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HomeMy WebLinkAbout20251028Cross Petition for Reconsideration.pdf RECEIVED October 28, 2025 Gregory M. Adams, ISB No. 7454 IDAHO PUBLIC Richardson Adams, PLLC UTILITIES COMMISSION 515 N. 27th Street Boise, Idaho 83702 Phone: (208) 938-7900 Email: greg@richardsonadams.com Rose Monahan, CA Bar No. 329861 (pro hac vice) Sierra Club 2101 Webster Street, Suite 1300 Oakland, California 94612 Phone: (415) 977-5704 Email: rose.monahan@sierraclub.org Attorneys for Sierra Club and Vote Solar BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION FOR ITS FIRST ANNUAL UPDATE TO THE CASE NO. IPC-E-25-15 EXPORT CREDIT RATE FOR NON- LEGACY ON-SITE GENERATION SIERRA CLUB AND VOTE CUSTOMERS FROM DUNE 1, 2025 SOLAR'S CROSS PETITION THROUGH MAY 31, 2026, FOR RECONSIDERATION INCOMPLIANCE WITH ORDER NO. 36048 October 28, 2025 Table of Contents I. Introduction.......................................................................................................................... 1 II. The City Correctly Identifies the System-Wide Value of Distributed Energy Resources. .. 2 III. The City's Petition, like Sierra Club and Vote Solar's Petition, Demonstrates that Order No. 36875 Correctly Found the ECR Methodology Unreasonable but Failed to Address Underlying Calculation Deficiencies. .................................................................................. 2 IV. The Commission Should Reject the 2025 ECR Update, or, at a Minimum, Direct its Staff to Establish a Working Group Process to Address the ECR Calculation. ........................... 3 V. Conclusion............................................................................................................................ 5 i Gregory M. Adams, ISB No. 7454 Richardson Adams, PLLC 515 N. 27th Street Boise, Idaho 83702 Phone: (208) 938-7900 Email: greg@richardsonadams.com Rose Monahan, CA Bar No. 329861 (pro hac vice) Sierra Club 2101 Webster Street, Suite 1300 Oakland, California 94612 Phone: (415) 977-5704 Email: rose.monahan@sierraclub.org Attorneys for Sierra Club and Vote Solar BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION FOR ITS FIRST ANNUAL UPDATE TO THE CASE NO. IPC-E-25-15 EXPORT CREDIT RATE FOR NON- LEGACY ON-SITE GENERATION CUSTOMERS FROM DUNE 1, 2025 THROUGH MAY 31, 2026, INCOMPLIANCE WITH ORDER NO. 36048 SIERRA CLUB AND VOTE SOLAR'S CROSS PETITION FOR RECONSIDERATION I. Introduction Pursuant to Idaho Code § 61-626 and Commission Rule of Procedure 331, IDAPA 31.01.01.331, Sierra Club and Vote Solar respectfully submit the following Cross Petition for Reconsideration of Order No. 36785 in response to the City of Boise's ("City") Petition for Reconsideration. Consistent with the Commission's duty under Idaho Code § 61-502 to ensure that all rates are just,reasonable, and non-discriminatory, Sierra Club and Vote Solar urge the SIERRA CLUB AND VOTE SOLAR CROSS PETITION FOR RECONSIDERATION - I Commission to reconsider its approval of Idaho Power's Export Credit Rates ("ECR") update and to, at minimum, direct its Staff to initiate a targeted stakeholder process to correct the underlying calculation flaws before the next ECR filing in 2028. This Cross Petition is being filed within seven days of the City's Petition and is thus timely. II. The City Correctly Identifies the System-Wide Value of Distributed Energy Resources. The City's filing persuasively explains that customer-generators lower system costs, defer transmission and generation investment, and diversify Idaho Power's resource mix benefits that accrue to all customers, not just the customer-generator.1 As the City notes, exports from customer-generators "are produced by generation assets that are not in rate base,"yet contribute to meeting system demand.2 Sierra Club and Vote Solar agree that the ECR must fairly compensate these contributions and that undervaluing distributed generation risks higher long-term costs to ratepayers through increased rate-base investment. III. The City's Petition, like Sierra Club and Vote Solar's Petition, Demonstrates that Order No. 36875 Correctly Found the ECR Methodology Unreasonable but Failed to Address Underlying Calculation Deficiencies. Both the City's and Sierra Club and Vote Solar's Petitions for Reconsideration emphasized that the Commission's decision to impose a 40 percent cap on the ECR energy component decrease and freeze the rate for three years was an acknowledgment that the calculated ECR was unjust and unreasonable.3 These ad hoc fixes confirmed that the current ECR methodology cannot be relied upon to produce reasonable results. Reconsideration is ' Boise City Petition for Reconsideration at 2-5. 2 Id. at 4. 