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HomeMy WebLinkAbout20251028Response to Petitions for Reconsideration.pdf IQAHOPOWER. MEGAN GOICOECHEA ALLEN RECEIVED Corporate Counsel OCTOBER 28, 2025 mgoicoecheaallen(cDidahopower.com IDAHO PUBLIC UTILITIES COMMISSION October 28, 2025 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-25-15 Idaho Power Company's Application for Its First Annual Update to the Export Credit Rate for Non-Legacy On-Site Generation Customers from June 1, 2025 Through May 31, 2026 in Compliance with Order No. 36048 Dear Commission Secretary: Attached for electronic filing is Idaho Power Company's Answer to the City of Boise City and Sierra Club and Vote Solar's Petition for Reconsideration in the above-entitled matter. If you have any questions about the attached documents, please do not hesitate to contact me. Sincerely, Megan Goicoechea Allen MGA:sg Attachments P.O.Box 70(83707) 1221 W.Idaho St. Boise,ID 83702 MEGAN GOICOECHEA ALLEN (ISB No. 7623) DONOVAN WALKER (ISB No. 5921) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2664 Facsimile: (208) 388-6936 mgoicoecheaallen(a).idahopower.com dwalker(a)idahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S APPLICATION FOR ITS ) CASE NO. IPC-E-25-15 FIRST ANNUAL UPDATE TO THE EXPORT ) CREDIT RATE FOR NON-LEGACY ON- ) IDAHO POWER COMPANY'S SITE GENERATION CUSTOMERS FROM ) ANSWER TO THE CITY OF JUNE 1, 2025 THROUGH MAY 31, 2026, IN ) BOISE CITY AND SIERRA CLUB COMPLIANCE WITH ORDER NO. 36048. ) AND VOTE SOLAR'S PETITION FOR RECONSIDERATION COMES NOW, Idaho Power Company ("Idaho Power" or "Company") pursuant to Idaho Code § 61-626 and Idaho Public Utilities Commission's ("Commission") Rule of Procedure' 331.05, hereby submits this answer to the Petitions filed on October 21, 2025, by the City of Boise City ("Boise City" or"City") and Sierra Club and Vote Solar's ("SC/VS") (collectively "Petitioners") requesting reconsideration of Commission Order No. 36785. Hereinafter cited as Procedural Rule. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 1 The Petitions for Reconsideration should be dismissed as they fail to comply with Procedural Rule 331, and improperly seek to reopen the previously final and conclusive Order No. 36048 from a different docket. Further, the Commission's Order No. 36785 in this matter is supported by substantial, competent evidence in the record, and the Commission properly exercised and regularly pursued its authority in its determinations. Consequently, there is no basis for reconsideration of the Commission's final determination in Order No. 36785. I. SCOPE OF THE CASE 1. The instant case was initiated as the Company's first annual compliance filing to implement the Commission-approved annual Export Credit Rate ("ECR") update method pursuant to Commission Order No. 36048 issued in Case IPC-E-23-14 ("ECR Methodology Case").2 Building on the foundation laid in the preceding cases, that order approved changes to the Company's on-site generation service offerings including approval of the ECR methodology and directing the Company to "update all proposed components of the ECR except the season and hours of highest risk in an annual filing beginning April 1, 2025.113 Notably, none of the Petitioners requested reconsideration of that Order resulting in it becoming final and conclusive. 2. As in the prior customer generation-related dockets, the instant case generated strong interest from certain members of the public, many of whom may not have been aware of the regulatory precedent and/or the role that stakeholder feedback 2 In the Matter of Idaho Power Company's Application for Authority to Implement Changes to the Compensation Structure Applicable to Customer On-Site Generation Under Schedules 6, 8, and 84 and to Establish an Export Credit Rate Methodology, Case No. IPC-E-23-14, Order No. 36048 (Dec. 29, 2023). 3 Id., at 7. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 2 played in previously developing the ECR methodology. 3. As a result, the Company endeavored to educate stakeholders and clarify that it was not making a new proposal in this case but merely seeking to implement the annual ECR update as directed by the Commission based on a methodology that was previously vetted, informed, and refined through a collaborative and iterative process and represents the culmination of a multi-year effort to have the Commission review and modify the outdated net metering offerings to better align with the actual circumstances.4 4. With the Commission having previously established the method for calculating the ECR, including specifying the inputs and methods for updating the various components, the scope of this case was limited to whether the Company had properly applied the Commission-approved formula. 5. On September 30, 2025, the Commission issued Order No. 36785, which, in pertinent part, acknowledged that the Company's filing complied with the Commission- approved annual ECR update method outlined in Order No. 36048. Notwithstanding such compliance, in recognition that this inaugural update — particularly when coupled with unrelated rate changes that have occurred in other dockets impacting all customers — results in varying customer bill impacts, with some on-site generation customers subject to relatively large bill increases, the Commission found it reasonable to implement certain 4 The situation and issues confronting the Commission are not dissimilar to those that have, are, or will be faced by numerous state regulatory commissions nationwide. The NC Clean Energy Technology Center's ("NCCETC") annual review noted that in 2024, nearly every state in the country considered solar policy or rate design changes. NCCETC, The 50 States of Solar. States Continue to Move Away From Traditional Net Metering, While Fixed Charge Increases Rebound in 2024, Jan. 23, 2025 [Press release] ("During 2024, we continued to see states move away from traditional net metering and toward alternative compensation structures, like net billing, for distributed generation . . . The focus of these changes has been on netting intervals and export credit rates . . ."). Available at: https://nccleantech.ncsu.edu/2025/01/23/the-50-states-of-solar-states-continue-moves-away-from- traditional-net-metering-while-fixed-charge-increases-rebound-in-2024/ IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 3 mitigation measures. 