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HomeMy WebLinkAbout20251226Petition for Intervenor Funding.pdf RECEIVED DECEMBER 26, 2025 IDAHO PUBLIC UTILITIES COMMISSION Kelsey Jae (ISB No. 7899) Kelsey Jae LLC 521 E. 41st St. Garden City, Idaho 83714 (208) 391-2961 kelsey@kelseyjae.com Attorney for Clean Energy Opportunities for Idaho BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO ) POWER COMPANY'S ) CASE NO. IPC-E-24-44 APPLICATION FOR APPROVAL OF ) CLEAN ENERGY OPPORTUNITIES SPECIAL CONTRACT AND TARIFF ) FOR IDAHO SCHEDULE 28 TO PROVIDE ) ELECTRIC SERVICE TO MICRON ) PETITION FOR INTERVENOR IDAHO SEMICONDUCTOR ) FUNDING MANUFACTURING (TRITON) LLC ) COMES NOW Clean Energy Opportunities for Idaho ("CEO"), by and through its attorney of record, Kelsey Jae of the firm Kelsey Jae LLC, pursuant to Idaho Code § 61-617A and IDAPA 31.01.01.161-165 with the following request for intervenor funding. CEO is an intervenor in this case pursuant to Order No. 36554. This request is timely under Rule 164 because this request is filed within the deadline set by the Public Utilities Commission ("PUC" or "Commission"). I. Applicability of Idaho Code § 61-617A and IDAPA Rule 31.01.01.161 Idaho Power Company ("Idaho Power" or the "Company") is a regulated public utility that has gross Idaho intrastate annual revenues exceeding $3,500,000.00. IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 1 II. IDAPA Rule 31.01 .01.162 requirements A. Itemized list of expenses Idaho Code provides that the Commission may award "legal fees, witness fees, and reproduction costs" to intervenors in a proceeding. Idaho Code § 61-617A. The attached Exhibit A is an itemized list of legal fees incurred by CEO's legal counsel assisting CEO with investigating and responding to Idaho Power's Application; analyzing and conducting discovery; preparing analyses, presentations, and proposals for review by other parties; meaningfully participating in several meetings, negotiation sessions, and hearings; and filing of testimony and briefing. CEO focused its participation and input on facts and issues that are directly relevant to this docket. B. Statement of proposed findings CEO recommends that the Commission find the proposed use of embedded cost-based demand charges in Schedule 28 presents unnecessary risks of cost shifting to existing customers. The ESA should be modified to reflect the FAB being charged for the incremental capacity costs it causes with offsetting credits for absorbing a portion of existing embedded demand costs. CEO recommends that the Commission find that in this transformational period where the Company is incented to compete for new large loads that Commission Staff, rather than the Company, should take the lead role in analyzing the impacts on existing captive customers. CEO recommends that the Commission find that marginal energy costs are not flat across all hours of the year and that any Schedule implementing marginal energy rates should reflect that variation. IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 2 C. Statement showing costs CEO requests $7,037.40 in intervenor funding for attorney fees, as shown in Exhibit A. These fees were incurred reasonably and appropriately. This case covered complex and technical issues and required reviewing and responding to extensive analyses and/or proposals of the Company, Commission Staff, and other active parties and community members. To uncover and understand the facts, CEO reviewed multiple data sets; reviewed discovery requests and submitted its own discovery requests; and engaged in lengthy analytic efforts internally and with other parties. CEO and its legal counsel were active participants in the proceeding. For each of these efforts, CEO endeavored to be efficient with time and delegation of tasks. CEO maintained clear divisions of labor to reduce expenses. This request does not include hours invested by CEO officers, Michael Heckler and Courtney White. CEO requests an hourly rate for legal counsel of $222 per hour. For all these reasons, CEO's request for intervenor funding to pay the costs of the listed attorney is reasonable. D. Explanation of cost statement CEO is a nonprofit organization. In this proceeding, CEO represented its directors and supporters who are Idaho Power ratepayers. To provide consistent, professional, and impactful advocacy, CEO dedicates significant time to energy issues and specifically to policy making at the Commission. CEO has actively participated in prior proceedings on related matters. CEO does not have any financial interest in the outcome of this proceeding. The cost of this time and hiring legal counsel is a significant financial commitment and hardship for a nonprofit organization. Because contributions to CEO are inherently unstable and sometimes insufficient, the availability of intervenor funding is essential for CEO to participate IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 3 fully in these proceedings. CEO has no pecuniary interest in the outcome of this case; rather CEO dedicated its time and resources to represent the interests of its supporters. E. Statement of difference CEO has long admired the skill and dedication of Commission Staff (see, for example, Ms. White's comments at Hearing Transcript page 731). On several matters in this very important first-impression case, CEO respectfully but fundamentally and vehemently disagrees with the approach that Staff recommends. Material differences between Staff and CEO positions include: 1. Inadequate analysis of protection from cost shifting between classes • There is a fundamental difference between how Staff views the Company's no-harm analysis in the context of the totality of protections offered in the ESA to protect customers from stranded asset risk and how CEO distinguishes between the no-harm analysis and the other protections. Stranded risk protections such as termination payments could presumably protect the set of customers that would exist at the time of any termination. CEO showed that no-harm analysis and the comparison to terms from the Lamb-Weston and Brisbie special contracts provide inadequate justification regarding protection for existing customers from cost shifting today. • CEO has shown that the no-harm analysis does not protect existing customers from FAB-caused costs in all but the best case scenario. CEO shows that after full ramp-up occurs, if FAB loads follow the minimum load requirement pattern documented in the ESA, the use of the Company's "proposed method for determining the Demand Charges" will result in non-FAB customers paying more than $1 billion of FAB caused cost. Staff IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING -4 presented no similar analysis. CEO suggested a method for charging the FAB for its incremental capacity costs while recognizing the benefit their additional load presents for existing customers via potentially offsetting credits. • CEO has also shown that the Company's attempts to justify giving the FAB a load ratio based share and embedded cost treatment for the incremental costs the FAB causes by comparison to Brisbie and Lamb Weston special contract demand charge treatment are misplaced and non-convincing. Staff did not present a similarly detailed analysis. 2. We are in a transformational period where utilities compete for new load in their service territories. • CEO noted how the FAB application is fundamentally different from existing special contracts, a distinction CEO presented as early as its March 21, 2025 comments. The largely new competitive customers in the Company's pipeline are different from existing special contract customers. These new megaloads, for which the Company competes with other utilities for their business, require a different treatment than that afforded traditional special contract customers already resident in the Company's service territory. • It is uncontested that the FAB alone will directly cause a need for additional generation resources. CEO has shown that such generation resources likely carry capital costs measured in billions of dollars. CEO sees those FAB-caused incremental capacity costs as a basis for distinguishing the FAB from other special contracts. • Staff doesn't directly address the implications for growth caused by these new competitive megaloads. In contrast, CEO requested that the Commission address specific IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 5 issues this new period of competition presents by providing guidance on each of the following matters: o Guidelines regarding what constitutes a new large load customer. o When does a new large load customer transition from new to existing. o Which incremental costs caused by the new large load customer should be charged to that customer, and how should those costs be measured. o Guidelines for how customers that disproportionately cause upward pressure on ROE and financing costs should pay for those impacts. o Guidelines for no-harm scenario analyses for large load customers so that the Commission can adequately weigh the risks of harm to existing customers. o Consideration of alternatives such as whether payments made in the form of self-supply or CIAC could protect existing customers. o Guidelines regarding the degree to which G&T infrastructure provide energy benefits and the means of reflecting those in energy rates. 