20180706Answer to Avista Customer Group.pdf

Avista Corp.
141 I East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
Via Electronic and Overnight Mail
July 5, 2018
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702
RE: Case Nos. AVU -E-17 -09 and AVU-G-L7 -05
Enclosed for filing with the Commission are an original and 7 copies of the Hydro One and
Avista Answer to Petition to Intervene of Avista Customer Group, the Motion for Leave to File
Reply Comments, and Attachment A to the Motion (the comments of Avista and Hydro One) in
Case Nos. AVU-E-17-09 and AVU-G-17-05.
Please direct any questions related to the transmittal of this filing to me at 509-495-8620
Patrick Ehrbar
Director of Regulatory Affairs
Enclosures
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GERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this Sth day of July, 2018, served the foregoing letter
and Answer of Avista and Hydro One to Petition to lntervene of Avista Customer Group
in the Merger Case Nos. AVU-E-17-09/AVU-G-17-05, upon the following parties, by
mailing a copy thereof, properly addressed with postage prepaid to:
Diane Hanian, Secretary
ldaho Public Utilities Commission
47 2 W . Washington Street
Boise, lD 83720-5983
diane. hanian@puc. idaho.qov
Brandon Karpen
Deputy Attorneys General
ldaho Public Utilities Commission
472W. Washington
Boise, lD 83720-0074
brandon. karpen@puc. idaho.qov
Danielle Franco-Malone
Schwerin Campbell Barnard
lglitzin & Lavitt LLP
18 W. Mercer St., Suite 400
Seattle, WA 98119
f ra n co@Wo rke rl aw-qe nn
Larry Crowley
The Energy Strategies lnstitute, lnc.
5549 S. Cliffsedge Ave
Boise, lD 83716
[e-mail]
Dr. Don Reading
6070 Hill Road
Boise, lD 83703
dreadinq@mindspring. com
Brad M. Purdy
Attorney at Law
2019 N 17th Street
Boise, lD 83702
[e-mail]
Peter J. Richardson
Richardson Adams PLLC
515 N.27th Street
Boise, lD 83702
peter@richardsonadams. com
Ronald L. Williams
Williams Bradbury, P.C.
P. O. Box 388
802 W. Bannock St., Suite 900
Boise, lD 83702
ron@wil I iamsbrad burv. com
Ben Otto
ldaho Conservation League
710 N. 6th St.
Boise, lD 83702
botto@idahoconservation. orq
Dean Miller
3620 E Warm Springs Ave
Boise, lD 83716
Deanimiller@cableone. net
Patrick Ehrbar
Director of Regulatory Affairs
t
I
David J. Meyer, ISB No. 8317
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
Avista Corporation
l4ll E. Mission Avenue
P.O.Box3727
Spokane, Washington 99220
Phone: [phone], Fax: [phone]
IN THE MATTER OF THE JOTNT
APPLICATION OF HYDRO ONE
LIMITED AND AVISTA CORPORATION
FOR APPROVAL OF MERGER
AGREEMENT
ftTCEIVEI)
Elizabeth rnornurJFbhti$ -5 ii?i 9:22
KariVander Stoep, Partner,'. i ,iiji,iilK&LGatesLLP'i :-.;,1i1i_csi0;',1
On Behalf of Hydro One Limited
and Olympus Equity LLC
925 Fourth Avenue, Suite 2900
Seattle, WA 98104-l158
Phone : [phone], Fax : [phone]
)) CASENO. AVU-E-I7-09
) AVU-G-17-05
)
) ANSWER OF AVISTA / HYDRO ONE
) TO PETTTTON TO TNTERVENE OF
) AVISTA CUSTOMER GROUP
BEFORE THE IDAIIO PUBLIC UTILITIES COMMISSION
I COME NOW, Avista Corporation ("Avista") and Hydro One Limited, ("Hydro One"),
2 jointly referred to as the "Applicants," and pursuant to Rule 75, respectfully respond to the
3 Petition to Intervene (the "Petition") filed on June 27,2018 by what has been styled as the
4 "Avista Customer Group, ("ACG" or the "Petitioner"). While Applicants have substantial
5 concerns over the lateness of this Petition, as well as concerns over whether this unincorporated
6 association has "standing" to bring this Petition, Applicants do not object to the proposed
7 intervention, so long as it does not serve to unduly broaden the issues at this late juncture.
8I.
9 In its Petition, the ACG contends that "no other party can adequately represent the
10 interests of ACG."I While the Petitioner advertises itself as the "Avista Customer Group",
I I suggesting a broad-based constituency, it is not at all clear whom the ACG purports to represent.
t Petition at p.3.