6. Responding to those comments raising issues that have already been addressed by the Commission or were otherwise outside the scope of this compliance filing docket, the Commission emphasized that it had previously "provided a comprehensive review of each component of the ECR calculation in its decision, seeking `to accurately assign the appropriate share of fixed costs and unquantified benefits of on- site customer generation, and to provide a reasonable balance between the interests of customers with on-site generation, and customers without."15 7. While it is impossible to expect that all interested parties will agree with the balance the Commission struck, it was the result of a careful and thorough review of the issues and consideration of competing interests that occurred throughout a years-long, multi-phase collaborative process to modernize an outdated service offering, including modifying the compensation structure for on-site generators to more accurately measure, record, and value their excess energy exported to the Company. Having conducted this comprehensive review and formulating the ECR through a thorough data-driven, collaborative, and thoughtful process, the Commission established ECR Methodology should provide the framework for valuing excess energy for on-site generators for the foreseeable future; in the absence of dramatically changed and unforeseen circumstances, there should not be a need to repeat this process for some time to come. II. BACKGROUND 8. The extensive history of the Company's net metering service offering demonstrates an on-going and incremental effort by the Company to establish a 5 Order No. 36785 at 23 (citing Case No. IPC-E-23-14, Order No. 36048 at 6). IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION -4 foundation for modernizing its on-site generation offering to support enhanced adoption of renewable energy resources and advances in energy generation technology, while simultaneously ensuring equity among all customers. Over the last several years, with guidance from the Commission, Idaho Power has modernized the on-site generation compensation structure through a series of customer-self generation dockets. 9. In 2019 and 2020, the Commission established criteria to define legacy treatment for existing systems, providing a clear distinction between existing and new customers based on the customers' reasonable expectations when they procured an on- site generation system.6 Under this established criteria, systems qualifying for legacy treatment continue to take service under the rules for net energy metering until legacy status terminates, while non-legacy systems are subject to future changes to the program fundamentals, including the compensation structure applied to excess energy. 10. The Commission also established a process to ensure any changes to the Company's on-site generation service offering are well-reasoned and data driven, requiring that the Company undertake a comprehensive study of the costs and benefits of on-site generation before any changes applicable to non-legacy customer compensation would be considered.' 11. More recently, Idaho Power initiated the multi-phase process for a comprehensive study of the costs and benefits of on-site generation. In 2021, the study 6 In the Matter of the Application of Idaho Power Company to Study the Costs, Benefits, and Compensation of Net Excess Energy Supplied by Customer On-Site Generation, Case No. IPC-E-18-15, Order No. 34509 at 10 (Dec. 20, 2019); In the Matter of Idaho Power Company's Application for Authority to Modify Schedule 84's Metering Requirement and to Grandfather Existing Customers with Two Meters, IPC-E-20-26, Order No. 34854 at 10 (Dec. 1, 2020). In the Matter of the Application of Idaho Power Company for Authority to Establish New Schedules for Residential and Small General Service Customers with On-Site Generation, Case No. IPC-E-17-13, Order No. 34046 at 22 (May 9, 2018). IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 5 design phase of the process concluded and was subsequently followed in 2022 by a study review phase.' Ultimately, the Commission found the Company's October 2022 Value of Distributed Energy Resource ("VODER") study complied with its previous directives and "should serve as a basis for the Company's implementation recommendations in a subsequent case."9 ECR Methodology Case 12. Having completed the process established by the Commission to prepare for changes to its on-site generation offering, on May 1, 2023, Idaho Power filed Case No. IPC-E-23-14 to establish an updated offering, proposing modifications to the compensation structure for on-site generators with non-legacy systems that intended to more accurately measure, record, and value excess energy. 13. In Order No. 36048, the Commission approved the Company's request to implement, effective January 1, 2024, real-time net billing to measure and charge customers for all kilowatt-hour ("kWh") consumed from the grid at the retail rate, and measure and compensate customers for all kWh exported to the grid at a time- differentiated ECR.10 The changes were approved to take effect with non-legacy customers' January 2024 billing period. 14. Having approved the methodology for determining the ECR, as well as the source to be relied on for each of its components, the Commission further ordered that 8 In the Matter of the Application of Idaho Power Company's Application to Initiate a Multi-Phase Collaborative Process for the Study of Costs, Benefits, and Compensation of Net Excess Energy Associated with Customer On-Site Generation, Case No. IPC-E-21-21; In the Matter of Idaho Power Company's Application to Complete the Study Review Phase of the Comprehensive Study of Costs and Benefits of On-Site Customer Generation &For Authority to Implement Changes to Schedules 6, 8, and 84 for Non-Legacy Systems, Case No. IPC-E-22-22 . s Id., Order No. 35631 at 28 (Dec. 19, 2022). 10 Order No. 36048 at 6. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 6 the Company update all components of the ECR, except the season and hours of highest risk in an annual filing made on April 111 with an effective date of June 1.12 In addition, while the Commission did not find that a transition period was necessary, it did find that gradualism for rate changes merited consideration and agreed that the Company should forego the initial update to provide time for customers to acclimate to the new ECR billing structure, directing the Company to file its first annual update on April 1, 2025. ECR Update Compliance Filing 15. As directed by the Commission, on April 1, 2025, the Company filed its first annual update of the ECR for non-legacy on-site generation customers from June 1, 2025, through May 31, 2026, using the inputs and methods prescribed by the Commission in the ECR Methodology Case. 16. Despite the limited scope of this docket, the Commission incorporated both a public workshop and a customer hearing, in addition to providing the opportunity for interested persons to provide written comments on the Company's Application, to ensure that members of the public were informed and had access to clear, transparent, and factual information. Comments were submitted by Commission Staff ("Staff") and intervening parties.13 Additionally, there were over 850 written public comments received as of May 15, 2025, and approximately 45 customers provided testimony at the May 20, 2025, customer hearing. Many of the comments submitted in this case raised issues that were outside the scope of this compliance filing docket. " Id., at 7. 