HomeMy WebLinkAbout20040112Petition for Clarification or Reconsideration.pdfBARTON L. KLINE, ISB # 1526
MONICA MOEN , ISB # 5734
Idaho Power Company
1221 West Idaho Street
P. O. Box 70
Boise, Idaho 83707
Telephone: (208) 388-2682
FAX Telephone: (208) 388-6936
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Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY FOR THE RATE BASING
OF THE BENNETT MOUNTAIN POWERPLANT.
CASE NO. IPC-03-
IDAHO POWER COMPANY
PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE
RECONSIDERATION
COMES NOW Idaho Power Company ("Idaho Power" or "the Company
in accordance with RP 325 and 331 and Idaho Code ~ 61-626, and hereby requests
that the Commission clarify, or in the alternative, reconsider those parts of Order No.
29410 specified below. Idaho Power s Petition is based on the following:
On September 26 2003 , in accordance with the requirements of Idaho
Code ~ 61-526, Idaho Power filed an Application for a Certificate of Public Convenience
and Necessity to construct a new generating plant in Mountain Home, Idaho. The
generating plant will named the Bennett Mountain Power Plant.
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE , RECONSIDERATION Page 1
On January 2 , 2004, the Commission issued Order No. 29410 in which it
approved Idaho Power s Application for a Certificate of Public Convenience and
Necessity for the Bennett Mountain Power Plant. In the ordering paragraphs on page
16 of Order No. 29410 , the Commission stated in pertinent part:
IT IS FURTHER ORDERED that in the ordinary course of
events Idaho Power may recover the reasonable and prudent
costs of the Bennett Mountain project. Capital costs in excess of
$44.6 million will be reviewed in a subsequent case after the plant
has been constructed. Capital costs (excluding transmission
interconnection and legally required equipment charges) in excess
of the Commitment Estimate cap of $54.0 million will not be
eligible for inclusion in the Company s rate base. (emphasis
added)
IT IS FURTHER ORDERED that the Company
reasonable and prudent fuel costs for the Bennett Mountain plant
may be recovered through the PCA mechanism. Idaho Power
risk management policies and fuel procurement strategies will be
evaluated when PCA costs are reviewed. (emphasis added)
Idaho Power believes it is necessary to obtain clarification of the
Commission s interpretation of the word "may" in the above-referenced ordering
paragraphs.
II.
Idaho Power s decision to seek clarification or reconsideration in this case
arises out of the misunderstanding that occurred in Case No. IPC-01-34 (commonly
referred to as the "Irrigation Buy-Back case ) as a result of the Commission s use of the
word "may" in its original order, Order No. 28699 , addressing Idaho Power s ability to
recover the direct costs and lost revenue impacts of the Irrigation Buy-Back Program.
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE, RECONSIDERATION Page 2
In the Irrigation Buy-Back case, Idaho Power interpreted the
Commission s use of the term "may" as authorizing Idaho Power to collect lost revenues
but leaving to a subsequent proceeding the task of quantifying the precise amount of
lost revenues to be collected. In Order No. 28992, the Commission indicated that Idaho
Power had misunderstood the Commission s use of the term "may" in Order No. 28699
The Commission stated that the term "may" did not imply any final decision had been
made and the Order should have been understood by Idaho Power to mean that the
Commission could ultimately refuse to include any costs for lost revenues.
Idaho Power s appeal of the lost revenue issue in the Irrigation Buy-Back
case is currently pending before the Idaho Supreme Court. Idaho Power has no desire
to relitigate the issues in that case. Nevertheless, Idaho Power believes that it would be
remiss if it failed to obtain a clear understanding of the Commission s intent expressed
in Order No. 29410 today rather than two years from now after the Company has spent
approximately $50 million and is seeking recovery of its Bennett Mountain investment
and expenses in its revenue requirement. As explained below, neither the
Commission s nor Idaho Power s interests would be well served under those
circumstances.
The pertinent language from Order No. 28992 is as follows:
In Order No. 28699 we stated
, "
direct costs and lost revenue impacts of this Program may
treated as a purchased power expense in the Company s Power Cost Adjustment ("PCA"
mechanism." Order No. 28699 at p. 12 (emphasis added in original). This Commission finding
did not guarantee that Idaho Power was entitled to recovery of alleged reduced/lost revenues that
resulted from this Program. Rather, the Commission merely recognized that the issue of
recovery of these amounts would be considered. Thus , any amount of reduced revenue for
which the Company would later seek recovery had to be properly accounted for and subsequently
reviewed by the Commission. (R., Vol. II , p. 196, LL. 15-22).
