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HomeMy WebLinkAbout20260514Staff Comments.pdf RECEIVED May 14, 2026 KELSEA E. ROSS IDAHO PUBLIC DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83702 (208) 334-0320 IDAHO BAR NO. 12050 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF KOOTENAI ) ELECTRIC COOPERATIVE,INC.'S ) CASE NO. C07-E-25-01 APPLICATION FOR APPROVAL OF ITS ) 2026-2028 WILDFIRE MITIGATION PLAN ) COMMENTS OF THE COMMISSION STAFF COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"),by and through its attorney of record,Kelsea E. Ross, Deputy Attorney General, submits the following comments. BACKGROUND On December 31, 2025, Kootenai Electric Cooperative, Inc. ("Company") applied to the Commission requesting approval of its 2026-2028 Wildfire Mitigation Plan ("2026 WMP"), in accordance with Idaho Code § 61-1801, et seq. Wildfire Standard of Care Act ("WSCA"). Under Idaho Code § 61-1803(2)(b), the Company has opted to file its 2026 WMP for Commission approval. As the Company is an unregulated utility, the Company is not required to file a wildfire mitigation plan("WMP") for Commission approval. On January 23, 2026, the Commission issued a Notice of Application and Notice of Intervention Deadline, setting a deadline for interested parties to file a petition to intervene. Order No. 36911. No petitions to intervene were filed. STAFF COMMENTS 1 MAY 14, 2026 STAFF ANALYSIS Pursuant to Idaho Code § 61-1804, Staff reviewed the 2026 WMP and believes it meets the requirements of the WSCA, Order No. 36774, and the Commission WMP Guidelines, detailed in Order No. 36774 Exhibit No. 1 and Order No. 36929 ("Guidelines"). Staff also reviewed the 2026 WMP to ensure: (1)it is consistent with public health, safety,and welfare; (2)it was feasible and provided the cost of its implementation; and(3)whether it adequately minimizes wildfire risk and proposes to respond to wildfires that do occur. The Guidelines require the WMP to include the following sections consistent with the WSCA: (1) geographical risk assessment, (2) preventative actions and programs, (3) public outreach and engagement, (4) government outreach, (5) method of line design, (6) situational awareness and monitoring, (7) infrastructure inspection and maintenance, (8) de-energization and line operation practices, (9) vegetation management. Order No. 36774. Additionally, the Guidelines require an update of lessons learned from previously approved WMPs, and a breakdown of each program category's forecasted costs by year for both capital and operation and maintenance ("O&M")expenditures. Id. Staff s review of these requirements are discussed in the respective sections below. Additionally, Order No. 36774 required the Company to file a Need to Know Document as part of this WMP filing, provide a copy of its notice to interested parties of this WMP filing, and create its WMP using a three-year planning horizon that includes a section that describes how the electric corporations addresses each of the Commission's Orders and Staffs recommendations. Staff reviewed each of these items and believes the Company has met these requirements. Staff recommends the Commission issue an order that (1) approves the Company's 2026 WMP, (2) clarifies that the Company may file its updated WMP for the Commission's annual review on or about December 31s' each year, and (3) directs the Company to include additional information in future WMP filings, if the Company opts to file again for Commission approval. Although Staff believes that the Company's 2026 WMP meets the requirements, Staff offers suggestions for additional items to be included in future WMP filings as discussed below. Commission Authority Throughout the discovery process with Staff in this case,the Company claimed on multiple occasions that Staffs requests for information went beyond the scope of this proceeding. See STAFF COMMENTS 2 MAY 14, 2026 Response to Staff Production Request Nos. 1, 2, 5, 6, and 13a. For instance, in Staff Production Request No. 5, Staff requested the Company provide any lessons learned from the Company's inspection process and an explanation of how those lessons have influenced revisions or updates to inspection criteria, as part of Staffs analysis of Idaho Code § 61-1803(3)(g)(i) and the Guidelines. As this information was not included within the 2026 WMP, Staff could not evaluate whether the Company had been adapting its inspection procedures based on past inspections. Although the Company objected due to the Company's assumption that information prior to the Company's implementation of its 2026 WMP was not relevant, the Company provided a high- level response to Staffs request. Under the WSCA,the Commission is tasked with approving or rejecting WMPs filed with the Commission. Idaho Code § 61-1801, et seq. This means the Commission has jurisdiction to review WMPs submitted with the Commission for approval. Id. The Commission must confirm that a WMP meets the minimum requirements set forth in Idaho Code§61-1803 and must consider the factors outlined in Idaho Code § 61-1804(1)(a)-(c). Idaho Code § 61-1804(l). The WSCA requires the Commission to ensure that a WMP is "developed using approaches and methods that are designed to protect the public interest and are reflective of and commensurate with the size and complexity of the electric cooperation's operations and of the nature of the fire risk." Idaho Code § 61-1803(3). The WSCA states that [a]n electric corporation that is not a public utility, including but not limited to a cooperative association distributing