12 Id., at 18. 13 Clean Energy Opportunities for Idaho ("CEO"), Kevin Dickey, pro se, Scott Pinizzotto, pro se, Martha Bibb, pro se, City of Boise City, and Sierra Club &Vote Solar. Tyler Grange, pro se, petitioned to intervene and submitted comments but was not granted intervention by the Commission. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 7 17. In Final Order No. 36785 issued on September 30, 2025, the Commission approved the Company's Application to update the ECR for non-legacy on-site generation customers, subject to certain mitigation measures set forth in the Order, effective October 1, 2025, and suspended the Company's annual update requirement until 2028. The Commission further directed the Company to update the ECR rates in its April 1, 2028, filing in compliance with Order No. 36048. The Commission's findings were based on its examination of the comprehensive record in this matter, including all comments submitted by the public, intervenors, and the Company and informed by the long history of cases dealing with on-site generation, public comments and testimony, proposals offered by all parties, as well as the impact of outcomes from other dockets (notably recent general rate cases). Petitions for Reconsideration of Final Order No. 36785 18. On October 21, 2025, Boise City and SC/VS filed Petitions for Reconsideration of Order No. 36785. For the reasons further set forth below, the Company respectfully requests the Commission dismiss the Petitions as they fail to comply with Procedural Rule 331, and improperly seek to reopen the previously final and conclusive Order No. 36048 from a different docket. Further, the Commission's Order No. 36785 in this matter is supported by substantial, competent evidence in the record, and the Commission properly exercised and regularly pursued its authority in its determinations. Consequently, there is no basis for reconsideration of the Commission's final determination in Order No. 36785. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 8 III. LEGAL STANDARDS 19. "Reconsideration affords parties an opportunity to bring to the Commission's attention any matter previously determined and provides the Commission an opportunity to rectify any mistake before the matter is appealed to the Supreme Court."14 Idaho Code § 61-626 and Commission Rules of Procedure 331-333 set forth the process for seeking reconsideration of a final order of the Commission, providing that petitions for reconsideration be filed within twenty-one (21) days after a final order. Answers to petitions for reconsideration that disagree with the petition must be filed within seven (7) days.15 The Commission must determine whether or not it will grant reconsideration within twenty-eight (28) days after the filing of a petition for reconsideration; if granted, the Commission "shall specify how the matter will be reconsidered," whether by review of the existing record, rehearing, written briefs, interrogatories, or otherwise.16 20. The Idaho Supreme Court has recognized that the Commission has broad discretion and appellate review of its decisions is limited. In the face of conflicting evidence, the Court will not displace the Commission's findings of fact "even though the Court may justifiably arrive at a different conclusion if the matter were before it de novo."11 The Commission's findings of fact are entitled to a presumption of correctness and will be sustained unless it appears that the clear weight of the evidence is against its conclusions or that the evidence is strong and persuasive that the Commission abused its discretion.18 14 Order No. 36082 at 1 (Feb. 12, 2024), citing Washington Water Power Co. v. Idaho Public Utilities Comm'n, 101 Idaho 567, 617 P.2d 1242 (1980). 15 IDAPA 31.01.01.331.05. 16 Idaho Code § 61-626(2); IDAPA 31.01.01.332. 17 Rosebud Enters., Inc. v. Idaho Pub. Utilities Comm'n, 128 Idaho 609, 618, 917 P.2d 766 (1996). 18 Indus. Customers of Idaho Power v. Idaho Pub. Utilities Comm'n, 134 Idaho 285, 292, 1 P.3d 786 (2000). IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 9 The burden is on the party challenging the Commission's findings to show that they are unsupported by substantial evidence.19 With regard to questions of law, the review on appeal is limited to a determination of whether the Commission has regularly pursued its authority and whether the constitutional rights of the appellant have been violated.20 21. Consistent with the purpose of reconsideration to provide the Commission an opportunity rectify a mistake or omission, Procedural Rule 331 requires that petitions for reconsideration contain certain information including setting forth specifically why the petitioner contends that "the order or any issue decided in it is unreasonable, unlawful, erroneous or not in conformity with the law." That rule further requires that petitioners specify "the nature and quantity of evidence or argument the petitioner will offer if reconsideration is granted."21 A petition must also state whether the petitioner requests reconsideration by "evidentiary hearing, written briefs, comments, or interrogatories.1122 Under Procedural Rule 332, "[g]rounds for, or issues on reconsideration not supported by specific explanation may be dismissed." IV. ANSWER TO PETITIONS FOR RECONSIDERATION A. RECONSIDERATION IS NOT WARRANTED. 22. While the City and SC/VS take different approaches in their Petitions for Reconsideration and are ostensibly couched as requests for review of Order No. 36785, both share a common genesis: disagreement with the ECR methodology previously adopted by Commission in Order No. 36048. However, the fact remains that Order No. 36048 is final and conclusive and it is not appropriate for Petitioners to now challenge the 19 Id. 20 Id. at 288. 21 IDAPA 31.01.01.331.01. 22 IDAPA 31.01.01.331.03. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 10 ECR methodology, the methods for calculating the ECR components, or to seek to deviate from the annual update process directed by the Commission; such efforts represent an impermissible collateral attack on Order No. 36048 in violation of Idaho law. Idaho Code § 61-625 provides: "All orders and decisions of the commission which have become final and conclusive shall not be attacked collaterally." Final orders of the Commission should be challenged either by petition to the Commission or appeal to the Idaho Supreme Court as provided by Idaho Code §§ 61-626 and 61-627. "A different rule would lead to endless consideration of matters previously presented to the Commission and confusion about the effectiveness of Commission orders."23 23. Each of the Petitioners participated in the ECR Methodology Case, as both the City and Vote Solar sought and were granted intervention. As noted by Vote Solar in its Petition for Intervenor Funding filed in that case, "[I]egal counsel and expert advisors for Vote Solar were active participants in all stages of the proceeding."24 However, neither Vote Solar nor the other Petitioners in this case sought reconsideration of Commission Order No. 36048 after it was issued on December 29, 2023. 