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HomeMy WebLinkAbout20260610Staff Comments.pdf RECEIVED June 10, 2026 KELSEA E. ROSS IDAHO PUBLIC DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83702 (208) 334-0318 IDAHO BAR NO. 12050 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF NORTHERN LIGHTS, ) INC.'S APPLICATION FOR APPROVAL OF ) CASE NO. C10-E-26-01 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 February 2, 2026, Northern Lights Inc. ("Company") filed its 2026-2028 Wildfire Mitigation Plan("2026 WMP")with the Commission. On February 19, 2026,the Company filed an updated application("Application"),requesting approval of the 2026 WMP,in accordance with Idaho Code § 61-1801, et seq., the Wildfire Standard of Care Act ("WSCA") and the Wildfire Mitigation Plan("WMP") guidelines established in Commission Order No. 36774 ("Guidelines") and additional requirements detailed in Order No. 36929. Under Idaho Code § 61-1803(2)(b), the Company has opted to file the 2026 WMP for Commission approval. As the Company is an unregulated utility, the Company is not required to file a WMP for Commission approval. STAFF COMMENTS 1 JUNE 10, 2026 On March 19, 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. 36963. No petitions to intervene were filed. On April 30, 2026, the Commission issued a Notice of Modified Procedure. Order No. 36977. STAFF ANALYSIS Pursuant to Idaho Code § 61-1804, Staff reviewed the 2026 WMP and believes it meets the requirements of the WSCA and the 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 implementation; and (3) 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; and(9)vegetation management. The Guidelines also 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 is discussed in the respective sections below. Additionally,the Guidelines require 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 corporation addresses each of the Commission's Orders and Staffs recommendations. Staff reviewed each of these items and believes the Company has met these requirements. Based on its review, Staff recommends the Commission issue an order that: (1) approves the 2026 WMP; (2) clarifies that the Company may file its future updated WMP for the Commission's annual review on or about February 2nd of each year; and (3) directs the Company to include additional items in future WMP filings, if it opts to file again for Commission approval. Additionally, Staff encourages the Company to include additional items in future WMP filings, which are discussed below. STAFF COMMENTS 2 JUNE 10, 2026 Commission Authority Under the WSCA,the Commission is tasked with approving or rejecting WMPs filed with the Commission.Idaho Code § 61-1801, et seq. Accordingly, Staff believes the Commission has jurisdiction to review WMPs submitted 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(1). 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. 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 on the Commission's statutory authority. Without providing information requested by Staff and responding to Commission direction in future filings, Staff may be unable to recommend the Commission approve a future WMP. 2026 Wildfire Mitigation Plan-Wide Considerations In this overview section, Staff provides general observations regarding the 2026 WMP. Staff s review is organized into two main areas: (1) Cost Feasibility, and (2) Cross Cutting Elements. Subsequent sections present comments organized according to the Guidelines and the WSCA. STAFF COMMENTS 3 JUNE 10, 2026 Cost Feasibility This section addresses several cost-related components of the 2026 WMP that relate to multiple programmatic areas of the Guidelines that Staff considered in its review. Here Staff provides its analysis of the Company's cost forecasts for planned mitigation activities, the cost-benefit approach used to evaluate and prioritize those activities, and the extent to which the Company has pursued or incorporated grant funding. Together, these topics inform Staff s assessment of the overall feasibility and financial reasonableness of the Company's proposed wildfire mitigation strategies. Cost Forecasts. The Guidelines require the Commission to consider the cost of the WMP implementation and require the Company to provide a breakdown of each program category's forecasted by year for both capital and operations and maintenance ("O&M") expenditures across the plan horizon of the WMP. Guidelines at 8. The Company provided a summary of its capital, O&M, and vegetation management budgets for 2026 through 2028. 2026 WMP Need to Know Document at 2. However,the summary did not break down the costs by category or project level. Id. In Response to Staff Production Request No. 20, the Company provided a project-level narrative that included short project descriptions,benefits,timespans,and budgets for each project, which Staff believes satisfies the requirement to provide a breakdown of program category's O&M expenditures. Staff believes each budget is comprehensive but not specific to wildfire-related spending. In 2026, the Company forecasts expenditures of $9.28 million in capital, $8 million in O&M, and $3.19 million in vegetation management. 2026 WMP Need to Know Document at 2. Although vegetation management is classified as O&M spending, it is reported as a separate budget category. Id. The capital budget includes several major projects, most notably multiple substation construction and rebuild efforts. See Response to Staff Production Request No. 20. It also includes $1.15 million to replace 50 wood poles with ductile iron poles and to install Gridscope devices on 225 poles near Priest Lake.Id. Table No. 1 below provides the Company's budget summary for the 2026 WMP. Need to Know Document at 2. STAFF COMMENTS 4 JUNE 10, 2026 Table No. 1: 2026-2028 Budget Summary °o increase °'o increase %increase Budget Budgeted for from prior Forecast for from prior Forecast for from prior Category 2026 year 2027 year 2023 year 3 year Total Capital S 9.281.000 3.0°o S 9,652,240 4.Vo S 10,038,330 4.0°o S 23,971,570 OR-Nd S 8.003.002 3?0o S 8,443,167 5.5% S 8.780,894 4.0°'o S 25,227,063 Vegetation S 3.195.384 3.00o S 3.355.153 5.0% S 3,522,911 5.0% S 10,073,44E Total S 20,479,3E6 S 21.450.560 S 22,342,135 S 64,272,081 Cost Benefit Approach. Idaho Code § 61-1804(1)(b) requires the Commission to consider the feasibility of the plan and the cost of its implementation. In the Guidelines and Order No. 36882,the Commission directed companies 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),the Guidelines,and Order No. 36882. The Company provided a table that identifies wildfire-mitigation programs as high, medium, or low in terms of cost and effectiveness. 