FERC18-063_dh.doc

UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION

IN THE MATTER OF IDAHO POWER COMPANY

APPLICATION FOR TEMPORARY AMENDMENT OF LICENSE )
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TWIN FALLS PROJECT
FERC NO. 18-063

MOTION TO ACCEPT LATE-FILED COMMENTS
OF THE IDAHO PUBLIC UTILITIES COMMISSION

On March 26, 2001, the Commission issued a Notice of Amendment of License and solicited comments regarding Idaho Power Company’s Twin Falls Project, No. 18. The Notice was published in the Federal Register on March 30, 2001. 66 Fed. Reg. 17,421. The Commission’s Notice requested that written or comments or protests be filed within 14 days. Pursuant to Rule 214 of the Commission’s Rules of Practice and Procedure, 18 C.F.R. § 385.214, the Idaho Public Utilities Commission (IPUC) moves to submit these late-filed comments supporting the Application to amend the Twin Falls license.
The IPUC was not aware of the Company’s Application until it received a copy of the Application from the Company on April 17, 2001. In addition, the business schedule of the IPUC was such that it could not complete its review of the Application before the time for filing comments.
The IPUC does not seek to intervene in this matter but to submit comments for the Commission’s consideration. 18 C.F.R. § 385.212(c)(2). Submission of these late-filed comments is not intended to delay the proceeding or prejudice any party but is intended to address the impending power shortage facing the State of Idaho as well as Idaho Power Company. As the agency with regulatory authority over the Applicant, the IPUC believes that its comments will assist the Commission in its review of this matter. Consequently, the IPUC requests that the Commission accept these late-filed comments.
COMMENTS OF THE IPUC
The IPUC appreciates the opportunity to comment in this matter. The IPUC supports the Application and urges the Commission to expeditiously grant Idaho Power’s request for a temporary suspension of the aesthetic streamflow requirements set forth in Article 410 of the Twin Falls’ license.
As indicated in the Application, Idaho Power proposes to temporarily suspend, for a period of one-year, the aesthetic flows at the Twin Falls Project. This by-pass flow allows water to spill over the “Twin Falls” for aesthetic viewing purposes. Idaho Power calculates that this aesthetic flow “represents approximately 3.24 megawatts of lost generation, or $400,000 per month for the April through August period, using current forecasts of power prices.” Application at 3 (emphasis original). The Company estimates the financial impact of the aesthetic flow as exceeding $3.0 million for the period March 2001 through March 2002. Id.
Article 410 of the Twin Falls license provides that Idaho Power
shall maintain flows that average 300 cubic feet per second (cfs) over Twin Falls from 8 a.m. to 30 minutes after sunset each day, 7 days a week, April 1 through August 31, and 8 a.m. to 30 minutes after sunset every Saturday and Sunday and on all holidays, September 1 through March 31 (peak viewing times). At no time during these peak viewing times shall the flow over Twin Falls fall below 270 cfs or inflow, whichever is less. The average flow of 300 cfs required during peak viewing times may be temporarily modified if required by operating emergencies beyond the control of the licensee or for a short periods upon agreement between the licensee, the Bureau of Land Management, the Idaho Department of Parks and Recreation, and the Idaho State Historical Preservation Officer.

