT&POWER COOPERATIVE,INC.,RAFT RIVER RURAL ELECTRIC COOPERATIVE,INC.,FALL RIVER RURAL ELECTRIC COOPERATIVE,AND UNITED ELECTRIC CO-OP,INC.—Page 8