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HomeMy WebLinkAbout19910715Technical Hearing Vol I.pdfBEFORE THE IDAHO PUBLIC UTILITIES COMMTSSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AP. PROVAL OF AN INTERCONNECTION TARIFF FOR NON-UTILITY GENERA- TION-SCHEDULE 72. CASE NO. IPC.E.gO-20 BEF'ORE COMMISSIONER DEAN J. MILLER (Presiding) COMMISSIONER MARSHA H. SMITH COMI4ISSIONER RALPH NELSON PLACE:Commission Hearing Room 472 West BannockBoise, Idaho c <-O:rc- -t 11frB ,.-. Iu' o crl (?c) -- -utJa*,1 e- -.4*r -6a c) t-l cn:IOY@L DATE:July 3, 1991 VOLUIvIEI-Paqesl-22 COURT REPORTING 537 W, Bonnock P.O. Box 578 Suite 205 Boise, ldoho 83701 (208) s36e208 # ?o"L e INAL n:l C)m F1 tr ...Weofrer M icrotr an sc ri pti onil by r BrironData 1 2 3 4 5 6 7 8 9 l_0 1l- L2 l_3 L4 l_5 L6 17 l_8 l_9 20 2L 22 23 24 HEDRICK COURT REPORTING P. O. Box 578 , Boise, ID 83701- APPEARANCES For ttre Staf f :SCOTT WOODBURY, Esq. Deputy Attorney General 472 WesE WashingtonBoise, Idaho a372O For Idaho Power Company: EVANS, KEANE, KOONTZ, BOYD SIMKO & RIPLEY by BARTON L. KLfNE, Esq. and LARRY D. RIPLEY, Esq. fdaho First Plaza-Suite l-70L l-01- South Capitol BoulevardBoise, Idaho 83702 For A. W Company, BrownInc.:RODEN & ARKOOSHby C. TOM ARKOOSH, Esq. 802 West Bannock-Suite 900Boise, Idaho 83702 For Washington Water Power Company: PAINE, HAMBLEN, COFFIN BROOKE & MILLER by R. BLAIR STRONG, Esq. 1200 Washington Trust Bank Building Spokane, Washington 99204 For UP&L & PP&L:JOHN M. ERIKSSON, Esq.Utah Power & Light Company l4O7 West North TempleSalt Lake City, Utah 84140 For the Industrial Engery Producers of ldaho: DAVIS WRIGHT TREI,IAINEby PETER J. RICHARDSON, 400 Jefferson Place 350 North Ninth StreetBoise, Idaho 83702 Esq. 25 APPEARANCES I I t n I I I I I I I I I I E r I I I I I t T I t T I I I I I T t I I T I T l_ 2 3 4 5 6 7 I 9 l_0 l_ l- L2 l_3 L4 l_6 15 L7 l-8 L9 20 2L 22 23 24 HEDRICK COURT REPORTING P. O. Box 578 , Boise, ID B37Ol- COMIITISSIONER MILLER: Let,S qo on the record, then, in Case IPC-E-90-2O. We have before us today a scheduling conference previously set in Order 23757, and the number of parties has or at least the persons having an interest in the case seems to be expanding; so in light of that, 1et's take the appearances of the parties. First, for Idaho Power Company. MR. KLINE: Thank you, Mr. Chairman. Appearj-ng on behalf of Idaho Power Company is Barton L. Kline and Larry D. Ripley. COMIUISSIONER MILLER: Mr. Arkoosh. MR. ARKOOSH: Appearing on behalf of A. W. Brown Company, Inc. COII{MISSIONER MILLER: Mr. Strong. I[R. STRONG: Appearing on behalf of the Washington Water Power Company, R. Blair Strong of the firm of Paine, Hamblen, Coffin, Brooke and Miller. COMMISSIONER MILLER: And, Mr. Eriksson. I[R. ERIKSSON: John Eriksson appearing for Utah Power & Light Company and Pacific Power & Light Company. COMMISSIONER MILLER: Mr. Richardson. 1 25 coLLoQUY T t T I I I I I I I I I I t I t I t I BOISE, IDAHO, WEDNESDAY, JULY 3, ].99]-, ].0:30 A. M. I I I I I I I I T I I I I t t I t I I L 2 3 4 5 6 7 8 9 MR. RICHARDSON: On behalf of the Independent Energy Producers of ldaho, RoY L Eiguren and Peter J. Richardson of the firn Davis Wright Tremaine, ML. Richardson appearing. COMMISSIONER MILLER: And, Mr. Woodbury. MR. WOoDBURY: Scott Woodbury, Deputy Attorney General, for the Commission Staff. COMMISSIONER MILLER: AIl right, this hearing was convened for the purpose of examining the schedule to be followed in the central proceedings here. The Commission intends to take a recess momentarily to al1ow the parties to discuss that. Before we do, is there anything that any of the parties would think should profitably be brought to the attention of the Commission before we take a short recess? Im.. KLINE: We also have pending, Mr. Chairman, a motion on behalf of the IEPI to vacate the existing hearing. Are you intending to kind of hear those j ointly? COMMISSIONER MILLER: I think we,d have to hear those simultaneously. I guess I was curious to know if there was any possibility of all the matters that are in question here being essentially worked out and then proposed to the Commission or if the Commission is going to have to actually to rule on something. It looks like we're going to have to rule on something? 