Article 410 of the License for the Twin Falls Project, Application at 2-3 (emphasis added). The Application also states that Idaho Power will spill water over Twin Falls “if needed to meet the state water quality standard for dissolved oxygen as required by Article 404 of the license for the Twin Falls Project.” Id. at 4.
Consistent with the State of Idaho’s comments in this matter, the IPUC supports Idaho Power’s request for temporary suspension of the aesthetic streamflow requirement. The IPUC believes that approval of the Application is in the public interest for three primary reasons.
First, the provisions of Article 410 contemplate that there may be instances where the “average flow of 300 cfs during peak viewing times may be temporarily modified.” Article 410. The aesthetic flow may be modified “for a short period” with the concurrence of the Bureau of Land Management (BLM) and two state agencies. The Bureau of Land Management and the requisite state agencies have consented to the temporary cessation of aesthetic flows. Thus, Idaho Power has obtained the requisite consent of the agencies necessary to temporarily modify the aesthetic flow requirement.
Second, extremely low water conditions in Idaho and the Pacific Northwest have significantly reduced Idaho Power’s hydropower generation. In an “average” water year, Idaho Power generates approximately 60% of its total system requirements from its hydropower facilities. Low streamflows and reservoirs result in reduced hydro-generation and require such hydro-dependent utilities to seek generation from other system or non-system sources.
The Bonneville Power Administration (BPA) characterizes the regional low water conditions as “extreme.” Attached BPA Administrator’s Notice to Customers (March 29, 2001). The BPA reports that the forecast for Columbia Basin water runoff for 2001 is only 55% of normal. This would be the second-lowest runoff in 72 years of recording runoff. Similar conditions exist in Idaho. The snow pack in the Idaho Power area is about 50% of normal. The IPUC anticipates that Idaho Power’s hydropower generation will be significantly reduced for the calendar year 2001. Attachment 2 shows the actual system generation deficits (for all sources of generation) from June 2000 through February 2001. The “Company projected” data represents the Company’s forecast for all system generation in “low” water years. Note that even with projected low water conditions, the Company’s actual generation deficits for January-February 2001 were greater than anticipated. See Attachment 2.
Further exasperating Idaho Power’s ability to meet load is the low water year throughout the region and the high prices of the wholesale power in the West. Attachment 1, BPA Notice. These latter two conditions require that Idaho Power and other western utilities implement measures to conserve or reduce the demand for electricity. Just yesterday this Commission continued a mitigation and monitoring plan for the California wholesale electric market. FERC Docket No. EL00-95-012.
Within the last several weeks, the IPUC has authorized the Company to implement several energy conservation and demand reduction programs. These programs include major irrigation buy-back programs, an irrigation load-shaping program to decrease demand during peak hours, and programs to reduce demand from industrial customers. The Company has also adjusted plant maintenance schedules to reduce the periods of scheduled outages for its generating facilities. In addition, the IPUC also has pending before it several requests to implement additional energy conservation or DSM programs for Idaho Power.
Despite these conservation measures, increasing available generation through operational changes or efficiency at all types of generating facilities is also necessary. For example, Idaho Power has recently filed for approval to construct two natural gas-fired combustion turbines rated at about 45 MW each in Mtn. Home, Idaho. IPUC Case No. IPC-E-01-12. The Company hopes to begin generating in the summer of 2001. Even though granting this Application may result in only 3.24 MW of additional generation, this amount is nonetheless critical to meeting the needs of Idaho Power’s customers.
Finally, granting the Application would be consistent with the Commission’s proposal in Docket No. EL01-47-000 and Docket No. PL01-3-000 to examine the possibility of increasing generation limits and operating limits of existing hydroelectric projects in the West. In these cases, the IPUC supported the Commission’s proposal to examine existing hydroelectric projects for the possibility of increasing generation limits and operating benefits, consistence with environmental requirements. Granting the Application in this matter would mitigate the severe impacts of poor hydrological conditions in Idaho and the Pacific Northwest.
In summary, the IPUC respectfully requests that the Commission accept these late-filed comments for the reasons set out above. The IPUC supports the temporary elimination of aesthetic flow at the Twin Falls Project. The IPUC urges the Commission to expeditiously review Idaho Power’s Application and approve the temporary suspension of the aesthetic streamflow requirement set forth in Article 410 of the Twin Falls’ license.

Respectfully submitted this day of April 2001.

For the Idaho Public Utilities Commission

Donald L. Howell, II
Deputy Attorney General

Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
[phone]
Idaho Bar No. 3366

bls/N:FERC18-063_dh
The BLM commented that it “has no objection to the proposed one-year waiver of Article 410 on the Twin Falls project. Public land resource values that may be affected to some degree by the proposal include riverine aesthetics and recreational angling. We do not anticipate any unacceptable impacts as a result of the proposed temporary changes in operations for this project.” BLM Letter dated April 13, 2001.

The State of Idaho also recommended that the Commission reserve authority to modify Article 410 “in the event that water quality and power conditions improve during the temporary one-year suspension period.” The State of Idaho’s Motion to Intervene and Comments at 5.

See IPUC Order Nos. 28699, 28706 and 28695, respectively.

COMMENTS OF IPUC
FERC DOCKET NO. 18-063 6