20150724notice_of_filing_order_no_33346.pdf

Office of the Secretary
Service Date
July 24.2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )CASE NO.IPC-E-15-19
COMPANY’S 2015 INTEGRATED )
RESOURCE PLAN )NOT1CE OF FILING
)
)NOTICE OF
)MODIFIED PROCEDURE
)
_____________________________
)ORDER NO.33346
On June 30,2015,Idaho Power Company filed its 2015 Integrated Resource Plan
(IRP).With this Order,the Commission summarizes the IRP process,notifies interested persons
that the Company has filed its IRP,and sets deadlines by which interested persons may file
written comments about the IRP.
SUMMARY OF IRP PROCESS
An IRP is a status report on utility’s ongoing.changing plans to adequately and
reliably serve its customers at the lowest system cost and least risk over the next 20 years.The
report informs the Commission and the public about the utility’s plans,and is similar to an
accounting balance sheet;i.e.,it is a “freeze frame”look at the utility’s fluid,resource planning
process.See Order No.22299.The Commission requires the utility to update the IRP every two
years,allow the public to participate and comment during the IRP process,and implement the
IRP.See id.and Order No.25260.
The IRP should explain the utility’s present load/resource position,the utility’s
expected responses to possible future events,and the role of conservation in those responses.
The IRP should also discuss “any flexibilities and analyses considered during comprehensive
resource planning,such as:(1)examination of load forecast uncertainties;(2)effects of known
or potential changes to existing resources;(3)consideration of demand-and supply-side resource
options;and (4)contingencies for upgrading,optioning and acquiring resources at optimum
times (considering cost,availability,lead time,reliability,risk,etc.)as future events unfold.”
See Order No.22299.The IRP should separately address:
•“Existing resource stack,”by identifying all existing power supply
resources;
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•“Load forecast,”by discussing expected 20-year load growth scenarios for
retail markets and for the federal wholesale market including
“requirements”customers,firm sales,and economy (spot)sales.This
section should be a short synopsis of the utility’s present load condition,
expectations,and level of confidence;and
•“Additional resource menu,”by describing the utility’s plan for meeting
all potential jurisdictional load over the 20-year planning period,with
references to expected costs,reliability,and risks inherent in the range of
credible future scenarios.
Id.By including this information,the IRP can demonstrate to the Commission and the public
that the utility has considered,and prepared for,a multitude of scenarios.The Commission
expects the utility to vigorously test the assumptions used in its plan to better ensure that the
results of its IRP accurately reflect changing markets and customer demand.
NOTICE OF IRP FILING
A.Background
YOU ARE HEREBY NOTIFIED that the Company explains that its 2015 IRP
addresses available supply-side and demand-side resource options,planning period load
forecasts,potential resource portfolios,a risk analysis,and an action plan that details how the
Company intends to implement the IRP.The IRP filing consists of four documents:(1)the 2015
IRP;(2)Appendix A —Sales and Load Forecast;(3)Appendix B —Demand-Side Management
2014 Annual Report;and (4)Appendix C —Technical Appendix.
YOU ARE FURTHER NOTIFIED that the Company notes that it incorporated
stakeholder and public input into its IRP by working with an Integrated Resource Plan Advisory
Council (IRPAC)consisting of various stakeholders.Besides holding 12 IRPAC meetings,the
Company also held public working group meetings to discuss energy efficiency,solar resources,
and coal resources.The Company also notes that it is presenting the IRP to the public at
different community meetings,to civic groups,and through seminars as requested.
B.IRP Goals and Assumptions
YOU ARE FURTHER NOTIFIED that the Company explains that the 2015 IRP’s
primary goals are to:(1)identify sufficient resources to reliably serve growing energy demands
over the 20-year planning period;(2)ensure the selected resource portfolio balances cost,risk,
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and environmental concerns;(3)give equal and balanced treatment to supply-side resource and
demand-side measures;and (4)involve the public in the planning process.
YOU ARE FURTHER NOTIFIED that the 2015 IRP makes numerous assumptions
about what will occur during the 20-year planning period.It assumes that the Company will
continue to be responsible for acquiring resources sufficient to serve its retail customers in Idaho
and Oregon and to operate as a vertically-integrated utility.Further,the Company expects to add
about 196,000 customers,and that its load will increase by 1.2%per year for average energy
demand and 1.5%per year for peak-hour demand.The Company continues to use 70th percentile
water conditions and 70t1 percentile average load for energy planning.For peak-hour capacity
planning,the Company uses 90th percentile water conditions and 95th percentile peak-hour load.
The Company plans to meet this increased demand by combining demand-side measures with
additional Company-owned resources.
