20200303_ej1.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE:FEBRUARY 28,2020
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 likely impact the economic analysis conducted in this case.
On August 13,2019,the Commission issued a Notice of Application stating that no
further action would be taken on the Company's Application until the Company submitted its
amended 2019 IRP.Order No.34409.
On July 31,2020,the Company submitted its amended 2019 IRP.
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
DECISION MEMORANDUM I
Application but stated that further analysis was necessary to validate the economic retirement
date of Unit 2.Order No.34349.This Application requests approval of December 3 I,2025,as
the economic retirement date for Valmy Unit 2.
STAFF RECOMMENDATION
Idaho Conservation League has already intervened in this case.Order No.34398.
Staff recommends the Commission establish a 21-day intervention period to allow other
interested parties to intervene,after which the parties will meet to discuss procedure and timeline
by which to process the case and make a recommendation regarding such to the Commission.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Intervention Deadline with a 21-day
intervention period?
Edward J.we ]
Deputy Attorn General
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DECISION MEMORANDUM 2