2026 WMP at 16. While the table classifies each program,it does not explain the underlying rationale for those designations. Id. For example, relays are categorized as low cost but highly effective for wildfire mitigation; however, the Company does not describe how it determined the cost rating (such as cost per mile, cost per device,or another metric)or why the program was assigned its specific mitigation value. Id. Staff encourages the Company to consider including a narrative to accompany the table that applies a consistent, transparent, and repeatable methodology across projects. Staff believes that such consistency is necessary to evaluate whether projects are prioritized using comparable criteria. Additionally, Staff encourages the Company to define any qualitative benefits included in the analysis, explain the efficacy in mitigating wildfire risk, and consider quantifying the risk reduction associated with specific infrastructure mitigation measures. Grants. Idaho Code § 61-1803(4)(b) requires the Commission to consider the cost of implementation of WMP expenditures. Thus, Staff believes information on funding alternatives and funding sources are necessary to evaluate the cost and feasibility of the Company's planned actions. The 2026 WMP briefly discussed that the Company had been awarded two grants for wildfire-related projects but did not provide additional information on the details of the grants. 2026 WMP at 10-11. In its Response to Staff Production Request No. 7, the Company provided STAFF COMMENTS 5 JUNE 10, 2026 information regarding the Idaho Office of Energy and Mineral Resources ("OEMR") grant of $452,772 to install weather stations and of$375,000 to conduct drone inspections. Response to Staff Production Request No. 7 Bates Nos. NLI0001-25. In addition, Staff learned that the Company has been awarded another three OEMR grants that were not mentioned in the 2026 WMP. See Response to Staff Production Request No. 20 and OEMR Energy Resiliency Grant Program Awarded Projects. 1 These grants are for the following: (1) Priest Lake area projects to replace 50 wood poles with ductile iron poles and to install Gridscope devices on 225 pole locations of$1,159,162; (2) installing satellite imaging technology for vegetation management to enable targeting of reduction areas needed to reduce wildfire hazards around powerlines of $48,240; and (3) undergrounding overhead distribution power lines and underground services to homes in Bonners Ferry of$1,543,542. Id. Given that the majority of the Company's awarded grant information was omitted from the 2026 WMP and was instead provided in discovery, Staff recommends the Commission direct the Company to provide details of all funding alternatives and funding sources pursued for wildfire- related mitigation efforts in future WMP filings. Cross Cutting Elements This section addresses several integral components of the 2026 WMP that Staff considered in its review that relate to multiple programmatic areas of the Guidelines. Here Staff provides its analysis of the Company's targets and goals, the metrics used to monitor progress, the anticipated filing date for future WMP filings, lessons learned from prior implementation, and Staff s coordination efforts with the State Forester at the Idaho Department of Lands ("IDL"). Together, these topics inform Staff s assessment of the Company's overall approach to wildfire mitigation planning and continuous improvement. Targets and Goals. The Guidelines require the Company to include measurable targets and goals in its WMP. Guidelines at 7-8. Staff believes that the Company provides cycle-based targets for many of its programs in the 2026 WMP. For example, the Company states that vegetation management is performed on a 7-year cycle; overhead lines are inspected on a 7-year 1 OEMR Energy Resiliency Grant Program Awarded Projects. https:Hoemr.idaho.goy/programs/idaho- energy-resiliency rg ant-pro rg am/(last visited May 12,2026). STAFF COMMENTS 6 JUNE 10, 2026 cycle, and meters are inspected on a 4-year cycle. 2026 WMP at 11. However, the Company provided additional numeric targets in Response to Staff Production Request No. 20, including replacement of 50 wood poles with ductile iron poles and installation of Gridscope devices on 225 poles. Staff believes that having both numeric targets and cycle-based targets allows for more effective year-to-year compliance verification. Therefore, Staff suggests that the Company provide both cycle-based and numeric targets, such as poles or underground cable to be replaced, for each program area and project where feasible in future WMP filings. Metrics. As stated previously, Idaho Code § 61-1804(1)(b)(c) requires the Commission to evaluate both the feasibility of the WMP and the extent to which it minimizes wildfire risk. The Company identified some metrics it plans to use to assess the effectiveness of various WMP programs. 