electric power to its members or a municipal electric distribution system under section 50-342, Idaho Code, may adopt and file a wildfire mitigation plan with the commission for its review at any time permitted by the commission. Idaho Code § 61-1803(2)(b) (emphasis added). Staff interprets this language to mean that it is optional for a cooperative association to submit a WMP for Commission-approval. Idaho Code § 61-1803(2)(b). The Guidelines established a filing schedule and set forth guidelines and essential components for WMPs. Staff believes that once a cooperative association files a WMP with the Commission, review of the cooperative's WMP is subject to the requirements set forth in Idaho law, the Guidelines, essential elements of WMPs adopted in the Guidelines, and additional requirements based in the Commission's authority. Without responding to Commission direction in future filings, Staff may be unable to recommend the Commission approve a future WMP. STAFF COMMENTS 3 MAY 14, 2026 2026 Wildfire Mitigation Plan Overview and Cross Cutting Elements The Company requested the Commission approve its 2026 WMP and find that its WMP is consistent with Idaho Code § 61-1804(1). Application at 1 and 12. In this overview section, Staff provides general observations regarding the Company's 2026 WMP. This overview is organized into three main areas: (1) Cost Feasibility, (2) Cross Cutting Elements, and(3) Comparison to the Company's 2024 WMP. Subsequent sections present comments organized according to the Guidelines and the WSCA and addresses both(1)the Company's short-term operational activities, which respond in real-time to current fire risk levels and rapidly changing system conditions, and (2) its long-term planning activities, which are based on an area's underlying geographical fire risk. Cost Feasibility Cost Forecasts. Idaho Code§ 61-1804(1)(b)requires the Commission to consider the cost of the WMP implementation and the Guidelines require the Company to provide a breakdown of each program category's forecasted costs by year for both capital and O&M expenditures across the horizon of the WMP. Guidelines at 8. The Company provided cost forecasts for the following: Vegetation Management Implementation Plan ("VMIP"), Construction Work Implementation Plan ("CWIP"), and System Inspection Implementation Plan ("SIIP") (collectively the "Cost Forecasts"). 2026 WMP at Appendix A-1,Appendix B,and Appendix C. Staff notes that the Cost Forecasts do not clearly specify wildfire-related expenses. In 2026, the Company forecasts $5.7 million for vegetation management, $219,981 for system inspections, and $66.3 million for CWIP. Id. The primary capital investment categories are substation upgrades with an estimated cost of$7.74 million,conversion and line upgrades with an estimated cost of$7.72 million, and transmission line projects with an estimated cost of$7.57 million. 2026 WMP Appendix B. Table No. 1 below summarizes the Cost Forecasts from the 2026 WMP. STAFF COMMENTS 4 MAY 14, 2026 Table No. 1: Cost Forecasts Summary $in (`000s) =2026 2027 2028 3-Year Total VMIP $ 5,686,609 $ 5,857,207 $ 6,032,923 $ 17,576,739 SIIP $ 219,981 $ 233,180 $ 247,170 $ 700,331 CWIP $ 52,130,155 $ 40,711,820 $ 31,812,692 $ 124,654,667 TOTAL $ 58,036,745 $ 46,802,207 $ 38,092,785 $ 142,931,737 Identifying Wildfire Expenditures. Wildfire-related projects are not clearly identified in the provided Cost Forecasts. 2026 WMP Appendix A-1, Appendix B, and Appendix C. In a meeting with Staff,' the Company represented that due to its service territory,it considers wildfire mitigation in all aspects of its daily operations and therefore could not isolate costs for only wildfire mitigation. Staff recognizes the challenge of separating the costs for wildfire-related projects from a company's daily operations; however, Staff believes the Company has demonstrated that it is able to narrow down the projects that are related to wildfire mitigation in its CWIP. Response to Staff Production Request No. 1 Item I-Exhibit A. For example, in the CWIP, Project 300-2026-16 is to convert an existing overhead line to underground line, with the identified benefit to increase capacity,mitigate downed conductor, and mitigate fire risk. Id. (emphasis added). Another example is Project 603-2026-07 that is replacing older reclosers with new Gear and Willams Electric Viper reclosers, with an identified benefit of providing better functionality for outage management and fire mitigation.Id. Not every project listed in the CWIP involves work for mitigating wildfire risk. Id. Thus, Staff believes the Company has demonstrated it can identify which of its projects are related to wildfire mitigation, and which are not, and therefore can then determine the costs associated with wild-fire related projects. For these reasons, Staff recommends the Commission direct the Company to provide detailed,wildfire-related project-level cost forecasts for each year as part of all future WMP filings. 