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE, RECONSIDERATION Page 3
III.
Idaho Power respectfully submits that its request for clarification (or
reconsideration) in this case is not motivated simply by "paranoia" on the part of the
Company. It is necessitated by prior proceedings before this Commission and the
Idaho Supreme Court. In 1993 , in a case specifically involving the issuance of a
certificate of public convenience and necessity for a generating plant, the Commission
decision to provide the Company with reasonable assurance that in the ordinary course
of events the Company would be permitted to recover its investment in its revenue
requirement was challenged by an intervenor. In Case No. IPC-91-4 the Commission
issued a Certificate of Public Convenience and Necessity to Idaho Power for the
upgrade to the Company s Twin Falls Hydroelectric generating plant.
The Company s application for a certificate in the Twin Falls upgrade case
followed the identical process that was followed in this case. Idaho Power provided a
not-to-exceed commitment estimate and the Commission issued a certificate based on
that commitment estimate.
Rosebud Enterprises, a OF developer, intervened in the Commission
proceeding, petitioned for reconsideration , and ultimately appealed the Commission
decision to issue a Certificate of Convenience and Necessity for the Twin Falls plant to
the Idaho Supreme Court. In its pleadings and briefs Rosebud argued that the
Commission should not provide assurance to Idaho Power that it would ultimately be
permitted to recover its investment in Twin Falls. Instead Rosebud argued that Idaho
Power s recovery should be limited to the prices paid to Rosebud for power it intended
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE, RECONSIDERATION Page 4
to sell Idaho Power from its OF project. The Commission refused to modify its ordering
language to limit Idaho Power s cost recovery in the manner requested by Rosebud.
What makes the Twin Falls upgrade case important in the context of this
Application is that in deciding Rosebud's appeal of the Commission s Twin Falls orders
the Idaho Supreme Court confirmed that the "may" ordering language in Order No.
25021 in the Twin Falls case, which is substantially similar to the "may" language in the
above-cited ordering paragraphs in Order No. 29410, provided Idaho Power with an
assurance that, absent some unusual occurrence , Idaho Power would be allowed to
recover in its revenue requirement its prudently-incurred investment in the Twin Falls
upgrade. In Rosebud Enterprises v. Idaho Public Utilities Commission 128 Idaho 633
917 P.2d 790 (1993), the Idaho Supreme Court quoted the Commission s ordering
language in Twin Falls as follows:
On July 22, 1993, the IPUC issued Order No. 25021
granting Idaho Power the following assurance:
(W)e find that , in the ordinary course of events, the
Company may expect its investment in the Twin Falls
project to be recognized in its revenue requirement , barring
unforeseen circumstances of a kind not characteristic of
hydroelectric facilities. The ultimate decision determining
the appropriate amount of the Twin Falls investment to
include in revenue requirement will , of course, be made
during the course of a general rate proceeding or a tracker
proceeding initiated for that purpose. Rosebud 128 Idaho
633 , at 635.
In its opinion in Rosebud the Idaho Supreme Court confirmed that the Commission
above-quoted ordering language recognized that, barring some unforeseen
circumstance, Idaho Power would ultimately be allowed to recover in its revenue
requirement its prudently-incurred investment in the Twin Falls upgrade. Rosebud 128
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE, RECONSIDERATION Page 5
Idaho 633 at 634 and 635. For the convenience of the Commission , a copy of the
Court'Rosebud opinion is attached.
As a result of the Rosebud case , we have an Idaho Supreme Court
opinion that confirms that the ordering language in Order No. 29410 provides Idaho
Power with the reasonable rate-making assurance it needs to move forward with the
Bennett Mountain Power Plant.
However, Idaho Power is seeking clarification of Order No. 29410
because it is concerned that at the time the Company seeks to include the Bennett
Mountain Power Plant costs in its revenue requirement, a party, like Rosebud in the
prior case, could claim that the Commission s more recent interpretation of its "may
language in the Irrigation Buy-Back case constitutes a change in the Commission
position from the position expressed in the Twin Falls case. While Idaho Power does
not believe that is the case, the Company is concerned that without clarification , a third
party could claim it had new authority by way of the Commission s disposition of the
Irrigation Buy-Back case to seek a reversal of the Bennett Mountain certificate of public
convenience and necessity and a denial of rate recovery of the Company s investment
in the Bennett Mountain Power Plant. Idaho Power understands that the specific facts
and issues the Commission addressed in the Irrigation Buy-Back case are different than
the facts and issues arising in this case. Nevertheless , it seems prudent for Idaho
Power to attempt to eliminate this potential issue now rather than deal with it at a later
date.