2026 WMP at 15. However, the Company also provided additional details on measuring WMP program effectiveness in its Response to Staff Production Request Nos. 9 and 11. Staff believes these metrics and the supporting data should be included in future WMP filings because they provide practical indicators that support the Company's ongoing evaluation of system conditions. Therefore, Staff recommends that the Company include all metrics used within each respective program area and provide the associated data in a format that allows for easy comparison across WMP cycles in future WMP filings. Where available, Staff further recommends that the Company provide at least three years of historical system- and circuit-level data to support trend analysis in future WMP filings. Future WMP Filing Date. Idaho Code § 61-1803(2)(a) gives the Commission the authority to stagger the filing dates of the WMPs. The Guidelines directed electric corporations to file their updated WMPs for annual review one year after the filing date of the previously approved WMP. Guidelines at 20. Through communication with Staff, the Company stated it would prefer an annual WMP filing date on or about February 2"d. Staff has no concerns with this preferred filing date.2 Therefore, Staff recommends the Commission issue an order clarifying that 2 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. In Case No.C07-E-25-01,Staff recommended Kootenai Electric Cooperative have an annual filing date on or about December 31 each year. STAFF COMMENTS 7 JUNE 10, 2026 the Company's annual filing on an updated WMP should be submitted on or about February 2"d of each year. Lessons Learned. The Guidelines require the Company to provide an update of lessons learned from the previously approved WMP filings submitted for Commission review and approval. Guidelines at 8. The Company has not previously filed an Idaho Commission approved WMP, so this requirement does not apply to the 2026 WMP. However, the Company explained that in 2024 it developed its first WMP, implemented a formal overhead inspections program, and applied seasonal protection settings to portions of its system during peak wildfire conditions. Response to Staff Production Request No. 1. In 2025,the Company expanded its wildfire mitigation efforts by developing its public power safety shutoff ("PSPS") plan and began formal wildfire risk modeling using Athena Intelligence. Id. Staff suggests the Company include these details in future WMP filings to better demonstrate its efforts to reduce wildfire risk and to demonstrate its implementation efforts. State Forester Collaboration. Idaho Code § 61-1804(3) requires the Commission to consult with the State Forester at the IDL regarding vegetation management,reduction of wildfire fuels, and other duties of the State Forester under Title 38, Idaho Code. On January 29, 2026, Staff informed the IDL of the 2026 WMP and provided access to the Company Application and associated documents. On February 23,2026, Staff met with the Company and the IDL to discuss the Company's wildfire risk modeling and other areas of the 2026 WMP. On May 20, 2026, Staff and the IDL met to discuss the IDL's concerns and recommendations for the 2026 WMP. Staff understands that the IDL intends to file public comments, and Staff recommends that the Commission consider IDL's comments alongside Staff s analysis when evaluating the 2026 WMP. Geographical Risk Assessment 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. In Section 6 of the 2026 WMP, the Company provided its Landscape Wildfire Risk map and provided a list of high- level risk drivers. 2026 WMP at 8-9. Staff believes the Company has followed a reasonable STAFF COMMENTS 8 JUNE 10, 2026 modeling approach to assess wildfire risk in its service territory and has met the requirements of Idaho Code § 61-1803(3)(a) and the Guidelines. However, Staff believes there are areas for improvement, including: (1) the wildfire risk model description; (2) addressing limitations of the risk modeling process; and(3) addressing the different risk scores on its Landscape Wildfire Risk map. Risk Model Description The description of the Company's modeling process and the inputs used were not included within the 2026 WMP. In Section 6 of the 2026 WMP, the Company provides a brief description of the wildfire risk model that states the Company has mapped its assets onto the risk model to provide insight into risk. 2026 WMP at 6-7. However, in discovery with Staff the Company explained that a third-party vendor, Athena Intelligence, was used to create the Company's Landscape Wildfire Risk map. Response to Production Request No. 5. Also, the Company provided details about the risk modeling inputs used by Athena Intelligence, which included: (1) the United States Department of Agriculture Forest Service's ("USDA Forest Service") Wildfire Risk to Communities 2024; (2)USDA Forest Service Landscape Fire and Resource Management Planning Tools ("LANDFIRE") 2023; (3) National Interagency Fire Center Wildland Fire Interagency Geospatial Services ("WFIGS"); (4) University of Wisconsin's SILVIS Lab; and(5) other datasets.Id. Further in its Response to Staff Production Request No. 6, the Company stated Athena Intelligence's Landscape Wildfire Risk was produced by the combination of two models, Conditional Risk and Probability Risk models. As most of the information needed to meet the requirements was provided in discovery, Staff recommends the Commission direct the Company to include a narrative describing the Athena Intelligence's modeling process and model inputs in future WMP filings. Staff believes this narrative would assist in Staffs analysis of the Company's adherence to Idaho Code § 61- 1803(3)(a) and the Guidelines by providing context for the risk model and its inputs. Risk Model Limitations Staff believes there are multiple limitations with the Company's current risk model process. First, the Guidelines state that the geographical risk assessment should consider factors including asset location. Guidelines at 2. The Company explained that Athena Intelligence's approach to STAFF COMMENTS 9 JUNE 10, 2026 risk modeling considers the existing wildfire risk due to external factors. Response to Production Request Nos. 5 and 6. Staff believes Athena Intelligence's approach satisfies the requirements of the Guidelines. However, Staff believes the risk modeling does not consider the risk of ignition from the Company's infrastructure and that by not considering the risk of that ignition source, the risk modeling is limited. The Company stated it has overlayed its assets onto the Landscape Wildfire Risk map,but this image is not included within the 2026 WMP. 2026 WMP at 6. Further, Staff believes that simply overlaying assets on the risk map only indicates their physical location and does not provide key details and attributes—such as equipment condition or type—that would be relevant in a comprehensive wildfire mitigation plan, where utilities should consider both the presence of equipment in high-fire-risk areas and the condition of that equipment to inform investments and mitigations. Based on this, Staff believes that the