1 Staff met with the Company on February 5,2026. STAFF COMMENTS 5 MAY 14, 2026 Grants. The Commission must consider the cost of implementing WMP expenditures. Idaho Code § 61-1804(1)(b). Thus, information on funding alternatives and sources is necessary to evaluate the cost and feasibility of the Company's planned actions. This information is necessary because grant funding may impact the cost feasibility of wildfire projects and informs the Commission on the Company's cost of implementing WMP expenditures. The 2026 WMP did not discuss any grants that the Company was awarded or applied for. However, in its response to Staff Production Request Nos. 15 and 16, the Company provided some information on grants the Company applied for as part of its wildfire mitigation efforts. Id. As the Company was able to provide grant information in discovery, Staff believes the Company provided the required information on cost of implementing WMP expenditures. Therefore, Staff recommends the Commission direct the Company to provide details of all funding alternatives and sources pursued within future WMPs. Cost-Benefit Approach. Idaho Code § 61-1804(1)(b) requires the Commission to consider the feasibility of a WMP and the cost of its implementation. In Order Nos. 36774 and 36882, the Commission directed electric cooperations to include a cost-benefit analysis within its WMPs and provided guidance on the information necessary to support its analysis. Staff believes the 2026 WMP meets the requirements of Idaho Code § 61-1804(1)(b) and the Guidelines because the Company provided some risk mitigation information in meetings with Staff and in responses to Staff s production requests. See Response to Staff Production Request No. 1. However, the 2026 WMP does not include the wildfire risk mitigation benefits within the plan. Staff believes this information should be incorporated in the 2026 WMP itself because it is required under Idaho Code § 61-1804(1)(b) and Order Nos. 36774 and 36882. Staff recommends the Commission direct the Company to include wildfire risk mitigation benefits in future WMP filings,while applying a consistent,transparent,and repeatable methodology across projects. Such consistency is necessary to evaluate whether projects are prioritized using comparable criteria. Additionally, if qualitative benefits are applied, the Company should define them, provide the efficacy of mitigating wildfire risk, and consider quantifying the risk reduction associated with specific infrastructure mitigation measures. STAFF COMMENTS 6 MAY 14, 2026 Cross Cutting Elements Targets and Goals within WMP. Appendix A-1 and Appendix B to the Application identify targets(i.e., objectives)for vegetation management and system inspections. Additionally, in response to Staff Production Request No. 1 Item 1-Exhibit A, the Company provided a list of specific targets for the Company's CWIP projects. Staff appreciates the Company's work to identify some objectives for each identified project because it helped Staff review the feasibility of the proposed 2026 WMP. However, targets were only provided for some wildfire mitigation efforts, for instance vegetation management, system inspections, and CWIP projects, but not for the remaining categories of its WMP. Specifically, the Company did not provide targets for its risk assessment, situational awareness, outreach and communications categories in its WMP. See 2026 WMP at 21 and 49-50. Only providing targets for some efforts but not across all categories of the WMP,hinders the Commission's ability to review and evaluate the feasibility of an electric corporation's wildfire mitigation efforts. Staff suggests that the Company add measurable targets to future year objectives for each category of a WMP in future filings,where possible,to aid in the Commission's review of feasibility of mitigation efforts. Metrics. Idaho Code § 61-1804(1)(b)-(c) requires the Commission to evaluate the feasibility of the WMP and to what degree it minimizes wildfire risk. Staff believes the Company provided sufficient detail through discovery with Staff to what is required by Idaho Code § 61- 1804(1)(b)-(c) because it supplied information on the Company's metrics for measuring and tracking the efficacy of its grid hardening efforts. Response to Staff Production Request No. 11. Although the Company provided some targets, Staff believes that the 2026 WMP lacks sufficient metrics to track efficacy of all the Company's wildfire mitigation efforts and thus there is room for improvement in for future WMP filings. One way Company's future WMP filings can support this analysis is through providing information on metrics that can be used to describe or quantify the impacts of its WMP. Additionally, Staff believes industry-standard metrics, including, System Average Interruption Duration Index ("SAIDI"), a System Average Interruption Frequency Index 2 SAIDI represents the total number of minutes of interruption the average customer experiences. STAFF COMMENTS 7 MAY 14, 2026 ("SAIFI"),3 Customer Average Interruption Duration Index("CAIDI"),4 and Momentary Average Interruption Frequency Index("MAIFI")may help the Company track reliability as it implements its 2026 WMP. 5 These metrics allow utilities to benchmark reliability performance over time, identify poor-performing circuits to prioritize investment, and assess the effectiveness of vegetation management, protection schemes, and system maintenance and hardening. Accordingly, Staff believes the Company should consider tracking and reporting on three years of these metrics at the system and circuit levels in future WMP filings. Staff believes these metrics and the data collected are necessary to be included within the WMP as they display the feasible measurable targets for the Company to implement. In the Company's 2024 WMP,the Company identified different metrics that could be used to help show the efficacy of its WMP. Therefore, if the Company chooses to file future WMP filings, Staff recommends the Commission direct the Company include all metrics used within each respective section of future WMPs and provide the data in a format that can easily be tracked