20190802Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 2,2019
SUBJECT: APPLICATION OF IDAHO POWER FOR A VALIDATED ECONOMIC
CLOSURE DATE FOR NORTH VALMY POWER PLANT UNIT 2; CASE NO. IPC-E-
19-18.
On June 27, 2019, Idaho Power Company ("Idaho Power" or "Company") filed an
Application requesting the Commission acknowledge that the Company has sufficiently
validated the economic retirement of Unit 2 of the North Valmy Power Plant ("Valmy") as
December 31,2025.
On July 19,2019, the Company filed a letter in IPC-E-19-19 stating that it needed
additional time to perform modeling and analysis for its 2019 Integrated Resource Plan ("lRP").
The revised IRP analysis will likely impact the economic analysis conducted in this case.
THE APPLICATION
In Case No. IPC-E-76-24, the Commission approved a settlement stipulation to
facilitate the Company's exit from Valmy Units 1 and2 before the originally expected end of life
for the coal-fired units. See Order No.33771. In Case No. IPC-E-19-08, the Company
requested the Commission approve various contractual and accounting mechanisms related to the
Company's exit from Valmy Unit 1 by December 31, 2019, and Unit 2 by December 31,2025,
and to update customer rates accordingly. The Commission approved the Company's
Application but stated that further analysis was necessary to validate the economic retirement
date of Unit 2. Order No. 34349. This Application contains the Company's efforts to validate a
December 31,2025 economic retirement for Valmy Unit 2.
IDECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application. Because this
Application will likely be impacted by the Company's revised 2019 IRP analysis, Staff does not
recommend setting procedure or timelines at this time. Once the impact of the revised 2019 IRP
analysis on this case is known, Staff will make further recommendations regarding procedure
and timing.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application?
qJ*^oL(
Edward
Deputy
/ftiwell -
Atlo*.y General
I:\Lega|tELECTRICUPC-E- I 9- I 8\IPCE I 9 I 8_dec memo_ej
2DECISION MEMORANDUM