Company's risk assessment process does not consider the Company's infrastructure risk of causing wildfire as an input into the risk model. Using its infrastructure risk as an input into the risk modeling may create a different wildfire risk profile for the Company as it would consider the risk of ignition from its infrastructure. Understanding the infrastructure risk would enable the Company to identify where to focus system investments, in addition to understanding risk from external factors such as vegetation. As the Company and Athena Intelligence continue to refine the modeling process, Staff suggests the Company consider adding infrastructure ignition risk as an input into the risk model. Second, Idaho Code § 61-1804(l)(c) requires the Commission to consider the degree to which the plan adequately minimizes wildfire risk. The Company provided qualitative explanations regarding the benefits of its wildfire mitigation plans in its Response to Staff Production Request No. 2 and in discussions with Staff. Thus, Staff believes the Company satisfied the requirements of the WSCA. However, Staff believes that this information should be included in the 2026 WMP. Further, Staff believes that the risk model is one potential area where the Company can explain how it is adequately minimizing wildfire risk from its infrastructure. Staff believes that without infrastructure risk considered in the model,the model will not show any reduction of risk based on investments in the system. Therefore, Staff recommends the Commission direct the STAFF COMMENTS 10 JUNE 10, 2026 Company to narratively explain how specific mitigation activities, such as grid hardening efforts, reduce wildfire risk in future WMP filings. Lastly, in a meeting with Staff, the Company stated that it also had not directly consulted with local fire experts on the results of the risk model. Staff believes it is an industry best practice to consult with local experts as another facet to validate the risk model's results. Therefore, Staff suggests the Company consult with local fire experts, such as the local fire warden,to further refine the risk modeling output. Risk Scores The Guidelines require the Company to provide a map of its service area and provide an explanation of what determines each level of wildfire risk. Guidelines at 2. The Company provided the Landscape Wildfire Risk map produced by Athena in the 2026 WMP. 2026 WMP at 8. Included in this map, there was a legend that depicts the five risk score categories based on color and risk score; however,there was no explanation provided on how each risk score category was determined. Id. In its Response to Staff Production Request No. 6, the Company stated that the wildfire risk levels reflect a combination of likelihood of ignition, fuel characteristics, fire intensity potential, and exposure of structures and infrastructure. The Landscape Wildfire Risk map is produced by two models, which result in a geospatial-based, quantitative risk profile. Id. The Company provided an illustration to depict the different colors of each risk category, which is included herein as Figure No. 1 below. Id. The Company also provided an illustration that showed how the colors on the map correlate to Figure No. 1 of the Risk Profile,which is included as Table No. 2 below. Id. Athena's Risk Scores of 2 through 10 were created by combining the Conditional Risk Class and Probability Risk Class. Id. Figure No. 1 —Risk Profile Very Low or High Very High Moderate STAFF COMMENTS 11 JUNE 10, 2026 Table No. 2—Athena's Risk Score Probability Risk Low Moderate Elevated High V*ryH N Very High 8 = High 5 5 7 0 Moderate 4 4 6 6 7 8 o Low 5 6 7 `j Very Low 4 Staff believes this information was necessary to evaluate the Company's adherence to the risk assessment requirements. Because the information was not included within the 2026 WMP, Staff recommends the Commission direct the Company to include an explanation of how risk scores are derived and include any illustrations needed in future WMP filings, similar to what it provided in its Response to Staff Production Request No. 6. Preventative Actions and Programs In addition to required material, the Guidelines state that an electric corporation may include other actions or programs, such as system hardening strategies, workforce preparedness, and pilot programs in tis WMP. Guidelines at 3-4. Staff believes system hardening strategies correlate with Idaho Code § 61-1803(3)(e), therefore, Staff discusses system hardening in the "Method of Line Design and System Hardening" section. The Company included a discussion of its workforce preparedness and pilot programs in the 2026 WMP and those topics are discussed below. Workforce Training and Preparedness Idaho Code § 61-1803(3)(c) and the Guidelines state that an electric corporation's WMP may include other actions or programs, such as workforce preparedness. Guidelines at 3-4. The Company included a workforce preparedness section within the 2026 WMP. 2026 WMP at 12. Staff believes a trained workforce supports the safe and effective implementation of wildfire mitigation measures, including situational awareness, emergency response, and line operations. Staff also believes a trained workforce 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. STAFF COMMENTS 12 JUNE 10, 2026 Within the 2026 WMP, the Company stated that it conducts monthly wildfire and safety training meetings and coordinates training and other events with local fire departments. 