2 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701- t_o l- l_ L2 l_3 L4 l_5 L6 L7 l-8 l_9 20 2L 22 23 24 25 COLLOQUY t t T I t t I I I I I I I I I I r I I I T I I I I I I I I t t t I I t T I T l_ 2 3 4 5 6 7 8 9 MR. KLINE: I don't know. MR. STRONG: Mr. Chairman. COMMISSfONER MILLER: Mr. Strong. MR. STRONG: I have a question, and I gluess it is also in the nature of a concern, about the kind of guide for Washington Water Power's input into the scheduling conference and that is the precedential nature of this hearing. Washington Water Power did not seek intervention in this case, does not normally participate directly in the cases of other utilities or concerning the rates rnrhich are established by other utilities and is here at the invitation of the Commission or order of the Commission, however we characterize that. My concern is that it be made clear in this proceeding and we will make it clear through briefs or otherwise that we do not see the issues that have been touched upon in this proceeding as affecting directly the avoided cost rates of the Washington Water Power Company. Those rates have been established in a separate proceeding and we believe that the bottom line issue with respect to any avoided cost rate is whether those rates represent a reasonable approximation of the avoided eost rates which are pertinent to the compdny, and we do not view this proceeding and would appreciate some input from other parties or the reaction of the Commission as we do not view, let me back up 3 HEDRICK COURT REPORTING P.o. Box 578, Boise, ID 83701- l_0 1t_ L2 l_3 L4 15 L6 t7 LB L9 20 2L 22 23 24 25 COLLOQUY I I I I n I I I I I I t I T I I I T I t I I I I I I I I t T t I I I I I I I l_ 2 3 4 5 6 7 8 9 a second, we do not view this proceeding as initiating an investigation to change Washington Water Power Company,s avoided cost rates, and if it appears that we,re going on that tangent, that the investigation is going to change generically utilities' avoided cost rates, then j-t would be our recommendation and motion that that certainly be done in a separate proceeding and not in the context of this proceeding. COMMISSTONER MTLLER: A11 right. It{R. KLINE: Mr. Chai-rman? COMMISSIONER MILT.ER: A11 right, letrs try and move forward a litt1e bit in this proceeding before we take a recess, then. Mr. Kline. MR. KLINE: Yes, f have to ask a question first, f guess. Yesterday we filed a response to the motion of the Independent Energy Producers of Idaho, to their motion to vacate, and in that response, w€ addressed a similar concern to that raised by counsel for Washington Water Power Company. I think there is a concern and there is certainly a potential for a problem with procedural due process and notice if we are by pulling the other utilities in and creating perhaps somethinlJ more than what we had intended to do on simply reconsideration of a tariff that we had filed, I think there's a very good argument that can be 4 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 8370L 10 l_ l_ t2 l-3 L4 L5 L6 L7 l-8 L9 20 2L 22 23 24 25 coLLoQUY I I I I I l I E l T I I I I I T I t I I t t I t I I I I T I I I I T T I I I L 2 3 4 5 6 7 I 9 made. Perhaps it would make sense for us to strongly consider carving out that issue, the generic rtavoided costrt issue, that got raised in this proceeding and treating it separately; so I think we really need to consider that. What triggered that response, Mr. Chairman, is in the motion to vacate filed by the IEPI, they essentially used as the grounds for wanting to vacate the hearing the fact that the other utilities had been included in this proceeding, and as a result, they felt that they had been somehow disadvantaged with respect to the timing of what they needed to do; so I think that issue is very much on the table, what is the function of the generic avoided cost issue and is it wise to be considering that within the context of a petition for reconsideration on a tariff filing that Idaho Power made. COMMISSIONER MfLLER: Good. Perhaps what we ought to do is take Mr. Richardson,s