20160913notice_of_application_order_no_33595.pdf

Office of the Secretary
Service Date
September 13, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
DEFERRAL AND RECOVERY COSTS
ASSOCIATED WITH PARTICIPATION IN
AN ENERGY IMBALANCE MARKET
-------------------
)
) CASE NO. IPC-E-16-19
)
) NOTICE OF APPLICATION
)
) NOTICEOF
) INTERVENTION DEADLINE
)
) ORDER NO. 33595
On August 19, 2016, Idaho Power Company filed an Application requesting that the
Commission: (1) make a finding that Company participation in the proposed Energy Imbalance
Market (EIM) could net customers long-term benefits; (2) authorize a deferral account to track
incremental costs associated with participating in the EIM; and (3) allow the Company to recover
those costs from customers at a future rate proceeding. Application at 1.
BACKGROUND
An EIM pools generation of interconnected electricity producers within a region, and
dispatches those resources with the goal of more accurately matching actual production with
actual demand. The EIM operates on a nearly real-time basis with multiple participants, as
opposed to more conventional long-term two-party contracts that deliver energy in hourly
blocks.
In November 2014, the California Independent System Operator (CAISO) and
PacifiCorp formed the western EIM. Id. at 1-2. The western EIM is a five-minute market
administered by CAISO. The market utilizes an automatic model to identify the least-cost
energy resources to serve real-time customer demand. Id. According to Idaho Power, the
western EIM "focuses solely on real-time imbalances and allows EIM entities to retain all
balancing responsibilities and transmission provider duties." Id. at 2. Participants in the EIM
bid resources into the market, and the operator dispatches those resources based on marginal
price for energy imbalances factoring in load and available generation. Id.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company states that it intends to begin
participating in the western EIM in April 2018. The Company claims that the western EIM will
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33595 1
benefit customers through "economic efficiency . . ., savings due to diversity of loads and
variability of resources within the expanded [EIM] footprint, reduced operational risk ... , and
ability to better support the integration of renewable resources." Id. According to the Company,
participation in the EIM could result in a net power supply expense savings of $4.1 to $5.1
million per year. Id. at 4.
YOU ARE FURTHER NOTIFIED that the Company also reports that "in order to
participate in the western EIM ... , Idaho Power must incur EIM-related costs, including upfront
and ongoing incremental costs as well as software and metering investments necessary for
participation." Id. at 3. The Company proposes deferral of the expenses into a regulatory asset
until they can be amortized into rates once the Company begins participating in the market. Id.
The Company seeks authorization to recover the costs of joining the western EIM in a future rate
proceeding. Id. The Company estimates that it will incur incremental costs of $15.77 million.
Id. The Company puts forward a IO-year amortization schedule that would begin no earlier than
April 2018. Id. at 5.
YOU ARE FURTHER NOTIFIED that the Company requests that the Application be
processed by Modified Procedure, and that the Commission issue a final Order in this matter by
January 31, 2017.
YOU ARE FURTHER NOTIFIED that the Application and supporting testimonies
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices. The Application and testimonies 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 "Open 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 Commission's jurisdiction under Title 61 of the Idaho Code, including Idaho
Code § 61-501 and -503. 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 31.01.01 .000 et seq.
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ORDER NO. 33595 2
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
must file a Petition to Intervene with the Commission pursuant to this Commission's Rules of
Procedure 72 and 73, IDAPA 31.01.01.072 and -.073. Persons intending to participate in this
matter must file a Petition to Intervene no later than twenty-one (21) days from the service date
of this Order. Persons desiring to present their views without parties' rights of participation and
cross-examination are not required to intervene and may present their comments without prior
notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, the
Commission Staff will convene an informal pre hearing conference for the parties to discuss a
schedule to process this case and other issues as may be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as Idaho
Power representatives in this matter:
Julia A. Hilton
Idaho Power Company
PO Box 70
Boise, ID 83 707
Email:
Matt Larkin
Idaho Power Company
PO Box 70
Boise, ID 83707
E-mail:======~~==
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33595 3
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] [Telephone]
[phone] [FAX]
E-mail: [e-mail]
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene with the Commission no later than twenty-one (21) days from the service
date of this Order.
IT IS FURTHER ORDERED that once a Notice of Parties is issued Staff shall
convene an informal prehearing conference to discuss a schedule to process this case and other
issues as may be raised by the parties.
IT IS FURTHER ORDERED that discovery is available pursuant to the
Commission's Rules of Procedure 221-234, IDAPA 31.01.01.221-.234.
NOTICE OF APPLICATION
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ORDER NO. 33595 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of September 2016.
ERIC ANDERSON, COMMISSIONER
ATTEST:
O:IPC-E-16-19 bk
NOTICE OF APPLICATION
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ORDER NO. 33595 5