3. Punting the incremental vs. embedded capacity cost treatment question to a future GRC is an inappropriate response given the magnitude of the issue. • Staff supports using the embedded cost demand charges approach the Company presented now and deferring evaluation of this cost allocation matter until a future general rate case. Staff has acknowledged that general rate cases are focused primarily on revenue requirements. • In contrast, CEO has noted that if the FAB goes into the next general rate case with demand charges calculated on an embedded cost basis, they are not likely to be moved IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 6 off that position. Resolving the effect competitive megaload customers have on cost allocation will not receive an adequate review in a GRC absent guidance from the Commission prior to that GRC's convening. Punting the question to a future GRC risks establishing a precedent in this case that future megaload applicants who aren't as attractive as the FAB may rely upon to the detriment of all the Company's captive customers. In addition to taking different positions than Staff on the above matters, CEO introduced and led the request to revise Schedule 28 in order to more accurately align rates with the time-varying nature of costs. The ability of CEO to propose solutions and to find common ground with regard to time-varying rates was enhanced by CEO's work prior to this docket in leading workshops and research related to Hourly Informed Rate Design as stipulated in the settlement agreement in Idaho Power's 2023 rate case (IPC-E-23-11, Settlement Agreement, Stipulation 13, p11). CEO has not requested intervenor funding for those workshop related efforts. F. Statement of recommendation CEO has consistently approached the matters raised in this case from the perspective that we are in a transformational period of electric load growth. The FAB is just the first of a potentially large number of new competitively procured megaload customers. CEO has presented information showing how approval of the proposed ESA could cause existing Company customers billions of dollars of harm. Possibly even more detrimental is the risk that treating an attractive new load like the FAB preferentially could establish a basis for IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 7 succeeding megaloads to claim they are being discriminated against if not given a similar treatment. To address this potential for substantive harms CEO has proposed (as summarized in section 3 of CEO's closing brief) needed changes to the ESA and follow-on processes to accommodate the transformed landscape Idaho Power is operating in. Prompt, thoughtful and comprehensive resolution of these issues is clearly in the interest of the general body of Idaho Power customers. G. Statement showing class of customer Class cost allocations are, in the short term, a zero sum game. CEO argues for the long term interest of Idahoans. In this case the matters CEO presented benefit all customers, in every class, except the FAB in Schedule 28. Based on the foregoing reasons, CEO respectfully requests that the Commission grant this Petition for Intervenor Funding in the amount of$7,037.40 as illustrated in Exhibit A. DATED this 26th day of December, 2025. Respectfully submitted, t^' v Kelsey Jae Attorney for CEO Exhibit A: Statement of Costs IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 8 Exhibit A: Statement of Costs For attorney fees incurred by Kelsey Jae LLC Analyzing Idaho Power's application and direct testimonies; 31.7 hours @ conducting relevant legal research; analyzing discovery requests and $222/hr responses of other parties; drafting CEO discovery; crafting response strategies, including comments/testimony/settlement strategies/pleadings; preparing for and participating in hearing. Total 31.7 hours $7,037.40 IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 9 CERTIFICATE OF SERVICE I hereby certify that on this 26th day of December, 2025, I delivered true and correct copies of the foregoing PETITION FOR INTERVENOR FUNDING to the following persons via the method of service noted: Electronic Mail Delivery (See Order No. 34602) Idaho Public Utilities Commission Monica Barrios-Sanchez Commission Secretary secretary0puc.idaho.gov Idaho PUC Staff f Chris Burdin Deputy Attorney General Idaho Public Utilities Commission chris.burdin(@puc.idaho.gov Idaho Power Company Megan Goicoechea Allen Donovan Walker Connie Aschenbrenner Grant Anderson mgoicoecheaallenOidahopower.com dwalker@idahopower.com caschenbrennerna idahopower.com gandersonOidahopower.com dockets idahopower.com Industrial Customers of Idaho Power, Inc. Peter J. Richardson Dr. Don Reading peter@richardsonadams.com dreadingna mindspring.com Idaho Irrigation Pumpers Association, Inc. Eric L. Olsen Lance Kaufman, Ph.D. elo(a)echohawk.com lance(a�aegisinsight.com IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 10 Micron Technology, Inc. Austin Rueschhoff Thorvald A. Nelson Austin W. Jensen Kristine A.K. Roach Holland & Hart, LLP darueschhoff0hollandhart.com tnelson aphollandhart.com awj ensen@hollandhart.com aclee(a)hollandhart.com karoach(a)hollandhart.com 'U Kelsey Jae Attorney for CEO IPC-E-24-44 - CLEAN ENERGY OPPORTUNITIES FOR IDAHO - PETITION FOR INTERVENOR FUNDING - 11