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HomeMy WebLinkAbout20190806_ej1.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM:EDWARD JEWELL DEPUTY ATTORNEY GENERAL DATE:AUGUST 2,2019 SUBJECT:APPLICATION OF IDAHO POWER FOR A VALIDATED ECONOMIC CLOSURE DATE FOR NORTH VALMY POWER PLANT UNIT 2;CASE NO.IPC-E- 19-18. On June 27,2019,Idaho Power Company ("Idaho Power"or "Company")filed an Application requesting the Commission acknowledge that the Company has sufficiently validated the economic retirement of Unit 2 of the North Valmy Power Plant ("Valmy")as December 31,2025. On July 19,2019,the Company filed a letter in IPC-E-19-19 stating that it needed additional time to perform modeling and analysis for its 2019 Integrated Resource Plan ("IRP"). The revised IRP analysis will likelyimpact the economic analysis conducted in this case. THE APPLICATION In Case No.IPC-E-16-24,the Commission approved a settlement stipulation to facilitate the Company's exit from Valmy Units 1 and 2 before the originally expected end of life for the coal-fired units.See Order No.33771.In Case No.IPC-E-19-08,the Company requested the Commission approve various contractual and accounting mechanisms related to the Company's exit from Valmy Unit 1 by December 31,2019,and Unit 2 by December 31,2025, and to update customer rates accordingly.The Commission approved the Company's Application but stated that further analysis was necessary to validate the economic retirement date of Unit 2.Order No.34349.This Application contains the Company's efforts to validate a December 31,2025 economic retirement for Valmy Unit 2. DECISION MEMORANDUM l STAFF RECOMMENDATION Staff recommends the Commission issue a Notice of Application.Because this Application will likely be impacted by the Company's revised 2019 IRP analysis,Staff does not recommend setting procedure or timelines at this time.Once the impact of the revised 2019 IRP analysis on this case is known,Staff will make further recommendations regarding procedure and timing. COMMISSION DECISION Does the Commission wish to issue a Notice of Application? Edward ewell Deputy orney General I:\Legal\ELECTRIC\IPC-E-19-18\IPCEl918_decmemo_ej DECISION MEMORANDUM 2