comments with respect to his motion and then I think we would have before us enough information we might be able to make some comments on; so, Mr. Richardson, why don't we hear from you. MR. RICHARDSON: Thank you, Mr. Chairman. Mr. Chairman, I was frankly a little surprised at the vigor of fdaho Pourer's response to our simple motion for more time to file testimony. Idaho Power's primary concerns appear to be that this case is going to expand beyond the parameters 5 10 Ll- L2 l-3 L4 15 L6 L7 l_8 L9 20 2L 22 23 24 HEDRICK COURT REPORTTNG P.O. Box 578, Boise, fD 83701 25 coLLoQuY t t I I I I I I I I I I I I t I r I t I I I I I t t I I I I I I t I I I t I l_ 2 3 4 5 6 7 8 9 that you set in the order granting rehearing. We thought your order was explicit, two relatively discrete issues for rehearing. One issue does in fact irnplicate the other utiliLies; so you obviously properly notified them that this issue may impact their generic avoided cost rate. There's really no mystery here as to what's before the Commission. You made it explicit. I'11 quote from your Order. ttThe inclusion of interconnect costs as a factor in the administrative determination of avoided costs is a meritorj-ous issue deserving more detailed investigation. tt You saj-d, ttW€ grant reconsideration on this point and because of the potential generic implications of our decision on calculation of avoided costs and future QF contracts, we invite the participation of the other utilities. rr The other issue that you granted reconsideration on, and again quoting from Order 237L8, you stated, rrBrown further contends that the .7 percent maintenance charge assessed by (not negotiated with) Idaho Power does not accurately or reasonably reflect actual costs. Reference Schedule No. 72, Operation and Maintenance obligations and Expenses. Running through some computations, Brown contends that over the life of a 35-year contract, it wiII have paid to replace the interconnection 6 HEDRICK COURT REPORTING P.O. Box 578, Boise, fD 83701- 1-0 l_ l_ L2 13 L4 l-5 L6 L7 l_8 L9 20 21 22 23 24 25 COLLOQUY I I I t t I I I I I n t I I t I T I t I I I t I I I I I I I I I I I I T I I l_ 2 3 4 5 6 7 8 9 equipment every seven to twelve years. Brown therefore contends that the charges are exorbitant. " You concluded that the Commission grants reconsideration as to the calculation and reasonableness of the operation and maintenance charges set forth in Schedule 72. fwo very diserete issues, I think very well-defined issues. The IEPI, obviously, does not object to your issuing a further notice or order to allay Idaho Power's fears that this case will explode beyond its original bounds, but we're here for a different reason. We,re obviously satsified with the clarity and scope of the proceeding. we just need more time in which to prepare our expert witness' testimony. I'11 explain to you a litt1e further why we need that additional time. The calculation of the O.7 percent monthly maintenance charge is the focus of our efforts. We did not reinitiate reconsideration of the issue, A. w. Brown did. We're glad he did, but you must remember that we are starting from sguare one in terms of understanding the impaet and derivation of that O.7 percent. We were, therefore, pleased by the original schedule that you established that called for A. W. Brown to take the lead and file its testimony first. Your original schedule called for Brotm to prefile on June l-7th. We 7 HEDRICK COURT REPORTING P. O. Box 578 , Boise, ID 83701- 10 l_L L2 l_3 L4 l_5 L6 17 L8 19 20 2L 22 23 24 25 COLLOQUY I I n I I t T I I t I T I I I t T I I I I t I I I I I t I I t I I I I I I I L 2 3 4 5 6 7 8 9 expected to have time to review his testimony and, if necessary, augrment any deficiencies when our prefiled date came around on JulY 3. WeII, A. W. Brown didn't file on the l-7th. The Commission's records indicate he filed late in the day on the l-8th. In addition, he didn't serve anyone except for the Commission and Idaho Pori.rer. We didn't obtain a copy of his testimony until the 24Eh; so we didn't get a chance to review his testimony until the 24E}e. Upon that review, it became apparent that