24. In affording orders of the Commission a degree of finality similar to that possessed by judgments made by a court of law'25 the legislature sought to preclude parties from repeatedly rehashing and relitigating matters already decided in the interest of administrative efficiency, stability, and fairness. The wisdom of this policy is especially apparent in the instant case, which represents the culmination of a years-long, multi- phase collaborative process that the Petitioners now suggest was in vain. 23 Utah-Idaho Sugar Co. v. Intermountain Gas Co., 100 Idaho 368, 373-374, 595 P.2d 1058 (1979). 24 Case No. IPC-E-23-14, Vote Solar's Petition for Intervenor Funding at 4 (Nov. 30, 2023). 21 See Idaho Code § 61-625. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 11 25. While it is true that the Commission, as a regulatory agency that performs both legislative and quasi-judicial functions, is not so rigorously bound by the judicial doctrine of stare decisis; a departure from prior decisions must be based on substantial and competent evidence in the record and sufficient findings.26 There is simply no basis justifying a departure from Order No. 36048 in this compliance case, and in the absence of the same, it is not appropriate for Petitioners to re-raise the same issues. Given that both Petitions raise issues that have already been explicitly considered in the ECR Methodology Case, it would be disingenuous for the Petitioners to suggest that the ECR methodology is ripe for review due to a change in circumstances or newly identified issues stemming from the ECR Update Compliance Filing. For example, SC/VS note in their Petition that several issues they previously identified with the ECR calculation "persist,"27 and all Petitioners raise volatility in the avoided energy component of the ECR as cause for concern and urge the Commission to consider other options for determining the avoided energy value.28 This very issue was specifically raised and considered by the Commission in Order No. 36048 issued in the ECR Methodology Case, which was not challenged on reconsideration by either Vote Solar or the City in that proceeding. This issue was again raised by parties in the underlying ECR Update Compliance Filing and is now being raised again on reconsideration. 26. Reconsideration is not an appropriate forum for raising issues outside the scope of the underlying compliance case or for rearguing previously rejected points, and the Petitioners' requests should be denied. 21 Rosebud Enters., Inc. v. Idaho Pub. Utilities Comm'n, 128 Idaho 609, 618, 917 P.2d 766, 775 (1996). 27 SC/VS Petition at 4 (Oct. 21, 2025). 28 SC/VS Petition at 6-7; Boise City Petition at 5-6 (Oct. 21, 2025). IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 12 B. BOISE CITY'S PETITION FOR RECONSIDERATION. 27. Boise City's Petition requests that the Commission grant reconsideration by written briefs and comments, noting that the reconsideration request raises questions of law and policy, not issues of fact. However, the City's Petition fails to establish that Order No. 36785 is unreasonable, unlawful, erroneous or not in conformity with the law. Further, it is not clear from the Petition the nature and quantity of evidence or argument that the City would offer if reconsideration is granted. Thus, as an initial matter, the Petition does not comply with the requirements of the Idaho Public Utilities Commission Rules of Procedure for Petitions for Reconsideration. 28. Moreover, the City's Petition raises issues already considered by the Commission in the underlying proceeding and in the ECR Methodology Case. As noted in Order No. 36785, the Commission previously provided a comprehensive review of each component — including the avoided energy — of the ECR calculation in its decision in the ECR Methodology Case in order to accurately assign the appropriate share of fixed costs and unquantified benefits of on-site customer generation and to strike a reasonable balance between the interests of customers with on-site generation, and customers without.29 29. In Final Order No. 36785, the Commission acknowledged that the Company's 2025 ECR Annual Update filing complied with the Commission-approved annual ECR update method, which the City does not dispute. Instead, the gravamen of the City's Petition appears to be that the ECR update is "unfair", though it fails to offer any objective support for that assessment. Rather, the City incorrectly infers "unfairness" 29 Order No. 36785 at 23 (citing Case No. IPC-E-23-14, Order No. 36048 at 6). IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 13 based on the fact that the Commission implemented a "mitigated" ECR. The City also references public comments and party comments in the case that indicated "a resounding sentiment that the compensation proposed for customer-generators does not capture the full benefit the customer-generators provide to the grid.1130 30. Mitigation. The suggestion that the Commission's adoption of mitigation measures in this case reflects an acknowledgment by the Commission that the proposed ECR was unfair is unsupported.31 Within Final Order No. 36785, the Commission was very clear that its decision to implement some mitigation in the updated ECR was reasonable not because of some sort of deficiency in the ECR's methodology or resulting rate being determined to be unfair, but rather because: all customers-including non-legacy on-site generation customers-have faced increases to their average monthly bills over the past 18 months. The Commission recognizes that the updates to the ECR proposed in the Company's Application would further affect customers in Schedule 6, 8, and 84. As demonstrated in the record, if the proposed updates to the ECR were approved as filed, some Schedule 6 customers' monthly bills would increase by up to 100% in a relatively short period (factoring in the multiple changes to the ECR compounded with the recent general rate increases).32 Moreover, as more fully set forth in Section C below, the Commission has broad discretion in determining whether rate mitigation measures may be appropriate under certain circumstances and it regularly pursued its authority in implementing mitigation in this case. 30 Boise City Petition at 5. 31 Id. 32 Order No. 36785 at 24. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 14 31. Public Sentiment. The Company also disagrees that the comments received in the underlying docket demonstrate that the ECR methodology is fundamentally inequitable. While the Company understands the great interest shown in this case and appreciates those members of the public that have chosen to participate, it notes that they represent a small percentage of the Company's total customers,33 and were largely offered by non-legacy on-site generation customers.34 32. The Company is accountable to the Commission and is legally obligated to consider the collective interests of all its customers and to develop mechanisms and proposals based on an economically supportable analyses that result in fair, just, and reasonable rates for customers, rather than simply as a means to achieve particular policy goals.35 Similarly, the Commission has previously and continues to maintain that "the fundamental purpose of on-site generation is to offset a customer's own usage; that on- site generation should not create cost shifting between generators and non-generators, and that on-site generators should be given a fair value for their exported energy."36 33. As noted above, the City has not taken the position that the Company's proposed update failed to conform with the Commission-established methodology but rather seeks to change the underlying method for avoided energy based on its perception that the previously approved method has resulted in an unfair rate in furtherance of particular policy objectives of the City. The City did not take issue with those components of the ECR method that positively impacted the ECR, only the avoided energy value ss As of May 15, 2025, over 850 written public comments have been received, and at the May 20, 2025, Customer Hearing, approximately 45 members of the public offered public testimony, which represent roughly 0.15 percent of the Company's total customers and less than 10 percent of non-legacy customers. 34 Case No. IPC-E-25-15, Staff Comments at 12 (May 15, 2025). ss See Idaho Code § 61-301. ss Case No. IPC-E-23-14, Order No. 36048 at 5. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 15 component of the ECR, which was the most significant driver of ECR decrease in the Company's 2025 ECR Annual Update.37 Thus, the City's concerns appear to be largely driven by the market, not the method. 34. Regardless, the City's request for the Commission to direct the Company to provide additional options for determining the avoided energy value is outside the scope of the underlying docket and therefore not appropriately raised on reconsideration. C. SIERRA CLUB AND VOTE SOLAR'S PETITION FOR RECONSIDERATION. 35. SC/VS's Petition requests reconsideration by written briefs or comments and seeks a limited modification to Order No. 36785 that would retain the approved ECR implemented by the Commission in that order but direct Staff to convene a stakeholder working group to improve the ECR calculation methodology moving forward. 36. While SC/VS's Petition ostensibly attempts to identify a basis for reconsideration as required by Procedural Rule 331, a review of Order No. 36785 and the underlying record belies any assertion that the Commission decisions are not supported by the record or are otherwise improper as more fully set forth below. (1) The Commission's final Order No. 36785 is supported by substantial evidence and should be affirmed. 37. While SC/VS do not oppose the mitigation measures adopted by the Commission in Order No. 36785, by which it limited decreases to the energy component of the ECR to no more than 40 percent and stabilized the ECR until 2028, they suggest the adoption of such measures on an ad hoc basis reveals an infirmary in the 37 As noted by the Company in its Reply Comments, "the large decrease in the avoided energy component is driven by the same factors that caused a large increase in power supply costs in the 2022- 2023 [Power Cost Adjustment] deferral balance—that is, the existing ECR was based on 2022 ELAP prices, which were unusually high due to the same factors that drove an increase in Company NPSE that year." IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 16 Commission's order.38 The Petition states: "Commission orders are unlawful when the Commission acts `arbitrarily or on an ad hoc basis."' In support of this proposition, the Petition cites to Wash. Water Power v. Idaho Pub. Utils. Comm'n,39 though a review of that case clarifies that the quoted language is actually part of a larger quote from an Oregon appellate decision,40 which the Idaho Supreme Court relies on to support the following well-established proposition: "Not only must the Commission make and enter proper findings of fact, but it must set forth its reasoning in a rational manner.1141 38. In finding some mitigation to be reasonable to reduce the impact of all recent rate changes, the Commission included a thorough discussion of the various mitigation proposals recommended by the parties in Order No. 36785,42 ultimately deciding on a hybrid approach limiting the change in the avoided energy value to be a 40 percent decrease from the then-existing ECR's avoided energy value. "After considering the options presented, an ECR update where the change in the avoided energy value is limited to a 40% decrease from the current ECR's avoided energy value, applied to both the summer and non-summer months, is reasonable." Contrary to the Petition's contention, this approach was one of the alternative mitigation proposals outlined by Staff.43 Additionally, the Commission determined in its discretion to suspend the annual 38 SC/VS Petition at 2-3. 39 SC/VS Petition at footnote 3. 40 "If there is to be any meaningful judicial scrutiny of the activities of an administrative agency-not for the purpose of substituting judicial judgment for administrative judgment but for the purpose of requiring the administrative agency to demonstrate that it has applied the criteria prescribed by statute and by its own regulations and has not acted arbitrarily or on an ad hoc basis-we must require that its order clearly and precisely state what it found to be the facts and fully explain why those facts lead it to the decision it makes." Home Plate, Inc. v. OLCC, 20 Or. App. 188, 530 P.2d 862, 863 (1975). 41 Washington Water Power Co. v. Idaho Pub. Utilities Comm'n, 101 Idaho 567, 575, 617 P.2d 1242, 1250 (1980). 42 See, e.g. Staff's Mitigation Proposal at 6-8; CEO proposal at 11; Company Reply to Mitigation at 19-20. 43 Staff Comments at 10, Table Nos. 4 and 5. