20170731notice_of_filing_order_no_33827.pdf

Office of the Secretary
Service Date
July 31,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN TUE MATTER OF IDAHO POWER )CASE NO.IPC-E-17-11
COMPANY’S 2017 INTEGRATED )
RESOURCE PLAN )NOTICE OF FILING
)
)NOTICE OF
)INTERVENTION DEADLINE
)
___________________________
)ORDER NO.33827
On June 30,2017,Idaho Power Company filed its 2017 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
intervene.
SUM1ARY OF IRP PROCESS
An IRP is a status report on a 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 utilitys 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:(I)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 2017 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 2017 IRP.The IRP filing consists of four documents:(1)the
2017 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 2017 IRP by working with an Integrated Resource Plan
Advisory Council (IRPAC)consisting of various stakeholders.The Company states that it held
eight IRPAC meetings while developing the 2017 IRP,including a workshop designed to explore
the potential for distributed generation to defer grid investment.
B.IRP Goals and Assumptions
YOU ARE FURTHER NOTIFIED that the Company explains that the 2017 IRP’s
primary goals are to:(1)identify sufficient resources to reliably serve growing demand for
energy over the 20-year planning period (20 17-2036);(2)ensure the selected resource portfolio
balances cost,risk,and environmental concerns;(3)give balanced treatment to supply-side
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resource and demand-side measures;and (4)involve the public in the planning process in a
meaningful way.
YOU ARE FURTHER NOTIFIED that the 2017 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 222,000 customers,and that its load will increase by 0.9%per year for average energy
demand and 1.4%per year for peak-hour demand.The Company continues to use percentile
water conditions and 70th 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.IRP Methodology
YOU ARE FURTHER NOTIFIED that the Company states that the Company
forecasted demand in its 2017 IRP by combining existing generation resources,demand-side
resources,and transmission import capacity with forecasted customer demand to create a load
and resource balance for energy and capacity over the 20-year planning period.The Company
then analyzed energy efficiency programs and DSM programs to revise energy and capacity
deficits.
YOU ARE FURTHER NOTIFIED that the Company evaluated the financial costs
and benefits of each resource type during the development of its 2017 TRP,using a variety of
factors.This analysis included the continued inclusion of an additional Pacific Northwest
transmission connection as part of the Company’s preferred resource portfolio.
D.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 (1)the acquisition of the Boardman to Hemingway (B2H)
transmission line,and (2)the early retirement of the Jim Bridger Plant Unit 2 in 2028 and Unit 1
in 2032.The portfolio contains no other resources actions through the end of the 2020s,but adds
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36 megawatts (MW)reciprocating engine resources in 203 1 and in 2032,a 300 MW combined-
cycle combustion turbine in 2033,and 54 MW reciprocating engine resources in 2035 and 2036.
D.Action Plan
YOU ARE FURTHER NOTIFIED that the Company states its action plan for the
next two to four years includes items related to the preferred resource portfolio.The Company
states that the following are significant portions of its action plan:(1)continued planning to
enter the western Energy Imbalance Market (ElM)in April 2018;(2)exit from coal-fired
operations of North Valmy Unit 1 by year-end 2019 and Unit 2 by 2025,and Jim Bridger Unit 2
by 2028 and Unit 1 by 2032;(3)ongoing permitting and construction of the B2H;(4)continued
permitting and planning associated with the Gateway West project;and (5)continued monitoring
and assessment of the impacts of litigation surrounding the Clean Air Act (CAA)Section 111(d)
on the preferred portfolio.
YOU ARE FURTHER NOTIFIED that the Company also plans to investigate solar
photovoltaic (PV)contribution to peak and loss-load probability analysis,pursue cost-effective
energy efficiency,and coordinate with Portland General Electric Company to cease coal-fired
operations at the Boardman plant by year-end 2020.
E.Response to Order No.33441
YOU ARE FURTHER NOTIFIED that the Commission’s final Order in the
Company’s 2015 IRP case directed the Company “to continue to use the IRPAC meetings and
other outreach opportunities to further explore issues raised in this [2015 IRPI case.”See Order
No.33441.The Commission further encouraged the Company to explore issues related to the
North Valmy Unit closure and the incorporation of more energy efficiency into its IRP.
YOU ARE FURTHER NOTIFIED that,with respect to the North Valmy Unit
closure,the Company states that many of the risks that led it to choose a higher cost portfolio in
its 2015 IRP have largely diminished.As a result,the Company’s updated quantitative analysis
reflected significant cost savings related to a 2019 North Valmy Unit 1 2019 shutdown.This
analysis led to a settlement,which was approved by the Commission in Order No.33771,with
the Company’s North Valmy Operation co-owner NV Energy to permanently cease burning coal
in Unit 1 on or before December 31.2019,and Unit 2 on or before December 31,2025.
YOU ARE FURTHER NOTIFIED that the Commission’s Order No.33441 also
directed the Company to more effectively incorporate energy efficiency into its IRP model.The
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Company explains that it addressed this part of the Order by discussing various energy efficiency
modeling approaches with regional counterparts.With its DSM consultant,the Company led its
2017 IRPAC in a discussion of energy efficiency approaches.including the approach and
convention used in the National Action Plan for Energy Efficiency (NAPEE)Guide for
Conducting Energy Efficiency Potential Studies.The Company states that energy efficiency
found under the NAPEE Guide is considered a committed resource in all the 2017 IRP’s
resource portfolios and is included as a portfolio element prior to supply-side resources.The
Company maintains that its IRP target does not represent a ceiling on energy efficiency because
cost-effectiveness measures are dynamic and not fixed (e.g.,natural gas price),and
implementation efforts made by the Company and the Energy Efficiency Advisory Group may
cause energy efficiency in excess of the IRP target.
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 Commission’s 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 etseq.
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 3 1.01.01.072 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.
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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.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2017.
I
PAUL KJELLAt’JIiER,PRESIDENT
4JL1
KRITINE RAPER,CO MISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
O:IPC-E-17-1 1_sc
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ERIC ANDERSON,
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