across WMP filings. Additionally, where feasible, Staff suggests the Company include three or more years of metric data in future WMP filings to allow trends to be identified. Filing Date. Idaho Code § 61-1803(2)(a) gives the Commission the authority to stagger the filing dates of electric corporation's WMPs. Further, Order No. 36774 directed electric corporations to file updated WMPs for annual review one year after the filing date of the previously approved WMP. Through communication with Staff,the Company stated it would prefer to keep its annual WMP filing on December 31 of each year. Staff has no concerns with this filing date as it staggers the filing dates from the other two large IOUs filing date requests.6 Staff recommends the Commission issue an order that clarifies the Company's annual update WMP filing must be submitted on or about December 31 of each year. 3 SAIFI represents the average number of times a customer experiences an outage during the year. a CAIDI is the average number of minutes it takes to restore non-momentary electric interruptions. 5 MAIFI is the average number of momentary interruptions that a customer would experience during a given period (typically a year). 6 In Case No.IPC-E-25-32,Idaho Power requested an annual filing date on or about October 1 each year. In Case No.AVU-E-25-15,Avista requested an annual filing date on or about November 1 each year.In Case No. PAC-E- 25-22, Staff recommended Rocky Mountain Power have an annual filing date on or about December 1 each year. STAFF COMMENTS 8 MAY 14, 2026 Comparison to the 2024 WMP Prior to filing the 2026 WMP with the Commission, the Company had previously created and filed its 2024 WMP in Washington.7 Although the 2024 WMP did not include any cost forecasts, it did include limited descriptions of the Company's then-current process for mitigating wildfire risk throughout the WMP. 2024 WMP at 5-8. Additionally,the Company represented in its 2024 WMP that it planned to: (1) assess the WMP after fire season and prior to the start of fire season; (2) install additional line reclosers with high-impedance fault detection; (3) work with Overstory to identify hazard areas to assign target trimming and inspections; (4) enhance its inspection program with a new approach to right-of-way clearing; (5)continue improvement based on staff performance; and (6) partner with local Office of Emergency Management and Fire Districts.2024 WMP at 6-10. In the 2026 WMP,the Company included more detailed descriptions of its current processes for mitigating wildfire risk throughout the WMP and showed implementation of its planned updates identified in the 2024 WMP. 2026 WMP at 6-20. The 2024 WMP also included metric tables for: (1) external risk metrics; (2)performance metrics; and (3) outcome metrics. 2024 WMP Appendix A. These 2024 WMP tables were not included within the 2026 WMP. Staff believes each table includes metrics that may be useful to include in future WMPs due to the reasoning discussed in the "Metrics" section of Staff s Comments. Geographical Risk Assessments Idaho Code § 61-1803(3)(a) and the Guidelines require all WMPs to include a description of the Company's wildfire risk assessment and a map of identified risk areas. Staff believes the Company has followed a reasonable modeling approach to assess the wildfire risk in its service territory and has met these requirements, based on information provided in a meeting with Staff and in its 2026 WMP. 2026 WMP at 3-6. However,Staff believes there are areas for improvement due to: (1) limitations to the Company's risk modeling; and(2) a lack of a detailed description on how the Company's model distinguishes the levels of wildfire risk in its Heightened Risk Area Map, as discussed below. Kootenai Electric Cooperative 2024 WMP.https:Hdnr.wa.gov/sites/default/files/2025-05/rp_uwfpac plan kec.pdf. (last visited April 21,2026). STAFF COMMENTS 9 MAY 14, 2026 Limitations of Risk Modeling In Section 2.1 of the 2026 WMP, the Company briefly describes how it modeled wildfire risk in its service territory. 2026 WMP at 5-6. The Company's current process utilizes the United States Forest Service's Wildfire Risk to Communities data set layered with the Company's service territory's vegetation fuels mapped by the Company's third-party vendor, Overstory.8 2026 WMP at 5-6. Both data sets use similar vegetation data of the same area as an input. Staff is concerned that the Company's current process may be overweighting the vegetation risk in the Company's service territory. However, given the size and complexity of the Company as a cooperative, Staff believes this risk modeling approach appears to be reasonable so long as this limitation is acknowledged. Separately, Staff believes that the Company's approach to risk modeling considers the existing wildfire risk due to external factors;however, Staff believes the Company's risk modeling is limited by not considering the risk of ignition. The Company's risk assessment process does not consider the Company's infrastructure risk to creating wildfire. Understanding and modeling the infrastructure risk would enable the Company to identify where to focus investments in its system, in addition to risk from external factors such as vegetation. Staff recommends the Commission direct the Company to narratively explain how certain mitigation activities (such as grid hardening efforts)are reducing wildfire risk, as the Company's model for the 2026 WMP will not show any reduction of risk based on investments in the system. Heightened Risk Area Map As required by the Guidelines, Figure 3 of the 2026 WMP depicted the Company's heightened wildfire risk areas. 