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 17 update requirement until 2028. This decision was not dissimilar to the Commission delaying the first annual update following the ECR Methodology Case. In Final Order No. 36048 issued in that case, and after considering various comments related to transitional considerations, the Commission found a delay in the first annual update of one year was reasonable. While SC/VS assert the Commission did not explain its rationale for a three- year suspension of the annual update in this case, the Commission specifically cited to public comments where many individuals stated they had not been informed that the ECR would be subject to annual adjustments, and indicated it found "that the annual update to the ECR as required by Order No. 36048 is difficult for non-legacy on-site generation customers to adjust to and complicates investment decisions by potential on-site generation customers.1144 39. Thus, a review of Order No. 36785 reveals that it sets forth ample justification and adequate findings of fact for the mitigation measures implemented by the Commission contrary to the assertion by SC/VS that such Order fails to explain how the Commission came to adopt the mitigation measures selected.45 40. Moreover, the Commission's discretion to implement rate mitigation measures to facilitate fair, just, and reasonable outcomes, although infrequently used, is not an approach unique to this case — or for Idaho Power. In fact, it has been a practice of this Commission to implement rate mitigation measures for annual mechanisms when it has found the compounding effects of other circumstances warrant such mitigation. When the Commission initially approved the Company's annual Power Cost Adjustment ("PCA") mechanism in Case No. IPC-E-92-25, it grappled with whether to implement 44 Order No. 36785 at 24. 45 SC/VS Petition at 3. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 18 specific rate stability mechanisms as advocated for by various parties to that case. Ultimately, the Commission found "the most reasonable solution is, rather than now adopting a specific rate stability mechanism, we reserve the right to examine proposed rate changes occurring in any one year and to impose different recovery methods if the proposed rate changes appear to seriously impair rate stability.1146 Indeed, the Commission has — on two occasions — elected to implement mitigation as part of the annual PCA filing. 41. As part of Order No. 29026 issued in Case No. IPC-E-02-03, the Commission required the Company defer collection of approximately $11.5 million in power costs attributable to the Company's small general service and irrigation customer classes until the following 2003-2004 PCA year as a means to mitigate such customer classes' rate increases.47 Of note, the ultimate mitigation adopted by the Commission was not a specific recommendation raised by any one party on the record, rather, the Commission's rationale for its novel mitigation measure focused on bill impacts to the irrigation and small business customer classes stemming from other recent rate changes. 42. The Commission also implemented a discretionary cap for annual rate increases of no more than 3 percent when it initially approved the Company's annual Fixed Cost Adjustment ("FCA") mechanism.48 In assessing whether to apply the cap in Case No. IPC-E-19-10, the Commission found it reasonable "to waive the 3% cap on FCA 46 In the Matter of the Application of Idaho Power Company for Authority to Implement a Power Cost Adjustment Tariff for Electric Service to Customers in the State of Idaho and for Approval of New Rates for Service Under the FMC Special Contract, IPC-E-92-25, Order No. 24806 at 14 (March 29, 1993). 41 In the Matter of the Application of Idaho Power Company for Authority to Implement a Power Cost Adjustment(PCA) Rate for Electric Service from May 16, 2002 through May 15, 2003, IPC-E-02-03, Order No. 29026 at 17-18 (May 13, 2002). 48 In the Matter of the Investigation of Financial Disincentives to Investment in Energy Efficiency by Idaho Power Company, IPC-E-04-15, Order No. 30267 (March 12, 2007). IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 19 increases and approve the 3.64% increase because the rate impact will be mitigated by other Company filings that will take effect on the same date" citing to decreases in both the PCA and Energy Efficiency Rider that were to take effect June 1, coincident with updated FCA rates.49 In its findings, the Commission further highlighted "[t]he 3% cap was meant to prevent rate increases from being stacked upon each other, which is not a concern in this case.1150 Again, the Commission found it reasonable to assess whether to implement mitigation (or not, in this case) based on rate impacts that were occurring outside of the case at hand, in recognition that rate mitigation should holistically consider circumstances faced by customers. 43. The Commission most recently elected to mitigate the Company's proposed PCA rates through Final Order No. 35804 issued in Case No. IPC-E-23-12 due to the extraordinary circumstances at the time leading to high net power costs. The Commission's rationale for mitigation in that case was quite similar to the rationale cited in the instant case: "However, due to a variety of factors, including but not limited to, general rate cases that have been filed by this and other utilities...utility customers in Idaho have recently seen their bills for all utility services increase.1151 44. Notably, in none of these instances was the Commission's adoption of mitigation measures a result of the proposed rates themselves being unfair or because of a flawed underlying methodology. Instead, the Commission simply employed rate mitigation to recognize and limit the impact that then-relevant factors would have on 49 In the Matter of the Application of Idaho Power Company for Authority to Implement Fixed Cost Adjustment("FCA') Rates for Electric Service from June 1, 2019, through May 31, 2020, IPC-E-19-10, Order No. 34346 at 5 (May 31, 2019). 50 Id. 51 In the Matter of the Application of Idaho Power Company for Authority to Implement Power Cost Adjustment(PCA) Rates for Electric Service from June 1, 2023 through May 31, 2024, IPC-E-23-12, Order No. 35804 at 8 (May 31, 2023). IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION -20 customers' bills — precisely the same rational utilized by the Commission in Final Order No. 36785 when determining mitigation of the Company's proposed ECR to be a reasonable approach. (2) The Record Confirms that the Company's Filing Complied with the Commission-Approved Annual ECR Update Methodology. 45. Given that SC/VS admittedly support the mitigation measures adopted by the Commission in Order No. 36785, their purported concerns over their alleged "ad hoc nature" should be moot, yet they are raised in an apparent effort to transform this compliance docket into a forum for reconsidering the underlying ECR methodology, which is clearly outside the scope of this case. Though thinly veiled as a challenge to the sufficiency of the evidentiary record in this case, SC/VS's Petition essentially seeks to rehash and relitigate positions that have already been decided. After acknowledging that some of their perceived issues with the ECR methodology were previously raised in Case No. IPC-E-23-14, SC/VS suggest that the ECR methodology should be reevaluated in this compliance docket because "the ECR update application proved those concerns to be valid.1152 Petitioners' attempt to reopen the record on the establishment of the ECR methodology in Case No. 23-14 is inappropriate and should not be allowed. 