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HomeMy WebLinkAbout20150715Hearing Transcript Volume I.pdfBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY'S PETITION TO MODIFY TERMS AND CONDITIONS OF PURPA PURCHASE AGREEMENTS IN THE MATTER OF AVISTA CORPORATION'S PETITION TO MODIFY TERMS AND CONDITIONS OF PURPA PURCHASE AGREEMENTS IN THE MATTER OF ROCKY MOUNTAIN POWER COMPANY'S PETITION TO MODIFY TERMS AND CONDITIONS OF PURPA PURCHASE AGREEMENTS BEFORE CASE NO. IPC-E-15-01 CASE NO. AVU-E-15-01 CASE NO. PAC-E-15-03 COMMISSIONER PAUL KJELLANDER (Presiding) COMMISSIONER KRISTINE RAPER PLACE: DATE: Commission Hearing Room 472 West Washington Street Boise, Idaho June 24, 2015 c r,l -I ,::::, r- en -- -;9 <- c:: rn ,-- (/)( I ,.-, Cfj > :I: es -� N VOLUME I - Pages 1 - 86 ORIGINAL CSB REPORTING Certified Shorthand Reporters Post Office Box 977 4 Boise, Idaho 83 707 csbreporting@heritagewifi.com Ph: 208-890-5198 Fax: 1-888-623-6899 Reporter: Constance Bucy, CSR 1 2 3 4 5 For the Staff: A P P E A R A N C E S Donald Howell, Esq. and Daphne Huang, Esq. Deputy Attorneys General 472 West Washington Street Boise, Idaho 83720-0074 6 7 8 For Idaho Power Company: Donovan E. Walker, Esq. Idaho Power Company Post Office Box 70 Boise, Idaho 83707-0070 For Rocky Mountain Power: STOEL RIVES, LLP 9 by Elijah M. Watkins, Esq. 101 S. Capitol Blvd. 10 Suite 1900 Boise, Idaho 83702 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 For Clearwater Paper: For Intermountain Energy Partners: For Snake River Alliance: For Idaho Conservation League & Sierra Club: For Ecoplexus: CSB REPORTING (208) 890-5198 RICHARDSON ADAMS PLLC by Peter J. Richardson, Esq. 515 North 27th Street Boise, Idaho 83702 McDEVITT & MILLER by Dean J. Miller, Esq. 420 West Bannock Street Boise, Idaho 83702 Kelsey Jae Nunez, Esq. Snake River Alliance Post Office Box 1731 Boise, Idaho 83701 Benjamin J. Otto, Esq. Idaho Conservation League 710 North 6th Street Boise, Idaho 83702 FISHER PUSCH LLP by John R. Hammond, Jr., Esq. Post Office Box 1308 Boise, Idaho 83701 APPEARANCES 1 I N D E X 2 3 WITNESS EXAMINATION BY PAGE 4 Michael Heckler Statement 7 (Public) 5 Anne Hausrath Statement 16 6 (Public) 7 Leon Walsh Statement 19 (Public) 8 Reed Burkholdr Statement 21 9 (Public) 10 Tyler Ortega Statement 25 (Public) 11 Debbie Dooley Statement 27 12 (Public) 13 John Weber Statement 32 (Public) 14 Rebecca Bundy Statement 35 15 (Public) 16 Kerrin McCall Statement 38 (Public) Commissioner Kjellander 42 17 Diane Jones Statement 43 18 (Public) 19 Aimee Christensen Statement 45 (Public) 20 Billy Mann Statement 52 21 (Public) 22 Greg Olson Statement 55 (Public) 23 Brian Formusa Statement 60 24 (Public) 25 CSB REPORTING (208) 890-5198 INDEX 1 2 3 WITNESS 4 Sienna White (Public) 5 Edwina Allen 6 (Public) 7 Pam Conley (Public) 8 Caroline Morris 9 (Public) 10 Julie Hoefnagels (Public) 11 Lauren Adler 12 (Public) 13 Marcia Blessing (Public) 14 15 16 17 18 19 20 21 22 23 24 25 CSB REPORTING (208} 890-5198 INDEX (Continued} EXAMINATION BY Statement Statement Statement Statement Statement Statement Statement PAGE 64 67 69 71 73 77 84 INDEX 1 BOISE, IDAHO, WEDNESDAY, JUNE 24, 2015, 7:00 P. M. 2 3 4 COMMISSIONER KJELLANDER: Good evening. This 5 is the time and place for a public hearing in 6 consolidated Case Nos. IPC-E-15-01, AVU-E-15-01, and 7 PAC-E-15-03. My name is Paul Kjellander. I'm the 8 Chairman of this evening's public hearing. Next to me is 9 Commissioner Kristine Raper. Mack Redford, our third 10 Commissioner, is excused and is absent this evening. He 11 will have an opportunity to review the transcript and 12 again following the technical hearing, which is next 13 week, he'll have an opportunity to review that and then 14 the three of us will then deliberate on the final 15 disposition of this case and we hope to have a final 16 Order out even as early the end of July. 17 In part I say that to put the parties on notice 18 that if you intend at the technical hearing to ask for 19 any kind of posthearing briefs, it might better be served 20 to maybe deal with it in terms of closing statements, so 21 I just wanted to give you some warning in advance so that 22 we can move quickly with this case. 23 As we look at this evening and the purpose, the 24 purpose of tonight's hearing is to take testimony from 25 the public regarding this case. This is the opportunity CSB REPORTING (208) 890-5198 1 COLLOQUY 1 for members of the public to get their statement entered 2 into the record that ultimately assists us as the 3 Commission in our deliberative process. 4 As further background, the Commission serves in 5 a similar capacity as a District Court and we generally 6 follow the District Court rules. We are here this 7 evening to help create a fully developed record. We're 8 not here today to pass judgment on comments or statements 9 made on the official record. The Commissioners serve as 10 judges and accordingly, do not answer questions related 11 to the case other than questions regarding procedure. 12 The Commission will not begin to deliberate on 13 the merits of this case until the official record is 14 closed. Additionally, the Commission, like judges, only 15 speak through its orders as it relates to the final 16 ruling on this matter. 17 Procedurally as we go through this evening, 18 what we will do is we have a sign-up sheet that many of 19 you have had an opportunity to walk by. If you'd like to 20 walk by it again and sign up, that would be the perfect 21 way in which we could then call your name and bring you 22 up to testify. As the process works, we'll call your 23 name. You'll come forward to the witness box. At that CSB REPORTING (208) 890-5198 2 COLLOQUY 25 Deputy Attorney General will ask you a few questions to 24 point Commissioner Raper will swear you in and then our 1 get you officially on the record, and then you will be 2 allowed to provide your statement or comment. 3 Following that, there's an opportunity for 4 questions from parties to the case as well from the 5 Commissioners. It's referred to as cross-examination, 6 but since you're not expert witnesses or technical 7 witnesses, I doubt that there will be much in the way of 8 cross-examination, so we call it cross-examination, but 9 it's not intended to be seen as a chilling effect to try 10 to limit you or upset you in terms of your ability to 11 provide a nice comment to us. 12 For those of you that did sign up, when we call 13 your name if you decide that someone else has already 14 said what it was you wanted to say, you can just from 15 your location say what I have to say has been heard and 16 if you'd like, you don't have to testify, but, again, if 17 you want to come up and whatever it is you want to say at 18 that point still, don't feel as if you don't have that 19 opportunity, and if at any point you decide that you 20 don't want to testify and we call your name, you can just 21 say I'll pass and that's fine. 22 You'll all have the opportunity, too, to be 23 part of the telephonic hearing, which will be next 24 Tuesday at 7:00 p.m. and also to file written comments, 25 and those written comments will be accepted up until we CSB REPORTING (208) 890-5198 3 COLLOQUY 1 post a deadline, which likely won't occur until the 2 technical hearing, but typically, it's ten days after the 3 technical hearing, at least in this case, that we'll 4 continue to take written comments. 5 Since we do act very similar to a District 6 Court, we have a court reporter. Her name is Connie 7 Bucy. She's actually friendly and she may occasionally 8 ask you to slow down. She can only move her fingers so 9 quickly. We don't have the typical parties to the case 10 that tend to ramble very quickly. We'll probably see 11 them at a technical hearing in the future, but Connie is 12 very good and kind, and if you do get interrupted by her, 13 it's generally just to slow down, so at this point what 14 I'd like to do is take the appearances of the parties and 15 I know that we have you perhaps scattered. If you could 16 just speak loudly who you represent, why don't we start 17 with Mr. Richardson. 18 MR. RICHARDSON: Mr. Chairman, I'm Peter 19 Richardson with the firm Richardson & Adams. I'm here 20 representing the J. R. Simplot Company and the Clearwater 21 Paper Corporation. 22 23 much. 24 COMMISSIONER KJELLANDER: Thank you very MR. HOWELL: Thank you, Mr. Chairman. My name 25 is Don Howell. I'm the Deputy Attorney General CSB REPORTING (208) 890-5198 4 COLLOQUY 1 representing the Commission Staff. 2 MS. HUANG: And I'm Daphne Huang, the other 3 attorney representing Staff today. 4 COMMISSIONER KJELLANDER: And Daphne, just for 5 purposes of this evening, will it be you or Don who will 6 ask the preliminary questions of witnesses? 7 8 finish. 9 10 11 one. 12 13 14 15 16 Chair. 17 MR. HOWELL: I'll start and then Daphne will COMMISSIONER KJELLANDER: Okay, fair enough. MR. HOWELL: I'll ask one and then she'll ask COMMISSIONER KJELLANDER: Good. MR. MILLER: Thank you, Madam Chairman COMMISSIONER KJELLANDER: Madam Chairman? MR. MILLER: I thought you were going to be the COMMISSIONER KJELLANDER: It's the 2000s, it 18 all works, it's good. 19 MR. MILLER: My name is Dean Miller. I 20 represent Intermountain Energy Partners, which is a 21 developer of renewable energy projects in Idaho and, for 22 example, is developing the project, the solar project, 23 with the City of Boise. 24 MR. WALKER: Donovan Walker representing Idaho 25 Power Company. CSB REPORTING (208) 890-5198 5 COLLOQUY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 .--.. 25 COMMISSIONER KJELLANDER: Are there other parties to the case in the room that would like to be recognized? MR. HAMMOND: Chairman Kjellander, John Hammond from Fisher Pusch and we're here representing Ecoplexus who is a developer of renewable energy projects in Idaho and other states. COMMISSIONER KJELLANDER: Thank you, Mr. Hammond. MR. OTTO: Commissioners, Ben Otto with the Idaho Conservation League. COMMISSIONER KJELLANDER: Thank you, Ben. MS. NUNEZ: Commissioners, Kelsey Nunez with the Snake River Alliance. MR. WATKINS: Elijah Watkins on behalf of Rocky Mountain Power. COMMISSIONER KJELLANDER: Is there anyone else who needs to be recognized as a party to this case? If not, welcome to everyone and we're now ready to proceed, so we'll begin by calling our first witness and we have Michael Heckler. CSB REPORTING (208) 890-5198 6 COLLOQUY 1 MICHAEL HECKLER, 2 appearing as a public witness, having been duly sworn, 3 was examined and testified as follows: 4 5 COMMISSIONER KJELLANDER: Mr. Heckler, before 6 we get the questions, I'm hearing some clicking that I'm 7 not real fond of and so Gene Fadness, can you get rid of 8 the clicking? 9 MR. FADNESS: That's probably people calling 10 in. We can mute it. 11 COMMISSIONER KJELLANDER: That would be good, 12 thanks. All right. 13 MR. FADNESS: There might be some noise while I 14 do that. I apologize for that. 15 COMMISSIONER KJELLANDER: Could you move 16 your -- either mute your phone or please move your 17 keyboard away from your phone? 18 19 MR. FADNESS: We'll see if that works. COMMISSIONER KJELLANDER: I hope there's 20 somebody on the phone. 21 22 23 24 BY MR. HOWELL: EXAMINATION 25 Q. Good evening, Mr. Heckler. Could you state CSB REPORTING (208) 890-5198 7 HECKLER Public 1 your name and spell your last for the record, please? 2 3 A. Q. My name is Michael Heckler, H-e-c-k-1-e-r. And whom are you employed by and in what 4 capacity? 5 6 7 8 A. Q. A. Q. I'm a civilian. I'm retired. And are you an Idaho Power customer? Definitely I'm an Idaho Power customer. And do you have a statement you'd like to give 9 to the Commission tonight? 10 A. I would be very pleased to be able to give a 11 statement. I appreciate the opportunity to speak to you, 12 and for your attention while I do. I'm retired now, but 13 for most of this century I worked as a renewable energy 14 developer. I've got an MBA. I worked as an economic 15 analyst for a bank. I've spend hundreds of hours 16 participating in Idaho Power's integrated resource 17 planning process and several dozen hours reviewing the 18 application for this docket, and based on that analysis, 19 I've come to the conclusion that harnessing competition 20 among solar PURPA developers and between those developers 21 and Idaho Power is beneficial for the state, for the 22 customers of Idaho Power, and for the Company itself. 23 To explain how I got to that conclusion, I'd 24 like to use a graph and show it to you. I don't know if 25 you'll be able to see all this. If you can't, I've got CSB REPORTING (208) 890-5198 8 HECKLER Public 1 the core, there are two pages for you, so at least you 2 can see parts of it, so what I'm displaying here is a 3 graph and on both of the axes are dollars, it turns out 4 dollars per megawatt-hour. What I've graphed here is 5 based on the 19 contracts that you have approved for 6 solar PURPAs. 7 In each of those contracts, there's an 8 indication of what the levelized cost of energy -- an 9 indicator of the average cost of the energy to be 10 provided in that contract over the 20 years what that 11 will be. I have plotted those values on the right side 12 here above the green. On the left side here, I've used 13 Exhibit 3 from Randy's original testimony and have 14 plotted out the estimated levelized cost of energy for 15 each of the 48 projects for which the Company received 16 inquiries for PURPA contract. 