3 Id. at 5; Sierra Club and Vote Solar Petition for Reconsideration at 3. SIERRA CLUB AND VOTE SOLAR CROSS PETITION FOR RECONSIDERATION -2 therefore necessary to align Commission practice with the statutory requirement that rates be just and reasonable, which requires that they be grounded in transparent, evidence-based methodologies.4 IV. The Commission Should Reject the 2025 ECR Update, or, at a Minimum,Direct its Staff to Establish a Working Group Process to Address the ECR Calculation. The City makes four requests of the Commission: (1) deny Idaho Power's 2025 ECR update request; (2) direct Idaho Power to update the proxy used to determine the avoided energy value component of the ECR to more accurately reflect avoided costs; (3) cap future ECR decreases to no more than 20 percent; and (4) establish an ECR update cadence of three to four years.5 Sierra Club and Vote Solar agree that the record evidence supports these requests and that they warrant full consideration on reconsideration. As the Commission has recognized, the 2025 ECR produced results so unjust and unreasonable that it required ad hoc mitigation measures. Sierra Club and Vote Solar's Opening Comments and Petition for Reconsideration identified multiple flaws in the underlying ECR methodology—including but not limited to the energy cost component—that must be corrected to prevent future distortions. For instance, Sierra Club and Vote Solar explained that the current calculation relies on unverifiable and volatile inputs, including an opaque Effective Load Carrying Capability(ELCC) factor, as well as other flaws that fail to reflect the value that distributed generation provides to the grid. This evidence supports both denying Idaho Power's 2025 ECR update requests as well as updating the avoided energy value component prior to the next ECR update filing. a Washington Water Power Co. v. Idaho Public Utilities Comm'n, 101 Idaho 567, 574 (1980) (Commission decisions must be based upon"adequate findings of fact based upon competent and substantial evidence"and the Commission"must forth its reasoning in a rational manner"). 5 Boise City Petition for Reconsideration at 2. SIERRA CLUB AND VOTE SOLAR CROSS PETITION FOR RECONSIDERATION -3 Sierra Club and Vote Solar also explained in earlier comments that ECR volatility undermines customer confidence and investment in on-site generation.6 In adopting the mitigation measures contained in Order No. 36785, the Commission also recognized the need for gradual, predictable rate adjustments.7 Adopting the City's proposed modifications—a 20 percent limit on ECR decreases and three to four years between ECR updates—would improve rate stability,promote fairness, and advance the Commission's commitment to gradualism in rate design. While the Commission has paused changes to the ECR until 2028, this was on a one-off mitigation measure that may not be carried forward in later years. Accordingly, the City's proposals are well founded and warrant reconsideration of Order No. 36785. If reconsideration is granted, Sierra Club and Vote Solar will submit additional evidence in support of the City's recommendations as well as other recommended modifications. Should the Commission decline to accept the City's Petition, the Commission should, at a minimum, grant Sierra Club and Vote Solar's Petition for Reconsideration and direct Staff to convene a working group to evaluate the ECR calculation before Idaho Power's next filing. This approach would allow stakeholders to use the time before the next ECR update to develop recommendations the Commission can consider to resolve deficiencies in the ECR and ensure that e ECR updates are grounded in a durable and accurate ECR calculation. The City's recommendations regarding updates to the avoided energy cost component, limits on ECR decreases, and time periods between ECR updates could be considered through the proposed stakeholder working group, while also allowing for review of other components of the ECR calculation that have proven equally problematic. 6 Sierra Club and Vote Solar Opening Comments at 8. Order No. 36785 at 24. SIERRA CLUB AND VOTE SOLAR CROSS PETITION FOR RECONSIDERATION -4 V. Conclusion For the reasons set forth above, Sierra Club and Vote Solar recommend that the Commission grant the City's Petition for Reconsideration and/or grant Sierra Club and Vote Solar's Petition for Reconsideration. Respectfully submitted, DATED: October 28, 2025 Rose Monahan(pro hac vice) Attorney for Sierra Club and Vote Solar SIERRA CLUB AND VOTE SOLAR CROSS PETITION FOR RECONSIDERATION - 5 CERTIFICATE OF SERVICE I hereby certify that on this 28th day of October, 2025, I delivered true and correct copies of the foregoing SIERRA CLUB AND VOTE SOLAR'S CROSS PETITION FOR RECONSIDERATION to the following persons via the method of service indicated below: Electronic mail only see Order 35375) Idaho Public Utilities Commission Monica Barrios-Sanchez, Secretary secretary@puc.idaho.gov Erika K. Melanson Erika.melanson@puc.idaho.gov Idaho Power Company Megan Goicoechea Allen Donovan Walker mgoicoecheaallen@idahopower.com dwalker@idahopower.com dockets@idahopower.com Individual Intervenor Kevin Dickey BellefourcheOI@gmail.com Clean Energy Opportunities for Idaho ("CEO') Kelsey Jae kelsey@kelseyjae.com Individual Intervenor Martha Bibb marthasbibb@gmail.com Individual Intervenor Scott Pinizzotto s.pinizzotto@gmail.com Idahome Energy Tyler Grange Tyler@idahomeenergy.com 1 City of Boise Jessica Harrison Katie O'Neil BoiseCityAttomey@cityofboise.org jharrison@cityofboise.org koneil@cityofboise.org Rose Monahan(pro hac vice) Attorney for Sierra Club and Vote Solar 2