46. The Commission confirmed in Order No. 36785 that it had considered the long history of cases dealing with on-site generation, public comments and testimony, and proposals offered by all parties in formulating the ECR.53 It also noted that many of the recommendations and concerns offered in this matter had previously been addressed in Case No. IPC-E-23-14 and were outside the scope of this proceeding.54 The ez SC/VS Petition at 4. ss Order No. 36785 at 23. sa Id. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 21 Commission previously provided a comprehensive review of each component of the ECR methodology,55 and while SC/VS may disagree with the ECR methodology previously adopted by the Commission, such critiques were misplaced in the underlying docket and are not appropriate for reconsideration. 47. Moreover, similar to Boise City, SC/VS mischaracterizes the Commission's intent in implementing mitigation measures alleging that: "[b]y adopting these measures, the Commission rightfully recognized that Idaho Power's proposal was unjust and unreasonable and therefore required modification.1156 This statement is directly at odds with the reasoning set forth by the Commission in Order No. 36785, and as more fully discussed above, the Commission has periodically implemented mitigation measures in other annual mechanism cases when a review of holistic circumstances warrants doing so. (3) The ECR Methodology Has Been Extensively Vetted Through a Collaborative Process with Stakeholders. 48. Unfortunately, the case history does not support SC/VS's recommendation that an ECR Working Group could be an effective way to "assess modification to the ECR calculation"57 or that "the Commission can proactively avoid future ECR disputes by addressing issues with the calculation methodology over the next two and half years."58 49. As background, on October 19, 2018, Idaho Power petitioned to initiate Case No. IPC-E-18-15 with the very intent to study the costs, benefits, and compensation 55 Case No. IPC-E-23-14, Order No. 36048. 51 SC/VS Petition at 3. 57 SC/VS Petition at 7. 5s Id. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 22 of net excess energy supplied by customer generation.59 Rather than submit a proposal in the case, Idaho Power sought to comply with a previous Commission directive where the Company was to first initiate a docket, and once intervening parties were identified, all parties would "meet in an effort to agree on the scope of proper procedural and substantive elements of the on-site generation docket" that would be brought to the Commission for approval.60 Over the course of nearly a year, Idaho Power worked in good faith with the parties to that case (Boise City, Sierra Club, and Vote Solar were all granted intervention status, among others) to find common resolution related to the matters of valuing excess generation, among other items.61 In total, the parties held one prehearing conference and eight settlement conferences, over the course of which multiple detailed proposals from several parties were shared, discussed, and refined. On October 11, 2019, the Company and the Commission Staff jointly submitted a Motion to Approve Settlement Agreement. On December 20, 2019, the Commission issued an order rejecting the Settlement Agreement, citing in part concerns about lack of transparency. 50. The ECR methodology that was ultimately approved by the Commission was informed and refined by feedback from Staff and the parties in the ECR Methodology Case, which included a number of the same parties involved in the instant docket, including the Petitioners. In developing its final proposal submitted in the ECR Methodology Case, the Company included modifications to its initially proposed ECR that were responsive to party feedback, ultimately seeking to pursue a structure that would 59 In the Matter of Idaho Power Company's Application to Study the Costs, Benefits, and Compensation of Net Excess Energy Supplied by Customer On-Site Generation, IPC-E-18-15. so In the Matter of Idaho Power Company's Application for Authority to Establish New Schedules for Residential and Small General Service Customers with On-Site Generation, IPC-E-17-13, Order No. 34046 at 23 (May 9, 2018). 61 Also within scope was consideration related to: compensation structure, the update frequency for the ECR, smart inverters, and non-export options for customer generators. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION -23 enhance understandability and transparency, while ensuring progress towards modernizing the customer on-site generation offering. While the methodology adopted by the Commission through Order No. 36048 incorporated elements of the Company's revised proposal in addition to many of the proposed modifications recommended by Staff and other parties, other changes advocated for by various parties were considered and declined.62 51. While the Petitioners may not agree with the approach adopted by the Commission in Order No. 36785, it cannot be reasonably denied that it was the result of a thorough, data-driven evaluation that involved careful consideration of multiple alternative options and an interactive process with a robust level of public and stakeholder engagement. A review of the extensive process that was directed by the Commission, attached hereto as Attachment 1, highlights the number of opportunities for input that was afforded to stakeholders, intervenors, and members of the public. 52. First, the process outlined by SC/VS ignores the fact that the Commission already directed a similar — albeit much more transparent — process through Case Nos. IPC-E-21-21 and IPC-E-22-22. Neither the Sierra Club nor Vote Solar elected to formally participate in Case No. IPC-E-21-21, where the scope of the VOIDER Study was established by the Commission, or Case No. IPC-E-22-22, where the Commission acknowledged the VOIDER Study as having complied with its prior directives. 