17 Those 48 aggregated to the 885 megawatts that 18 have been referred to. What this displays is effectively 19 the avoided cost and how avoided cost declines just as 20 theory suggests as more of the solar resources are made 21 available. Now, none of the solar PURPAs are proposing 22 to use batteries or some other form of storage. They all 23 get their energy from the sun and for every one of them, 24 the sun comes up at the same time, so if you look at 25 their annual and diurnal performance, their generation CSB REPORTING (208) 890-5198 9 HECKLER Public 1 patterns, one PURPA looks like another. 2 They each generate electricity at roughly the 3 same hour of the day, so what we do in an avoided cost 4 analysis, we would expect that the first PURPA that we 5 review will be able to displace the highest cost 6 resource, and what's shown here on the right side is that 7 for the six Oregon PUC's, they average about $80.00 a 8 megawatt-hour over their life in the resources they 9 displace. 10 For the next project, Grand View, some of the 11 highest priced resources have already been displaced by 12 the Oregon. Grand View displaces lower cost resources. 13 It allows the Company to avoid costs, but they're lower 14 cost for resources, so it's only at 72 bucks. For Boise 15 City, the third one, we're down to displacing resources 16 over the course of their life that are at $70.00. After 17 those, we've got a large jump down to $62.00. We've two 18 of them at 62. We've got about five of them in between 19 57 and 61, and we've got four of those approved contracts 20 that are below $57.00 a megawatt-hour. 21 By using the information that Randy provided in 22 his Exhibit 3, I've estimated that the remaining 48 23 projects for which the Company received inquiries when 24 evaluated would have avoided costs of somewhere between a 25 low of 39 and a high of $54.00. The significance of this CSB REPORTING (208) 890-5198 10 HECKLER Public 1 is two-fold: One, this curve, the fact that the avoided 2 cost declines as more resource is brought on line 3 indicates to me that the avoided cost methodology is 4 working. It's a supply curve. As more is supplied, the 5 value goes down. That's exactly what economic theory 6 would suggest. 7 It seems like the pricing model is working, but 8 the other point is much more important. Four of the 9 approved contracts have been terminated and they're the 10 four that are below $57.00 a megawatt-hour and they 11 basically got terminated because they're not economically 12 viable. The developer went out and made an attempt to 13 find someone who would finance that and they were 14 unsuccessful. All of the inquiries that are the 885, the 15 tsunami of projects, are at lower price than that, so if 16 I submitted this as an MBA, we would identify any project 17 having an average price of less than $57.00 a 18 megawatt-hour as being an opportunity for value 19 destruction. The price that you would be paid is less 20 than the cost to make the facility. Nobody is going to 21 do them. 22 These -- that's the area I've shown in red. 23 For projects where the value of the energy that that 24 project provides exceeds $57.00, we call this a resource 25 substitution opportunity, so effectively what this means CSB REPORTING (208) 890-5198 11 HECKLER Public 1 is that new technology, solar generation, can be brought 2 on and avoid -- allow the company to avoid costs which 3 exceed the cost to produce the project. As a result, I 4 think that realistically something on the order of 320 5 megawatts are likely to be built. They might not all be, 6 but it's on that order. 7 Of the 1.3 gigawatts, over a gigawatt of it is 8 not in the money. They're not financially viable. The 9 system works. For projects where there is real value, 10 and that is one measure of whether it's needed or not, 11 these will be built. For ones that apply too late, they 12 won't be built. 13 I have one other point on this. As long as 14 these are avoided costs, as long as that avoided cost 15 measurement is accurate and by the shape it appears that 16 it might be, customers are not harmed by using this new 17 resource. The price that Idaho Power would pay to the 18 solar provider is equal to the cost he avoids by using 19 the solar provider's resource and not acquiring the 20 resource elsewhere. Customers are not harmed. The 21 system self-regulates. When there's too many and it's 22 not needed, the price goes down. 23 One final point, so the highest approved was at 24 80 bucks. The lowest is about 57. This document was 25 handed out. The date on it is January 8th of 2015. This CSB REPORTING (208) 890-5198 12 HECKLER Public 1 is what we call the placemat. It comes out every IRP 2 system, every IRP iteration, and what it does is identify 3 the costs associated with a variety of different 4 generating resources. On this one, Idaho Power says for 5 them to do a utility scale solar project, it would be 109 6 bucks. The customer is not harmed. The system fixes 7 itself on need and the utility gets a valuable 8 opportunity to raise its game, to get a little better in 9 its estimate of cost. 10 I'm going to take a minute here and check my 11 notes. There were two other -- the docket does raise 12 what seems to be the important questions. Does PURPA 13 provide unneeded energy? I think it self-regulates and 14 doesn't. Does PURPA increase customer costs? If we 15 really use avoided costs, no, it does not. Do 16 foreseeable PURPA contracts put system reliability at 17 risk? During the course of the 2015 IRP, the Company 18 analyzed its exposure in two different ways. One was on 19 flexibility of generating resources, but more 20 pertinently, they did a reliability test by doing a loss 21 of load analysis, and in that loss of load analysis, they 22 used the most stringent hydro and heat assumptions, a 23 one-in-20-year hydro, a one-in-10-year load, and even 24 with 800, 791, megawatts of solar on the system, there 25 was no significant loss of load exposure. There isn't a CSB REPORTING (208) 890-5198 13 HECKLER Public 1 reliability problem with 320 megawatts. There isn't a 2 reliability problem if we double that. 3 The fourth issue they raise is does the PURPA 4 process make utility planning unreasonably difficult. I 5 think there's fixes. If you look back, you Commissioners 6 requested that the utility propose new contract terms 7 that might address the problems that we face in PURPA and 8 I think that there's a reasonable -- there's a reason to 9 sit down and talk about appropriate contract terms. 10 I want to use an analogy now. Do you know who 11 Mike Tyson is, the heavyweight boxer? All across his 12 face he's got -- he's a pretty intimidating guy. He 13 supposedly was asked before one of his fights where his 14 opponent was saying I've got a plan, I've got a plan to 15 deal with Mike Tyson, Tyson was asked this by a reporter 16 and Tyson's response was everybody has got a plan until 17 they get punched in the mouth. 18 It feels to me like we all have been punched in 19 the mouth with a two-year duration solution. All I ask 20 for you is that you think about that, shake off the punch 21 and think about what we really need to change. Call the 22 parties together, figure out whether there are milestones 23 that should be met that will allow the utility to plan 24 better whether these PURPAs are actually going to come on 25 line. Have some reasonable discussion on reliability CSB REPORTING (208) 890-5198 14 HECKLER Public 1 curtailment, what that would entail, but if you kill it, 2 and using a two-year contract will kill the PURPAs, we 3 lose the benefit of competition. 4 We lose the benefit of all the added value, the 5 taxes, the new jobs, the opportunity to spin up and be 6 ready for changes that could come under lll(d). The RECs 7 will go to the utility. They get them for free. There 8 are benefits from the existing system that I don't think 9 should be lost. Thank you. 10 COMMISSIONER KJELLANDER: Ladies and gentlemen, 11 I didn't state up front, I probably should have, but 12 we're not really here to clap or respond. I certainly 13 appreciate your enthusiasm, but are there any questions 14 for Mr. Heckler from parties to the case? 15 16 17 MR. HOWELL: No questions. MR. WALKER: No questions. COMMISSIONER KJELLANDER: No questions, okay. 18 Any from the Commission? Thank you very much, Mr. 19 Heckler. 20 (The witness left the stand.) 21 COMMISSIONER KJELLANDER: And now we will call 22 Anne Hausrath. 23 COMMISSIONER RAPER: And I would just state 24 that Mr. Heckler's testimony is abnormally detailed and 25 technical for a public hearing, so please don't let the CSB REPORTING (208) 890-5198 15 HECKLER Public 1 depth and breadth of his testimony intimidate anyone else 2 who was going to speak tonight. 3 MS. HAUSRATH: I'm about to put you all at 4 ease. It's not at all like his. 5 6 ANNE HAUSRATH, 7 appearing as a public witness, having been first duly 8 sworn, testified as follows: 9 10 11 12 BY MR. HOWELL: EXAMINATION 13 14 15 Q. A. Q. Good evening. Oh, sorry about that. That's all right. Can you state your full name 16 and spell your last for the record, please? 17 18 19 A. Q. A. Anne Hausrath, H-a-u-s-r-a-t-h. And your occupation? I am a mother and a grandmother and a very 20 ordinary citizen. 21 22 23 Q. A. Q. And are you a customer of Idaho Power? Yes, I am. And do you have a statement you'd like to 24 give? 25 A. Yes, sir. CSB REPORTING (208) 890-5198 16 HAUSRATH Public 1 2 Q. A. Please do so. Thank you. Commissioners, thank you for 3 allowing me to speak and I'm going to read it because I 4 really am not a very comfortable public speaker. I urge 5 you to deny Idaho Power's request to shorten the time 6 period for solar contracts. Climate change is real. I 7 believe it is illegal under Idaho Statute 61-515 to 8 continue to burn fossil fuels when we have alternatives 9 like solar. Clearly carbon dioxide pollution is a major 10 health and safety risk for all of us. I believe it is 11 also immoral to burn fossil fuels when we know the 12 consequences and we have alternatives. 13 I am a Christian and I believe that we have a 14 moral obligation to avoid harming others. Clearly 15 burning fossil fuel so that I can have electricity is a 16 selfish act against all living creatures and against 17 future generations. Solar energy is clearly a safer 18 alternative; yet Idaho Power says that we don't need more 19 solar energy at this time because there's lots of coal 20 and gas in the ground. 21 I've thought a lot about this notion of need 22 and one analogy that I came up with regards food and 23 nutrition. Suppose there's only one grocery store near 24 my home and I go to the owner of the grocery store and I 25 ask can you provide some more milk, some fruits and some CSB REPORTING (208) 890-5198 17 HAUSRATH Public 1 vegetables so that I can have a healthier diet for my 2 family, and he says no, not yet. He sees no need for 3 that since the shelves of his store are currently full. 4 They're full of pop and twinkies, so saying there's no 5 need for solar energy because we still have fossil fuels 6 available is equally in my opinion irresponsible. 7 Allowing Idaho Power to shorten their contract 8 period to two years would clearly shut down major solar 9 production in Idaho. What investor would risk the 10 uncertainty of an unrealistic contract period like that? 11 I urge you to deny Idaho Power's request. I as a bill 12 payer and a resident of Idaho want Idaho Power to get 13 real about encouraging solar energy, not discouraging it. 14 It is definitely time to stop burning fossil fuels. 15 There are a lot of people here and I would ask 16 that everyone who agrees with me that Idaho Power's 17 request should be denied, would you please raise your 18 hand? Thank you very much. 19 COMMISSIONER KJELLANDER: Are there any 20 follow-up questions? 21 22 MR. HOWELL: No questions. COMMISSIONER KJELLANDER: Any from the 23 Commission? Thank you very much. 24 25 (The witness left the stand.) COMMISSIONER KJELLANDER: Next we have Leon CSB REPORTING (208) 890-5198 18 HAUSRATH Public 1 Walsh. 2 3 LEON WALSH, 4 appearing as a public witness, having been first duly 5 sworn, testified as follows: 6 7 EXAMINATION 8 9 BY MR. HOWELL: Mr. Walsh, would you state your full name and Please do so. No, I'm not. And do you have a statement you'd like to You know, I don't have the dollars and the Yes, I do. Q. A. Q. A. Q. A. Q. give? A. Q. A. 17 18 16 15 Okay, and are you a customer of Idaho Power? 14 I'm just a civil servant. 13 And are you employed and in what capacity? 19 12 Leon Martin Walsh, W-a-1-s-h. 11 spell your last for the record, please? 10 20 22 jargon like that or rule or code, but I do have affection 21 23 towards Mother Nature, and I think we as a civilization, 24 we as a world, have gone way past the point of caring and 25 nurturing for the planet that gives us life. I have CSB REPORTING (208) 890-5198 19 WALSH Public 1 never seen a more beautiful state than Idaho. I've spent 2 a lot of time in the mountains. I spend a lot of time 3 outdoors, and for me, that's my church, you know, that's 4 my sanctuary, and I enjoy all the little flowers out 5 there. You know, I enjoy the fish in the stream, seeing 6 them jump out of a little creek. 