20090217ICIP Petition for Reconsideration.pdf

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Peter Richardson
Tel: [phone] Fax: [phone]
pete rfi richardson andol eary. co m
P.O. Box 7218 Boise, 10 83707 - 515 N. 27th St. Boise, ID 83702
17 February 2009
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702
RE: IPC-E-08-24
Dear Ms. Jewell:
We are enclosing an original and seven (7) copies of the PETITION FOR
RECONSIDERATION OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER
in the above case.
An additional copy is enclosed for you to stamp for our records.
Sincerely,~Úl\~
Nina Curtis
Richardson & O'Leary PLLC
Peter J. Richardson ISB 3195
RICHARDSON & O'LEARY PLLC
515 N. 27th Street
PO Box 7218
Boise, Idaho 83700
Telephone: [phone]
Fax: [phone]
peter(frichrdsonandolear .com
Attorneys for the Industrial Customers of Idaho Power
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2U09 FEB l1 PM 4: 28
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF)
IDAHO POWER FOR AN ORDER ) CASE NO. IPC-E-08-24
AUTHORIZING THE RETIREMENT OF ITS )
GREEN TAGS )
) PETITION FOR RECONSIDERATION OF
) THE INDUSTRIAL CUSTOMERS OF
) IDAHO POWER
)
)
COMES NOW, the Industrial Customers ofIdaho Power ("ICIP") by and through its attorney of
record, Peter J. Richardson, and pursuant to Rule 331 of this Commission's Rules of Procedure
and hereby lodges its Petition for Reconsideration.
I
SUMMARY
The Commission's order permitting Idaho Power to retire its Green Tags is based on a
fudamental misunderstanding of the natue of Green Tags and the workings of the Green Tag
market It also violates a fudamental ratemaking principal regarding the disposal of surlus
utility assets.
PETITION FOR RECONSIDERATION OF THE INUSTRI 1
CUSTOMERS OF IDAHO POWER IPC-E-08-24
II
MISUNDERSTANDING OF THE GREEN TAG MARKET
The Commission, in par, bases its finding that it is reasonable for Idaho Power to retire
its Green Tags now on the following of the Order:
The likelihood of federal regulation regarding renewable energy and carbon
emission canot be over stated. The Commission finds that any potential savings through
rates for customers in the short-term might result in the need for exponentially greater
increases in rates in the future in order to meet mandated renewable energy standards.
Order p.3
Simply put, Green Tags that are retired today are not available - ever - to meet future
renewable portfolio standards because the Green Tag that is retired today has, by definition, been
extinguished. A retired Green Tag canot be resuscitated to meet some future Green Tag
Program.
Indeed, if one were planing in anticipation of a future renewable portfolio standard, the
opposite response would be more appropriate. By holding on to the Green Tags and not retiring
them, Idaho Power would curently at least be preserving those Green Tags for use at some time
into the future - depending, of course, on the shelflife given to existing Green Tags by a yet to
be adopted renewable portfolio standard.
III
POOR RA TEMAKING PRECEDENT
Because the Green Tags are not curently required by Idaho Power for any service to the
ratepayers, e.g. compliance with a renewable portfolio standard, they are nothing more than
superfluous property that have no use to the ratepayer. It is, in short, surlus ratepayer fuded
property. Retiring these Green Tags destroys the value to the ratepayer of this surlus property.
PETITION FOR RECONSIDERATION OF THE INUSTRIAL 2
CUSTOMERS OF IDAHO POWER IPC-E-08-24
Since the value was created by ratepayer dollars that value should be retured to the ratepayer
and it should not be destroyed by Idaho Power.
Idaho Power's proposal should be viewed in the same vein as how it would treat any
other ratepayer fuded asset. This ratepayer fuded asset is akin to plant that is not curently
used and useful in providing service to the ratepayers - with the added problem that Green Tag
retirement insures that they wil not be available to provide any service to the ratepayer in the
future. For example, If Idaho Power had a contract to take delivery of natural gas that tured out
to be surplus, the Commission would rightly insist that it sell that surplus gas on the market to
maximize the benefit to the ratepayer. Retiring the Green Tags would be the equivalent of
flaring surplus natural gas rather than resellng it.
VI
IMAGE ADVERTISING BUDGET NOT ANALYZED
The cost and ratemaking treatment of image advertising is tyically addressed in the
context of a general rate case. Idaho Power's goal of retiring Green Tags in order to advertise
that it is acquiring renewable resources mayor may not be a laudable one. However the cost of
such image advertising needs to be examined in light of the Company's curent advertising
budget. There is nothing in the record suggesting that the approximately $2,000,000 loss to the
ratepayers is reasonable in light of the other fuds the ratepayers are providing Idaho Power for
image advertising.
VI
CONCLUSION
For the foregoing reasons the Industrial Customers of Idaho Power respectfully requests
this Commission grant its Petition for Reconsideration. The ICIP stads ready to provide fuher
PETITION FOR RECONSIDERATION OF THE INUSTRIAL 3
CUSTOMERS OF IDAHO POWER IPC-E-08-24
evidence on the workings of Green Tag markets, the inappropriateness of squandering ratepayers
assets, and the appropriate image advertising budget for a utilty like Idaho Power.
Respectfuly submitted this 17th day of Februar, 2009.
RICHARDSON & O'LEARY PLLC
BYptiQ~
Attorneys for the Industrial Customers of Idaho Power
PETITON FOR RECONSIDERATION OF THE INUSTRIA 4
CUSTOMERS OF IDAHO POWER IPC-E-08-24
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the17th day of Februar, 2009, a tre and correct copy of the
within and foregoing PETITION FOR RECONSIDERATION OF THE INDUSTRIAL CUSTOMERS OF
IDAHO POWER, was served in the maner shown to:
Ms. Jean Jewell
Commssion Secreta
Idao Public Utilities Commssion
POBox 83720
Boise,ID 83720-0074
X Hand Delivery
_ U.S. Mail, postage pre-paid
Facsimile
Electronic Mail
Lisa Nordstrom
Barton L. Kline
Idaho Power Company
PO Box 70
Boise, Idaho 83707-0070
lnordstrom(ßidahopower .com
bkline(ßidahopower.com
2L Hand Delivery
_U.S. Mail, postage pre-paid
Facsimile
Electronic Mail
Mark Stokes
Karl Bokenkamp
Idaho Power Company
PO Box 70
Boise, Idaho 83707-0070
mstokes(ßidahopower .com
kbokenkamp(ßidahopower .com
L Hand Delivery
_U.S. Mail, postage pre-paid
Facsimile
Electronic Mail
~\11\
Nina Curtis
Administrative Assistant