53. For these reasons, the Commission should reject the recommendation to establish a new ECR Working Group. The regulatory history demonstrates that Idaho Power, Staff, interested parties and the Commission have already undertaken a robust, 62 Case No. IPC-E-23-14, Order No. 36048 at 5-6. IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 24 inclusive, and transparent process to evaluate and implement a methodology for valuing customer generation. The VODER Study, acknowledged by the Commission, represented the culmination of years of stakeholder engagement and technical analysis, and was reasonably relied upon for recommendations pursued in the ECR Methodology Case. Reopening this process now — particularly at the request of parties who declined to meaningfully participate in prior proceedings — would not only be redundant but risk undermining the regulatory certainty the Commission has worked to establish. The Commission should instead reaffirm its commitment to the current methodology and its conclusions from Order No. 36785. V. CONCLUSION The Petitions for Reconsideration should be dismissed as they fail to comply with Procedural Rule 331, and improperly seek to reopen the previously final and conclusive Order No. 36048 from a different docket. Further, the Commission's Order No. 36785 in this matter is supported by substantial, competent evidence in the record, and the Commission properly exercised and regularly pursued its authority in its determinations. Consequently, there is no basis for reconsideration of the Commission's final determination in Order No. 36785 and reconsideration should be denied. DATED at Boise, Idaho this 28' day of October 2025. MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 25 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 28th day of October 2025, 1 served a true and correct copy of the within and foregoing Idaho Power Company's Response to Petitions for Reconsideration upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Hand Delivered Erika K. Melanson U.S. Mail Deputy Attorney General Overnight Mail Idaho Public Utilities Commission FAX 11331 W. Chinden Blvd., Bldg No. 8 FTP Site Suite 201-A (83714) X Email Erika.melanson(a-),puc.idaho.gov PO Box 83720 Boise, ID 83720-0074 Sierra Club and Vote Solar Hand Delivered Gregory M. Adams U.S. Mail Richardson Adams, PLLC Overnight Mail 515 N. 27th Street FAX Boise, Idaho 83702 FTP Site X Email gregC@richardsonadams.com Kate Bowman Hand Delivered Vote Solar U.S. Mail 299 S. Main Street, Suite 1300 PMB Overnight Mail 93601 FAX Salt Lake City, UT 84111 FTP Site X Email kbowman(a�votesolar.org Rose Monahan Hand Delivered Sierra Club U.S. Mail 2101 Webster Street, Suite 1300 Overnight Mail Oakland, California 94612 FAX FTP Site X Email rose.monahan(a)_sierraclub.org Clean Energy Opportunities of Hand Delivered Idaho U.S. Mail Kelsey Jae Overnight Mail Law of Conscious Leadership FAX 920 N. Clover Dr. FTP Site Boise, ID 83703 X Email Kelsey(a)kelseyiae.com IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 26 Courtney White Hand Delivered Mike Heckler U.S. Mail Clean Energy Opportunities for Idaho Overnight Mail 3778 Plantation River Drive, Suite 102 FAX Boise, Idaho 83703 FTP Site X Email courtnev(a)_cleanenergyopportunities.com mike(a)cleanenergyopportunities.com Kevin Dickey, pro se Hand Delivered 2953 Honey Lane U.S. Mail Emmett, ID 83617 Overnight Mail FAX FTP Site X Email Bellefourche01(a_gmail.com Scott Pinizzotto, pro se Hand Delivered P.O. Box 6902 U.S. Mail Ketchum, ID 83340 Overnight Mail FAX FTP Site X Email s.pinizzotto(a)_gmail.com Martha S. Bibb, pro se Hand Delivered 810 CD Olena Dr. U.S. Mail Hailey, ID 83333 Overnight Mail FAX FTP Site X Email marthasbibb(a)gmail.com City of Boise City Hand Delivered Jessica Harrison U.S. Mail Deputy City Attorney Overnight Mail P.O. Box 500 FAX Boise, ID 83701 FTP Site X Email BoiseCityAttorney(a)-cityofboise.org jharrison(a�cityofboise.org Katie O'Neil Hand Delivered Energy Program Manager U.S. Mail Boise City Department of Public Overnight Mail Works FAX FTP Site X Email koneil(a)cityofboise.org IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 27 Stacy Gust Regulatory Administrative Assistant IDAHO POWER COMPANY'S ANSWER TO PETITIONS FOR RECONSIDERATION - 28 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-25-15 IDAHO POWER COMPANY ATTACHMENT NO. 1 mpgStakeholder Involvement ,ECR-related Outcome IPC-E-21-21 Idaho Power's Application to Intervenors: Industrial Customers of Idaho Power, IdaHydro, Idaho Order No.35284(12/30/2021): Initiate a Multi-Phase Process Conservation League,Idaho Clean Energy Association,Clean Energy Established the Commission's Study Framework to for the Study of Costs, Opportunities for Idaho, Idaho Solar Owners Network,Micron Technology, be used when evaluating the costs and benefits of Benefits,and Compensation of Inc.,City of Boise,Kiki Leslie A.Tidwell,pro se, Idaho Irrigation Pumpers on-site generation. Net Excess Energy Associated Association,Inc.,Richard E.Kluckhohn,pro se,and Wesley A.Kluckhohn, • The Commission directed the Company to complete with Customer On-Site pro se,ABC Power Company LLC,Idahome Solar LLC,and Comet Energy the Study Review Phase in 2022 as soon as Generation. LLC. feasible. Schedule • Three rounds of Party comments; • Two meetings among Parties(8/30/2021 and 9/22/2021)to discuss the study framework; • One Company-led virtual workshop(10/20/2021); • One Staff-led virtual workshop(10/26/2021); • One virtual customer hearing(10/28/2021). IPC-E-22-22 Idaho Power's Application to Intervenors:Clean Energy Opportunities for Idaho, IdaHydro,Idaho Order No.35631 (12/19/2022): Complete the Study Review Irrigation Pumpers Association, Inc.,Idaho Conservation League, Industrial Acknowledged the Company's October VOIDER Phase of the Comprehensive Customers of Idaho Power,City of Boise, Richard E.Kluckhohn,pro se,and Study. Study of Costs and Benefits of Wesley A.Kluckhohn,pro se,Micron Technology, Inc., Idaho Solar Owners Directed the Company to file a request to implement On-Site Customer Generation. Network,and ABC Power Company LLC. changes to the structure and design of its on-site generation offering. Schedule: • Two rounds of Party comments; Order No.35667(1/19/2023): • One Company-led virtual workshop(8/31/2022); Dismissed a non-party Petition for Reconsideration • Two Staff-led virtual workshops(9/6/2022 and 9/7/2022); based on the Petition not explaining why Order No. • Three in-person customer hearings, 10/27/2022 in Pocatello, 35631 was unreasonable,unlawful,erroneous,or 11/2/2022 in Twin Falls,and 11/3/2022 in Boise. not in conformity with the law. IPC-E-23-14 Idaho Power's Application for Intervenors: Idaho Irrigation Pumpers Association,Inc., Idaho Conservation Order No.36048(12/29/2023): Authority to Implement League, IdaHydro,Clean Energy Opportunities for Idaho,Micron • Approved real-time Net Billing; Changes to the Compensation Technology, Inc.,City of Boise,and Vote Solar. Established the ECR methodology; Structure Applicable to • Ordered Idaho Power to update the ECR,except for Customer On-Site Generation Schedule: the underlying season and hours of highest risk,in Under Schedules 6,8,and 84 • Two rounds of Party comments; an annual filing beginning April 1,2025. and to Establish an Export Two Staff-led virtual workshops(9/6/2023 and 9/7/2023); Credit Rate Methodology. Two in-person customer hearings, 10/24/2023 in Boise and Order No.36082(2/12/2024): 11/8/2023 in Twin Falls. • Dismissed two non-party Petitions for Reconsideration based on the Petitions not explaining why Order No.36048 was unreasonable, unlawful,erroneous,or not in conformity with the law.