ANSWER OF AVISTA / HYDRO ONE TO PETITION TO INTERVENE OF AVISTA
CUSTOMER GROUP Page I
I The only representation in the Petition is to an amorphous group composed of "utility ratepayers,
2 taxpayers and concerned citizens, including electrical and natural gas utility customers of the
3 Co-Applicant, Avista Corporation."2 No other information is provided about this
4 "unincorporated nonprofit association."3 On its face, this raises questions of legal standing and
5 whether the ACG satisfies the requirement of Rule 74 that a petition must show a "direct and
6 substantial interest" in the subject matter of the proceeding. How many of its members are, in
7 fact, customers of Avista? How many of these customers are in ldaho, and thus have interests
8 cognizable by the Idaho Public Utilities Commission (the "Commission")? Who are the other
9 referenced "taxpayers and concerned citizens"? If not customers of Avista, how are these groups
l0 otherwise affected and are their interests within the Commission's jurisdiction? (Indeed, the only
I I potential effect on ACG members identified in the "Comments of Avista Customer Group (the
12 "ACG Comments")," also filed on June 27,2018, is potential cost or rate increases resulting
l3 from the proposed merger,4 that is, the impact on Avista's rates to its customers - no "taxation"
14 issues or impacts on non-Avista customers were raised.) Not only does this raise issues
15 conceming standing, but whether the ACG's participation will, in fact, unduly broaden the
16 issues.
17 II.
l8 Moreover, Avista's customers are already broadly represented: their advocates include
19 the Staff of the Commission, the industrial customers ("Clearwater" and "Idaho Forest Group"),
20 the Community Action Partnership Association of Idaho ("CAPAI"), which represents low-
2l income customers, the Idaho Conservation League ("ICL"), and a union advocacy group of the
2 Petition at p.2.
3 As an "unincorporated non-profit organization," there are no public filings available for review that would
otherwise describe its purpose or membership. Nor does a cursory search of the internet reveal more information
about this organization.
4 ACG Comments at l.
ANSWER OF AVISTA / HYDRO ONE TO PETITION TO INTERVENE OF AVISTA
CUSTOMER GROUP Page 2
I
I Washington and Northern ldaho District Council of Laborers ("WNIDCL") (collectively, the
2 "Parties"). Every segment of Avista's "customer group" has already been well-represented from
3 the outset of this proceeding when it commenced in September of 2017. All of these customer
4 interests participated vigorously in the discovery process and in scheduled settlement
5 conferences in April of 2018. It is simply inaccurate to say that "no other party can adequately
6 represent the interests of ACG,"5 given the representation of the Parties who are already
7 participating.
8 More than sufficient notice was given of the filing and of opportunities to intervene on or
9 before the deadline of October 26,2017. Now, eight months later, the ACG has filed its Petition
l0 - well after most of the process has been completed. And it does so without any required
I I showing of "good cause" for waiting until now to file its Petition.
12 III.
13 In summary, even though there are real questions of standing and prejudicial delay in this
14 late-filed Petition, Applicants do not object to the proposed intervention, so long as the issues
15 are not unduly broadened beyond what was set forth in the ACG Comments filed onlune27,
l6 2018. That was the ACG's best opportunity to define, in writing, its interests and concerns.
17 Both Avista and Hydro One strongly believe in the importance of public input. We
18 welcome and encourage all customers of Avista in ldaho to participate and to be heard,
19 regardless of the positions taken. We also recognize the importance of creating a full and
20 complete record upon which the Commission can make its decision. We are more than happy to
2l address any questions and concems and to provide an opportunity for our customers to have their
22 lil
5 Petition at p.3.
ANSWER OF AVISTA / HYDRO ONE TO PETITION TO INTERVENE OF AVISTA
CUSTOMER GROUP Page 3
t
I say. In order to further that record, the Applicants have filed a companion "Motion For Leave to
2 File Reply Comments to the Avista Customer Group."
-*3 Respectfully submitted this J day of July, 2018.
HYDRO ONE LIMITED AVISTA CORPORATION
F%Trtwax By:
David J.
By'Attorney for Avista Corporation
Elizabeth Thomas, Partner, K&L Gates LLP
Kari Vander Stoep, Pattner, K&L Gates LLP
Admiuedpro hac vice
On Behalf of Hydro One Limited and
Olympus Equity LLC
ANSWER OF AVISTA / HYDRO ONE TO PETITION TO INTERVENE OF AVISTA
CUSTOMER GROUP Page 4
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