although certainly relevant and certainly touching the issues, Brown's testimony primarily focused on his project,s cost as an example of the inappropriate level of the .7 percent maintenance charge. The IEPf has a broader interest in determining the source and validity of that number for its generic application on Idaho Power's system. In short, w€ felt that A. W. Brown,s testimony, while a good start from a non-expert, needed substantial buttressing from an expert in the field; therefore, on the very next day after receipt of his testimony, we filed this motj-on for additional time and we also retained an expert to investigate the issues. On the day after that, w€ propounded our first discovery request to Idaho Power. We have not been dilatory in proscecuting the proceeding from the moment we realized B HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701- l_0 l_1 t2 l_3 L4 L5 L6 L7 l_8 L9 20 2L 22 23 24 25 coLLoQUY I I I t t I I I I I t I I I I T I I t I t I I T t I I I I I I I T t I I I I l_ 2 3 4 5 6 7 8 9 that in fact the record wasn't going to be sufficient for you to make an accurate determination of the validity of that .7 number. Nonr, rare understand that this proceeding was initiated as a rehearing and, therefore, Idaho Power asserts that you are under time constraints provided for by statute. We disagree. The nature of this case is no longer a simple rehearing of Idaho Power's application for approval of Schedule 72. It now involves parties and issues not part of the original proceeding. To limit those parties in the exploration of those issues to the, by any measure, very limited time constraints imposed by reconsideration is very near denial of our due process rights to fully explore the new parameters of the proceeding. We would, therefore, urge you to grant our simple request for more time and also urge you to not force the parties to adhere to the extremely restricted schedule that would be imposed upon us if this proceeding were considered to be a rehearing, which it is not entirely. That concludes my remarks, Mr. Chairman. COMMISSIONER MILLER: Thank you, Mr. Richardson. Mr. Kliner dny rebuttal? MR. KLINE: Just a couple. I think what counsel discussed with you with respect to the fact that this thing has expanded and quoting from his motion to 9 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701 l_0 Ll_ L2 l-3 L4 15 L6 L7 l_8 t9 20 2L 22 23 24 25 coLLoQUY I I t I I T I I I I I I I T I I T I I I I I I I I I T I I I I T I I I I I I L 2 3 4 5 6 7 8 9 vacate, he said, trHowever, by expanding the reach of this proceeding beyond the original parties, the Commission has in effect created a new case and by implication obviated the application of the reconsideration time limits,tt and that is what triggered our primary concern about the fact that in fact there is a separate case being created out there. I think it may have also triggered Mr. Strongrs concern about just exactly what is the Washington Water Power,s status in this case at this point; so I would again renew my suggestion, I guess, that perhaps it might make good sense to carve this issue out and address it outside the parameters of this petition for reconsideratj-on. Again, I think Mr. Richardson is correct that if we do that we can have enough time to address that issue as far as the avoided cost issues that he raises in his motion in a separate proceeding. As far as whether or not the IEPI has provided adequate grounds to support its motion to vacate, while the IEPI did not petition for reconsideration, they certainly were a party from the beginning and we recognize that and they knew when the prefiling dates were, they knew when the hearing was going to be, and I think at this point in time what we're really seeing is they've decided at the eleventh hour to get into action in this case, and I'm not really sure that the other parties are necessarily obligated to t-0 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 8370L l_0 l_1 L2 l_3 L4 15 L6 L7 L8 L9 20 2t 22 23 24 25 COLLOQUY I I I t t E I I I I I T t t I t t I E I I I I t I I I I t I I I t I T I I t l_ 2 3 4 5 6 7 I 9 adjust the schedule that we've all