2026 WMP at 12. The Company also provided a summary of training provided during 2024 and 2025. Response to Staff Production Request No. 18. Examples of additional training information provided included attendance at a full-day Fire Mitigation and Advanced Distribution Protection Control seminar and internal training on wildfire settings for reclosers. Id. Staff recommends the Company provide a table identifying the planned training, the role of who should attend, designation of whether training is required or optional, and training dates (i.e., date, month, or quarter) in future WMP filings. Pilot Programs The Guidelines state that a WMP may include pilot programs as a preventative program. Guidelines at 4. As discussed in the Grant section above, the Company was awarded a grant to conduct a drone inspection on a portion of its overhead system. Response to Staff Production Request No. 7 Bates Nos.NLI0001-25. In 2026,the Company plans to use drones to inspect 450- 500 miles of overhead line in Idaho. Response to Staff Production Request No. 9. Within the 2026 WMP, the Company stated that if it determines drone inspections are beneficial and cost effective,it may add drone inspection as a future planned management strategy to its WMP. 2026 WMP at 11. In a meeting with Staff, the Company explained that this is a one-time inspection funded by the OEMR grant, and that the Company planned to issue a request for proposal for a contractor in Spring 2026, with the inspection to be performed in Summer 2026. As most of the details regarding drone inspections were not included within the 2026 WMP, and the Company is already conducting this work, Staff suggests the Company include additional details about the Company's current or planned pilot programs,including areas of focus,total estimated capital and annual O&M, and any metrics it will use to evaluate the success of each program. Additionally, Staff suggests the Company include any targets in future WMP filings for transparency and to support Staff s evaluation of the WMP's feasibility. Public Outreach, Engagement and Community Education Idaho Code § 61-1803(3)(c)and the Guidelines require each WMP to include a description of how the electric corporation maintains community outreach and public awareness before, STAFF COMMENTS 13 JUNE 10, 2026 during, and after wildfire season. Staff believes the 2026 WMP meets these requirements. For example, the Company communicates its WMP with its members and the community via public notices, public open houses, demonstrations, and information tables. 2026 WMP at 13. Furthermore, the Company's Tree Foreman communicates daily with members while working in the field. 2026 WMP at 6 and Response to Staff Production Request No. 3. Staff encourages the Company to continue refining and updating its public outreach, engagement, and community education efforts as necessary for inclusion in future WMP filings. Government Outreach Idaho Code § 61-1803(3)(d) and the Guidelines require a WMP to 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. For instance,the Company explained that it has limited interaction with tribal residents and therefore coordinates with Tribes as necessary. 2026 WMP at 6. For large-scale wildfires, the Company stated its Engineering & Operations Manager coordinates with local emergency management agencies and any other agency as necessary. Id. The Company also explained that it attends county coordination meetings,and the Company's Tree Foreman regularly works with the United Stated Forest Service and the Idaho Department of Lands. Response to Staff Production Request No. 3. Staff encourages the Company to continue refining and updating its government outreach efforts as necessary for inclusion in future WMP filings. Method of Line Design and System 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. The Company identified five design and construction programs for wildfire mitigation: (1) overhead to underground power line conversions; (2) system monitoring of substation feeders via SCADA; (3) recloser upgrades; (4) pole replacements and replacing wood poles with steel poles; and(5) installing fiberglass crossarms. 2026 WMP at 10. Based on its review of the 2026 WMP and the additional material provided by the Company in discovery, Staff believes the requirements of Idaho Code §§ 61-1803(3)(b), 61-1803(3)(e), and the Guidelines have been met. However, Staff has identified areas for improvement in future WMP filings described below. STAFF COMMENTS 14 JUNE 10, 2026 Project Level Details The 2026 WMP did not contain sufficient details, such as projected timelines, targets, alternatives considered, selection criteria, reasonableness of costs, or primary drivers for each project needed for Staffs analysis. The Company provided additional details in its Response to Staff Production Request No. 20. Examples of details provided include: Idaho Governor's Office of Energy and Mineral Resources, Preventing Outages and Enhancing the Resilience of the Electric Grid grant—Priest Lake area projects, including replacing 50 wood poles with ductile iron poles and installing Gridscope devices at 225 pole locations. Total grant $1,159,162, NLI's cost share is 19%. NLI's budget includes cost share. This project will span 2026 and 2027. Lamb Creek Substation—This is a complete rebuild of an existing substation. This will have modernized system protection,monitoring& control. Budget for 2026 is $1,875,000 and includes site prep, final engineering design, construction and commissioning. I...I Weather Stations & DSAT — Grant project that will install 60 weather stations in Idaho and set up a DSAT for situational awareness during wildfire season. A grant in the amount of$103,696 through the Idaho Energy Resiliency Grant Program, has been awarded, and NLI's cost match is $25,924. Response to Staff Production Request No. 20. Staff believed the additional information provided in discovery was needed for, and did help with, Staffs analysis on whether the requirements of Idaho Code §§ 61-1803(3)(b), 61-1803(3)(e), and the Guidelines were met. Thus, Staff recommends the Commission direct the Company to include similar project-level details, including targets, explanation of the benefits, project timelines, and alternatives considered for each project in future WMP filings. General Maintenance and Upgrade as a Project The Company represented it prioritizes project selection using factors such as reliability and continuity of service, replacement of aging infrastructure, capacity to meet load growth, and reduction of operational and wildfire-related risk. Response to Staff Production Request No. 2. The Company also stated that replacement of aging infrastructure inherently reduces wildfire risk by lowering the likelihood of equipment failure. Id. The North American Electric Reliability Corporation ("NERC") identifies that the risks from a utility's infrastructure depend on several factors that include age, condition, and type of STAFF COMMENTS 15 JUNE 10, 2026 construction.3 Staff believes