2026 WMP at 6. However,there are limitations with this map and its description in the 2026 WMP. Firstly,the map does not clearly identify the heightened wildfire risk areas within the Company's service territory, as the service territory boundaries are not included. Id. Secondly, the description within the 2026 WMP does not clearly explain how each of the wildfire risk zones are determined(i.e., there are no risk scores distinguishing the levels of risk or explanation of how each level was determined). For clarity, Staff recommends the s The Wildfire Risk to Communities data set is a public data, one of the inputs is the vegetation fuel risk as provided by LANDFIRE data.htips://wildfirerisk.org/wp- content/uploads/2024/05/WildfireRiskToCommunities_V2_Methods_Landscape-wideRisk.pd£ (last visited April 21,2026). STAFF COMMENTS 10 MAY 14, 2026 Commission direct the Company to overlay its service territory boundaries on the heightened wildfire risk map and provide a more detailed explanation of how each risk zone is determined in future WMP filings. Additionally, in a meeting with Staff, the Company described how it divides its territory and how each section is prioritized; however, this was not described within the 2026 WMP. This information would be beneficial to include within WMPs, as it describes how the Company is prioritizing its wildfire-related investments in its service territory. Therefore, Staff recommends the Commission direct the Company to narratively explain how the Company divides its territory and explain how it prioritizes wildfire-related projects within each section in future WMP filings. Optional Preventative Actions and Programs In addition to the required elements for a WMP, the Guidelines state that an electric corporation may include other actions or programs,such as system hardening strategies,workforce preparedness, and pilot programs. Guidelines at 3-4. In a meeting with Staff, the Company represented that it does not have any pilot programs at this time. Staff believes system hardening strategies correlate with the required information under Idaho Code § 61-1803(3)(e), therefore, Staff discusses system hardening in the "Method of Line Design and Grid Hardening" section below. The Company incorporated workforce preparedness in its WMP efforts. A trained workforce supports the safe and effective implementation of wildfire mitigation measures,including situational awareness,emergency response,and line operations. This not only fulfills regulatory obligations but also strengthens operational resilience,reduces the likelihood of safety incidents during wildfire season, and supports timely, coordinated responses when conditions escalate. Within the 2026 WMP, the Company did not provide much detail on its workforce preparedness. However, the Company provided details and descriptions on its workforce preparedness in its response to Staff Production Request No. 6. Staff believes the Company's response to Production Request No. 6 sufficiently meets the Guidelines' recommendations. Staff believes the Company should consider including a table identifying employee roles,number of personnel trained,training frequency(i.e.,date,month, or quarter),and topics or focus areas of the completed training in future WMP filings. STAFF COMMENTS 11 MAY 14, 2026 Public Outreach, Engagement, and Community Education Idaho Code § 61-1803(3)(c) and the Guidelines require each WMP to include how the utility maintains community outreach and public awareness before, during, and after wildfire season. Staff believes the Company's 2026 WMP meets the requirements of Idaho Code § 61- 1803(3)(c) and the Guidelines. The Company communicated about its WMP, including its Public Safety Power Shutoff("PSPS") program, through members, employees, the public, media, and other stakeholders. 2026 WMP at 17. The Company should continue refining and updating its public outreach, engagement,and community education as necessary for inclusion in future WMP filings. Government Outreach Idaho Code § 61-1803(3)(d) and the Guidelines require each WMP include a discussion of outreach and coordination with federal, state, tribal, and local officials and agencies regarding wildfire preparedness and emergency response planning. Staff believes the 2026 WMP satisfies these requirements because prior to May 1 of each calendar year, the Company has an Annual Coordination Meeting on wildlife preparedness and emergency response plans where federal,state, tribal, and local officials and agencies coordinate on wildfire preparedness. 2026 WMP at 18. Staff believes the Company should identify coordination with specific federal, state, local, and tribal organizations, preferably in a table or appendix within the WMP. While none were mentioned in the WMP, if there are any current and planned partnered projects with entities, Staff suggests providing a detailed description of each current and planned partnered project in future WMP filings. Method of Line Design and Grid Hardening Idaho Code § 61-1803(3)(b), 61-1803(3)(e) and the Guidelines require the Company to include a description of the Company's methods of line design for new lines and planned system upgrades. Specifically,this description must include a cost-benefit evaluation and how the utility identifies, selects, and evaluates projects.Id. As stated earlier, the Company provided its CWIP cost forecast, which was developed to implement its Construction Work Plan.Response to Staff Production Request No. 1 Item 1-Exhibit A. The CWIP outlines a multi-year grid modernization strategy that incorporates wildfire STAFF COMMENTS 12 MAY 14, 2026 mitigation as one dimension of its decision-making, along with system reliability, safety, capacity expansion, and meeting new service needs. 