Idaho Power wants to assure the Commission that by filing this Petition it
is not seeking to limit in any way the Commission s ability to regularly pursue its
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE, RECONSIDERATION Page 6
statutory authority. Idaho Power recognizes that when the Bennett Mountain Power
Plant is completed and is used and useful , the Company must file with the Commission
to include the Company s investment in the Bennett Mountain Power Plant in its rate
base. At that time , the Commission will review the various components that make up
the Company s investment and , if the Commission determines that some portion of the
cost was incurred unreasonably or imprudently, those expenditures can be excluded
from rate base. Idaho Power knows it must be able to demonstrate that it has prudently
managed its contract with Mountain View Power and demonstrated that the Bennett
Mountain Power Plant complies with the specifications contained in the Asset Purchase
Agreement with Mountain View Power presented to the Commission in the Application.
The Company also is cognizant that during the course of construction
extraordinary events could occur that would cause both the Company and the
Commission to reassess the need for or timing of the Bennett Mountain project. Such
an extraordinary event would fall under the "ordinary course of business" language in
the ordering paragraphs of Order No. 29410 and would require a determination of a
reasonable , cost-effective way to proceed under the changed circumstances.
Idaho Power respectfully suggests that the Commission could provide the
necessary clarification of Order No. 29410 in several ways. The Commission could
issue a clarifying order simply confirming that it has not changed its position from the
position it took in Order No. 25021 issued in the Twin Falls upgrade case as confirmed
by the Idaho Supreme Court in the Rosebud case. In so doing, the Commission would
confirm that it interprets its use of the word "may" in the ordering language in Order No.
29410 to have the same meaning the word "may" had in Order No. 25021 in the Twin
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE, RECONSIDERATION Page 7
Falls certificate case. Idaho Power believes this would provide the necessary
confirmation that the Commission s interpretation of the "may" language in the Irrigation
Buy-Back case was based on a different set of facts and issues and was not intended to
signal a change in the Commission s interpretation of the "may" language found in the
ordering provisions of Order No. 29410 and also found in prior cases in which the
Commission used similar "may" language in issuing certificates of public convenience
and necessity.
The Commission could also clarify Order No. 29410 by modifying the
ordering paragraphs in Order No. 29410 to read as follows:
IT IS FURTHER ORDERED that in the ordinary course of
events Idaho Power can expect to recover the reasonable and
prudent costs of the Bennett Mountain project. Capital costs in
excess of $44.6 million will be reviewed in a subsequent case after
the plant has been constructed. Capital costs (excluding
transmission interconnection and legally required equipment
charges) in excess of the Commitment Estimate cap of $54.
million will not be eligible for inclusion in the Company s rate base.
(emphasis added)
IT IS FURTHER ORDERED that the Company can expect
its reasonable and prudent fuel costs for the Bennett Mountain
plant will be recovered through the PCA mechanism. Idaho
Power s risk management policies and fuel procurement strategies
will be evaluated when PCA costs are reviewed. (emphasis
added)
Idaho Power believes that a clarification by either of these methods would
be sufficient and would be consistent with the long-standing precedents associated with
the Commission issuance of numerous certificates of public convenience and necessity
and with the Idaho Supreme Court's decision in the Rosebud case.
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE, RECONSIDERATION Page 8
IV.
ALTERNATIVE PETITION FOR RECONSIDERATION
If in the Irrigation Buy-Back case the Commission actually intended to
modify its prior position expressed in the Rosebud case and does in fact interpret its use
of the term "may" in the ordering paragraphs in Order No. 29410 as meaning (as
Rosebud argued in the Twin Falls case) that the Commission could , after the
completion of the Bennett Mountain Power Plant, change its mind and decide that the
decision to add the Bennett Mountain Power Plant was no longer consistent with the
public convenience and necessity and deny recovery of the Company s reasonably
incurred capital costs and expenses associated with the Bennett Mountain Plant in
rates, Idaho Power respectfully submits that the facts and law previously cited in this
Petition support the conclusion that such an interpretation is unreasonable , unlawful
erroneous and not in conformance with the facts of record and/or the applicable law.
