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HomeMy WebLinkAbout20260813Notice_of_Application_Order_No_37129.pdf Office of the Secretary Service Date August 13,2026 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-26-21 COMPANY'S APPLICATION FOR ) AUTHORIZATION OF THE PROPOSED ) NOTICE OF APPLICATION TRANSACTION WITH OREGON TRAIL ) ELECTRIC CONSUMERS COOPERATIVE, ) NOTICE OF INTERVENTION INC. FOR THE SALE AND TRANSFER OF ) DEADLINE SERVICE TERRITORY ) ORDER NO. 37129 On June 30, 2026, Idaho Power Company ("Company") applied to the Idaho Public Utilities Commission ("Commission") requesting approval of the proposed transaction between the Company and Oregon Trail Electric Consumers Cooperative, Inc. ("OTEC") (collectively,the "Parties")providing for the sale and transfer of the Company's Oregon service territory to OTEC ("Application"). The Commission now issues this Notice of Application and sets deadlines by which interested persons may intervene. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that on February 13, 2026, the Parties entered into an Asset Purchase Agreement ("APA"). Application at 3. On May 13, 2026, the Parties also entered into a Territory Allocation Agreement ("TAA"). Id. The Company states that the APA and TAA provide for the transfer of the Company's entire Oregon service territory("Transferred Territory") and retail customer base, along with certain distribution and transmission system assets required for OTEC to provide service to the newly acquired area("Transaction").Id. YOU ARE FURTHER NOTIFIED that upon completion of the Transaction,the Company states that it will cease serving retail customers in Oregon and will have no remaining obligation or right to serve future retail customers within the Transferred Territory.Id. YOU ARE FURTHER NOTIFIED that the Company represents that the APA and TAA have been submitted to the Oregon Public Utility Commission("OPUC")in Docket No.UM 2447 for review and approval.Id. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37129 1 YOU ARE FURTHER NOTIFIED that the Company believes that the sale and transfer of its Oregon service territory to OTEC is in the public interest and will benefit customers in both Idaho and Oregon. Id. The Company believes the Transaction will simplify its operations by eliminating the need to serve customers across two states, allowing the Company to concentrate its financial resources, infrastructure investments, and workforce on meeting demand in Idaho.Id. at 3-4. The Company does not expect the Transaction to create any immediate cost increases for Idaho customers and anticipates financial benefits over the long term.Id. at 4. YOU ARE FURTHER NOTIFIED that the Company believes that in Oregon, the Transaction will align responsibility for electric service of the transferred customers with a utility whose operating structure and anticipated growth are more consistent with the characteristics of the affected service territory.Id. YOU ARE FURTHER NOTIFIED that the Company believes that from a regulatory perspective, the framework of the Transaction is designed to protect Idaho customers from near- term financial impacts while providing opportunities for long-term cost savings.Id. The Company believes that this protection is important given the Company's growth and significant capital investment requirements to serve its Idaho territory. Id. By allowing the Company to focus its resources on growth in Idaho, it believes that the Transaction will help manage costs and support affordability of electric rates for Idaho customers.Id. YOU ARE FURTHER NOTIFIED that as part of the Transaction, the Company will also transfer to OTEC most of its Oregon distribution infrastructure, including distribution lines, substations, and related equipment. Id. at 5. The Transaction also includes certain transmission lines; however, the Company will retain most of its Bulk Electric System transmission facilities, as well as certain 69 kilovolt transmission lines. Id. The Company's generation assets in Oregon are not included in the Transaction.Id YOU ARE FURTHER NOTIFIED that as part of the Transaction, the Company will also transfer to OTEC a number of contracts associated with the Transferred Territory,including certain interconnection agreements, agreements related to the Oregon Solar Photovoltaic Pilot Program, the Verde Light Community Solar Power Purchase Agreement, and other related contracts. Id. at 6. The Company will retain 11 power purchase agreements with qualifying facilities ("QFs") located in Oregon that are subject to the Public Utility Regulatory Policies Act of 1978.Id. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37129 2 YOU ARE FURTHER NOTIFIED that to support the transition for customers formerly served by the Company, the Parties will enter into a Sales Agreement under which the Company will provide OTEC with the firm capacity and related energy needed to meet the full requirements of customers in the Transferred Territory. Id. The Company will also include the Transferred Territory's load in its forward capacity planning obligations under the Western Resource Adequacy Program.Id. The Company states that the Sales Agreement will initially remain in effect through September 2030, with the option for the Parties to mutually extend the agreement for an additional four years.Id. at 6-7. YOU ARE FURTHER NOTIFIED that under the Wheeling Agreement, OTEC will provide transmission services to the Company to ensure continued delivery of electricity to Idaho customers.Id. at 7. The Company states that this will include wheeling power from Oregon-based QFs to the Company's system, addressing the Company's reliance on certain Oregon transmission and distribution assets and its retained power purchase agreements, and enabling uninterrupted service to Idaho customers.Id. YOU ARE FURTHER NOTIFIED that the Application and testimony are available for public inspection during regular business hours at the Commission's office. These documents are also available on the Commission's website at www.puc.idaho.gov. Click on the "ELECTRIC" icon, select"Open Cases," and click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq. NOTICE OF INTERVENTION DEADLINE YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to obtain parties' rights of participation must file a Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and -.073. Persons who wish to intervene as a party must file a Petition to Intervene no later than 21 days after the date of service of this Order. Such persons shall also provide the Commission Secretary with their email address to facilitate further communications. After the intervention deadline runs, the Commission Secretary shall issue a Notice of Parties that identifies the parties NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37129 3 and assigns exhibit numbers to each parry. Once the Notice of Parties has issued, Commission Staff shall informally confer with the Company and any intervening parties about how to further process this case and shall then report back to the Commission on a proposed case schedule. YOU ARE FURTHER NOTIFIED that persons who would like to present their views without parties' rights of participation and cross-examination do not have to intervene but may present their views by submitting written comments to the Commission. YOU ARE FURTHER NOTIFIED that the following people are designated as the Company's representatives in this matter: Donovan Walker Tim Tatum 1221 West Idaho Street 1221 West Idaho Street P.O. Box 70 P.O. Box 70 Boise, Idaho 83707 Boise, Idaho 83707 dwalker(a)idahopower.com ttatum(kidahopower.com dockets gidahopower.com ORDER IT IS HEREBY ORDERED that persons desiring to intervene in this matter must file a Petition to Intervene no later than 21 days from the service date of this Order. Once the deadline has passed, the Commission Secretary shall prepare and issue a Notice of Parties. IT IS FURTHER ORDERED that, after the Notice of Parties has issued,Commission Staff shall confer with the parties regarding a procedural schedule for this matter including,if necessary, a hearing in this matter. IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37129 4 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 13th day of August, 2026. G EDWARD LODGE, PR IDENT lr�'- �ft� J R. HAMMOND JR., COMMISSIONER DAYN HA IE, COMMISSIONER ATTEST: do ul anchez Commission Secretary I AL.egaITLECTRIC\IPC-E-26-21_OTEC\orders\IPCE2621_ntc_app_int_em.docx NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 37129 5