2026 WMP at 26. Staff believes the cost forecast summary provided in the 2026 WMP was insufficient to satisfy the requirements. However, the Company provided a more detailed list of projects in its response to Staff Production Request No. 1 Item 1-Exhibit A. The detailed plan includes targeted infrastructure upgrades, advanced protection technologies, system hardening, and enhanced operational capabilities to support both long-term reliability and reduced wildfire risk. Id. Additionally, it includes targets, an explanation of benefits, and alternatives considered for each project category. Id. With the additional information provided by the Company, Staff believes the Company has met the requirements to provide a description of the Company's methods of line design for new lines and planned system upgrades. Because said information is required under WSCA and the Guidelines, Staff recommends the Commission direct the Company to include similar project-level details including the targets, explanation of the benefits, and alternatives considered for each project in future WMP filings. Situational Awareness and Monitoring Idaho Code § 61-1803(3)(f) and the Guidelines require each WMP to discuss how the Company monitors weather conditions and wildfire risk. The Guidelines specifically require the Company to identify the systems, tools, or external resources used to monitor weather, fire potential, or other situational awareness indicators. Guidelines at 6. Section 4.1 and 4.3.1 of the 2026 WMP describe the Company's current weather monitoring process. Staff believes the Company has met the requirements based on the information within the 2026 WMP and in its response to Staff Production Request 13(b); however, Staff believes there are areas for improvement in future WMP filings as described below. Tempest Daily Situational Awareness Tool The Company utilizes the Tempest Daily Situational Awareness Tool to monitor daily weather. 2026 WMP at 8. Figures 4, 5, and 6 within the 2026 WMP depict the tool, provide a summary of the outputs, and operational changes based on the model. 2026 WMP at 9-11. However, the Company does not robustly describe the tool in its 2026 WMP or provide details of the inputs for the model. Providing a clear description of the tool and its inputs would enable a STAFF COMMENTS 13 MAY 14, 2026 more thorough review to ensure that the tool is producing data that reflects accurate weather conditions. For transparency and clarity, Staff suggests the Company include additional details of the inputs for the Tempest Daily Tool within future WMP filings. Tempest One- Weather Stations The Company's 2026 WMP does not include a narrative describing its weather station network, nor does it provide the current status of its network or any planned installations. However, in response to Staff Production Request No. 14, the Company stated it plans to install additional weather stations at local fire stations within its service territory. Without this information in the 2026 WMP, Staff believes the Company is excluding a portion of its efforts to reduce wildfire mitigation from its 2026 WMP which hinders the Commission's ability to review the 2026 WMP's feasibility. To adequately evaluate this program in a future WMP filing, Staff recommends the Commission direct the Company to include additional details about its weather station network, including areas of focus, average cost, and any metrics it will use to evaluate success of the network. Additionally, Staff suggests the Company include the targeted amount of weather station installations in future WMPs for transparency and to aid in the Commission's review of the WMP's feasibility. Infrastructure Inspection and Maintenance Idaho Code §§ 61-1803(3)(b), 61-1803(3)(g)(i), and the Guidelines require discussion of the frequency and standards for inspections of each type of electric infrastructure within areas of elevated wildfire risk and targets or goals to be achieved within the WMP. Clear inspection guidelines help enable timely inspections, maintenance, and emergency repairs, reducing reliability and safety risks during high fire danger conditions and in heightened wildfire risk zones. Based on its review of the 2026 WMP and based on the Company's responses to Staff Production Request Nos. 7, 11, 12, and 13(a), Staff believes the 2026 WMP meets the WSCA and Guidelines requirements for electric infrastructure inspection standards and frequency. However, Staff has identified areas for improvement in future WMP filings described below. STAFF COMMENTS 14 MAY 14, 2026 Deficiency Monitoring The Company stated that it assigns a priority to identified deficiencies but currently lacks the capability to generate reports showing the time elapsed from creation to remediation. Response to Staff Production Request No. 13. Staff believes that correcting inspection deficiencies in a timely manner according to respective priorities is essential to protect safety and system reliability. However, without the ability to measure how long a deficiency has been open, Staff believes the Company cannot determine whether issues are being addressed within the appropriate timeframes, whether certain priority levels are falling behind, and prevents the Company from effectively monitoring overdue deficiency