C.Preferred Resource Portfolio
YOU ARE FURTHER NOTIFIED that the Company states a fundamental goal of the
IRP is to identify a preferred resource portfolio that will enable the Company to reliably serve its
customers over the 20-year planning horizon.The Company explains that the IRP’s preferred
resource portfolio assumes the Boardman to Hemingway (B2H)transmission line will be
completed,and the North Valmy power plant will be retired,in the year 2025.The portfolio
contains no other resources actions through the end of the 2020s,but adds 60 megawatts (MW)
of demand response and 20 MW of ice-based thermal energy storage in 2030,and a 300 MW
combined-cycle combustion turbine in 2031.The Company explains that the lack of resource
needs before the 2025 closure of North Valmy shields the preferred resource portfolio from the
risks associated with uncertainty as to:(1)planned but yet-to-be-built solar under the Public
Utility Regulatory Policies Act of 1978;(2)the impact of the Environmental Protection
Agency’s proposed regulations under Section 111(d)of the Clean Air Act;(3)the completion
date of the B2H line;and (4)retirement planning for North Valmy.The Company notes,
however,that even with this uncertainty,the Company believes it is prudent to complete B2H
and retire North Valmy early,and that the timing of those actions can be adjusted as warranted.
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D.Action Plan
YOU ARE FURTHER NOTIFIED that the Company states its action plan for 2015 to
2018 includes items related to the preferred resource portfolio such as continued permitting and
planning for B2H and investigating North Valmy retirement in collaboration with the plant’s co
owner,NV Energy.The action plan also discusses:continued permitting and planning related to
the Gateway West transmission line project;evaluating the potential impact of EPA regulations
on fossil fuel plants;pursuing cost-effective energy efficiency;amending the Federal Energy
Regulatory Commission license to adjust the 50 MW Shoshone Falls project expansion,and
studying and completing a smaller project upgrade of up to 4 MW to go on-line in 2019;
completing selective catalytic reduction (SCR)retrofits for Jim Bridger Units 3 and 4;and
beginning to evaluate the economics of SCR retrofits for Jim Bridger Units 1 and 2.
E.Response to Order No.32980
YOU ARE FURTHER NOTIFIED that the Commission’s final Order in the
Company’s 2013 IRP case directed the Company to account for national developments in its
resource planning.See Order No.32980.In response to that Order,the Company notes that the
present IRP accounts for the EPA’s proposed CAA Section 111(d)regulations.
YOU ARE FURTHER NOTIFIED that the Commission’s prior Order also directed
the Company to collaborate with stakeholders on how to best use energy efficiency as a resource.
The Company explains that it addressed this part of the Order by holding two Energy Efficiency
Working Group stakeholder meetings that led the Company to continue investigating the
transmission and distribution benefits arising from energy efficiency measures and programs.
The Company updated the IRPAC on its efforts,and will review growth-related transmission and
distribution investments,evaluate whether the investments can be deferred through energy
efficiency programs and measures,and estimate the value of deferring the investments.The
Company relies on its Energy Efficiency Advisory Group for stakeholder input on energy
efficiency and demand response matters.
YOU ARE FURTHER NOTIFIED that the Commission’s prior Order also directed
the Company to be actively involved with North Valmy and promptly advise the Commission of
developments that could impact the Company’s reliance on that resource.In response to this
aspect of the Order,the Company explains that it and North Valmy’s other owner have been
discussing the plant’s future.The Company seeks to balance the impacts of carbon regulation
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with the economic impact to customers and the customers’needs for reliable service,and notes
that cost and risk are important issues in the utility’s discussions about North Valmy.
YOU ARE FURTHER NOTIFIED that the Application and supporting documents
and exhibits have been filed with the Commission and are available for public inspection during
regular business hours at the Commission offices.These documents are also available on the
Commission’s web site at www.puc.idaho.gov.Click on the “File Room”tab at the top of the
page,scroll down to “Electric Cases”and then click on the case number as shown on the front of
this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commissions jurisdiction under Title 61 of the Idaho Code.The Commission
may enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commissions Rules
of Procedure,IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
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 no later
than September 21,2015.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:
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ORDER NO.33346 5
Commission Secretary Lisa Nordstrom
Idaho Public Utilities Commission Regulatory Dockets
P0 Box 83720 Legal Department
Boise.ID 83720-0074 Idaho Power Company
P.O.Box 70
Street Address for Express Mail:Boise,Idaho 83707
E-mail:lnordstrom’idahopower.com
472 W.Washington Street docketsiidahopower.com
Boise,ID 83702-5918
Gregory W.Said
Michael Youngblood
Idaho Power Company
P.O.Box 70
Boise,Idaho 83707
E-mail:gsaid(Z4idahopower.com
myoungbloodidahopower.com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www.puc.idaho.gov.Click the “Utility Case Comment or
Question Form”under the “Consumers”tab,and complete the comment form using the case
number as it appears on the front of this document.These comments must also be sent to the
Company at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,no later than October 5,2015.
YOU ARE FURTHER NOTIFIED that if no written comments or protests 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.
ORDER
IT IS HEREBY ORDERED that the Company’s Application be processed by
Modified Procedure,IDAPA 31.0l.01.201-.204.Persons interested in submitting written
comments in this matter must do so by September 21,2015.The Company must submit reply
comments,if any,by October 5,2015.
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ORDER NO.33346 6
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2015.
PAUL K LLANLk PRESIDENT
KRIINE RAPER,COMMISSIONER
ATTEST:
Jkn D.Jewell çj
C6mmission Secretary
O:IPC-E-15-19_kk
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ORDER NO.33346 7