7 If we continue taking the trees and £racking 8 and, you know, drilling, you know, it's not going to last 9 long. I feel it's a very delicate balance and there's 10 other countries, there's Denmark, there's Sweden, in 11 Africa they're using solar panels, you know, on a large 12 scale. Everybody is getting wise to it but us and it's 13 scary, you know, and for me, you know, be the change I 14 want to see, sure. You know, I grow my own garden. I 15 bike. I don't buy. I trade. You know, I try to help 16 slow down the whole destruction and what we're doing, 17 about what's going on here, but it's really frustrating 18 to see there's nobody catching on. 19 You know, there's small communities of us that 20 do that, that really think about the future generations 21 and instead of big trucks need to haul my food, I'll grow 22 my own in my back yard, thank you very much. I want to 23 cut it down, you know, cut the emissions down. I want to 24 slow it down so that my grandchildren can climb the same 25 trees that I enjoy climbing and they can swim in the same CSB REPORTING (208) 890-5198 20 WALSH Public 1 hot springs, and speaking of fossil fuels, I mean, it's 2 primitive, like we're so past that. We've got this huge 3 ball of energy above us and it rises every day and why 4 aren't we using this? Why? For the dollars, you know, 5 we've got investments. What about our kids, you know, 6 and the grandkids. That's all I've got. Thanks. 7 COMMISSIONER KJELLANDER: Let's see if there 8 are any questions from the parties. Any from the 9 Commission? Thank you very much for coming. 10 11 12 (The witness left the stand.) COMMISSIONER KJELLANDER: Reed Burkholder. 13 REED BURKHOLDER, 14 appearing as a public witness, having been first duly 15 sworn, testified as follows: 16 17 18 19 BY MR. HOWELL: EXAMINATION 20 Q. Would you state your name and spell your last 21 name for the record, please? 22 A. My name is Reed Burkholder, 23 B-u-r-k-h-o-1-d-e-r. 24 25 Q. A. And are you employed and in what capacity? I'm self-employed as a private piano teacher. CSB REPORTING (208) 890-5198 21 BURKHOLDER Public 1 Q. Good for you. Are you an Idaho Power 2 customer? 3 4 5 6 7 A. I am. Q. And do you have a statement? A. I do. Q. Please give it. A. But I forgot a prop. I'll be right back. I 8 support 20-year PURPA contracts for solar and I oppose 9 reducing solar contracts to two years. The policy change 10 Idaho Power requests has no societal benefits. We have a 11 huge fossil fuel problem. This is the Keeling Curve. If 12 you've never heard of this, just Google it. It's two 13 "e's," K-e-e-1-i-n-g. This shows the increase in carbon 14 dioxide concentrations in our atmosphere through time, 15 beginning 1958 and ending roughly 2015. The 16 concentrations continue to go up and they cause two 17 monumental problems. 18 The first is ocean acidification which will 19 affect Idaho salmon runs because it's screwing up the 20 food chain in the ocean, and the second is global 21 warming, and the solution, any seven-year-old can tell 22 you what the solution to this problem is, it's stop 23 burning fossil fuel and turn to 100 percent renewable 24 energy, primarily solar and wind. 25 Now, I attended Idaho Power's IRP advisory CSB REPORTING (208) 890-5198 22 BURKHOLDER Public 1 council meetings which took place over the last ten 2 months. Many people in this room were in those meetings. 3 I see Idaho Power employees. I see members of the 4 environmental community. I see PUC staff members who 5 were in those meetings, and I can report that Idaho Power 6 intends to burn coal for the next 20 years and Idaho 7 Power has no plans to build solar for the next 20 years. 8 The IRP is a 20-year plan. 9 Idaho Power intends to continue to be part of 10 our fossil fuel problem for the next 20 years, which 11 means they choose to be on the wrong side -- they choose 12 to be on the wrong side of environmental health and the 13 wrong side of history. You all probably heard the Pope 14 had an encyclical that he issued last week. I'm going to 15 quote from that. We know that technology based on the 16 high -- on the use of highly polluting fossil fuels, 17 especially coal, needs to be progressively replaced 18 without delay. 19 James Hansen, an internationally recognized 20 authority on climate change, says that coal is the single 21 greatest threat to civilization and all life on our 22 planet. I own 30 electricity-producing solar panels. I 23 can cook. I can run computers, TV's, fans, any appliance 24 with sunlight. I can plug in my all-electric car when 25 the sun is shining. I can go out on the freeway and CSB REPORTING (208) 890-5198 23 BURKHOLDER Public 1 accelerate my 3,400 pound Nissan Leaf to 80 miles an hour 2 in a matter of seconds and I can do it all with sunlight 3 as my power source. 4 Solar panels are solid state. They have no 5 moving parts. They require no maintenance. They just 6 sit on my roof and turn photons into electricity. It's a 7 really neat technology and the energy is free. The 8 hardware required to capture the energy is subject to the 9 rules of global manufacturing, which includes economies 10 of scale and learning curves, and we can expect solar to 11 get cheaper and better, cheaper and better, cheaper and 12 better. Solar is now cheap, but costs are expected to 13 drop another 40 percent in the next five years. 14 Solar can become part of the solution to our 15 immense fossil fuel problems, but not in Idaho, not if 16 Idaho Power and the other utilities are granted their 17 request for two-year PURPA contracts. Two-year contracts 18 will make financing solar firms financially unattractive 19 and developers will take their money elsewhere to more 20 friendly solar states. 21 We need more renewable energy. We need to 22 discontinue burning coal at Jim Bridger, North Valmy, and 23 Boardman. We need Public Utilities Commission policy CSB REPORTING (208) 890-5198 24 BURKHOLDER Public 24 that encourages utility scale solar. Now, as you make 25 policy decisions that support and encourage solar, you 1 become part of the solution and I urge you to deny Idaho 2 Power's request for two-year solar PURPA contracts. 3 Thank you. 4 COMMISSIONER KJELLANDER: Are there any 5 follow-up questions? Any from the Commission? Thank you 6 very much, Mr. Burkholder. 7 (The witness left the stand.) 8 9 COMMISSIONER KJELLANDER: Anthony Spillane. MR. SPILLANE: I support the 20 years and not 10 reducing it to two. I plan on doing a written comment 11 next week. 12 COMMISSIONER KJELLANDER: Thank you very much. 13 Let's move to Tyler Ortega. 14 15 TYLER ORTEGA, 16 appearing as a public witness, having been first duly 17 sworn, testified as follows: 18 19 20 21 BY MR. HOWELL: EXAMINATION 22 23 24 Q. A. Q. Good evening. Good evening. Could you state your full name and spell your 25 last for the record, please? CSB REPORTING (208) 890-5198 25 ORTEGA Public 1 2 3 A. Q. A. My name is Tyler Ortega, 0-r-t-e-g-a. And are you employed and in what capacity? I am a -- I work at the Boise Airport as a 4 sales associate at the Paradies shops. 5 6 7 Q. A. Q. And are you an Idaho Power customer? Of course. And do you have a statement you'd like to give 8 the Commission? 9 A. I didn't plan one, so it's going to be a little 10 impromptu and I could never compare to Mr. Heckler's 11 wonderful speech. I don't have facts or figures or 12 anything like that, but what I do have to say is that we 13 as a species think very short term. Fossil fuels 14 burning fossil fuels is a short-term solution for a 15 long-term problem. It's very temporary and I know if 16 Idaho Power, say, were to invest in solar power or even 17 put more emphasis into hydroelectric or combine the two, 18 which would be ideal, profits would slim a little bit 19 compared to fossil fuels, but maybe 10, 15, 20 years down 20 the line things would begin to balance out. They would 21 get a little bit more profit, and that's about all I have 22 to say, just put a little bit more emphasis into it and 23 maybe one day we'll balance out, because we are kind of 24 due for a bit of a shift, if you will, so, you know, make 25 sure that three generations down the line will you regret CSB REPORTING (208) 890-5198 26 ORTEGA Public 1 your actions even if you won't know it, you know, you 2 won't be alive. 3 COMMISSIONER KJELLANDER: Thank you, Tyler. 4 Are there any follow-up questions for Mr. Ortega? From 5 the Commission? Thank you very much. 6 7 8 (The witness left the stand.) COMMISSIONER KJELLANDER: Debbie Dooley. 9 DEBBIE DOOLEY, 10 appearing as a public witness, having been first duly 11 sworn, testified as follows: 12 13 14 15 BY MR. HOWELL: EXAMINATION 16 Q. Would you state your full name and spell your 17 last for the record? 18 19 20 21 22 23 24 A. Q. A. Q. A. Q. A. Debbie Dooley, D-o-o-1-e-y. And ma'am, are you employed? Self-employed. Okay, and are you an Idaho Power customer? No, I'm not. Okay. I bring you greetings from the State of 25 Georgia, a very red state of Georgia. I am president of CSB REPORTING (208) 890-5198 27 DOOLEY Public 1 Conservatives for Energy Freedom and Green Tea Coalition. 2 I am not here -- I know I'm a minority in this room, but 3 I'm not here to talk negatively about fossil fuel. I'm 4 here to simply champion free market principles, free 5 market choice. I believe that monopolies are the 6 government's way of picking winners and losers and I 7 believe it's an outdated model. 8 With monopolies, they're in a position to stop 9 competition. They socialize the cost and profitize the 10 profit. The ratepayers, the utility customers, are the 11 ones that bear the risk for any investment they make. 12 The more an energy source costs the higher profit level 13 they make. I am here from the State of Georgia because I 14 am traveling this nation because I see solar under attack 15 from these government-created monopolies. They're trying 16 to stop the competition. 17 I believe that Republicans -- I am a lifelong 18 Republican. I've been a -- since 1976, Ronald Reagan was 19 the first campaign, his presidential campaign, that I 20 volunteered on. I've been elected a delegate to the 21 Republican National Convention in 1998, also in 2012. 22 I'm one of the 22 people that actually founded the Tea 23 Party movement in February of 2009. I am very active 24 with the Tea Party on a national basis and in Georgia, 25 and I believe that Republicans should champion free CSB REPORTING (208) 890-5198 28 DOOLEY Public 1 market choice in solar. 2 In Georgia, a very red state of Georgia, the 3 governor, lieutenant governor, every statewide 4 constitutional office is controlled by Republicans. Both 5 houses of the Georgia legislature are controlled by 6 Republicans and they almost have a super majority in both 7 houses; yet in Georgia, Republicans are leading the way. 8 The Georgia Public Service Commission, all Republicans, 9 started the process of advocating for solar. 10 I got involved in 2013. I began to look at 11 solar and a way to provide free market competition and 12 choice for these government-created monopolies. They're 13 in a position to stop competition. Imagine Wal*Mart 14 being able to tell Target you can't move in my territory 15 and sell in my territory, and they're in that same 16 position. 17 I work very hard. I am partnered with some of 18 the members of the PSC. They're very good friends of 19 mine that are all Republican and asked them to talk to 20 Georgia Power and insist that Georgia Power add solar in 21 their integrated resource plan, and Georgia is different 22 from Idaho in that both the utility and the Public 23 Service Commission have to agree on the integrated 24 resource plan. We heard push-back from groups that are 25 funded by fossil fuel. They said the lights would go CSB REPORTING (208) 890-5198 29 DOOLEY Public 1 off, the rates would increase if more solar was added. 2 More solar was added. Georgia Power agreed to it. They 3 purchased 525 megawatts of utility grade solar long term, 4 20 to 30 years, at 6.5 cents per kilowatt-hour. 5 They're buying even more. My rates have not 6 increased. Recently led by a Republican, a right wing 7 conservative Republican, named Representative Michael 8 Dudgeon championed a PPA bill, which is, you know, a 9 power purchase agreement for solar. It passed the 10 Georgia legislature, both houses, without one dissenting 11 vote. Everyone voted for it and something else, Georgia 12 Power apparently because of a lot of grassroots activism 13 has seen the light in regard to solar. They supported 14 the bill. 15 They're adding more solar because they found 16 it's profitable and they supported the PPA bill and Tom 17 Fanning of Southern Company announced a few weeks ago 18 that Georgia Power because of this PPA bill, they started 19 touting the value of solar and they announced that they 20 were going to get into the rooftop solar business, 21 Georgia Power. They were going to compete. Republicans 22 are leading the way. 23 I have a big project in Florida, third-party 24 sales and leasing bill, ballot referendum. We conducted 25 a poll in October. 