trends. Staff believes that a growing number of overdue deficiencies that remain open for extended periods is a key indicator that additional resources or process adjustments may be needed to prevent risks from escalating. Because the Company cannot currently track or report deficiency age, Staff believes it is unable to identify overdue deficiencies or confirm that remediation activities are keeping pace with identified issues. Staff recommends the Company evaluate options to enhance its processes so that it can generate reports capable of identifying backlog trends and supporting timely remediation. Quality Assurance Staff believes a Quality Assurance ("QA") program for infrastructure maintenance is essential because it verifies that completed corrective work truly resolves identified issues, ensuring safety,reliability,and accountability in the utility's maintenance practices. The Company described its QA for vegetation management on page 25 in Appendix A of its 2026 WMP. However, Staff believes the Company should also describe the QA process for each of its inspection programs in a similar manner,including the scope of QA audits(e.g., 100% in high fire risk areas, or 20% sample of all-service-area work), the frequency of audits (e.g., weekly, monthly), and the process for addressing any items that failed to meet the Company's standards in future WMP filings. De-Enemization and Line Operation Practices Idaho Code §§ 61-1803(3)(b), 61-1803(3)(g)(ii), and the Guidelines require each WMP to include descriptions of de-energization protocols and line operation practices. Idaho Code § 61- 1803(3)(g)(ii) and the Guidelines specifically require the Company to describe its standards, STAFF COMMENTS 15 MAY 14, 2026 criteria, and operational protocols for de-energization, including PSPS. Staff believes the 2026 WMP PSPS process meets the requirements of Idaho Code § 61-1803(3)(g)(ii) and the Guidelines because the Company provided clear criteria that is considered within the different stages of a PSPS 2026 WMP at 12-17. The Company should continue to evaluate and improve PSPS procedures to ensure public safety objectives are met while minimizing disruption to customers. Vegetation Management Idaho Code § 61-1803(3)(g)(iii) and the Guidelines require each WMP to include a discussion of vegetation management and enhanced vegetation management for heightened fire risk areas. In a meeting with Staff, the Company shared that most of its service area is classified as a heightened risk area; thus, it applies enhanced vegetation management to all areas. Staff reviewed the Company's routine and enhanced vegetation management practices described in the 2026 WMP and believes the Company has met the WSCA and Guidelines requirements. However, Staff has identified areas of potential improvement in the Company's future WMP filings as described below. Vegetation Management Training The Company stated that its vegetation management is done according to standards that include ANSI A300 and the International Society of Arboriculture ("ISA") guidelines. Application at 7. These standards address clearances, tree/shrub conditions, how to safely and appropriately prune or remove vegetation, and vegetation health. In a meeting with the Company, the Idaho Department of Lands ("IDL"), and Staff, IDL mentioned the Company's vegetation management standards do not cover the ignition potential or fire propagation perspectives of vegetation. IDL specifically mentioned the standards do not address "ladder" fuels, which allow wildfires to progress from the ground to the canopy. The Company represented it will evaluate if ISA's Wildfire Risk Reduction Qualification is applicable and a useful way of addressing the standard gaps identified by IDL. Response to Staff Production Request No. 9. STAFF COMMENTS 16 MAY 14, 2026 Hazard Trees The Company stated that it started tracking hazard trees in November 2025 and shared that it had identified 1,110 hazard trees, had removed 89, and had 1,021 remaining to be mitigated. Response to Staff Production Request No. 2. The Company's service territory is highly forested, where both drought and insect infestations impact tree health and can have a pronounced effect on wildfire risk. Staff recommends the Company continue to provide updated hazard tree data in future WMP filings as it becomes available to monitor and establish trends to see if additional resources may be needed to address the number of trees that are identified on an ongoing basis. Wind Event Prioritization.During Staff s discussions with IDL regarding the Company's 2026 WMP, IDL noted that the Company's service territory experiences extreme wind events that frequently compromise certain tree species, particularly in specific soil types. IDL explained that trees lacking a tap root—such as lodgepole pine, grand fir, spruce, and some alpine fir—are especially prone to becoming hazard trees after high-wind events due to weakened root structures. Based on this information, Staff recommends the Company consider increasing the frequency of hazard-tree inspections for a period of time in service areas affected by recent extreme wind events, particularly in areas where the more vulnerable tree species are present. Vegetation Management Metrics The Company stated that its current metrics for evaluating the effectiveness of vegetation management include the number of miles trimmed and fault and outage data attributed to vegetation. Response to Staff Production Request Nos. 10 and 12. While the Company provided crew vegetation management assignments by feeder in its 2026 WMP, it did not provide target mileage for those feeders. 