incorporating a prioritized and enhanced maintenance program focused on aging or high-risk equipment in elevated wildfire risk areas in a utility's WMP reduces the probability of utility-caused ignitions while improving infrastructure resilience. Thus, Staff suggests the Company consider adding prioritized inspection and maintenance based on an area's fire risk and infrastructure condition as a wildfire mitigation strategy,similar to the strategies listed in the 2026 WMP at Section 7.2.1. Include Avian and Animal Projects In a conversation between Staff and the Company on March 25, 2026,the Company stated that it maintains an Avian Protection Plan. Staff believes that avian and animal protection is important to an electric utility because it prevents wildlife-caused contacts that can lead to outages and ignition risks, thereby improving system reliability while also safeguarding animals. As the Company has an Avian Protection Plan that is otherwise not detailed in the 2026 WMP, Staff suggests the Company include these details 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 7.1 of the 2026 WMP describes each of the public sources the Company uses to monitor weather conditions and wildfire risk,and explains that the Company has received a grant to set up its own weather station network. 2026 WMP at 10. Staff believes the Company has met the requirements of Idaho Code § 61- 1803(3)(f) and the Guidelines; however, Staff believes there is room for improvement regarding the weather station network. As mentioned in the Grants section above,the Company is creating its own weather station network as a result of an OEMR grant. Response to Staff Production Request No. 7 Bates Nos. NLI0001-25. In Response to Staff Production Request No. 7, the Company stated its plans to install 60 weather stations in 2026 and incorporate the data into a new Daily Situational Awareness s NERC Wildfire Mitigation Reference Guide July 2025 at 3. Wildfire Mitigation Reference Guide - July 2025 (last visited May 20,2026). STAFF COMMENTS 16 JUNE 10, 2026 Tool ("DSAT"). The Company stated it intends to use the Tempest software as its DSAT, which will integrate real-time weather data, alert thresholds, and decision-support tools to assist in wildfire risk monitoring. Id. Staff believes this information is necessary to include within WMPs, and not through discovery with Staff, as it describes a program that will benefit the Company's situational awareness. Therefore, even though Staff believes that the information provided in the 2026 WMP satisfies Idaho Code § 61-1803(3)(f) and the Guidelines, Staff recommends the Commission direct the Company to include the details of the weather station program status, areas of focus,annual cost,any applicable targets,and any metrics used to evaluate the program in future WMP filings. Additionally, Staff recommends the Commission direct the Company to include a more detailed description of the DSAT tool, including the outputs of the tool, in future WMP filings. Staff suggests the Company include a narrative describing how the Company uses the data from the DSAT tool to inform its operations. Infrastructure Inspections 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. Staff believes 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. The Company described its asset inspection strategy in 2026 WMP sections 7.4, 10.3, and in the Infrastructure and Vegetation Management Procedure attached to the 2026 WMP("2026 WMP Infrastructure and Vegetation Management Procedure"). The Company also provided additional details in its Response to Staff Production Request No. 10. This response included a description of the inspection form content that includes tasks such as: (1)checking connection and grounds for proper installation and system integrity; (2) evaluation of equipment condition (including transformers, breakers, etc.); and (3) evaluating wire condition to identify issues such as sag, excessive splicing, or improper tie-ins. Based on its review of the 2026 WMP, Staff believes the Company has met these requirements. However, Staff has identified areas for improvement in future WMP filings, described below. STAFF COMMENTS 17 JUNE 10, 2026 Enhanced Inspections for Elevated Fire Risk Areas The Company states that it has a 7-year inspection cycle for all overhead lines. 2026 WMP at 11. The Company has also identified certain areas of its service territory that have elevated fire risks. 2026 WMP at 6-8. The NERC's recent wildfire report recommends electric utilities adopt risk-based asset management programs that"target equipment"within the high fire risk areas,that consider "factors such as failure-mode history and age-based performance curves," and that prioritize at-risk equipment"within inspection and maintenance regimes."4 Based on the NERC's recommendation in its recent wildfire report, Staff recommends the Company consider adopting enhanced inspection schedules for elevated fire risk areas that also considers equipment condition. Quality Assurance Staff believes a Quality Assurance ("QA") program for infrastructure maintenance is essential because it verifies that completed corrective work truly resolves the identified issue, ensuring safety, reliability, and accountability in the utility's maintenance practices. The 2026 WMP did not describe the Company's QA process for inspections. In discovery with Staff, the Company stated that it"utilizes [geographic information system] GIS and engineering systems to monitor and track deficiencies and repairs, which functions as an ongoing quality control process in lieu of a formal audit program." Response to Staff Production Request No. 14. Staff suggests the Company consider adopting a more formal QA process that uses a statistically valid sample of completed work to provide reliable assurance that issues are being properly corrected. Deficiency Backlog Monitoring Staff believes that through the course of its inspections and related activities,the Company will naturally identify deficiencies. The Company represented in discovery with Staff that each identified deficiency is assigned to one of the following categories that include defined priorities and target timelines for remediation: 1. High—requires immediate attention; 2. Medium—requires