20161014notice_of_modified_procedure_order_no_33627.pdf

Office of the Secretary
Service Date
October 14, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
DEFERRAL AND RECOVERY OF COSTS
ASSOCIATED WITH PARTICIPATION IN
AN ENERGY IMBALANCE MARKET
-------------------
) CASE NO. IPC-E-16-19
)
) NOTICE OF MODIFIED
) PROCEDURE
)
) NOTICE OF
) COMMENT DEADLINE
)
) ORDER NO. 33627
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.
On September 13, 2016, the Commission issued a Notice of Application and set a
deadline of October 4, 2016, for interested parties to petition for intervention. Three parties filed
timely petitions and were granted intervention: the Industrial Customers of Idaho Power; the
Snake River Alliance; and the Idaho Conservation League. Staff conferred with the parties, who
agreed to the use of Modified Procedure, with a comment deadline of December 15, 2016, and a
reply deadline of January 5, 2017.
With this Order the Commission authorizes the use of Modified Procedure and
establishes deadlines for the filing of written comments.
BACKGROUND
An EIM pools generation of interconnected electricity producers within a region and
dispatches those resources with the goal of more accurately matching production with 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
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 33627 1
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.
With its Application, the Company states that it intends to begin participating in the
western EIM in April 2018. The Company claims that the western EIM will 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 net power supply expense savings of $4.1 to $5 .1 million per year. Id. at 4.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that the Commission has reviewed the filing in this
action, and 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 Commission's 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 December 15, 2016. 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 Idaho Power at the addresses reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 33627 2
Julia A. Hilton
Matt Larkin
Idaho Power Company
PO Box 70
Boise, ID 83707
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
Click the "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 Idaho Power at the
e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments, if
necessary, no later than January 5, 2017.
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 this case be processed by Modified Procedure.
Persons interested in submitting written comments regarding this case, or protesting the use of
Modified Procedure, should do so no later than December 15, 2016.
IT IS FURTHER ORDERED that reply comments by Idaho Power, if any, may be
filed no later than January 5, 2017.
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 33627 3
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of October 2016.
ATTEST:
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NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ERIC ANDERSON, COMMISSIONER
ORDER NO. 33627 4