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HomeMy WebLinkAbout20200707_ej4.pdfDECISION MEMORANDUM 1 DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: EDWARD JEWELL DEPUTY ATTORNEY GENERAL DATE: JULY 2, 2020 SUBJECT: IN THE MATTER OF IDAHO POWER COMPANY’S 2019 INTEGRATED RESOURCE PLAN; CASE NO. IPC-E-19-19. On June 28, 2019, Idaho Power Company (“Idaho Power” or “Company”) filed an Application requesting the Commission acknowledge the Company’s 2019 Integrated Resource Plan (“IRP”). On July 19, 2019, the Company filed a letter stating that the Company had identified the need to perform supplemental analysis to confirm the accuracy of the IRP’s conclusions and findings. The Company estimated the additional analysis could be completed and filed by October 31, 2019. On August 13, 2019, the Commission issued a Notice of Application acknowledging the Company’s requested extension of time and stating the Commission would issue a Notice establishing procedure and deadlines after the Company submitted its updated 2019 IRP analysis. Order No. 34410. On October 28, 2019, the Company filed a letter stating it would need until November 8, 2019, before it could provide a new estimated filing date. On November 8, 2019, the Company filed a letter stating it would file its supplemental IRP analysis no later than January 31, 2020. On January 31, 2020, the Company filed its amended 2019 IRP. On March 4, 2020, the Commission issued a Notice of Amended Integrated Resource Plan and Notice of Intervention Deadline. Order No. 34572. DECISION MEMORANDUM 2 On May 13, 2020, the Commission issued a Notice of Modified Procedure establishing a July 22, 2020 comment deadline and an August 26, 2020 reply comment deadline. Order No. 34665. On June 1, 2020, the Company submitted replacement pages to its IRP updating costs associated with the Jim Bridger power plant. On July 1, 2020, the Company filed “Idaho Power Company’s Motion to Suspend Procedural Schedule and Update Regarding Boardman to Hemingway Transmission Line Project.” THE MOTION TO SUSPEND PROCEDURAL SCHEDULE The Company states it has “identified additional issues that require additional diligence to ensure accuracy of certain aspects of the IRP analysis.” Motion at 1-2. The Company states it has initiated a “systematic audit” to ensure the reliability of the IRP results. The Company commits itself to concluding the audit and proposing a revised procedural schedule by no later than July 31, 2020. Id. at 2. The Company states that at this time it is “unable to accurately forecast the time necessary to provide any revised modeling and analysis that may be required.” Id. at 5. THE UPDATE REGARDING BOARDMAN TO HEMINGWAY TRANSMISSION LINE PROJECT The Company states it is in discussion with Boardman to Hemingway (“B2H”) co- participants about acquiring Bonneville Power Administration’s (“BPA”) share in the project and provide transmission service to BPA’s southeast Idaho customers. The Company states, “Because this ownership arrangement would include a commitment by BPA to fund the incremental cost of Idaho Power’s increased ownership percentage through a long-term purchase agreement, the 21 percent ownership percentage assumed in the Amended 2019 IRP continues to provide a reasonable basis for least-cost, least-risk planning for the time being.” Id. at 2. The Company states the negotiations are still preliminary, but it expects BPA to begin discussing the potential ownership arrangement with its southeast Idaho customers, and therefore provides the update now. STAFF RECOMMENDATION Staff recommends the Commission vacate the comment deadlines and establish new comment deadlines after the Company concludes its internal audit and files an update. DECISION MEMORANDUM 3 COMMISSION DECISION Does the Commission wish to vacate the comment deadlines in this case? __________________________ Edward J. Jewell Deputy Attorney General I:\Legal\ELECTRIC\IPC-E-19-19\IPCE1919_dec memo 3_ej