scheduled work; 4 North American Electric Reliability Corporation Docket No. RD25-9-000(2026)Attachment A at 6, hitps://www.nerc.com/globalassets/who-we-are/le ag 1--regulatory/filings--orders/nerc-filings-to-ferc... (last visited May 21,2026). STAFF COMMENTS 18 JUNE 10, 2026 3. Low—routine maintenance; and 4. NA—no action required. Response to Staff Production Request No. 10. Staff notes that a backlog represents the accumulation of deficiencies that remain unresolved beyond the target timeline. Monitoring how long deficiencies remain open is essential for understanding whether remediation is occurring within appropriate priority-based target timelines and for identifying trends that may indicate emerging risks. An increasing number of overdue deficiencies, particularly those remaining open for extended durations, signals that additional resources or process adjustments may be needed to maintain safety and system reliability. The Company provided deficiency backlog data in its Response to Staff Production Request No. 11. To further support transparency and long-term monitoring of deficiency trends, Staff recommends that the Company include the following Idaho infrastructure-related deficiency information for the prior three years in future WMP filings: (1) the number of deficiencies identified by category; (2) the number or percentage of deficiencies repaired by priority category; and(3)pending repairs at year-end by category. De-Enemization and Operational Practices During Heightened Wildfire Risk Days and Zones Idaho Code §§ 61-1803(3)(b), 61-1803(3)(g)(ii), and the Guidelines require discussion of operational changes during heightened wildfire risk days or in high wildfire risk zones, which includes system and line settings, restrictions to workforce practices, and other system processes. Staff believes this information is important because operational changes during heightened wildfire risk days reduce the likelihood of ignition not only from electrical infrastructure but also from activities performed on that infrastructure,such as routine maintenance or emergency repairs. The Company stated it operates under two levels of seasonal settings based on current area fire restrictions in each of the six counties it serves: 1. Level 1 Settings: Stage 1 Fire Restrictions (Reclosing is turned off for system protection devices); and 2. Level 2 Settings: Stage 2 Fire Restrictions (System protection devices are set to trip as quickly as the device allows). STAFF COMMENTS 19 JUNE 10, 2026 2026 WMP at 12. Although Staff believes the 2026 WMP has met the requirements, Staff has recommendations for improvement in future WMP filings. Operational Practices During Heightened Wildfire Risk Days and Zones The Company tracks multiple sources of real-time and near-term weather for situational awareness and also tracks Red Flag Warnings ("RFW") and area fire restrictions. 2026 WMP at 9-10; See also 2026 WMP Infrastructure and Vegetation Management Procedure at 6. The Company described how relays and reclosers settings change as fire risk escalates. 2026 WMP at 12. The Company described how infrastructure and vegetation management work may change during elevated fire conditions. 2026 WMP at 9-10; See also 2026 WMP Infrastructure and Vegetation Management Procedure at 6. Staff believes that the information provided in the 2026 WMP satisfies Idaho Code §§ 61-1803(3)(b), 61-1803(3)(g)(ii), and the Guidelines. However, the descriptions of infrastructure and vegetation management work were presented at a high level and did not distinguish how specific operational practices change as conditions escalate from Level 1 to Level 2 and ultimately to a RFW. Id. Instead of identifying what actions apply at each individual risk level,the information is grouped,making it unclear how incremental changes occur as wildfire risk increases. Id. Staff requested from the Company documentation outlining how operational practices, such as fieldwork procedures and required fire and safety equipment, vary across different risk levels, but the documents provided by the Company were not responsive to Staffs request. Response to Staff Production Request No. 16. Staff believes that operational adjustments are likely to differ as wildfire risk levels change. Staff recommends that the Company include in future WMP filings a table or narrative that clearly identifies how practices evolve at each designated risk level. Staff believes that providing this level-specific detail will improve transparency and allow for a clearer understanding of how the Company scales its operational response as wildfire risks escalate. De-Energization with a Public Safety Power Shutoff The 2026 WMP briefly describes the Company's de-energization and re-energization policy. 2026 WMP at 12-13. The Company stated that it developed a PSPS program in 2025. Id. The Company provided a copy of its PSPS plan in its Supplemental Response to Staff Production Request No. 17. The Company represents it will utilize a variety of tools to make PSPS decisions STAFF COMMENTS 20 JUNE 10, 2026 based on current conditions and with public safety as a priority rather than having a specific formula or checklist for enacting a PSPS. Id. The Company's PSPS plan describes that it also configures reclosers to instantaneous trip with no reclosing while retaining the option to implement a proactive de-energization,if necessary.Id. Staff notes that it is a common industry understanding that a recloser trips automatically and de-energizes the affected line segment during a fault and reduces the amount of line that must be patrolled before service can be restored. The Company's PSPS plan also describes member communication before, during, and after an event, as well as its re-energization processes. Id. Staff suggests that the Company include a copy of its current PSPS plan in future WMP filings. 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. 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 future WMP filings. Enhanced Inspection for Elevated Fire Risk Areas. The Company states that it uses satellite-based vegetation imagery to support a risk-based approach to vegetation management and to help prioritize work areas. 