20191011Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KIELLANDER
COMMISSIONER RAPER
COM]VtrSSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENER,AL
D.ATE: OCTOBER 1.1,2019
SUBJECT: IN THE MATTER OF THE APPLICATION OF IDAHO POWER
COMPANY TO STUDY THE COSTS, BENEFITS, AND COMPENSATION OF NET
EXCESS ENERGY SUPPLIED BY CUSTOMER ON-SITE GENERATION; CASE NO.
IPC.E-18-15.
On May 9, 2018, in Docket No. IPC-E-17-13, the Commission ordered Idaho Power
Company ("Idaho Power" or "Company") to "initiate a docket to comprehensively study the
costs and benefits of on-site generation on Idaho Power's system, as well as proper rates and rate
design, transitional rates, and related issues of compensation for net excess energy provided as a
resource to the Company." Order No. 34046.
On October 19, 2018, Idaho Fower Company petitioned the Commission to open this
docket to comply with the Commission's directive in Order No. 34046.
On November 9, 2A18, the Commission issued a Notice of Petition and Notice of
lntervention Deadline, noticing the public that the petition was filed and establishing an
intervention deadline of November 30, 2A18. Order No. 34189. The Commission directed
Commission Staff to confer with parties regarding the procedural and substantive scope of the
docket, develop a proposed schedule, discuss pertinent matters, and report back to the
Commission by February 28,2019. Id.
On February 28, 2019, Commission Staff reported back to the Commission and stated
that the City of Boise, Idaho Clean Energy Association, Idaho Conservation League, IdaHydro,
Idaho lrrigation Pumpers Association, Rocky Mountain Power, Idaho Sierra Club, and Vote
Solar had intervened in the matter, and that the parties had met for one pre-hearing conference
and three settlement meetings. STAFF REPORT at 1. Staff submitted with its first report a table
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of issues that the parties had collaboratively developed, which summarized the scope of the case
as understood by the parties. Id. at2.
On March 19,20L9, the Commission ordered Staff to report back again by May 28,2019.
Order No.34214.
On April 5,2079, the Company filed IPC-E-19-15, requesting the Commission initiate a
collaborative process to "explore modifications to the compensation structure and excess energy
value applied under Schedule 84" for commercial, industrial, and irrigation customers. See
Idaho Power Company's Application in IPC-E-19-15.
On May 15, 2019, after receiving and considering briefing on how to process IPC-E-19-
15 in relation to IPC-E-18-15, the Commission ordered the two dockets to remain separate but
stated its expectation that there would be a consistent application of principles across the
dockets. OrderNo.34335 at 1.
Following the Company's IPC-E-19-15 Petition, a number of parties sought and were
granted late intervention in IPC-E-18-15. Those parties are the Idaho Irrigation Pumpeis
Association, Irc., Idahydro, Micron Technology, Irc., the Industrial Customers of Idaho Power,
and Russell Schiermeier. See Fourth Amended Notice of Parties.
On May 28,2019, Staff filed its second staff report and requested the Cornmission allow
the parties to continue on the previously-established analyical and settlement tracks, and to
report back again on August 28,2019. SECOND STAFF REPORT at 2.
On August 28,2A19, Staff filed its third staff report and stated that negotiations had been
very productive, parties had diiigentiy pursued settlement, and that negotiations were in their
final phase. THIRD STAFF REPORT at 2. In sum, one pre-hearing conference anci eight
settlement conferences were held.
On October 1l,2019,Idaho Power and Commission Staff jointly submitted a Motion to
Approve Settlement Agreement. The Settlement Agreement was signed by the Company,
Commission Staff, Idaho Clean Energy Association, Idaho Irrigation Pumpers Association, fnc.,
Idahydro, City of Boise, Idaho Sierra Club, Industrial Customers of Idaho Power, and Russell
Schiermeier.
The signing parties to the Settlement Agreement were able to achieve compromise on a
number of issues critical to the Company's on-site generation service. However, the signing
parties agreed to submit to the Commission the question of which rules will apply to existing
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customers with on-site generation. Commonly referred to as grandfathering, the parties have
reserved the right to make legal and policy arguments to the Commission on this issue.
STAFF RECOMMENDATION
Staff recommends the Commission promptly issue a Notice of Motion to Approve
Settlement Agreement and a Notice of Public Hearing ("the Notice"), which would establish
dates for parties to file comments and reply comments, and dates for the public to file comments
and establish a date for a public hearing. Staff also recommends the Commission promptly issue
a Notice of Briefing Regarding Existing Customers with On-Site Generation or a Notice of
Technical Hearing Regarding Existing Customers with On-Site Generation.
Staff recommends the Commission set a public hearing on this matter for 21 days
following the Notice, a party comment deadline 28 days following the Notice, a party reply
comment deadline 42 days following the Notice, and a public comment deadline 42 days
following the Notice. This schedule was agreed to by signing parties. Staff notes that a party to
this docket requests a party comment deadline 14 days from the Notice so as to give the public
an opportunity to review party comments before the public hearing, a public hearing at least 30
days from the Notice, and a technical hearing.
On the subject of Commission review regarding existing customers with on-site
generation, Staff recommends a process that would allow an effective date of no iater than
January 1,202A.
CGA4N4ISSION DECISICII{
1.) Does the Conimission wish to issue a Notice of Motion to Approve Settlement
Agreement and a Notice of Fublic Hearing on Settlement Agreement, and set party comment and
reply deadlines, a public hearing date, and public comment deadlines? Or;
Does the Commission wish to issue a Notice of Motion to Approve Settlement
Agreement, a Notice of Public Hearing on Settlement Agreement, and a Notice of Technical
Hearing on Settlement Agreement, and set a public hearing date, dates for pre-filed testimony, a
technical hearing, and public comment deadlines?
2.) Does the Commission wish to issue a Notice of Briefing Regarding Existing
Customers with On-Site Generation, and set party briefing and reply briefing deadlines and
public comment deadlines? Or;
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Does the Commission wish to issue a Notice of Technical Hearing Regarding Existing
Customers with On-Site Generation, and set a date for pre-filed testimony and a date for a
technical hearing?
Edward J.
Deputy General
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