2026 WMP Appendix A-1 at 24. Staff recommends that the Company include the total miles planned for vegetation management and fault and outage data for the previous three or more years to illustrate historical trends in future WMPs. Staff believes these metrics would allow for tracking of planned versus completed miles and establish trends that reflect the impact of these efforts. STAFF COMMENTS 17 MAY 14, 2026 Marketable Timber on Timber Company Land Idaho Code § 61-1803(3)(g)(iii) requires each company to describe its process providing timber companies compensation at fair market value for live, marketable timber identified for removal from timber company land adjacent to the Company's Right of Way("ROW"). The 2026 WMP did not include the required information. However, the Company represented that it: (1) works with land owners to determine fair market value compensation for any marketable timber that needs to be removed from timber company land adjacent to the Company's ROW; and(2)that the Company does not compensate marketable timber removed from its ROW and instead cuts the trees appropriately so they can be used by the respective landowner. Response to Staff s Production Request No. 4. Staff recommends the Commission direct the Company to include the Company's process for compensating timber companies for marketable timber marked for removal on land adjacent to Company's ROW in future WMP filings. Quality Assurance The Company stated that it uses drone-based Light Detection and Ranging ("LiDAR") to audit whether vegetation management work has been completed in accordance with its specifications, standards, and ROW requirements. 2026 WMP Appendix A-1 at 25. However, the 2026 WMP did not specify the percentage of vegetation management work that is selected for a LiDAR audit. Staff recommends that the Company clarify whether these audits cover 100 percent of the completed vegetation management work, or identify the sample size used (for example, whether 25 percent of the work is audited) in future WMPs. Coordination with Idaho Department of Lands Idaho Code § 61-1804(3) requires the Commission to consult with the State Forester at IDL regarding vegetation management, reduction of wildfire fuels, and other duties of the State Forester under Title 38, Idaho Code. On February 5, 2026, Staff met with IDL and the Company to discuss the Company's wildfire risk assessment process, inspection process, vegetation management practices, identified projects and cost-benefit process. STAFF COMMENTS 18 MAY 14, 2026 On April 17, 2026, Staff met with IDL to discuss any concerns with the Company's filing and current practices pertaining to its 2026 WMP. IDL suggested another meeting after further review of the 2026 WMP. On May 1, 2026, Staff and IDL met and discussed remaining concerns and recommendations for the 2026 WMP. Staff believes it has sufficiently consulted with IDL during its review of the 2026 WMP. Public Comments As of May 14, 2026, there have been no public comments filed. STAFF RECOMMENDATION Staff recommends the Commission issue an order that: 1. Approves the Company's 2026 Wildfire Mitigation Plan; and 2. Clarifies the Company may file its future annual Wildfire Mitigation Plan's on or about December 31 of each year. For future WMP filings, Staff recommends the Commission direct the Company to: 1. Provide detailed, wildfire-related project-level cost forecasts for each year; 2. Provide details of all funding alternatives and sources pursued; 3. Include wildfire risk mitigation benefits, applying a consistent, transparent, and repeatable methodology across projects; 4. Include all metrics used within each respective section and provide the data in a format that can easily be tracked across WMP filings; 5. Provide an explanation of how certain mitigation activities (such as grid hardening efforts) are reducing wildfire risk; 6. Overlay its service territory boundaries on the Heightened Wildfire Risk Map; 7. Include a more detailed explanation of how each heightened wildfire risk zone was determined; 8. Narratively explain how the Company divides its territory and explain how it prioritizes wildfire-related projects in each section; STAFF COMMENTS 19 MAY 14, 2026 9. Include wildfire-related project-level details that includes targets, expected wildfire mitigation benefits, and alternatives considered within the respective sections of the WMP; 10. Include Company's process for compensating timber companies for marketable timber marked for removal on land adjacent to Company's ROW; and 11. Include additional details about the Company's weather station network, including areas of focus, average cost, and any metrics it will use to evaluate success of the network. Respectfully submitted this 14th day of May 2026. X�� -1 Kelsea E. Ross Deputy Attorney General Technical Staff. Kimberly Loskot, Karla Ducharme, and Ray McArthur I:\Utility\UMISC\COMMENTS\CO7-E-25-01 Comments.docx STAFF COMMENTS 20 MAY 14, 2026 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 14th DAY OF MAY 2026, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. C07- E-25-01, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING: COMPANY.• Thomas Maddalone Safety Director Kootenai Electric Cooperative, Inc. 9014 W. Lancaster Rd. Rathdrum, ID 83858 E-mail: tmaddalone@kec.com Michael G. Andrea General Counsel Kootenai Electric Cooperative, Inc. 9014 W. Lancaster Rd. Rathdrum, ID 83858 E-mail: mandreaAkec.com PATRICIA JORDA.9, SECRETARY CERTIFICATE OF SERVICE