74 percent of Republican primary CSB REPORTING (208) 890-5198 30 DOOLEY Public 1 voters support solar, and I urge the county commission 2 I mean the Public Utilities Commission to deny Idaho 3 Power's request. They've simply made investments in coal 4 plants. They're trying to protect their investment. 5 They're trying to stop competition, and I urge you to 6 stand up for free market principles and choice. Free 7 market true conservatives champion free market 8 competition. They don't protect monopolies from 9 competition. 10 I appreciate being here. I love Idaho. I 11 appreciate you guys allowing me to speak and I thank you 12 very much. 13 COMMISSIONER KJELLANDER: Do we have any 14 follow-up questions? None from the Commission? Thank 15 you, Ms. Dooley. 16 17 18 THE WITNESS: Thank you. (The witness left the stand.} COMMISSIONER KJELLANDER: And we'll call now 19 John Weber. 20 21 22 23 24 25 CSB REPORTING (208} 890-5198 31 DOOLEY Public 1 JOHN WEBER, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 6 7 BY MR. HOWELL: EXAMINATION 8 Q. Good evening, Mr. Weber. Can you state your 9 full name and spell your last for the record, please? 10 A. My name is John Weber, W-e-b-e-r, and I am 11 currently unemployed and I am an Idaho Power customer. 12 Q. Thank you, and do you have a statement you'd 13 like to give the Commission? 14 15 16 A. Q. A. I do. Please go ahead. Thank you. Thank you for listening to public 17 comment regarding this case. I've already submitted 18 written testimony, but would like to add just a few 19 things. Firstly, this filing, I believe, is premature. 20 Currently none of the proposed PURPA solar projects have 21 been built and at this point we don't know if any will be 22 built. 23 Secondly is that of fairness. Idaho Power and 24 PURPA developers should have the same parameters to 25 follow. If the parameters Idaho Power is asking the PUC CSB REPORTING (208) 890-5198 32 WEBER Public 1 to approve for solar were enforced when they had the 2 Langley Gulch gas plant approved, it would never have 3 been built because it would not have been able to get 4 financing because of their requested maximum two-year 5 contract. 6 Thirdly is Idaho Power needs this solar 7 generation now to lock in low costs for customers for the 8 long term. By waiting until after the end of 2016, it 9 will be much more expensive because of the sun setting of 10 the federal tax credit. When the Idaho Power 2015 IRP is 11 submitted to the PUC, I will make comment on how the load 12 forecast has been tweaked so it appears that Idaho Power 13 will have surplus power for many years. Of course, this 14 is an estimate, but I believe the load forecast is 15 understated. Utility companies can adjust forecast to 16 show a surplus or deficit depending on growth rates used. 17 What would happen if Idaho follows California and only 18 receives six percent of its 30-year average snowpack this 19 winter? Solar is more predictable annually than hydro. 20 Lastly, Idaho Power states Idaho Power believes 21 in a diverse generation portfolio that also utilizes 22 demand-side management and energy efficiency programs to 23 meet the needs of its customers. I agree, a diverse and 24 balanced generation portfolio is in the best interests of 25 the customers. It just happens that Idaho Power's CSB REPORTING (208) 890-5198 33 WEBER Public 1 generation portfolio is neither diversified nor balanced. 2 I took the graphs on page 11 of the filing regarding the 3 five-year average generation mix and have displayed them 4 in a pie graph. I think you will agree displaying the 5 same information in different ways shows lack of 6 diversity and balance, putting all customers at risk. 7 Any and all solar should be added to this mix 8 until the point it becomes over 40 percent of the 9 generation mix. Solar can be expanded past 40 percent at 10 the point when battery storage is more available and 11 affordable. I also took the liberty of designing a 12 diverse and balanced generation portfolio that is more 13 reliable, lower carbon, lower water use, and summer 14 peaking that will reduce risks for all customers. 15 And this is the first time I've ever brought 16 props here, but since Idaho Power had these pie graphs in 17 the filing, I figured it was appropriate that I make 18 some, too, so this is Idaho Power's fuel mix five-year 19 average. Almost 85 percent comes from two sources, hydro 20 and coal, and then 15.2 from other, a little wind, a 21 little gas, a little other, so it's risky, undiverse, 22 medium carbon and very high water use. You need the 23 water for the coal and for the hydro and it's a spring 24 peaking generation mix. 25 Then I put together an alternative fuel mix. CSB REPORTING (208) 890-5198 34 WEBER Public 1 I've got 20 percent wind, 30 percent hydro, 40 percent 2 solar, ten percent other, which is cogen/biomass five 3 percent, five percent in geothermal. This is reliable, 4 diverse, low carbon, low water use, and summer peaking 5 generation mix, and I appreciate your time and attention. 6 COMMISSIONER KJELLANDER: Do we have any 7 questions? None from the Commission? Thank you very 8 much. 9 (The witness left the stand.) 10 COMMISSIONER KJELLANDER: Rebecca Bung. 11 MS. BUNDY: Bundy. 12 13 close. 14 COMMISSIONER KJELLANDER: Bundy. I wasn't even 15 REBECCA BUNDY, 16 appearing as a public witness, having been first duly 17 sworn, testified as follows: 18 19 20 21 BY MR. HOWELL: EXAMINATION 22 Q. Could you state your full name and spell your 23 last for the record, please? 24 25 A. Q. Rebecca Bundy, B-u-n-d-y. And are you employed and in what capacity? CSB REPORTING (208) 890-5198 35 BUNDY Public 1 A. I'm employed at the City of Ketchum as a senior 2 planner and the manager of building and development. 3 Q. And I assume you're an Idaho Power customer, 4 then? 5 6 A. Q. I am. And do you have a statement you'd like to 7 give? 8 9 10 A. Q. A. I do. Please do so. I'm here representing the City of Ketchum and 11 these views are also my own. The City of Ketchum has set 12 goals for energy efficiency for 100 percent renewable 13 energy by 2030 and for energy resiliency. I am the 14 former owner of one of the first grid-tied photovoltaic 15 systems in Idaho Power's region. We installed that in 16 2002, along with a solar thermal system and I'm well 17 aware of the advantages of solar power. 18 We lived in a passive solar home that was 19 heated and cooled by the sun, generated our domestic hot 20 water with solar, and generated about 60 percent of our 21 electricity with solar. I feel that as renewable energy 22 technology improves and as fossil fuel technologies 23 continue to contribute to greenhouse gases and as 24 regulations make fossil fuels more expensive and as hydro 25 power becomes less reliable due to drought and silting CSB REPORTING (208) 890-5198 36 BUNDY Public 1 behind the dams, it's imperative that we look to clean 2 technologies to replace the former aging power production 3 facilities. 4 Idaho Power's request for two-year PURPA terms 5 essentially thwarts the federal law. Instead of relying 6 on the mechanism for avoided cost combined with term 7 lengths, Idaho Power is requesting to require that 8 investors in renewable energy bear a burden the Power 9 Company would never agree to in its power purchasing 10 agreements. 20-year terms are necessary for investor 11 surety and the proper regulatory tool should be avoided 12 cost combined with the term. 13 Our state is blessed with clean renewable 14 resources that we should be embracing. Locally generated 15 renewable energy will help preserve our exquisitely 16 beautiful environment, as well as contributing to our 17 economy by generating jobs here in Idaho. I request that 18 the PUC deny Idaho Power's request and that the PURPA 19 terms are left at 20 years. Thank you. 20 COMMISSIONER KJELLANDER: Do we have any 21 follow-up questions? None from the Commission? Thank 22 you very much for your testimony. 23 (The witness left the stand.) 24 COMMISSIONER KJELLANDER: Let's see if I can 25 get this one right, Kerrin McGill? CSB REPORTING (208) 890-5198 37 BUNDY Public 1 2 MS. McCALL: McCall. 3 KERRIN McCALL, 4 appearing as a public witness, having been first duly 5 sworn, testified as follows: 6 7 8 9 BY MR. HOWELL: EXAMINATION 10 Q. Good evening. Could you state your name and 11 spell your last name for the record, please? 12 14 15 16 17 18 19 20 21 A. Q. A. Q. A. Q. A. Q. A. My name is Karen McCall and my name is spelled And are you employed and in what capacity? I'm self-employed. I'm an artist. And are you an Idaho Power customer? Yes. And do you have a statement? I do. Please give it. As a member of the Ketchum Energy Advisory 13 M-c-C-a-1-1. 22 Committee, the Wood River Electrical Planned Community 23 Advisory Committee, and the Wood River Valley Renewable CSB REPORTING (208) 890-5198 38 McCALL Public 25 energy issues for over five years. In January 2014, 24 Energy Working Group, I've been involved with Idaho Power 1 Idaho Power formed the Energy Working Group specifically 2 to design a renewable energy pilot project in the Wood 3 River Valley. 4 Our team, including Billy Mann of Ketchum-based 5 Sagebrush Solar, worked for over a year in collaboration 6 with Idaho Power's staff and the full awareness of CEO 7 Darrel Anderson to plan, locate, and negotiate terms for 8 a community solar project in Ohio Gulch between Hailey 9 and Ketchum. In January of this year, 2015, Idaho Power 10 blindsided our year-long efforts with their PUC filing to 11 limit PURPA contracts from 20 years to two years, making 12 it impossible to secure financing for the very project 13 Idaho Power brought us to the table to design and 14 implement. 15 When asked why did Idaho Power even begin talks 16 with us and then bring our efforts to an abrupt halt with 17 the PURPA filing, the response from the Company was we 18 didn't see all this solar coming. It's remarkable that 19 the electric utility with the supposed expertise and 20 responsibility for our state's energy future does not 21 have the foresight to see what is obvious to anyone even 22 slightly following the rapid rise of the solar industry 23 worldwide. 24 Idaho Power's filing to change the rules that 25 enable clean energy development right when clean energy CSB REPORTING (208) 890-5198 39 McCALL Public 1 is absolutely critical to our state's economic and 2 environmental future is not only shortsighted, but unfair 3 to independent energy developers, making it impossible 4 for them to compete with utilities building and financing 5 their own projects with 20-year contracts. Buying 6 Idaho's independent clean energy brings investment and 7 job creation to our conununities. Currently $35 million a 8 year leaves the Wood River Valley to pay for energy 9 generated out of state. This hurts the local economy and 10 contributes to climate disruption and environmental 11 degradation. 12 You've heard many of the arguments and your 13 guidelines suggest that they are not to be repeated by 14 everyone offering testimony; yet it must be stressed that 15 when local efforts for resilient energy production are 16 thwarted by short-term contracts, meaning contract terms 17 under 20 years, then local jobs, tax base, energy 18 self-reliance, and security are being ignored in favor of 19 the environmentally disruptive energy sources, record 20 corporate profits, record executive salaries, and 21 shareholder dividends. 22 Idaho Power's participation in disruptive 23 energy includes coal, natural gas, and what the Company 24 refers to as their renewable resource, hydro; however, 25 energy and water are inextricably intertwined. This CSB REPORTING (208) 890-5198 40 McCALL Public 1 consideration is critical when making rulings for the 2 drought-ridden West's energy future. The task of 3 generating electricity is responsible for nearly 52 4 percent of surface fresh water withdrawal. 40 percent of 5 that withdrawal is used to cool power plants. 6 Consider the following statistics concerning 7 water use by power plants. Coal uses 1,100 gallons of 8 water per megawatt-hour. Natural gas uses 300. Solar 9 uses zero. Energy production and distribution strain our 10 limited water resources. 11 Now, consider another energy water issue. 12 Idaho is fortunate to have hydropower. Although 13 essentially carbon free, dams cause significant damage to 14 anadromous fish, natural river flow, and water 15 temperature. Continuing to burn climate disruptive coal 16 is decreasing snowpack and increasing drought which 17 reduces hydropower. This causes more coal to be burned 18 emitting more carbon and using more water. This cycle 20 The energy, water environment nexus is a 23 in our state. It is my perspective that the PUC and 24 Idaho Power have an ethical responsibility to open all McCALL Public 41 CSB REPORTING (208) 890-5198 19 can only be mitigated with solar. 25 pathways to providing clean, water tolerant, and 22 PUC concerning the future of renewable energy production 21 particularly critical component to decisions made by the 1 environmentally responsible electricity to the residents 2 of Idaho. 3 The solar advanced energy systems era is here. 4 Idaho Power needs to reinvent its business model and 5 embrace the inevitable powerful movement to clean energy. 