worked out in order to accommodate the fact that they'd like to get into it now and that they're not satisfied with what Mr. Brown has done in presenting his case. on the other hand, these issues are not new ones. Idaho Pornrer has signed approximately 60 contracts with cogenerators and small power producers and every one of those contracts or the vast majority of those contracts have included the 7/LO of a percent or the 4/L0 of a percent, the construction of the line. Equipment has substantially been the same in all of them, and frankly, periodically we've had to kind of go through and explain to a new set of cogenerators and a new set of Commission Staff just exactly where those numbers come from and how we do it, and rare'd like to get the matter resolved; so even I don't really think the IEPI has carried its burden as far as alleging adequate grounds to vacate the hearing, we certainly wouldn't object to at least some kind of limited extension of time in which to allow them to participate. We filed with the response to their motion a proposed schedule which we bel-ieve nould allour the parties to proceed and the Commission to proceed and get this thing done within the time constraints of the statute on reconsideration. It would certainly make it easier, too, if we could take the issue on the effect on avoided costs out t_ l_ 10 l- t- L2 l_3 L4 l_5 L6 L7 L8 L9 20 2L 22 23 24 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701- 25 COLLOQUY n l r u I T I I I I t I I t t I T r r I I I t I I I I I I I T I I I T I I I l- 2 3 4 5 6 7 8 9 of the reconsideration issue and if all we really had left at that point was whether or not the 7/LO of a percent is a proper number that would sure make that a much more doable goal; so that's kind of our position. We're willing to look at some kind of limited extension of time, but we would hope that it doesn't extend forever. MR. RICHARDSON: Mr. Chairman. COI,IMISSIONER MILLER: Yes, Mr. Richardson. MR. RICHARDSON: Thank you. We would object to the further bifurcating this proceeding out again. It seems there's some economies of scale or efficiencies here that we're going to be losing by creating another case out of this original proceedj-ng. I think that the Commission would be, at least our time and I think everyone eIse,s time would be more efficiently used if we proceeded with the two issues in the case, go ahead and resolve them, give us enough time to get the issues fu1ly investigated and get some decent testimony in front of you, but making two cases out of what was one, actually, you're going to have four cases out of what was originally one when this whole thing started, seems going beyond the pale; so we would suggest i for efficiency purposes, let's keep it all together and give us a 1ittIe more time to get some decent testimony in front of you. We're not talking months, Mt. Chairman. COMMISSIONER MILLER: Why does it make a I L2, HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 8370L COLLOQUY l_0 LL L2 L3 L4 l_5 l-5 L7 l_8 1,9 20 2L 22 23 24 25 I I u I I T I I I T I I I I t I I T I I T T I I I I I I I I I I I I I t I I l_ 2 3 4 5 6 7 8 9 difference to you if you're only concerned with the 7/LO of a percent issue? MR. RfCHARDSON: That's our primary concern, Mr. Chairman, but I would hesitate to represent that the IEPI is not at aII concerned with the other issue as well. ff you opened up another proceeding, I'ilI sure we would be involved in that one as weII. It seems that it's so much easier to get both issues resolved in one proceeding rather than splitting it up again into a further proceeding, and Iike I Sdy, we're only asking for probably just a couple more weeks here which may push us beyond the August 2 deadline, unfortunately, but I just think that would be the most efficient way to handle things. MR. ERIKSSON: Mr. Chairman? COMMISSIONER MILLER: Commissioner Smith had a question. COMMISSIONER SMITH: Yes, I heard the August 2 date before. Is the August 2 date what people have calculated as the last day upon which we can have our record submitted or is that when we have to have our order out? MR. RICHARDSON: My calculation of the rehearing