CONCLUSION
The Company believes that the evidentiary record in this proceeding is
sufficient for the Commission to issue its Order either clarifying Order No. 29410 as
requested or , in the alternative, making a determination as to Idaho Power s Petition for
reconsideration. If, however, the Commission believes that additional evidence is
required, Idaho Power stands ready to proceed immediately to hearing on this matter.
Idaho Power must advise the Commission that it will not be able to issue a full notice to
proceed to Mountain View Power until such time as this matter is resolved. An
extended period for clarification or reconsideration could impact the availability of the
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE, RECONSIDERATION Page 9
Bennett Mountain Power Plant to meet projected summer loads in 2005 and could
increase the ultimate cost of the plant. For this reason , Idaho Power respectfully
requests that the Commission expedite its review of this Petition, including shortening
the procedural times for giving notice and the times in which interested persons could
submit comments or briefs.
The Company respectfully requests that the Commission clarify Order No.
29410 in the manner requested by Idaho Power or, in the alternative, reconsider Order
No. 29410 as provided herein.
Respectfully submitted this 12th day of January, 2004.
Q2:~E tL-
Attorney for Idaho Power Company
IDAHO POWER COMPANY PETITION FOR CLARIFICATION
, IN THE ALTERNATIVE, RECONSIDERATION Page 10
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 12th day of January, 2004 , I served a
true and correct copy of the within and foregoing IDAHO POWER COMPANY
PETITION FOR CLARIFICATION OR , IN THE ALTERNATIVE , RECONSIDERATION
upon the following named parties by the method indicated below, and addressed to the
following:
Donald L. Howell , II
Deputy Attorney General
Idaho Public Utilities Commission
P. O. Box 83720
Boise , Idaho 83720-0074
Hand Delivered
S. Mail
Overnight Mail
FAX
Peter J. Richardson
Richardson & O'Leary
O. Box 1849
Eagle, Idaho 83616
Hand Delivered
S. Mail
Overnight Mail
FAX
Eric L. Olsen
Racine, Olson , Nye , Budge & Bailey
O. Box 1391
Pocatello, Idaho 83204-1391
Hand Delivered
S. Mail
Overnight Mail
FAX
G*~
BARTON L. KLINE
CERTIFICATE OF SERVICE
633ROSEBUD ENTERPRISES v. IDAHO PUBLIC UTIL.
Cite as 128 Idaho 633
appeal and that where the objections were (PURP A) appealed Idaho Public Utilities
not raised in the petition for rehearing, they Commission (IPUC) orders granting rate
will not be considered by this court.Key base recovery preapproval assurances for
Transp., inc. v. Trans Magic Airlines Corp.proposed upgrade for utility's hydroelectric
96 Idaho 110, 112-13, 524 P.2d 1338, 1340-41 plant. The Supreme Court, Schroeder, J.,
(1974). Idaho Code section 61-629 requires held that orders had become final because
that "no new or additional evidence" be intro- project had been completed and included in
duced in the Supreme Court. Rosebud has rate base for detennining revenue to utility
requested that it be pennitted to switch its and thus appeal was moot.
fuel source to gas, which is a non-qualifying ,
fuel source. 18 C.R. ~ 292.304(a)(2). Such Appeal dismissed.
a switch would make Rosebud ineligible to
receive the benefits of PURP A. Rosebud'
request to have the rates approved by this
Court apply to a project with features differ-
ent from that proposed to the IPUC is be-
yond the scope of this Court's review.
CONCLUSION
The decision of the IPUC is affirmed. Ro-
sebud's request that this Court set the rates
for an altered facility is denied. The respon-
dents are awarded costs. No attorney fees
are allowed.
McDEVITT, C., JOHNSON and SILAK
JJ., and REINHARDT, J. Pro Tem., concur.
917 P.2d 790
In the Matter of Application of Idaho
Power Company for Authority to Rate-
base the In"estment Required for Add-
ing Capacity to the Twin Falls Hydro-
electric Facility.
ROSEBUD ENTERPRISES,
INCORPORATED, Petitioner-Appellant
IDAHO PUBLIC UTILITIES COMMIS-
SION and Idaho Power Company,
Respondents.
No. 20910.
Supreme Court of Idaho,
Boise, December 1995 Tenn.
May 30, 1996.