6 To preserve a secure future for generations to come, the 7 !PUC should listen to residents of our state, not solely 8 the interests of a utility clinging to an antiquated 9 paradigm. 10 With that said, I'm handing over to the 11 Commission a petition titled, "Promote, don't smother 12 Idaho's Clean Energy Future." As the PUC considers the 13 public's input in their decision making process, I'm 14 certain you will gratefully receive 1,000 signatures of 15 Idaho residents who support solar energy development. 16 Thank you. 17 COMMISSIONER KJELLANDER: And let's see if 18 there are any questions. 19 20 21 EXAMINATION 22 BY COMMISSIONER KJELLANDER: 23 Q. I only have one follow-up, Ms. McCall. What 24 was the proposed size of the project you were looking at 25 in the Ketchum area? CSB REPORTING (208) 890-5198 42 McCALL (Com) Public 1 A. The full size of the project was 8.5 2 megawatts. 3 COMMISSIONER KJELLANDER: Okay, thank you. Are 4 there any other questions from the Commission? Thank you 5 very much. 6 (The witness left the stand.) 7 COMMISSIONER KJELLANDER: I actually think I've 8 got this next name, Diane Jones. 9 10 DIANE JONES, 11 appearing as a public witness, having been first duly 12 sworn, testified as follows: 13 14 15 16 BY MR. HOWELL: EXAMINATION 17 18 19 Q. A. Q. Good evening. Good evening. Could you state your full name and spell your 20 last for the record? 21 22 23 A. Q. A. Diane Jones, J-o-n-e-s. And are you employed? I'm self-employed and I am an Idaho Power 24 customer. 25 Q. And do you have a statement for the CSB REPORTING (208) 890-5198 43 JONES Public 1 Commission? 2 3 4 A. Q. A. I do. Please give it. I own and run a small plant nursery, which 5 means that I spend a great deal of time outdoors and so 6 perhaps that makes me more sensitive than a lot of people 7 to global climate change. As I see -- not only do I 8 suffer in the heat out there, but I see the season of my 9 plants moving forward every year earlier. Everything is 10 earlier and earlier every year. I truly hope that the 11 reality of global climate change among the leadership of 12 Idaho Power Company and also the Public Utilities 13 Commission is not a matter of controversy. I think it's 14 very clear that we are in an extremely dire situation, 15 and as, you know, humanity, we need to do whatever we can 16 to try to halt it or slow it down. 17 I'm an Idaho Power customer three times over 18 because I pay three bills, one for my home and two for 19 irrigation on my small farm, and I do get pretty cranky 20 when I think about the fact that every time I pay a bill 21 I am paying for electricity that is generated using dirty 22 fossil fuel, burning coal. 23 I do hope that you as members of the Public 24 Utilities Commission will make your decision on this 25 matter with due regard to the best public good, and I CSB REPORTING (208) 890-5198 44 JONES Public 1 would suggest that the highest public good in this case 2 is to deny this shortening of contracts and to try to do 3 what is in your power to stabilize the solar market and 4 increase our use as the customers of clean energy, not 5 dirty energy. Thank you very much. 6 COMMISSIONER KJELLANDER: Let's see if there 7 are any follow-up questions. And none from the 8 Commission. Thank you for your comments and testimony 9 this evening. 10 (The witness left the stand.) 11 12 COMMISSIONER KJELLANDER: Aimee Christensen. 13 AIMEE CHRISTENSEN, 14 appearing as a public witness, having been first duly 15 sworn, testified as follows: 16 17 18 19 BY MR. HOWELL: EXAMINATION 20 22 Q. A. Could you state your full name and spell your Aimee Christensen, C-h-r-i-s-t-e-n-s-e-n. You 21 last for the record, please? 23 might want to also know my first name is spelled 24 A-i-m-e-e because most people don't get that one either. 25 Q. And are you employed and in what capacity? CSB REPORTING (208) 890-5198 45 CHRISTENSEN Public 1 A. I am. I'm the founder and CEO of Christensen 2 Global Strategies. I'm also the executive director of 3 the Sun Valley Institute for Resilience. 4 5 6 Q. A. Q. And you're an Idaho Power customer? I am. And do you have a statement for the 7 Commission? 8 9 10 A. Q. A. I do. Please give it. So I'm speaking to you in my personal capacity. 11 We've had solar on our family homes since the 1970's in 12 California and since approximately 1989, 1990, almost 13 continuously here in Idaho. I've also spent my 14 20-plus-year career advising governments and major 15 corporations on energy and environmental strategy, 16 including Google, the U.S. Department of Energy, and Duke 17 Energy. 18 I'm speaking to you as a business and 19 government strategist. I moved home five years ago to 20 Blaine County, and I've been distressed to see Idaho 21 missing the greatest opportunity in the world and that is 22 of home grown renewable energy. There is a worldwide 23 race and Idaho could be at the front of the pack and 24 instead it's lagging. 25 Bloomberg New Energy Finance's 2030 outlook is CSB REPORTING (208) 890-5198 46 CHRISTENSEN Public 1 compelling. Look at solar, no other energy sector will 2 grow 10 times in the next 15 to 20 years. Wind will 3 double. Fossil fuels will fall to less than half of 4 total power capacity globally as they already have in the 5 United States. Solar is a $150 billion industry 6 worldwide. China is not only No. 1 in new investment in 7 renewable energy, No. 1 in new solar PV and solar thermal 8 capacity, and No. 1 in total renewable energy capacity, 9 but China's new renewable power capacity surpassed new 10 fossil fuel and nuclear capacity for the first time last 11 year. 12 Who is the largest buyer of solar in the United 13 States? The Pentagon. Who is the second largest? 14 Wal*Mart. Wal*Mart is about the bottom line. China is 15 about their economy and their stability. Solar is cheap 16 and it's a smart investment creating high quality jobs 17 around the world. Independent clean energy keeps costs 18 low and people want it and we can have it here in Idaho. 19 A report released today found that utilities 20 across the country are vastly underestimating the value 21 that solar power offers the electric system, including 22 reduced capital investment costs, avoided energy costs, 23 and reduced environmental compliance costs. 24 If you had an industry that is creating jobs at 25 10 to 20 times the pace of the rest of the U.S. economy CSB REPORTING (208) 890-5198 47 CHRISTENSEN Public 1 with salaries at 20 percent higher than median salary of 2 our national economy and our state had a competitive 3 advantage in it, wouldn't we want to capitalize on it? 4 That is the case of solar. According to the U.S. 5 Department of Energy, Idaho has the same solar insulation 6 as North Florida and only 10 percent less than Texas. 7 It can create good quality jobs in Idaho. It 8 can benefit farmers, as the farmers in places like 9 Georgia have found and are huge advocates of solar in 10 Georgia. In discussions with farmers in Blaine County, 11 we have found that we can pay them up to two times, 12 perhaps more, what they're making from agricultural crops 13 to lease their land for solar, and we were in the process 14 of negotiating those deals at the time that this filing 15 occurred. 16 It is a huge opportunity and it also addresses 17 the potential risks associated with reduced water 18 availability to those farmers. In Blaine County we have 19 just had a call by the senior water rights owners against 20 the junior rights owners, including the municipalities, 21 so we are right now facing these water challenges and 22 solar can benefit these farmers when we need it most. 23 It can also benefit Idaho ratepayers as the 24 report showed earlier today that I mentioned. It's a 25 price risk reduction versus the volatility from gas and CSB REPORTING (208) 890-5198 48 CHRISTENSEN Public 1 other fuel prices, including coal. It's also a strategic 2 opportunity right now because of EPA's clean power rules 3 under the Clean Air Act, lll(d) section. Under that, 4 Idaho could provide renewable energy, export it to states 5 like Oregon, Washington, Wyoming, and elsewhere to help 6 them meet their clean power plant rule requirements. We 7 could export our renewable energy and make money for 8 Idaho. 9 It's a strategic opportunity for Idaho and 10 we're missing it because of this proposed rule change. I 11 believe the utility is forestalling the future rather 12 that preparing for it and finding a way to profit from 13 it. Idaho Power can as other utilities are showing, we 14 heard about Southern Company and the subsidiary Georgia 15 Power, and it's about offering consumers what they want 16 and these investor-owned utilities around the country are 17 showing Idaho Power how they can do that, meet our 18 consumers and what people want and also keep prices low 19 and find a business opportunity for the utility. 20 It's also about offering large power users what 21 they want. Who are the large power users? They aren't 22 the large power users of the past. They're the Googles, 23 the Microsofts, the Apples, and these companies are all 24 committed to getting 100 percent renewable energy. Where 25 are they going? Not to Idaho. Apple is already at 97 CSB REPORTING ( 208) 8 90-5198 49 CHRISTENSEN Public 1 percent renewable energy. They are pursuing large scale 2 solar purchases in California, among other places. 3 Microsoft is doing biogas and wind power in Wyoming and 4 Illinois. We need to attract these companies to Idaho 5 and they want 100 percent renewable energy, not a grid 6 mix of 40 percent coal. 7 I spent the past 15 months in the Wood River 8 Valley Renewable Energy Working Group with Idaho Power to 9 work together to find a way to bring 100 percent 10 renewable energy to our community. I helped Idaho Power 11 strengthen their green power purchase offering by making 12 it more credible, more robust so that more corporate 13 power users would want to buy from that virtual solution. 14 We also were honing in on a joint project, the community 15 solar project that Kerrin McCall mentioned. Although 16 that effort has been undermined by this filing, that's 17 the kind of approach we should be taking going forward. 18 I agree with Mr. Heckler who first spoke that 19 we need to get together and find an approach that allows 20 Idaho to capitalize on its solar opportunity, allows 21 competition, to find the least cost, highest value 22 resource for our ratepayers, for farmers, for the state 23 economy growing the tax base and strategically we need to 24 find a way forward that enables solar, enables 25 competition, and Idaho Power has the opportunity to be CSB REPORTING (208) 890-5198 50 CHRISTENSEN Public 1 part of this new business opportunity, and I think that 2 they are bringing risk upon themselves and their 3 investors and they're hurting ratepayers in the near term 4 and the long term, and the PUC, though, you need to help 5 them get there. 6 As we have seen the PUCs have done in other 7 states like Georgia and New Jersey and New York and 8 California is they have with the utility helped guide 9 them towards this new business opportunity, not allowed 10 them to reduce the power purchase agreement lengths, not 11 allowed them to maintain the status quo, but helped push 12 them out of the nest into the future to create the new 13 business opportunities that they can take advantage of 14 and that can benefit Idaho. Thank you. 15 COMMISSIONER KJELLANDER: Are there any 16 follow-up questions? None from the Commission? Thank 17 you. 18 19 20 21 Mann. 22 23 24 25 THE WITNESS: Thank you very much. (The witness left the stand.) COMMISSIONER KJELLANDER: We'll call Billy CSB REPORTING (208) 890-5198 51 CHRISTENSEN Public 1 BILLY MANN, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 EXAMINATION 6 7 BY MR. HOWELL: 8 Q. Could you state your full name for the record 9 and spell your last? 10 A. Billy Mann, William Mann, M-a-n-n. 11 Q. And Mr. Mann, are you employed and in what 12 capacity? 13 A. I'm the president and founder of Sagebrush 14 Solar in Ketchum. Yes, sir. Q. A. Q. give? A. Q. A. 15 And you're an Idaho Power customer? 19 18 17 And do you have a statement you'd like to 16 I am. 20 Please do so. 21 Thank you, so my company, Sagebrush Solar, 22 we've installed about 70 percent of the solar systems in 23 Blaine County combined. All of our systems generate 24 about 2.3 megawatt-hours a year. Throughout 2014 and 25 into early 2015, I was a member of the Wood River Valley CSB REPORTING (208) 890-5198 52 MANN Public 1 Renewable Energy Working Group, a group formed by Idaho 2 Power to explore renewable energy opportunities in the 3 valley and to put economically viable renewable energy 4 projects in the ground. 5 Through this group, I came to spearhead the 6 development of a community solar farm. Phase one was 7 two-and-a-half megawatts and ultimately growing it out to 8 50 acres, 8.5 megawatts, out on basically useless Idaho 9 Department of Land land out by our county dump. In 10 addition to meeting our short-term goals of the Idaho 11 Power group, the project was meant to make strides 12 towards our longer term community goals of creating a 13 more resilient local energy system and a strong local 14 economy for future generations. 