28813.mod.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of THE APPLICATION OF IDAHO POWER COMPANY TO UPDATE ITS EMERGENCY CURTAILMENT PROCEDURES UNDER TARIFF RULE J. )
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) CASE NO. IPC-E-01-20

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

ORDER NO. 28813

On June 5, 2001, Idaho Power filed its proposed Electric Load Management Plan (the “Curtailment Plan”) for the curtailment and interruption of electric service pursuant to the Company’s Rule J Tariffs. The Curtailment Plan outlines the procedures employed by the Company to temporarily interrupt electric service to its customers during emergencies and power shortages. The Curtailment Plan is intended to provide equitable procedures for the curtailment of power while minimizing adverse impacts to customers and maintaining overall system reliability.
Although the Company’s operations are designed to provide a constant and reliable source of electrical supply, situations may arise that require Idaho Power to interrupt service to its customers. For purposes of Rule J, these situations include unforeseen outages and fluctuations caused by: 1) weather, animals, and equipment failure on the Company’s generation, transmission and/or distribution systems; 2) an inability to procure sufficient quantities of energy from its own generation or from the wholesale market; and 3) constraints in the transmission system that inhibit Idaho Power from importing or distributing energy into or within its system.
BACKGROUND
Idaho Power serves customers in Idaho and eastern Oregon. Its generation, transmission and distribution facilities (commonly referred to as components of its system) serve customers in Idaho and Oregon. In addition, the Company’s coal-fired thermal generating resources are located in Wyoming, Nevada, and Oregon. Idaho Power’s system is interconnected with other utility systems in the western United States in a regional system that is commonly referred to as the “western grid.” The western grid includes two Canadian Provinces, 11 western states, and a portion of Mexico. The Western Systems Coordinating Council (WSCC) administers operating criteria to maintain the integrity and reliability of the western grid.
Curtailment of the Company’s services may occur in one of two general circumstances. First, curtailment may be caused by unforeseen events with little or no warning. For example, lightning strike or equipment failures may cause protection equipment within the Company’s electric system to automatically “trip” to protect the system from damage (or further damage) and to maintain reliability of the unaffected portion of the system. Second, curtailment could result from circumstances that gradually develop over time or occur in a foreseeable manner. Examples of this second type of curtailment include power shortages caused by extended cold weather or extremely low hydro conditions.
The Company’s Rule J Curtailment Plan is also related to Idaho Power’s participation in the “Regional Load Curtailment Plan” (RLCP) and the “Northwest Energy Emergency Plan” (NEEP). The RLCP addresses shortage of regional electric supply, i.e., when the Northwest suffer a prolonged energy shortage due to drought or other fuel shortage conditions. Under this RLCP, the states of Idaho, Montana, Oregon and Washington implement voluntary and mandatory load curtailments. The intent of the RLCP is to have customers reduce load so that rotational power outages (rolling blackouts) can be avoided.
The NEEP contains procedures for: 1) identifying potential northwest energy shortages; 2) issuing appropriate public alerts; 3) coordinating communication efforts; and 4) taking actions to reduce shortages. The NEEP was developed by the Pacific Northwest Utilities Coordinating Council to increase the region’s ability to avoid power emergencies or longer-term adequacy problems by promoting regional coordination, cooperation and communications. The NEEP is aimed at promoting actions in advance to avoid potential short-term capacity emergencies and longer-term adequacy problems in the Northwest Power Pool area. Among other things, the NEEP provides criteria for communicating emergency warnings and energy adequacy problems to the utilities, state and federal agencies, public officials, and the public. Once a regional warning has been issued, load reduction measures include: halting discretionary exports of power; adjusting planned outages for the maintenance of generation or transmission facilities; operating generating resources to full operational capabilities; exploring options to increase transmission capability; and curtailing supplies to customers via existing contract provisions or purchasing load reductions from customers.
THE CURTAILMENT PLAN
A. Three Stages
Idaho Power’s Rule J Curtailment Plan contemplates three stages that escalate in relationship to the severity of the emergency. The applicability of Stage 1 and Stage 2 alerts will depend upon the circumstance(s) which are causing or contributing to the power emergency. For example, situations which require immediate attention may necessitate moving immediately to a Stage 3 power emergency.
All electric systems (including Idaho Power’s system) are required to operate in a “balanced” condition. In other words, at any given time, the generating resources of the Company must be sufficient to meet the demand or load required by customer usage. The WSCC requires that Idaho Power maintain a 5% reserve capacity for its hydroelectric generating resources and a 7% reserve for its thermal (coal and gas-fired) generating resources. Under its Rule J, the Company will declare a Stage 1 power alert when it foresees or is experiencing conditions where it cannot sustain spinning and non-spinning reserves of at least 5% hydro and 7% thermal. Before declaring a Stage 1 alert, the Company will: 1) bring on-line all additional generation; 2) purchase necessary additional generation from sellers or the Northwest Power Pool; 3) exercise its right to curtail power delivery to customers or non-firm wholesale energy transactions; and 4) seek voluntary curtailments.
When declaring a Stage 1 alert, the Company will issue public warnings requesting that all customers reduce energy usage on a voluntary basis. Idaho Power will also notify the WSCC regional coordinator and the State Communications Center.