Developer of qualifying facility (QF) un-
der Public Utility Regulatory Policies Act
1. Electricity 0=011.3(7)
Idaho Public Utilities Commission
(IPUC) orders, granting rate base recovery
preapproval assurances for proposed up-
grade for utility's hydroelectric plant, had
become final because project had been com-
pleted and included in rate base for deter-
mining revenue to utility and, thus, appeal of
orders by developer of qualifying facility
(QF) under Public Utility Regulatory Policies
Act (PURP A) was moot, where developer did
not petition for stay of Commission order
and did not post bond. Public Utility Regu-
latory Policies Act of 1978, ~ 205 et seq., 16
C.A. ~ 824a-l et seq.; I.C. ~~ 61-633 to
61-635.
2. Public Utilities 0=0169.
For party to obtain stay of Idaho Public
Utilities Commission (lPUC) order, there
must be finding of irreparable damage re-
sulting from probable confiscation. I.C.
~ 61-633.
3. Action 0=06
Action is "moot" if it presents no justici-
able controversy and judicial detennmation
will have no practical effect upon outcome.
See publication Words and Phrases
for other judicial constructions and def-
initions.
Orndorff & Trout, Boise, for appellant.
Owen H. Orndorff argued.
Alan G. Lance, Attorney General; Brad-
ford M. Purdy, Deputy Attorney General
634 128 IDAHO REPORTS
argued, Boise, for Idaho Public Utilities
Commission. Bradford M. Purdy argued.
Evans, Keane, Boise, for Idaho Power.
Larry Ripley argued.
SCHROEDER, Justice.
This is an appeal from Idaho Public Utili-
ties Commission (lPUC) Orders No. 25160
and 25021. In these orders the IPUC ac-
cepted Idaho Power Company's (Idaho Pow-
er) offer of an estimated upgrade cost for iUi
Twin Falls hydroelectric plant and pennitted
the estimate to serve as a cap for the amount
Idaho Power may include in iUi future rate-
base. The IPUC also recognized that Idaho
Power will be allowed to recover in iUi reve-
nue requirement iUi prudently incurred in-
vestment in the Twin Falls upgrade. Rose-
bud Enterprises, Inc. (Rosebud) appeals the
orders of the IPUC, asserting that placing
the Twin Falls project in Idaho Power s rate-
base is unfair to ratepayers because the
Company could obtain the same energy from
Rosebud at a much lower cost: the avoided
cost for Rosebud's proposed facility.
BACKGROUND AND PRIOR
PROCEEDINGS
On March 25, 1991, Idaho Power filed an
Application with the IPUC seeking ratemak-
ing assurance of Idaho Power s investment in
the upgrade of its 9 megawatt (MW) Twin
Falls hydroelectric project. The upgrade is
estimated to increase the total output of the
Twin Falls plant to 52.5 MW. Idaho Power
license for the Twin Falls project, issued by
the Federal Energy Regulatory Commission
(FERC), expired in 1984. Idaho Power op-
erated under annual renewals until January
18, 1991, when FERC renewed Idaho Pow-
er's license for the Twin Falls project for an
additional 50 years.
On November 25, 1992, Idaho Power filed
a "commitment estimate" with the IPUC.
Idaho Power s estimate ranged from $42,
366,000.00 to $50,839 000.00 plus 20 percent
for specified contingencies as a cost ceiling
1. coke: Solid carbonaceous residue obtained
from bituminous coal after removal of volatile
material by destructive distillation. used as fuel
on the amount of investment it would ulti-
mately seek to include in, the ratebase.
the final cost were less than the offered
estimate, the actual costs would be used in
ratemakingj if the actual' cost exceeds the
commitment estimate, Idaho Power would
absorb the excess and would seek to include
only the amount of the commitment estimate.
The project has in fact been completed below
the cost ceiling, and the costs of the project
have now been included in Idaho Power's
ratebase.
On March 17, 1993, Rosebud' filed a peti-
tion to intervene. Rosebud is an indepen-
dent power developer proposing to construct
a 40 MW petroleum coke-fired 1 generating
plant near Mountain Home, Idaho, and is a
self-certified "Qualifying Facility" (QF) un-
der the Public Utility Regulatory Policies Actof 1978, 16 D.C. ~ 824a-, et seq.
(PURPA). The IPDC issued Order No.
24820 granting Rosebud's Petition to Inter-
vene, finding that Rosebud had "a direct and
substantial interest in Idaho Power's request
. to obtain ratebase preapproval of a base load
generating plant.