15 With a two-year power purchase agreement term, 16 it will effectively disable local communities to strive 17 toward these goals and work towards, you know, their own 18 interests. As an investment opportunity available only 19 to Blaine County residents, the project aimed to bolster 20 the local economy by keeping our energy dollars in the 21 valley. With Idaho Power's current PPA rate, the project 22 breaks even in about 10 years. Obviously with a two-year 23 PPA term, the project will never fly. 24 There's been a bunch of articles on the project 25 in local, state, and national publications. We've CSB REPORTING (208) 890-5198 53 MANN Public 1 received nothing but overwhelmingly positive response. 2 The comments have covered the full spectrum from 3 environmental to resilient to economic. Regardless of 4 philosophical view or political bent, the project has 5 created a sense of optimism that things are finally 6 heading in the right direction. This project would be a 7 real contribution to our community and to our local 8 economy and our state and it would be a devastating loss 9 if the PUC approves the two-year term. 10 Despite the positive spin from various sources 11 regarding our local economy, it's pretty rough. The 12 number of jobs are down. Unemployment is up. Retail 13 sales are flat, and business numbers are decreasing. As 14 companies like Scott USA, Smith Optics pack up and leave 15 the Wood River Valley, it will be up to emerging markets 16 like solar to pick up the slack, and at this critical 17 point in development of the local and state solar market, 18 this project would give the market and our local economy 19 a much needed boost. 20 Green Tech Media Research has identified 21 community as the next largest solar growth market in the 22 United States. Over the past two years or over the next 23 two years, community solar in the U.S. is posed to see 24 its market size increase seven-fold. Does the PUC want 25 to be responsible for excluding Idahoans from this CSB REPORTING (208) 890-5198 54 MANN Public 1 enormous growth sector and the local and state benefits 2 that extend far beyond simply protecting the status quo? 3 Instead of killing the development of solar in our state, 4 I urge you to keep the PURPA PPA term at 20 years. Thank 5 you. 6 COMMISSIONER KJELLANDER: Are there any 7 follow-up questions? And none from the Commission. 8 Thank you for your testimony. 9 (The witness left the stand.) 10 11 COMMISSIONER KJELLANDER: Greg Olson. 12 GREG OLSON, 13 appearing as a public witness, having been first duly 14 sworn, testified as follows: 15 16 17 18 BY MR. HOWELL: EXAMINATION 19 21 22 Q. A. Q. Would you state your full name and spell your My name is Greg Olson, 0-1-s-o-n. And Mr. Olson, are you employed and in what 20 last name for the record, please? 23 capacity? 24 25 LLC. A. I am the owner with my wife of Blue Lightning, CSB REPORTING (208) 890-5198 55 OLSON Public 1 2 3 4 5 6 7 Q. A. Q. give? A. Q. A. And are you an Idaho Power customer? I am. And do you have a statement you'd like to I do. Please do so. Thank you. My information, I think, will touch 8 on what a lot of these other people have worked on. My 9 mom was a Democrat and my dad was a Republican, but I'm 10 going to speak more to my work as a business owner here 11 in Idaho. I was in the military in aviation electronics 12 in the Navy; worked for Hewlett-Packard for on and off 13 nearly 20 years and eventually came into solar because I 14 was tired of products that are obsolete in three years 15 and broken in five. 16 Our business since we became an LLC in 2010 has 17 nearly doubled each year. We're at the point where my 18 wife and I are about as busy as we can be without 19 bringing more people on staff. One of our specialties is 20 we make large solar arrays where the roof itself is the 21 solar panels. We did a greenhouse in Council that the 22 front glass of the greenhouse is also all of the 23 production, electrical production, for that home. 24 Our own house five years ago had 225 watt 25 panels installed and they were just under $1,000 a panel. CSB REPORTING (208) 890-5198 56 OLSON Public 1 I can now get 400 watt panels for $400. I think it goes 2 without saying that this industry is going to grow. I 3 personally am well employed because of it and look to 4 bring on other people. 5 Every time Idaho Power has done an action 6 similar to this, our customer growth flatlined for in 7 many cases months afterwards until, for example, the next 8 spring when things pick up again. We potentially would 9 have brought on employees last year, except that the net 10 metering issue with Idaho Power was brought up and that 11 slowed us down for quite awhile. 12 My wife has an all-electric Rav 4. We have an 13 all-electric truck for our business that's a daily 14 driver. It's saving us $200 a month in gas alone. It's 15 been the best purchase we've ever done. Our business is 16 going to keep growing; however, if Idaho Power is able to 17 limit solar in this state as this contract limitation 18 would do, we expect that our customers will eventually 19 dwindle to off-grid only and other applications where it 20 only makes sense. 21 For example, right now I can get clear back 22 solar panels and install them cheaper than skylights, so 23 you could build the roof of your house, add skylights and 24 collect electricity in the process, and I can get a 400 25 watt panel for around $400. A skylight is between 450 CSB REPORTING (208) 890-5198 57 OLSON Public 1 and $650 for a similar-sized unit. That's a growth 2 opportunity there. I would like to be able to keep 3 growing and I think that along with what everybody else 4 has presented here, there's a lot of opportunity to do 5 that, but, again, if I am not able to activate large 6 contracts with businesses, then basically my customer 7 base dwindles to homeowners and off grid, and just as a 8 side example, we've talked with customers in remote 9 locations, for example, near Stanley, some of the areas 10 around Grand Jean, things like that, where some of these 11 businesses are expending a third of their diesel in 12 transporting their diesel up to their location. 13 There's a legitimate argument for promoting 14 solar and getting the rural state that we are both more 15 reliable and potentially generating income off of your 16 home, your small business, your property rather than it 17 being purely an income drain, because you're now actually 18 producing work off of the sun that is hitting your own 19 surface area. 20 Right now our primary bottleneck in growing is 21 customers' ability to access funding. That is the main 22 thing. Homeowners cannot just come up with 30 or $40,000 23 at the drop of a hat, but we are looking at installations 24 now that could be under $20,000, where even three years 25 ago I would not quote things under $30,000. We're CSB REPORTING (208) 890-5198 58 OLSON Public 1 looking at potential five-year or less payback for 2 customers. Again, funding is what's shutting them down. 3 Larger projects which only make sense, 4 especially when you have buildings with hundreds of 5 square feet of surface area to provide electrical 6 production, won't get funded if you can only do a 7 two-year future, and I guess I'm going to stumble a 8 little bit here, so I'll just say two years is not enough 9 for a bank to back things. 20 years is reasonable 10 because we're looking at 25- and 30-year warranties on 11 solar modules, potential SO-year production for these 12 units. 13 If they're getting payback in five years, 14 that's 45 potential years of pure profit, so I urge you 15 guys to look at that sort of situation, understand that 16 businesses like mine will grow if we can get customers 17 that can get funding, and the present consideration on 18 the table would at the very least stifle that, if not 19 shut it down, and that's what I have. 20 COMMISSIONER KJELLANDER: Thank you. Are there 21 any follow-up questions? None from the Commission? 22 Thank you. 23 (The witness left the stand.) 24 25 COMMISSIONER KJELLANDER: Brian Formusa. CSB REPORTING (208) 890-5198 59 OLSON Public 1 BRIAN FORMOSA, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 6 7 BY MR. HOWELL: EXAMINATION 8 Q. Could you state your name and spell your last 9 for the record, please? 10 11 A. Q. My name is Brian Formusa, F-o-r-m-u-s-a. And Mr. Formusa, are you employed and in what 12 capacity? 13 14 15 16 A. Q. A. Q. I'm a consulting engineer. And are you an Idaho Power customer? I am. And do you have a statement you'd like to give 17 to the Commission? 18 A. I do, thank you. This is only about a 19 page-and-a-half, so I'll read slowly, but I'll try to 20 engage appropriately. As an Idaho consulting engineer, a 21 solar system engineer, for the last 34 years and having 22 been involved in most of the larger solar projects in 23 Blaine County and elsewhere formerly, I'm well versed in 24 the technical and economic issues regarding solar 25 development. In addition, over the last year, from last CSB REPORTING ( 208) 8 90-5198 60 FORMOSA Public 1 February of 2014 up until about March of this year, I was 2 meeting with Idaho Power's representatives, technical and 3 advisory representatives, about a half a dozen of them, 4 on a monthly basis and we were interested in working 5 together with the corrununity group and exploring 6 generation, local renewable planning as part of a 7 steering corrunittee. 8 As a result of that, I've been privy to many of 9 the technical arguments that you will hear as part of 10 this hearing. You'll hear about base loading and peak 11 power generation, the planning associated with that, the 12 duck curve which is about, you know, over-generation 13 risk, the challenges of integrating solar energy onto the 14 grid and into their load profiles, and other salient 15 topics that they'll present. 16 In short, I understand Idaho Power's point of 17 view as an engineer, as a technical analyst regarding 18 energy projects. That's mostly what I do for a living is 19 energy projects, energy conservation projects, and I 20 understand their desire to limit the uptake of solar 21 generation, of future solar generation; however, the 22 existing Idaho Power structure of vetting and pricing for 23 potential solar projects is really more than adequate as 24 is. It does not require an overarching ruling that would 25 basically eliminate the consideration of any future bid CSB REPORTING (208) 890-5198 61 FORM USA Public 1 or large scale solar or PURPA project. 2 To be fair, any developer of any energy 3 resource requires long-term pricing arrangements. The 4 need for limiting the rate term or renegotiating every 5 two years is certainly not part of Idaho Power's or any 6 utility's pricing negotiation structure. For any power 7 generation project, whether it be coal, gas turbine, 8 wind, solar, you know, long-term pricing structures are 9 part and parcel for the financial planning, and I urge 10 the Commission to explore whether PURPA 20-year contracts 11 are indeed risky business for customers or it's simply 12 business as usual. 13 The avoided cost procedures that Idaho Power is 14 using include, you know, long-term planning methods, 15 detailed cost for grid integration, and various other 16 costs for integrating this additional PURPA capacity. As 17 a result of that, they develop, you know, pricing 18 structures that determine whether or not it meets their 19 avoided cost, you know, strategy, much like the first 20 testimonial explained, the curve; in other words, the 21 avoided cost model works. It is basically a good vetting 22 procedure. It's really not in the best interests of the 23 public for the PUC to eclipse potential low-cost reliable 24 power generation strategies whatever they might be. 25 PV solar is a fast-evolving industry with CSB REPORTING (208) 890-5198 62 FORMUSA Public 1 increasingly competitive costs. Utility compensation 2 strategies to eliminate any adverse solar generation 3 effects on the grid are well understood and still 4 progressing quite rapidly. If solar generation 5 opportunities develop such as the avoided cost is far 6 below fossil fuel alternatives, then Idaho Power should 7 have an open door to these solutions. Otherwise, other 8 utilities will reap these benefits and Idaho Power 9 customers would miss out on potential lower energy costs. 10 In the PUC's role as economic regulators, 11 there's a duty to keep these PURPA options open and 12 integrate low-cost power strategies when Idaho Power's 13 existing avoided cost analysis proves that that 14 generation is available. I believe that reducing the 15 PURPA term to two years is an unnecessary relief from the 16 technical challenge or burden of integrating additional 17 low-cost solar or PURPA capacity and it may be that Idaho 18 Power simply needs to work a little harder. Idaho 19 Power's current planning, vetting, and pricing practices 20 are more than adequate at this time. They do not need 21 additional PUC protection from solar or other future 22 power generation opportunities. 23 One last point. As public economic stewards, 24 the PUC may want to consider the potential cost of 25 defending an unpopular decision. Undermining such a high CSB REPORTING (208) 890-5198 63 FORM USA Public 1 profile federal statute such as PURPA is possibly an 2 unwarranted legal liability. Thank you. 3 COMMISSIONER KJELLANDER: Are there any 4 follow-up questions? None? Thank you for your testimony 5 tonight. 