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Home My WebLink About20090529Joint Motion to Stay.pdff"~) ?\' \2.~ 30.J(~~~r.((Jfui~'\_\'~,~ 29 ATTORNEYS AT LAW Peter Richardson Tel: 208-938-7901 Fax: 208-938-7904 p eter~ r ichardso nan do! eary. com P.O. Box 7218 Boise. 10 83707 - 515 N. 27th St. Boise. 10 83702 29 May 2009 Ms. Jean Jewell Commission Secretary Idaho Public Utilities Commission 472 W. Washington Boise, ID 83702 RE: IPC-E-09-03 Dear Ms. Jewell: We are enclosing an original and seven (7) copies of the MOTION TO STAY OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER, THE IDAHO IRRIGATION PUMPERS ASSOCIATION, INC., THE SNAKE RIVER ALLIANCE, THE IDAHO CONSERVATION LEAGUE, AND THE NORTH- WEST & INTERMOUNTAIN POWER PRODUCERS COALITION in the above case. An additional copy is enclosed for you to stamp for our records. Sincerely,~ Richardson & O'Leary PLLC Peter J. Richardson Attorney for the Industrial Customers of Idaho Power Eric Olsen Attorney for the Idaho Irrigation Pumpers Association Ken Miler For the Snake River Allance Betsy Bridge Attorney for the Idaho Conservation League ,.''t'" iûuii tU\1 29 Pr\ \2~ 30 Susan Ackerman Attorney for Northwest & Intermountain Power Producers Coalition BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S APPLICATION FORA ) CERTIFICATE OF PUBLIC CONVENIENCE ) AND NECESSITY FOR THE LANGLEY )GULCH POWER PLANT ) ) ) ) CASE NO. IPC-E-09-03 JOINT MOTION TO STAY PROCEEDING BY THE INDUSTRIAL CUSTOMERS OF IDAHO POWER THE IDAHO IRRGATION PUMPERS ASSOCIATION, THE SNAKE RIVER ALLIANCE, THE IDAHO CONSERVATION LEAGUE AND THE NORTHWEST & INTERMOUNTAIN POWER PRODUCERS COALITION COMES NOW, The Industrial Customers ofIdaho Power, the Idaho Irrgation Pumpers Association, the Snake River Alliance, the Idaho Conservation League and the Northwest & Intermountain Power Producers Coalition and pursuant to this Commission's Rules of Procedure, Rule 56 IDAPA 31.01.01.56 hereby moves for an order from this Commission staying proceedings for ten months in the above captioned matter. In support of a Stay of Proceedings your movants say as follows: I. BACKGROUND Idaho Power fied its application for a Certificate of Public Convenience and Necessity on March 9 of this year. The Langley Gulch power plant will be the single largest capital investment made by Idaho Power since the Hells Canyon Complex was constrcted fifty years ago. Significant and unforeseen events have taen place since Idaho Power initially fied its Application. Any single one of these events would be suffcient to cause reasonable persons to seek to slow down the Company's forced march to seek Commission action on its request for a CPCN, however, when taken in concert, the cumulative effect ofthe following events makes a Stay of this proceeding criticaL. II UNPRECEDENTED SHARHOLDER VOTE CASTS DOUBT ON IDAHO POWER'S RESOURCE FUTURE Last week the Idaho Power shareholders, over the objections of management, passed a resolution directing Idaho Power to. develop a plan for reducing its emissions of greenhouse gases. Although the resolution was advisory in nature, Idaho Power management agreed to be bound by it and will have its greenhouse gas reduction strategy report prepared by September 30 of this year. Idaho Power's most recent Integrated Resource Plan does not have a greenhouse mitigation strategy. Exactly where the Langley Gulch power plant, a greenhouse intensive emitting facilty, wil fit in the yet-to-be written plan is unclear. Your movants take no Motion to Stay - IPC-E-09-03 2 position on the advisability of the shareholder vote. We note only that it casts a cloud of uncertainty over whether the plant will fit into the plan of reduced greenhouse gasses and ultimately even if Langley Gulch will be built. Granting a CPCN now, before the Company's greenhouse strategy is published, is premature at best and possibly a costly mistake that may well confict with the Company's anounced plans to reduce its greenhouse gas emissions. III IDAHO POWER HAS DELAYED PUBLICATION OF ITS 2009 INTEGRATED RESOURCE PLAN On April 24, 2009, Idaho Power fied petitions with the Idaho Public Utilities Commission and the Public Utilty Commission of Oregon asking for an extension of the due date for the 2009 Integrated Resource Plan from June 2009 until December 2009. The Integrated Resource Plan serves as the roadmap to help guide Idaho Power in making future resource decisions. The reasons given for the delay include the widespread economic tuoil facing the world and specifically its impact on Idaho's economy. Ultimately, this turoil will have an impact on electric demand and load growth. Granting a CPCN for the most expensive plant Idaho Power will have built in the last fift years without a curent IRP to instruct prudence questions is clearly an instance of putting the proverbial car before the horse. The joint paries hereto do not tae a joint position on what types of resources Idaho Power should build in the future. They all nevertheless agree that