schedule indicates August 2 is the date you must finally hear the matter. You then have COMMISSIONER SMITH: Okay, then we can have briefs after? l_3 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701- L0 l- l_ 1-2 l_3 L4 l-5 t_6 L7 L8 l_9 20 2L 22 23 24 25 COLLOQUY t I I I r I I I r I I I r I I n r I I T T t T t T t I I t I I I t I I I I I l_ 2 3 4 5 6 7 8 9 MR. RICHARDSON: No, that,s the date you must have the matter finally submitted. You can,t have submissions after that in terms of briefs or subsequent pleadings. MR. KLINE: You then have the 28 days after that to get the order out. COMMISSIONER SMITH: Okay. MR. KLINE: I just have one more issue that Ird like to lay out on the table because I think itrs something that's important and that is the question of notice. Again, it goes to the fact that we have expanded what started out as I thought a fairly simple tariff application to include the other two utilities, and based on the information or the service list that I had reeeived, it sure looked to me like we had not given notice broadly enough to perhaps cover the small power producers and cogenerators who might be affected by Washington Water Power and Utah Power & Light. Counsel for Staff Mr. Woodbury has given me a list of people that he apparently sent it out to. I have not had an opportunity to look at that list, nor do I believe that the attorneys for the other utilities have had a chance to look at that list, but my concern is werre kind of backing into something where we have had lots of, not problems, but certainly we recognize that giving notice to 74 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701- l_0 t- l- L2 l_3 14 t-5 16 L7 L8 L9 20 2L 22 23 24 25 COLLOQUY n I I t I I T I u I I I I I I I T I I I I T I I I T I I t T I I I I I I I t L 2 3 4 5 6 7 8 9 coltenerators and small power producers in advance of time to allow them to participate any time there,s an avoided cost or a possible change in avoided cost is a very important thing to do, and f really think the idea perhaps of carving out this issue of interconnection costs as they affect avoided costs and noticing that up separately and making sure that we give notice to the world for all three utilities may save us some real grief in the future. Thatrs why I'm raising it. COMMISSIONER MILLER: All right. MR. ERIKSSON: Mr. Chairman? COMMISSIONER MILLER: Mr. EriKsson. MR. ERIKSSON: It seems that since everyone else has stated their position on this, I,d like to state the position of the companies and that is that likewise the companies feel that the best uray to handle this generic issue would be in a separate proceeding as described by Mr. Kline and Mr. Strong. COMMISSIONER MILLER: Okay, thank you. A11 right, now I think we'II take a brief recess. I think what we could do perhaps is lm.. RICHARDSON: Mr. Chairman. COMMISSIONER MILLER: Do you have something to add now still? I[R. RICHARDSON: Yeah, f ,d just like to l-5 HEDRICK COURT REPORTTNG P.O. Box 578, Boise, fD 83701 l_0 11 12 13 L4 l-5 16 L7 l_8 L9 20 2L 22 23 24 25 coLLoQUY I I I I l I I I I T I t I I I t I I T I I I I T I I I I I I I I I I I t I I 1_ 2 3 4 5 5 7 I 9 reiterate, Mr. Chairman, that the issue of the interconnection costs, these issues have been involved in this proceedingT from Day one, and in terms of notice, Idaho Power's concern with notice is certainly commendable. I think, however, the Commission doesn't have a problem of due process notice of this issue that is now before it. COMMISSIONER MILLER: A11 right, we,re going to take a recess in both cases and we're going to come back sometime in one of the cases. (Recess. ) COMMISSIONER MILLER: A11 right, we'II go back on the record in the second case, 9O-2O, the tariff case. To start out, I think the Commission wants to apoloqize Eo the parties for getting these cases to a procedural circumstance that has not worked out and ure hope that we are now prepared to get things straightened out so that both cases can proceed to an orderly conclusion. What we would like to suggest in this case, the tariff case, is, af course, that Ehe 7/LO issue remains an issue in this case. With respect to the interconnection