6 7 8 9 THE WITNESS: Thank you. (The witness left the stand.) COMMISSIONER KJELLANDER: Sierra White. 10 SIENNA WHITE, 11 appearing as a public witness, having been first duly 12 sworn, testified as follows: 13 14 15 16 BY MR. HOWELL: EXAMINATION 17 Q. Could you state your full name and spell your 18 last for the record, please? 19 21 22 23 24 A. Q. A. Q. A. Yes. It is Sienna White, sorry my handwriting And are you employed? No -- yes, I am, sorry, I just got a job. And what is the job? I am an intern at a solar energy company. 20 was kind of messy, S-i-e-n-n-a W-h-i-t-e. 25 Q. CSB REPORTING (208) 890-5198 64 WHITE Public Cool, and are you an Idaho Power customer? 1 2 A. Q. I am. And do you have a statement you'd like to give 3 the Commission? 4 5 6 A. Q. A. Yes, I do. Please go ahead. Thank you, and thank you so much for allowing 7 the public to speak today. My name is Sienna and this 8 year along with one other student from Idaho, I was 9 selected to represent the state as a 2015 presidential 10 scholar. The Department of Education hosted me and two 11 students from across the nation in every other state this 12 weekend in Washington, D.C. After talking to other 13 students from across America and my representatives in 14 D.C. who are working diligently to represent the state, I 15 was definitely assured of the fact that this is a very 16 special place indeed. Let's keep it that way. 17 As time goes on and 20 years becomes tomorrow, 18 I find it increasingly and absolutely crucial to endorse 19 clean energy and at the bare minimum to be courageous and 20 thoughtful in investing in our future. The presented 21 logic of current full capacity reducing the need for 22 renewable energy loses coherence in the long run. 23 Shortening PURPA contracts by a factor of 10 easily 24 creates incentives for utilities to fill capacities with 25 fossil fuels and effectively preempt renewable CSB REPORTING (208) 890-5198 65 WHITE Public 1 developers. 2 This chain reaction sets us on a very dangerous 3 and, at least to me, terrifying path. When it comes to 4 risk management, do not forget the irrevocable 5 consequences of favoring fossil fuels over clean energy. 6 This fall, in a couple of months, I am about to leave for 7 school in California, a state whose tax incentives and 8 state tariffs for renewable energy far outweighs Idaho. 9 I'm really going to miss Idaho and I do believe we are 10 better than California by massive margins. I'm going to 11 miss the foothills and the Sawtooths, everything that 12 makes this state so special and I will miss the people 13 and its potatoes. 14 I urge the Commission to ensure this is a state 15 we can continue to be proud of. Moving forward we are 16 presented here today with an opportunity to be leaders 17 and I really hope we take it. This is not an issue of 18 compromise. 10-year contracts will not work, nor will 19 five, and certainly not two. Please allow Idaho to grow 20 and prove its commitment to its mountains and its 21 forests, its air and its rivers, but, most importantly, 22 its future and its children. Reject this motion to 23 reduce PURPA contracts. Thank you so much. CSB REPORTING (208) 890-5198 66 WHITE Public 24 COMMISSIONER KJELLANDER: Thank you, Sienna. 25 Are there any follow-up questions? Thank you again for 1 your testimony. Is this your second appearance at the 2 Commission? 3 4 5 again. THE WITNESS: Yes. COMMISSIONER KJELLANDER: Good to see you 6 (The witness left the stand.) 7 8 9 COMMISSIONER KJELLANDER: Mickey Reynolds. MR. REYNOLDS: I'm going to pass. COMMISSIONER KJELLANDER: Thank you, Mickey. 10 Edwina Allen. 11 12 EDWINA ALLEN, 13 appearing as a public witness, having been first duly 14 sworn, testified as follows: 15 16 17 18 BY MR. HOWELL: EXAMINATION 19 Q. Good evening. Could you state your full name 20 and spell your last for the record, please? 21 22 23 24 25 A. Q. A. Q. A. Edwina Allen, A-1-1-e-n. And are you employed and in what capacity? I am retired. And are you an Idaho Power customer? I am. CSB REPORTING (208) 890-5198 67 ALLEN Public 1 Q. And do you have a statement you'd like to 2 give? 3 4 5 A. Q. A. I do. Please do so. Thank you. I live in Idaho and I'm concerned 6 about climate change. I'm grateful for the opportunity 7 to be here this evening to urge you to embrace Idaho as 8 being part of the solution for climate change by 9 supporting investments in solar energy under PURPA. The 10 PUC is charged with promoting the health and safety of 11 Idaho citizens and moving our sources of electricity 12 generation from dirty carbon dioxide-producing fossil 13 fuels like coal to clean solar energy is a critical part 14 of fulfilling this mission. 15 Locally produced solar energy is good for our 16 economy, providing jobs here rather than sending our 17 ratepayer dollars to support coal plants in Nevada and 18 Wyoming. I urge you to keep the contract length offered 19 under PURPA for independent power producers at 20 years. 20 Just as Idaho Power Company finances its infrastructure 21 investments over the long term, solar power investors 22 need to have a reasonable time period to recoup their 23 investments. A two-year contract is just not realistic 24 as a business model. 25 Investing in solar power gives us certainty in CSB REPORTING (208) 890-5198 68 ALLEN Public 1 future costs. Sunshine is free now and will remain so. 2 Solar is a good fit for Idaho's energy needs which peak 3 on the hottest summer days. With expensive new 4 regulations on pollution from coal plants expected soon, 5 now is the time to begin moving toward clean, economical 6 solar energy. I'm excited that right here in Idaho we 7 can be part of the solution to reduce carbon dioxide 8 emissions and it's a winning strategy economically and 9 environmentally. Thank you for this opportunity to 10 testify. 11 COMMISSIONER KJELLANDER: Do we have any 12 follow-up questions? Thank you for your testimony this 13 evening. 14 (The witness left the stand.) 15 16 COMMISSIONER KJELLANDER: Pam Conley. 17 PAM CONLEY, 18 appearing as a public witness, having been first duly 19 sworn, testified as follows: 20 21 22 23 BY MR. HOWELL: EXAMINATION 24 Q. Could you state your full name and spell your 25 last for the record? CSB REPORTING (208) 890-5198 69 CONLEY Public 1 2 3 A. Q. A. My name is Pam Conley, C-o-n-1-e-y. And are you employed and in what capacity? I'm a civil servant. I'm a cartographic 4 technician. 5 6 7 Q. A. Q. And are you an Idaho Power customer? I am. And do you have a statement you'd like to give 8 the Commission? 9 10 11 A. Q. A. I do. Please go ahead. Commissioners, thanks for this opportunity to 12 comment on this proposal. I request that you deny the 13 Idaho electric utilities' request to shorten the length 14 of the PURPA contracts. These producers should get the 15 same deal as other producers, like coal plants and the 16 gas plant. We need to get off fossil fuels now. As we 17 have all heard, we're kind of in a dire situation and 18 it's time to do something about it, and it's really 19 within your power to be the folks that can make that 20 happen. The shortened contracts would stymie renewable 21 power at a time when we need it more than ever and so 22 please don't let this happen, because we don't want to 23 squash solar in Idaho. 24 We have so much sun. I mean, I'm on my bike 25 every day and it's getting hotter and hotter. It would CSB REPORTING (208) 890-5198 70 CONLEY Public 1 be great to put that sun to good use. Idaho Power says 2 that they don't need the power and I would say let's use 3 the solar. Let's take out the dams, help the fish, get 4 rid of the coal plants, turn on the gas plant maybe when 5 they need it, but solar should be our first resource and 6 maybe this will push the electric utilities in that 7 direction. That's it. Any questions? 8 COMMISSIONER KJELLANDER: Thank you. Do we 9 have any follow-up questions? None? Thank for your 10 testimony tonight. 11 (The witness left the stand.) 12 13 COMMISSIONER KJELLANDER: Caroline Morris. 14 CAROLINE MORRIS, 15 appearing as a public witness, having been first duly 16 sworn, testified as follows: 17 18 19 20 BY MR. HOWELL: EXAMINATION 21 22 23 Q. A. Q. Good evening. Good evening. Could you state your full name and spell your 24 last for the record, please? 25 A. My name is Caroline Morris and my last name is CSB REPORTING (208) 890-5198 71 MORRIS Public 1 spelled M-o-r-r-i-s. 2 3 4 5 Q. A. Q. A. And are you employed? I am retired. And are you an Idaho Power customer? I am, but I use solar panels and so I pay them 6 as little as possible. 7 Q. Good for you. Please give the Commission your 8 statement. 9 A. Thank you. I previously submitted a written 10 statement, so I'm going to abbreviate my comments. I do 11 urge the PUC to deny Idaho Power's request to reduce the 12 contract length to two years. I believe the PUC should 13 not change its rules and should continue the 20-year term 14 for PURPA projects. Idaho Power benefits when it does 15 long-term construction projects by having long-term 16 financing, usually for the duration of the project, and I 17 believe that energy sales people deserve the same deal. 18 This would encourage solar power projects that would 19 contribute to local economies, and the solar power 20 neither pollutes the air nor warms the climate. 21 A point that no one else has raised which I 22 would like to raise is the PUC Commissioners are 23 appointed by the Governor. Every year Idaho Power gives 24 the Governor a $5,000 donation and last year for the 2014 25 re-election campaign, Idaho Power executives contributed CSB REPORTING (208) 890-5198 72 MORRIS Public 1 $10,000 to his campaign, so I urge the Commissioners to 2 show their independence and lack of bias in making this 3 decision free of political influence. Thank you for the 4 opportunity to comment. 5 COMMISSIONER KJELLANDER: Do we have any 6 follow-up questions? None from the Commission? Thank 7 you for your testimony. 8 (The witness left the stand.) 9 COMMISSIONER KJELLANDER: We will now call 10 Julie Hoefnagels. 11 12 JULIE HOEFNAGELS, 13 appearing as a public witness, having been first duly 14 sworn, testified as follows: 15 16 17 18 BY MR. HOWELL: EXAMINATION 19 Q. Could you state your full name and spell your 20 last for the record, please? 21 A. My name is Julie Hoefnagels and it's spelled 22 H-o-e-f-n-a-g-e-1-s. 23 24 Q. A. And are you employed and in what capacity? Yes, I work as a self-employed translator in 25 the hospitals and the justice system and the school CSB REPORTING (208) 890-5198 73 HOEFNAGELS Public 1 system. 2 3 4 Q. A. Q. And are you an Idaho Power customer? I am. Do you have a statement you'd like to give the 5 Commission? 6 7 8 A. Q. A. Yes, I do. Please go ahead. I'll be reading this just to keep it as clear 9 as possible and I'll be as quick as I can. First of all, 10 thank you for this opportunity to speak tonight. I 11 really appreciate it. There have been increasingly high 12 profile voices that have come out recently pointing to 13 global warming and climate change as the greatest dangers 14 facing our world; among them, the Pentagon, Pope Francis, 15 and the head of the EPA. 16 In addition, there have been a growing number 17 of well-researched and well-written books on climate 18 change and energy outlooks for the future. I'll name 19 just two because they're so outstanding and worth 20 reading: This Changes Everything, by Naomi Klein, and 21 that details the reasons there's so much foot-dragging 22 towards making changes for the future; and Six Degrees, 23 by Mark Lynas, which details what life will be like in a 24 hotter, more polluted world, and I'd recommend those to 25 anyone interested. CSB REPORTING (208) 890-5198 74 HOEFNAGELS Public 1 All my reading points me to the need to stop 2 pumping more carbon into the air and water and to find 3 clean renewable sources of energy. For years naysayers 4 have claimed that renewables aren't enough for the 5 world's energy needs, but there's a growing number of 6 impressive and sometimes surprising places where solar in 7 particular is a solution and providing a large share of 8 needed energy. 9 The most prominent examples that I have are not 10 in places with sunny climates. They're in Germany, which 11 is making huge investments in renewables in solar; 12 Denmark, which is planning to use only renewables by the 13 year 2030; and one more surprising example, Seattle 14 Pacific Tower, which is a completely self-sustaining 15 smart building in one of the rainiest cities in our 16 country. 17 I think some people have been touting fracking 18 and natural gas as a better solution. They think it's 19 more realistic, but some whole states, New York, have 20 banned fracking. Whole countries have banned fracking, 21 the Netherlands and France, and I think that the 22 disadvantages to the public health and the environment 23 are becoming increasingly obvious with that form of 24 energy. 