because the economy has shifted so dramatically as to cause Idaho Power to require a delay in the publication of the 2009 IRP, then Commission processing of the CPCN Application should Motion to Stay - IPC-E-09-03 3 likewise be delayed. This proposed plant should not be reviewed when the Company itself contends that its own IRP data is out of date and that it will require a substantial effort to correct this shortfalL. iv NEW IDAHO LEGISLATION MAKS THE COMMISSION'S DECISION IN THIS CASE ONE OF THE MOST FAR REACHING IN IDAHO PUC mSTORY The Idaho Legislatue passed SB-1123 after Idaho Power's application was filed which was given emergency status making it effective immediately upon the governor's signatue, which was swifty obtained. The Company has asked that the newly enacted law be applied to the Commission's CPCN order in this docket. If so granted and a CPCN is also granted for Langley Gulch, this Commission will essentially lock in its decision for the life of the plant without permitting future prudence review. The undersigned paries respectfully urge the Commission to proceed with extreme caution in applying its new authority for the first time and its long lasting impact on future generations of ratepayers. Given the above uncertainties regarding the need for the plant, the abilty of Idaho Power to satisfy its shareholders concerns about greenhouse gas emissions and the economic uncertainties facing the Company; coupled with the heightened scrutiny that must be applied when considering regulatory preapproval, your undersigned believe that a more deliberative process is necessary than that provided by the curent, expedited schedule. As noted, the need for delay in this docket is all the more critical because the Commission's decision wil likely be irreversible by futue commissions. Motion to Stay - IPC-E-09-03 4 v IDAHO POWER SHOULD HAVE LITTLE PROBLEM RENEGOTIATING ITS PRE-PAID TURBINE DEAL The undersigned are cognizant of Idaho Power's commitment to make a September 1, 2009, payment on the turbines it has already ordered from Siemens. Given the soft market for tubines of any type, the undersigned are confident that Idaho Power will most likely be able to negotiate an extension of that payment date, perhaps for a price, but nevertheless the deadline, of Idaho Power's own creation, should not drive this Commission as it considers the ramifications of granting a CPCN (with no future prudence review) in this economic climate. VI IDAHO POWER HAS ALREADY DELAYED THE PLANT'S ON LINE DATE As initially proposed the Langley Gulch power plant was to come on line in time to meet load in the sumer of2012. Langley Gulch is a base load unit and Idaho Power's energy load/resource balance is most critical during the summer months. In spite of the sumer being the Company's most critical load/resource period, Idaho Power has delayed the on line date until December of2012 which puts the plant on line exactly at a time when Idaho Power does not need additional resources. At worst, the plant wil be needed in the sumer of2013. Idaho Power's abilty to meet load wil not be in jeopardy by a delay in this docket's schedule. VII Motion to Stay - IPC-E-09-03 5 THE CONTINUED UNPRECEDENTED RECESSION WILL HAVE DIRECT IMP ACT ON IMMEDIACY OF NEED FOR NEW POWER PLANTS The process that led to the filing of Idaho Power's CPCN Application began last fall before the extent ofthe curent recession was known. The stubborn natue and extent ofthe recession could not have been known at that time. While the undersigned paries appreciate Idaho Power's foresight in considering new resources for robust growth, when that growth disappears, it is appropriate to delay the proceeding to evaluate issuance of a CPCN at least until evidence suraces that load destrction has ended and that a general recovery has begun. VIII OTHER REGIONAL UTILITIES AR MOTHBALLING PLANNED EXPANSIONS In a February 19,2009, filing with the Oregon Public Utility Commission ("OPUC"), PacifiCorp provided notice that it intended to cancel a proposed acquisition of a signficant generating plant due to uncertinty regarding load and economic conditions. The terminated resource was selected in PacifiCorp's 2012 competitive bidding process. In its termination filing, PacifiCorp stated: Given the dramatic global economic downtu in late 2008 and the resulting reduction of customer loads, reduction in price of commodities and potential reduction of future constrction costs, the Company has determined to fuher explore resource alternatives. To that end, PacifiCorp delivered a formal written termination notice to each of Sumit Vineyard, LLC and CH2M HILL E&C, Inc. on Februar 11,2009, thereby terminating the Master Development, Engineering, Procurement and Construction Agreement, dated as of November Motion to Stay - IPC-E-09-03 6 26,2008 (the "Agreement"). PacifiCorp filed notice oftermination of the Agreement with the Commission on February 12,2009. See, http://edocs.puc.state.or. us/efdocs/HAH/um1208hah9484 7 .pdf (filed electronically in OPUC Docket NO.UM 1208). The OPUC accepted the termination conditioned on a final Independent Evaluator Report and PacifiCorp's responses to Staff data requests. While not suggesting the Idaho Power should follow the lead of other utilities in the region - when one finds oneself on the edge of such great uncertainty and others are slowing down to assess the best future course of action it may be prudent to slow down as well. ix THE IMPACTS OF IDAHO POWER'S DEMAND RESPONSE PROGRAMS HAVE NOT BEEN ASCERTAINED In Order No. 30717, the Commission just approved signficant changes to the Irrgation Peak Rewards Program. The changes authorized a new dispatchable curilment program that is expected to increase avoided peak demand from the 35 MWrealized durng the sumer of2008 to an estimated 144 MW in 2009, 186 MW in 2010 and 232 MW in 2011. See Tatum DI, p. 11, Is 3-11 (Case No. IPC-E-09-05). It is believed that these amounts will prove to be conservative in light of the fact that Idaho Power already has more irrigators wanting to paricipate in the new dispatchable program than it can physically provide the infrastrctue for. As these logistical issues are worked out, the amount of avoided peak demand wil continue to grow as has been the case with Rocky Mountain Power's dispatchable curilment program. In addition, programs such as the AC Cool Credit program and the newly authorized Commercial Demand Response Motion to Stay - IPC-E-09-03 7 Program administered though EnerNOC will continue to significantly expand Idaho Power's Demand Response Programs. Ths is important because these Demand Response Programs miniize the need for Idaho Power to acquire more expesive supply side resources such as Langley Gulch. These Demand Response Programs need to be included in the IRP and their afects quantified in determining when new supply.side resources are necessary. Delaying this proceeding to allow this to happen is a prudent course of action for the Commission to take. x PRAYER FOR RELIEF For aU ofthe foregoing reasons, the undersigned respectflly request the Commission delay the procedural schedule in this docket by at least ten months. Respectflly submitted this 29th day of May, 2009 Signatures.. . t.:J~OPO~EReter J. Richardson PERS ASSOCIATION, INC. S~~NCE Ken Miler Motion to Stay -lPC-E-09..3 8 Mo to St - IPC-E-3 ID NORTHST &. INRMO J\ POWER PRODUCERS rmON~\c.~ -- Sus K. Ackeran 9 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 29th day of May, 2009, a tre and correct copy of the withn and foregoing MOTION TO STAY OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER, THE IDAHO IRRGATION PUMPERS ASSOCIATION, THE SNAK RIER ALLIANCE, THE IDAHO CONSERVATION LEAGUE and THE NORTHWST & INTERMOUNTAIN POWER PRODUCERS COALITION was served in the maner shown to: Ms. Jean Jewell (C) Commission Secreta Idaho Public Utilities Commssion 472 W. Washington (83702) PO Box 83720 Boise, ID 83720-0074 lL Hand Delivery _U.S. Mail, postage pre-paid Facsimile Electronic Mail Lisa Nordstrom (C) Baron L. Kline Idaho Power Company POBox 70 Boise, Idaho 83707-0070 Inordstrom(iidahopower .com bkline(iidahopower .com lL Hand Delivery _U.S. Mail, postage pre-paid Facsimile Electronic Mail Scott Woodbury (C) Deputy Attorney General Idaho Public Utilities Commission 472 W. Washigton Boise ID 83702 Scott. woodbury(ßpuc.idaho. gov X Hand Delivery _U.S. Mail, postage pre-paid Facsimle Electronic Mail Dean J. Miler (C) McDevitt & Miler LLP 420 W. Banock St (83702) PO Box 2564 Boise ID 83701 i oe(ßmcdevittmiler .com _ Hand Delivery iU.S. Mail, postage pre-paid Facsimile Electronic Mail Wiliam Borders (C) Assistat General Counsel Invenergy Thermal Development LLC One South Wacker Dr., Suite 1900 Chicago, IL 60606 wborders(finvenergyllc. com _ Hand Delivery iU.S. Mail, postage pre-paid Facsimile Electronic Mail Eric L. Olsen Racine, Olson, Nye, Budge & Bailey, Chtd. 201 E. Center PO Box 1391 Pocatello, ID 83204-1391 elo~racinelaw.net Anthony Yanel 29814 Lake Road Bay Vilage, OH 44140 tony~yankei.net Ken Miler Clean Energy Program Director Snake River Allance PO Box 1731 Boise,ID 83701 kmiller~snakeriveralliance.org Betsy Bridge Idaho Conservation League 710 North Sixth Street (83702) POBox 844 Boise,ID 83701 bbridge(åwildidaho .org Susan K. Ackerman NIPPC 9883 NW Nottge Dr. Portland OR 97229 Susan.k.ackermanCàlcomcast.net Don Reading 6070 Hil Rd Boise ID 83703 dreading~mindspring.com Electronic Copies Only: Robert Kah rkahn~nippc.org ~Cu~\'~ uris Admnistrative Assistant _ Hand Delivery XU.S. Mail, postage pre-paid Facsimile Electronic Mail _ Hand Delivery XU.S. Mail, postage pre-paid Facsimile Electronic Mail _ Hand Delivery XU.S. Mail, postage pre-paid Facsimile Electronic Mail _ Hand Delivery XU.S. Mail, postage pre-paid Facsimile Electronic Mail _ Hand Delivery XU.S. Mail, postage pre-paid Facsimile Electronic Mail _ Hand Delivery XU.S. Mail, postage pre-paid Facsimile Electronic Mail _ Hand Delivery _U.S. Mail, postage pre-paid Facsimile X Electronic Mail