issuer w€ would like to keep that in this case, but in this manner; that is, the preliminary question to be or the initial question to be resolved is are interconnection costs included in avoided costs as they are presently calculated. The Commission in an effort to address that L6 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701- l_0 L1 L2 13 L4 l_5 l-6 L7 l-8 L9 20 2L 22 23 24 25 coLLoQuY t I il I t I I I I I I I I r I I I I I I I I I T I I T T I I I I t t t I I I L 2 3 4 5 6 7 I 9 question invited the other utilities to participate here because those avoided cost rates were set for all those utilities in a conmon manner and a common methodology. If the answer to that question is yes, then we believe the issue is at an end; that is, if the preceding methodology resulted in the inclusion of interconnection costs, then we think that ends the inquiry; so if we come to the conclusion in this case that y€s, they are already in avoided costs, thereby making the charging of interconneetion costs appropriate, that would be an end of the issue. If we eome to the conclusion that for some reason or another the answer is no, they have not been included in avoided costs, then we think the subsequent process of determining what they should be and how they should be included in avoided eosts would be a matter for a separate case; so we don't want to use this case to come anywhere close to verging on the recalculation of avoided costs for any utility. We want to use this case to reach that question of under the existing methodology were they included, and once we answer that question, w€ will knor,.r where we go. If the answer is yes, then the matter is at an end. If the answer is no, we will have to convene some other proceeding involving all of the parties with proper notice to all the other possible participants to determine L7 l_o 1l- t2 l_3 1,4 l-5 L6 L7 L8 L9 20 21, 22 23 24 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701- 25 coLLoQUY I n r I I I I I I I I I T I I I I I I t T I I I I I T I I I I I I I t I t I I l_ 2 3 4 5 6 7 8 9 the quantification and the methodology for including those in the avoided cost rates; so with that clarification, w€ would like to keep both issues together and we would like to get the case decided prornptly. In that regard, the Commission believes that we could be available for a hearing on Thursday, August Lst, and with that ultimate deadline to shoot for when we adjourn this prehearing conferencer we would like you to work on a schedule of events leading up to a hearing on August Lst. Commissioner Smith, Commissioner Nelson, have I stated our -- anything you would like to add on how we would like this case to proceed? COMMISSIONER NELSON: You,ve done a very good job, thank you. COMMISSIONER SI,IITH: Great job. I noticed Mr. Purdy looked askance at aII of this. First, we do note on the calendar that the Washington Water Power case involving the Potlatch contract is scheduled to commence at 9:30, July 30th, and has been blocked for three days, and if anybody here really thinks that's going to take three days, they should speak now because we think two days is adequate. MR. PURDY: I'm sorry, did you say that was scheduled to begin the 30th? I recall the 29t-h. COMMISSfONER SMITH: No, it,s Tuesday, the 3oth. l_8 HEDRICK COURT REPORTTNG P.O. Box 578, Boise, ID 83701- t0 1t_ L2 13 L4 l_5 1,6 17 18 L9 20 2L 22 23 24 25 coLLoQUY I I I I t I I I I I t I I I t I I I I l_ 2 3 4 5 6 7 8 9 COMMISSIONER SMITH: Mr. Strong, is there any reason why you think that should take three fu1l days? MR. STRONG: Madam Commissioner, I,rl reaI1y not in a position to speak to how long it will take. I haven,t reviewed the testimony and so I can't realIy honestly say. I'm sorry, we just don't have the people here to give you an informed opinion. It{R. PURDY: The Staff will call two witnesses at that hearing. If the Company does not call an inordinate number of witnesses, I don't see a problem. It,s always hard to speculate. MR. STRONG: My understanding, limited though it is because I'm not assisting in the preparation of that case, is that there were going to be two or perhaps three