2026 WMP at 11. Staff requests that, in future WMP filings,the Company provide additional detail on the criteria used to determine this prioritization (e.g., vegetation clearance measurements, identification of hazard trees, designation of elevated fire-risk areas, or other relevant factors). Quality Assurance Staff believes that a QA program for vegetation management is essential because it verifies that work is completed in accordance with the Company's specifications, standards, and right-of-way requirements to prevent outages and reduce risk. The Company did not describe its QA process in the 2026 WMP. However, through discovery with Staff the Company stated that QA is performed through supervisory review by the Company's Tree Foreman rather than a formal STAFF COMMENTS 21 JUNE 10, 2026 audit program. Response to Staff Production Request No. 13. Staff suggests the Company consider adopting a more formal approach to QA that uses statistically valid sampling because only a sufficiently large and properly selected sample can provide reliable confidence in contractor performance and prevent decisions from being based on incomplete or misleading data. Vegetation Management Training The Company shared that its vegetation management is done according to standards that include American National Standards Institute ("ANSI") A300 and Occupational Safety and Health Administration("OSHA") 1910.269. Response to Staff Production Request No. 22. These standards address clearances, tree/shrub conditions, how to safely and appropriately prune or remove vegetation, and vegetation health. However, in a meeting on March 25, 2026, with the Company, the IDL, and Staff, the IDL mentioned that the standards the Company used do not cover the ignition potential or fire propagation perspectives of vegetation. The IDL specifically mentioned the above standards do not address "ladder" fuels, which allow wildfires to progress from the ground to the canopy and are applicable to the Company's territory. In the March 25, 2026, meeting, the Company stated it does not currently require the International Society of Arboriculture's Wildfire Risk Reduction Qualification and has not considered doing so. Staff suggests the Company consider adding this training and certification as a requirement for personnel or contractors doing vegetation management as it addresses ladder fuels, which are applicable to the Company's territory. Hazard Trees The Company stated that it identifies and documents hazard trees during its vegetation management inspections and schedules mitigation work in accordance with its internal policies. 2026 WMP Infrastructure and Vegetation Management Procedure at 5. The 2026 WMP does not provide data on the number of hazard trees identified each year, the number removed or otherwise addressed, or the number remaining at year-end. However, the Company did provide the number of trees removed and trimmed each year from 2022 through discovery with Staff. Response to Staff Production Request No. 3. Staff believes tracking these metrics would help determine whether additional resources are needed to manage any growth in the backlog of hazard trees requiring remediation. The Company's territory includes wooded areas, and Staff is concerned STAFF COMMENTS 22 JUNE 10, 2026 that ongoing drought conditions and insect infestations in Idaho forests may increase tree mortality,accelerating the emergence of hazard trees within the Company's service territory. Staff recommends that the Company include these hazard-tree metrics in future WMP filings to better monitor, anticipate, and manage potential backlog growth. Wind Event Prioritization. During discussions with IDL regarding the 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 in service areas affected by recent extreme wind events, particularly in areas where these more vulnerable tree species are present. 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 Company stated it"will work with timber company land owners to develop a plan to manage live marketable timber that is identified for removal from timber company land adjacent to the rights- of-way". 2026 WMP at 11. Staff believes the Company has met this requirement. However, Staff suggests the company include more details on this process in future WMP filings. STAFF RECOMMENDATIONS Staff recommends the Commission issue an order: 1. Approving the 2026 WMP; and 2. Clarifies the Company may file its future annual updated Wildfire Mitigation Plan on or about February 2nd each year. Staff recommends the Commission issue an order directing the Company to: STAFF COMMENTS 23 JUNE 10, 2026 1. Provide details of all funding alternatives and sources pursued in future WMP filings; 2. Include a narrative explaining the vendor's modeling process, including the inputs of the modeling it is using in future WMP filings; 3. Include a narrative that explains how mitigation activities are reducing wildfire risk in future WMP filings; 4. Include the explanation of how risk scores are derived and include any illustrations needed, similar to its Response to Staff Production Request No. 6, in future WMP filings; 5. Include project-level details including the targets, explanation of the benefits, and alternatives considered for each project in future WMP filings; 6. Include the details of the weather station program status, areas of focus, annual cost, any targets,if applicable,and any metrics used to evaluate the program inf future WMP filings; and 7. Include a more detailed description of the DSAT tool — including the outputs of the tool in future WMP filings. Respectfully submitted this 10th day of June 2026. Kelsea E. Ross Deputy Attorney General Technical Staff. Karla Ducharme, Kimberly Loskot, Ray McArthur I:\Utility\UMISC\COMMENTS\COI-E-26-01 Comments.docx STAFF COMMENTS 24 JUNE 10, 2026 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 1 Oth DAY OF JUNE 2026, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. C10- E-26-01, BY E-MAILING A COPY THEREOF TO THE FOLLOWING: Northern Lights,Inc. KRISTIN BURGE ENGINEERING& OPERATIONS MGR. NORTHERN LIGHTS, INC. P.O. BOX 269 SAGLE, ID 83860 EMAIL: kristin.burge(a h.coop SUSAN P. WEEKS JAMES, VERNON& WEEKS, P.A. 1626 LINCOLN WAY COEUR D'ALENE, ID 83814 E-MAIL: sweeks@jvwlaw.net PATRICIA JORDAf4, SECRETARY CERTIFICATE OF SERVICE