25 In closing, I just want to say I hope that CSB REPORTING (208) 890-5198 75 HOEFNAGELS Public 1 Idaho Power will have the foresight and courage needed to 2 take Idaho and its residents into a sustainable and 3 healthy future, and specifically in relation to this 4 hearing, I think this means realizing that two years in 5 any economy is not enough for making an investment for 6 the future. 20 years is what we really need, so thank 7 you very much. 8 COMMISSIONER KJELLANDER: Thank you. Do we 9 have any follow-up questions? None from the Commission? 10 Thank you for your testimony. 11 (The witness left the stand.) 12 13 Kleinkopf. 14 15 decline. COMMISSIONER KJELLANDER: We will call Kreed MR. KLEINKOPF: I'm actually going to 16 COMMISSIONER KJELLANDER: Thank you, and for 17 those who have declined, you can still submit written 18 comments, so thank you, and the last name we have on our 19 list is Laurie Adler. 20 21 22 23 24 25 CSB REPORTING (208) 890-5198 76 HOEFNAGELS Public 1 LAUREN ADLER, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 6 7 BY MR. HOWELL: EXAMINATION 8 Q. Could you state your full name and spell your 9 last for the record, please? 10 11 12 A. Q. A. Yes, my legal name is Lauren Adler, A-d-1-e-r. And are you employed and in what capacity? I am. I work for a sustainability consulting 13 company named Green Ideas based in San Francisco. I work 14 remotely. 15 Q. And are you an Idaho Power resident or customer 16 or do you live in San Francisco? 17 18 ago. 19 20 A. Q. A. I am. No, I live here. I moved here a year All right. Thank you for letting me share. As someone who 21 moved from California, I have been profoundly aware of 22 the effect of climate change in my state. It's been 23 absolutely staggering to grow up as a child wearing a 24 sweater to school and now winters are an average 80 25 degrees. Summers are over 100. Watching the drought has CSB REPORTING (208) 890-5198 77 ADLER Public 1 been absolutely amazing for everybody who is paying 2 attention. For everybody who is being an ostrich with 3 their head ducked in the sand, they seem to be missing 4 it, but for most of us, aside from what the scientists 5 say, and there's pretty much agreement among most 6 scientists about what's occurring, but for anybody who is 7 just watching what's occurring, it's pretty clear. 8 There are fires that have come close to my 9 parents' house again and again. We never used to get 10 fires, even 20 years ago. It's very, very real. We're 11 digging into aquifers that are thousands of years old, 12 and what's fascinating about the drought in California 13 from everybody who really understands the background of 14 what's happened, it really wasn't necessary for this to 15 go to these lengths. If you really learn about what's 16 happening to our water supply, it's actually been a 17 choice to watch it happen and not do anything about it 18 for 10 years. 19 The drought wasn't new, like it was very clear 20 that it was happening and if those who were paying 21 attention had made appropriate choices to make other 22 decisions, we wouldn't have had to head to the level of 23 disaster that we're now in or I should say my former 24 state is now in. Idaho is my home now, but it really 25 wasn't necessary if we had made wise choices, practical CSB REPORTING (208) 890-5198 78 ADLER Public 1 choices, if we had stopped making poor choices around how 2 we irrigated, you know, lawns and instead paid attention 3 to our food supply, and it's really staggering now to say 4 okay, well, we only have literally a year left of water 5 for a state which provides an enormous percentage of our 6 nation's food supply. 7 It's really fascinating and it's kind of always 8 the same idea. It gets too big of a project to take on. 9 It's too overwhelming. I think that's a lot of Idaho 10 Power's argument. It's the same argument we see every 11 time there's a new idea or a new problem or a new 12 challenge in this country, and really as a planet, and we 13 don't exactly know how to solve the problem. It seems 14 really overwhelming and we don't exactly know what to do 15 about it, so we kind of bury our heads in the sand until 16 it becomes so monstrous that now we have to pay 17 attention, and there's all these consequences which 18 really were never necessary if we just worked together 19 and used our minds to create a solution. 20 There were conversations happening in the '60s 21 if you remember, the cases that were being decided at the 22 Supreme Court, around whether or not to convert 23 automobiles to unleaded gasoline, and the conversations 24 at the time were so interesting when you read them 25 looking back, because they had actually calculated CSB REPORTING (208) 890-5198 79 ADLER Public 1 exactly how many IQ points were lost in children who were 2 exposed to the lead that came out of the exhaust pipes of 3 our cars that we drove, so we were basically saying yeah, 4 it's going to be so expensive, so the car manufacturers 5 basically argued before the Supreme Court that it would 6 be such an expensive proposition to have to change the 7 engines and changes the motors to allow unleaded gasoline 8 to run through it that we would just have to sacrifice a 9 few I mean, essentially the argument goes that it was 10 too costly, too complicated, which basically translates 11 to we will sacrifice our children's intelligence because 12 it's just too hard, it's just too much, and Idaho Power's 13 argument kind of boils down to the same thing. 14 It's just too much. It's going to be 15 unreliable. We don't know how it's all going to work, 16 and I understand, big projects are often daunting in the 17 beginning, but I'm right now working on a project, I'm 18 working with the City of San Francisco as a consultant on 19 creating -- San Francisco, for example, has said that -- 20 and I know San Francisco has a reputation of being this 21 wild liberal city, but they really are working on some 22 amazing projects that have really exciting energy and one 23 of them they have, San Francisco has set the goal to 24 become a completely sustainable city by the year 2020, 25 and they created a green business project as part of that CSB REPORTING (208) 890-5198 80 ADLER Public 1 program and it's really working. 2 I'm watching as businesses make responsible 3 choices and they make those choices because they're 4 noticing that customers care and will actually make 5 different choices just because they see that a company, a 6 business, is part of the green business program. It's 7 been inspiring for me to watch how much more and more 8 people really do care about what's happening with our 9 planet, they really do, and aside from the politics, 10 which is just in my perspective, my humble perspective, a 11 waste of time. It's really about pragmatics and about 12 survival and our children. 13 I have an amazing step-daughter who just fills 14 my heart with so much joy and I want her to have a world 15 to live in, I really do, and that's not going to be 16 possible unless we all come together and stop this 17 contentious battle between what's not possible and what 18 is possible and all brainstorm and come up with new ideas 19 about how to make it work, because plain and simple, 20 other states are making it work. Other nations are 21 making it work. That is true, so it is a simply a story 22 that it's not possible, it's too expensive, it's 23 unreliable, people don't do the right thing. 24 Actually, I beg to differ. I think that's a 25 very cynical and resigned perspective. I do believe in CSB REPORTING (208) 890-5198 81 ADLER Public 1 the future and I do believe in humanity and I do believe 2 in practical, rational, logical solutions and if there's 3 one thing that has really inspired me about my new state, 4 it is the practicality of its people. There's not so 5 much floweriness as I had in California. There was a lot 6 of talk, a lot of liberal talk, that was just not about 7 practical solutions, and I love my new state. It really 8 focuses on hard work and responsibility and integrity and 9 decency and families and humans, and these are human 10 choices about our planet and our future for our children 11 and our grandchildren if they even have a chance and that 12 is very real. 13 There is scientific agreement about that. The 14 only question at this point is just how long we can 15 survive and how nightmarish and post apocalyptic our 16 world has to be. It doesn't, it really doesn't. There 17 is a way to make this happen. We can work by looking to 18 other models. We don't have to figure it out for 19 ourselves. We can look to how other countries, states, 20 and groups and consulting firms have already done this 21 before and learn from them and bring in that information 22 and create new models together so that we can survive. 23 You know, there was once an association of the 24 makers of buggy whips. My dad loves this story. There 25 literally was a group of people whose job it was to CSB REPORTING (208} 890-5198 82 ADLER Public 1 create buggy whips and you know what, they were not a fan 2 of the automobile. Oh, well. It's just part of the 3 evolution and you know what's really interesting about 4 this case that was in front of the Supreme Court about 5 unleaded gasoline, those automakers, they lobbied and 6 they fought and they argued why it was absolutely 7 impossible, it would be so expensive to make an 8 automobile that no American could afford one. Do you 9 know how long once the Supreme Court said I'm sorry, but 10 we're not sacrificing our children's brains for your 11 laziness, that's me paraphrasing, not what the Supreme 12 Court said, definitely not their holding, yet do you know 13 how long it took the car manufacturers to make an 14 unleaded gasoline run car? Two years. Did the prices go 15 up? Not at all. In fact, the American auto industry 16 continued just fine. We can make it happen. It really 17 is doable, and I really think that we can work together, 18 I really think we can, so thank you for letting me speak. 19 COMMISSIONER KJELLANDER: Thank you. Are there 20 any follow-up questions? None from the Commission? 21 Thank you very much. 22 (The witness left the stand.) 23 COMMISSIONER KJELLANDER: Well, we have 24 exhausted our list and what I'm about to ask will get our 25 court reporter to cringe, but is there anyone else who CSB REPORTING (208) 890-5198 83 ADLER Public 1 would like to testify? Come on up. 2 3 MARCIA BLESSING, 4 appearing as a public witness, having been first duly 5 sworn, testified as follows: 6 7 8 9 BY MR. HOWELL: EXAMINATION 10 Q. Could you state your name and spell your last 11 name for the record, please? 12 13 14 A. Q. A. My name is Marcia Blessing, B-1-e-s-s-i-n-g. And are you employed? Yes, I am with Tomorrow's Hope. I take care of 15 handicapped adults. 16 17 18 19 Q. A. Q. A. Great, and are you an Idaho Power customer? Yes, I am. All right, go ahead. I just want to say everyone here has spoken 20 beautifully and I agree on everything. You're all 21 amazing and awesome and I request that you deny Idaho 22 Power's petition, and I believe that solar power will 23 change the world and the way we look at things, and not 24 only it is it a clean, economical fuel, but I believe 25 it's going to save the future. Thanks. CSB REPORTING (208) 890-5198 84 BLESSING Public 1 COMMISSIONER KJELLANDER: Thank you, and 2 Marcia, I want to apologize to you, you were on my list 3 on the first page and I accidently crossed you off. 4 5 6 up. 7 8 THE WITNESS: It's okay. COMMISSIONER KJELLANDER: So I'm glad you came THE WITNESS: You're still loved. COMMISSIONER KJELLANDER: I'll give you my 9 wife's number and please share that sentiment. 10 (The witness left the stand.) 11 COMMISSIONER KJELLANDER: Is there anyone else 12 who would like to provide some testimony this evening? 13 If not, I'd like to thank everyone for their thoughtful 14 comments and also for giving up what was a very lovely 15 evening to be inside and, again, thank you very much for 16 providing your comments. As far as the remaining 17 proceedings that we have associated with this case, our 18 technical hearing will begin on Monday of next week. 19 It's scheduled for three days. 20 My sense is it probably won't last that long, 21 but we also then will have a telephonic hearing at 7:00 22 p.m. on Tuesday of next week, and so if there are others 23 that you know that couldn't make it tonight and would 24 like to provide testimony, they can do so via the 25 telephonic hearing, and if you need the details for that, CSB REPORTING (208) 890-5198 85 COLLOQUY 1 Gene Fadness who is standing is about to leave now 2 that I've pointed him out -- has the details of the phone 3 number you can call or you can go to our website and get 4 those details as well, and, again, if there are 5 additional comments or thoughts you'd like to share, even 6 if you testified this evening, please feel free to do so 7 through the written comment, access through our website 8 or you can merely send it to our attention under this 9 case number to the Commission directly, so with that, I 10 want to thank you again for your participation and we 11 appreciate, again, your involvement in this process as we 12 move forward to come to a conclusion in relationship to 13 this case, so, again, thank you very much. 14 15 16 17 18 19 20 21 22 23 24 25 (The Hearing concluded at 9:10 p.m.) CSB REPORTING (208) 890-5198 86 COLLOQUY