company witnesses for Washington Water Power and one for Potlatch if that is of any assistance. MR. KLINE: Mr. Chairman, perhaps I can add something that will help, let's put it that way. I recognize that the August 2nd date is that magic date for getting the thing heard for petitions of reconsideration, but I do believe and Idaho Power would be willing to extend that date and vacate that date. I think we're the only ones that would be adversely affected and we would be the ones that would be able to do that waiver if that would assist in gretting this thing resolved. L9 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701- l_0 l_ l_ L2 l-3 L4 l_5 l-6 L7 l_8 l_9 20 2L 22 23 24 25 COLLOQUY I I I I I I I I I I I I I t I I I I I I I t I I I I t I I I I I I I t I I t l- 2 3 4 5 6 7 8 9 We want to get it resolved. We don,t rnrant to try and do it on a jammed schedule if we can avoid it. I would suggest we even look into September and I think that gives us enougth time, everybody enough time, to do whatever discovery they have to do, those kinds of things. We want to do it right the first time. COMMISSIONER MILLER: Is there any other party who would feel themselves prejudiced by waiving the statutory time for decision in the reconsideration petitions and finding a date beyond the statutory time? Mr. Arkoosh, would you feel prejudiced at a]-l? MR. ARKOOSH: No. I do have sort of a problem that I've never been able to resolve and f've communicated it through the Staff, Mr. Brown hasn't been available to me since mid last week, but my guess is if we continue with the complaint case, it will be set on the same datei so I guess I,11 have to wait and see what the Commission's ruling is. COMMISSIONER MILLER: We,11 get to that in just a minute. l4R. ARKOOSH: This case, it may well be that he can't be here, but it looks as though these issues are going to be adequately briefed and he may well be able to be here. I don't know. COMMISSIONER MILLER: Mr. Strong, dDy 20 HEDRICK COURT REPORTING P. O. Box 578 , Boise, ID 83701- 10 l- l_ L2 l_3 L4 15 L6 L7 l_8 L9 20 2L 22 23 24 25 COLLOQUY I I I I t I t I I I I I I I I I I T I I I I I I I t I I I t I I t T I I I T L 2 3 4 5 6 7 8 9 prejudice to you? Obviously, I can't see any. MR. STRONG: No, and we,re not a party to this proceeding at all, as I understand it. COMMISSIONER SMITH: No, this is the proceeding you're a party to. MR. STRONG: We,re talking about 9L-2? Okay, 9O-2O, Dor w€ have no objection. COMMISSIONER MILLER: Same with you, Mr. Eriksson? MR. ERIKSSON: Likewise. COMMISSIONER MILLER: Mr. Richardson, no prejudice to you? MR. RICHARDSON: Obviously, Mr. Chairman, we,re just concerned that Idaho Power have sufficient time to respond to our production requests in a complete manner and we want to accommodate that in anlnnray we can; so werre pleased with Mr. Kline's suggestion. COMMISSIONER MILLER: Why donrt we do this then, rather than us trying to pick out a date right now, why don,t when we adjourn the parties can discuss a date that appears to be open on the Commission calendar and that would be convenient to you. A11 right, anything else to be taken up, then, in the 9O-2O case? If not, w€ witl adjourn our hearing in that case and then take up again in 9l--2. (The Hearing recessed at L1:45 a.m. ) 2L 10 11 L2 l-3 L4 L7 18 L9 20 2L l-5 L6 22 23 24 25 coLLoQUY I I I I I I t I I I I I I I I I t T I HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 83701- I I I t I I I I I t I t I I I I I I t l_ 2 3 4 5 6 7 I 9 l_0 1l- L2 l_3 L4 l-6 L7 18 L9 l_5 20 2L 22 23 24 HEDRICK COURT REPORTING P.O. Box 578, Boise, ID 8370L AUTHENTICATION Ihis is to certify that the foregoing proceedings held in the matter of the application of Idaho Power Company for approval of an interconnection tariff for non-utility generation-Schedule 72, commencing at l-0:30 d.[. r on Wednesday, JuIy 3, l-991-, dt the Commission Hearing Room, 472 WesE Washington, Boj-se, Idaho, is a true and correct transcript of said proceedings and the original thereof for the file of the Commission. sT4#p A.smL 1S OA Qq- S. BUCYified Shorthand Reporter ! itt 22 25 AUTHENTICATION I I I I I I I I I I I I I I t I I I I