In the event that Idaho Power cannot maintain its 5% and 7% reserves, then the Company will declare a Stage 2 alert. Additional actions for Stage 2 alert include seeking emergency generation assistance from neighboring utilities and increasing efforts to conserve or reduce load.
At such time as the Company’s reserves fall below 2.5% for hydro and 3.5% for thermal, then the Stage 3 power emergency will be declared. Stage 3 emergencies may require the Company to curtail firm load. As previously mentioned, Stage 3 power emergencies may also occur if there is a disturbance or event which requires immediate action to maintain system reliability. In such extreme emergencies, the Company will take automatic action to balance load in order to avert a system blackout. If the three automated load shedding mechanisms are not sufficient to maintain system reliability, then the Company will initiate load shedding in the form of rotational outages.
B. Rotational Outages
Idaho Power’s service area is divided into five regions. The regions are: Payette (Payette, Eastern Oregon, McCall areas); Canyon (Canyon County area); Capital (the Boise area); Southern (the Twin Falls area); and Eastern (the Pocatello area). If rotational outages are required, the Company’s control center will determine the amount of load to be curtailed in each region. The necessary curtailments will be allocated on a pro-rata basis according to load in each of the five regions. Idaho Power’s Control Center will inform each Regional Dispatch Center of its curtailment obligation. In the event that the problem is confined to a local area within a region, the regional team will decide how much load to curtail.
It is the Company’s intent to implement rotational outages in a fair and equitable manner, while maintaining system reliability. Each regional team will use its best judgment based upon their knowledge of the system and customers to make decisions regarding which distribution circuits to curtail and the curtailment sequence. When implementing rotational outages, distribution circuits in each of the five regions will be curtailed. Outages are expected to last one to two hours. The outage duration will be determined by customer load requirements, cold load pick-up, crew availability, etc. When possible, large customers will be provided advance notification to minimize the effect on customers. When rotational outages become necessary, information will be disseminated through voice mail messages, e-mail, the Company Internet site, and public announcements. Depending on the events that precipitate the various stages, the Idaho Bureau of Disaster Services, County/City 911 Centers, Fire Departments, Sheriffs Departments, Police Departments, and other public officials (PUC, Disaster Services, Cities, Counties, Dept. of Admin.’s IT, Red Cross) will be notified.
As envisioned in the Plan, Idaho Power does not anticipate that specific customers or customer classes will be exempt from the impacts of curtailment. More specifically, the Company plans that rotational outage curtailments, if necessary, will occur by distribution circuit based upon the regional team’s goal of minimizing impacts on communities. In other words, the Company does not exempt certain customers like hospitals, 911 dispatch centers, police and fire stations from curtailment. The adverse effect of curtailing service to these types of entities is mitigated by the notification procedures and by the fact that many, if not most, of these facilities already maintain emergency back-up systems. In addition, the Company’s automated curtailment schemes do not lend themselves to selective curtailment because time is of the essence.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that Idaho Code § 61-531 requires all electric corporations to maintain a plan for the curtailment of electric or gas consumption during an emergency. Idaho Code § 61-532 requires that these plans be submitted and reviewed by the Commission. In reviewing the proposed plans, the Commission is to consider: 1) consistency of the plan with the public health, safety and welfare; 2) the technical feasibility of implementing the plan; and 3) the effectiveness with which the plan minimizes the impact of any curtailment.
YOU ARE FURTHER NOTIFIED that the Commission has determined that a formal hearing in this matter may not be required but the Commission will accept written comments under Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201 through -.204.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this Application may file a written comment in support or opposition with the Commission within twenty-eight (28) days from the date of this Notice. The comment must contain a statement of reasons supporting the comment. Persons desiring a hearing must specifically request a hearing in their written comments. Written comments concerning this application shall be mailed to the Commission and the Applicant at the addresses reflected below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:

472 W WASHINGTON ST
BOISE, ID 83702-5983 MAGGIE BRILZ
DIRECTOR, PRICING
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that if no written comments are received within the time limit set, the Commission will consider this matter on its merits and enter its Order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing.
YOU ARE FURTHER NOTIFIED that the Company’s curtailment plan has been filed with the Commission and is available for public inspection during regular business hours at the Commission offices.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and that the Commission may enter any final Order consistent with its authority under Title 61. The Commission has jurisdiction over this matter pursuant to Idaho Code §§ 61-531 and 61-532.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
O R D E R
IT IS HEREBY ORDERED that persons interested in submitting comments regarding this matter do so within 28 days of the service date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of August 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:IPCE0120_dh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28813 1

Office of the Secretary
Service Date
August 3, 2001