Idaho Power argued that the Twin Falls
upgrade was "nondeferrable" and that it had
to optimize the use of the resource to obtain
a renewed license from FERC within a time
certain or face the possibility of losing iUi
license and the project to another entity.
IPUC Order No. 22299 had expressed the
IPUC's support of FERC relicensing:
Because existing hydroelectric planUi could
be lost to competing companies if FERC
relicensing requirements are not aggres-
sively pursued, relicensing alternatives re-
quire special consideration. For example,
if hydroelectric plant relicensing upgrades
are proposed, their costs should be pre-
sented both as a function of increased
plant output and of total plant output to
recognize the potential for losing the entire
site...
Rosebud maintained that allowing the
Twin Falls upgrade to be included in Idaho
Power s rates would discriminate against Ro-
and in making steel. Webster s II New Riverside
University Dictionary, 1988.
ROSEBUD ENTERPRISES v. IDAHO PUBLIC UTIL.
Cite as 128 Idaho 633
sebud's Mountain Home QF project, bec:mse its ruling, determining that Rosebud failed to
Idaho Power is a11egedly refusing to pur- prove that the assurance granted to Idaho
chase the power from that project.2 Rose- Power by the IPUC violates PURPA. The
bud also contended that Idaho Power s own IPUC concluded that there is no justmcation
calculations shewed no need for new re- for holding utility constructed ' and owned
sources until the J"ear 2006, and, therefore, projects to rules set for QF contracts. Rose-
the Twin Falls project is unnecessary. bud did not seek to enjoin or restrain the
On July 22, 1993, the IPUC issued Order enforcement of the IPUC Orders pursuant to
No. 25021 granting Idaho Power the fo11ow- section 61-633 of the Idaho Code (1994).ing assurance: Rosebud appealed the IPUC Orders to this
(W)e find that, in the ordinary course of Court.
events, the Company may expect its in-
vestment in the Twin Falls project to be
recognized in its revenue requirement,
barring unforeseen circumstances of a kind
not characteristic of hydroelectric facilities.
The ultimate decision determining the ap-
propriate amount of the Twin Fa11s invest-
ment to include in revenue requirement
will, of course, be made during the course
of a general rate proceeding or a tracker
proceeding initiated for that purpose.
The IPUC recognized the inherent v3Jue of
hydropower, noting that Idaho Power s rate-
payers enjoy some of the lowest rates in the
nation and that they "have been fortunate to
avoid the economic and environmental conse-
quences associated with a predominantly
thermal based eJectric utility." The IPUC
rejected Rosebud's contention that the Twin
Falls project must be compared to whatever
rates Rosebud ultimately receives from Ida-
ho Power for the Mountain Home project.
Rosebud petitioned the IPUC for reconsid-
eration of Order No. 25021. The IPUC is-
sued Order No. 25160 affirming all aspects of
2. For further background and resolution of the
dispute concerning the Mountain Home project
see Rosebud Enler" Inc. v. Idaho Pub. Ulil.
Comm , Idaho Power Co., and PacifzCorp, 128
1daho 624, 917 P.2d 781 (1996).
3. 61-b33. Stay of order-Notice,No court of
this state shall enjoin or restrain the enforcement
of any order of the commission or stay the opera-
tion thereof. unless the applicant for such writ
shall give three (3) days' (sic) notice of said
application to all adverse parties and to the com-
mission, On the hearing of such application, the
applicant shall present to the court a transcript
of the proceedings had before the commission,
including the e\~dence, and such transcript shall
be considered by the court in detennining the
applicant's right to an injunction, restraining or-
der or other order suspending or staying the
635
II.
APPEAL IS MOOT DUE TO FAJLURE
TO COMPLY WITH I.C. ~~ 614;33
& 614;34
(1) If a party seeks to suspend the opera-
tion of an IPUC order, that party must com-
ply with the statutory reqmrements set forth
by the legislature. Idaho Code section 61-
633 sets forth the procedure which must be
utilized to a stay an IPUC order.s In deter-
mining an applicant's right to an injunction
restraining order or other order suspending
or staying the operation of an order, a court
must detennine if the applicant has proven
that there would be "great and irreparable
damage" if the stay were not granted. I.C.
~ 61-633. Idaho Code section 61-Q34 (1994)
states that in case the order or decision of
the Commission is stayed or suspended, the
order shall not become effective until a sus-
pending bond has been executed and filed
with and approved by the Commission, or by
the court of review.4 In essence, I.C. ~ 61-
operation of the order or decision of the commis,
sion, and if an injunction, restraining order or
other order suspends or stays the order of the
commission as issued, such order shall contain a
specific finding based upon the evidence submit-
ted to the coun and identified by reference there-
to that great and iITeparable damage would re-
sult to the petitioner and specifying the nature of
the damage.
4. 61-b34. Stay of order-Bond.In case the or-
der or decision of the commission is stayed or
suspended, the order shall not become effective
until a suspending bond has been executed and
filed with and approved by the commission, or by
the court of review, conditioned in manner and
form as the suspending bond specified in section
61-637, and the court shall direct that all mon-
eys involved in said proceeding shall be paid into
636 128 IDAHO REPORTS
634 is a bond-posting requirement to effect a
stay.
This appeal process is not a stay of the
IPUC orders. The Idaho Code section 61-
635 reads:
Stay of order on appeal.- The pendency
of an appeal shall not of itself stay or
suspend the operation of the order of the
commission, but during the pendency of
such appeal, the Supreme Court may stay
or suspend, in whole or in part, the opera-
tion of the commission s order.
Since this Court has not issued a stay, and
the filing of an appeal does not constitute a
stay, Orders No. 25021 and 25160 have not
been stayed.
In Utah Power Light v. Idaho Pub. Util.
Comm n, 107 Idaho 47, 685 P.2d 276 (1984),
this Court addressed the Public Utility Law:
(W)e construe the Public Utility Law as
follows: When any party, be it utility, rate-
payer or the State ofIdaho, appeals a rate
setting Order of the Idaho Public Utilities
Commission to the Supreme Court of Ida-
ho, but does not stay the effectiveness of
the Order by posting bond under the
terms of the Public Utility Law, then the
rates and charges set forth by that Order
are final in all respects as service is provid-
ed and consumed so long as the Order
continues in effect. If the Order is later
set aside by the Supreme Court of Idaho
no rates and charges previously collected
may be adjusted as a result; . . . .
107 Idaho at 49, 685 P.2d at 278 (quoting
IPUC Order No. 13550). The failure to stay
an order of the IPUC results in the order
being effective until an appeal or a motion for
reconsideration is entertained. If the action
taken by the IPUCis later altered by the
Supreme Court or the IPUC, the alteration
is prospective only. In this case Idaho Pow-
er has completed the project, and the IPUC
has granted the adrntional revenue require-
ment, including the cost of the project in
Idaho Power s ratebase.
(2) For a party to obtain a stay of an
IPUC order, there must be a finding of
court under the terms and conditions and subject
to the disposition thereof. provided in sections
iITeparable damage resulting from probable
confiscation.
" "
Utah Power Light, 107 Ida-
ho at 52, 685 P.2d at 281. This Court reject-
ed Utah Power & Light's argument that a
stay cannot be considered an exclusive reme-
dy from an IPUC order and explained the
statutory provisions of the Public Utility
Law by stating, "A common thread weaves
through these provisions: rates set by order
are final unless stayed and are determina-
tive of all rights of the parties as long as
they remain in effect without regard to
whether they are later altered or amended
on rehearing or altered or amended after
being set aside on appeal." 107 Idaho at 53
685 P.2d at 282 (emphasis in original). The
same interpretation' of the Public Utility
Law applies to IPUC orders which grant
assurances" to public utilities for future
ratemaking proceedings. The project has
been completed and included in the ratebase
for determining revenue to Idaho Power.
Rosebud rnd not petition for a stay of the
IPUC order, I.C. ~ 61-633, and rnd not post
a bond, I.C. ~ 61-634. Rosebud is preclud-
ed from chalJenging the assurances offered
by the IPUC to Idaho Power. The orders
granting the assurances have become final.
(3) An action is moot if "it presents no
justiciable controversy and a jurncial deter-
mination will have no practical effect upon
the outcome.Idaho County Property Own-
ers Ass n, Inc. v. Syringa Gen.. Hosp.119
Idaho 309, 315, 805 P.2d 1233, 1239 (1991).
This appeal is moot.
Ill.
CONCLUSION
This appeal is dismissed as moot. The
respondents are awarded costs. No attorney
fees are allowed.
McDEVlIT, C.J., JOHNSON and SILAK,
JJ., and REINHARDT J. Pro Tern., concur.
61-637 and 61-638.