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HomeMy WebLinkAbout20210527Final_Order_No_35053.pdf ORDER NO. 35053 1 Office of the Secretary Service Date May 27, 2021 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION On March 25, 2021, Idaho Power Company (“Idaho Power” or the “Company”) petitioned the Commission to extend the filing date for the Company’s 2021 Integrated Resource Plan (“IRP”) until the last business day of December 2021. On April 16, 2021, the Commission set deadlines for interested persons to comment on Idaho Power’s Petition, and for the Company to reply. See Order No. 35007. Staff filed comments on May 6, 2021. The City of Boise (the “City”) and the Idaho Conservation League (“ICL”) filed comments on May 7, 2021. The Company filed reply comments on May 13, 2021. Having reviewed the record, the Commission approves Idaho Power’s Petition to extend the filing deadline for the Company’s 2021 IRP until December 31, 2021. THE PETITION Idaho Power asserted the IRP examines the anticipated demand for energy over the next 20 years and the least-cost, least-risk ways for the Company to meet that demand while balancing reliability, environmental responsibility, efficiency, risk, and cost. Petition at 2. The Company updates the IRP every two years. Id. Idaho Power’s IRP is typically due by the last business day of June in odd-numbered years. See Order No. 30317. The Company asserted, however, that they significantly delayed filing its 2019 IRP to improve the IRP’s accuracy and accommodate the learning curve associated with using a new long-term capacity expansion model to develop potential resource portfolios. Id. at 2. Due to this delay, the Commission was not able to acknowledge Idaho Power’s 2019 IRP until March 2021. See Order No. 34959. Idaho Power stated that it is developing its 2021 IRP with customer and stakeholder assistance through its IRP Advisory Council (“IRPAC”). Id. at 3. The Company also asserted it has scheduled public meetings to help it develop its 2021 IRP, with the last meeting set to occur September 16, 2021. Id. at 3-4. Based upon this schedule, the Company stated it will be unable to take full advantage of the IRPAC’s input and expertise before [=IN THE MATTER OF IDAHO POWER COMPANY’S PETITION TO EXTEND THE FILING DATE OF ITS 2021 INTEGRATED RESOURCE PLAN ) ) ) ) ) CASE NO. IPC-E-21-06 ORDER NO. 35053 ORDER NO. 35053 2 the current IRP’s June filing deadline. Id. at 4. The Company asserted that its customers are best served by an IRP that has been fully discussed and that has allowed stakeholders to have ample time to provide input. Id. Accordingly, the Company asked the Commission to extend the 2021 IRP filing deadline until the last business day of December 2021 to allow more time for stakeholder participation and comment. Id. at 2. COMMENTS 1. Staff Comments Staff supported the development of a least-cost, least-risk IRP, and the Company’s willingness to hold public meetings to collect stakeholder input. Staff Comments at 2. Staff noted that Idaho Power has scheduled meetings to help it develop the 2021 IRP that will take place after the current IRP filing deadline in June. Id. Staff believed it is appropriate to extend the IRP filing deadline until December of 2021 to allow the Company to review and include all input and expertise it receives into the 2021 IRP. Id. Staff also believed that extending the filing deadline for the IRP will not affect the Annual Load and Natural Gas Forecast Update case. Id. at 3. Staff recognized that the IRP filing delay will lead to a delayed update of the First Capacity Deficiency Date used for avoided cost pricing under both the Surrogate Avoided Resource Method and the IRP Method since the First Capacity Deficiency Date case is filed after acknowledgment of each IRP. See Order Nos. 33917 and 34649. Staff stated this delay will result in extending the currently acknowledged First Capacity Deficiency Date. Id. Staff stated the time when capacity payments will begin for new PURPA contracts depends on whether the new First Capacity Deficiency Date is earlier or later than the currently acknowledged First Capacity Deficiency Date. Based on the foregoing, Staff recommended that the Commission approve the Company’s Petition to extend the 2021 IRP filing deadline to the last business day of December 2021. 2. ICL Comments ICL supported Idaho Power’s request to extend the filing date for the 2021 IRP. ICL agreed that the process and the public benefits when customers and stakeholders have time to provide input and the IRP has been fully discussed. ICL Comments at 1. ICL stated one issue that remains undeveloped is the gas price forecast. Id. ICL asserted this issue is sufficient reason alone to extend the 2021 IRP filing deadline. Id. ORDER NO. 35053 3 3. City Comments The City also recommended that the Commission grant Idaho Power’s request to extend the deadline to file the 2021 IRP. City Comments at 1. The City asserted the extension would provide time for the Company to obtain feedback through IRPAC and other meaningful public engagement. 4. Idaho Power Comments Idaho Power stated that the next several months are important to the 2021 IRP’s development. Company Reply Comments at 2. The Company has set a schedule for IRPAC to facilitate discussion about key IRP inputs and modeling assumptions that extends beyond the 2021 IRP’s current June filing deadline. The Company also recognized that certain topics may warrant additional discussion like the natural gas price forecast, identified as an “undeveloped” issue by ICL. Id. Idaho Power stated it also may facilitate discussion on other topics should the scheduled IRPAC meetings not allow enough time to explore the material. Id. The Company thus reiterated that the Commission should extend the 2021 IRP filing deadline to the last business day of December 2021. COMMISSION FINDINGS AND DECISION Idaho Power is an electrical corporation and public utility as defined in Idaho Code §§ 61-119 and -129, and the Commission has jurisdiction over it and the issues in this case under Title 61 of the Idaho Code, including Idaho Code § 61-501. Having reviewed the record, we find that Idaho Power has provided sufficient justification to support its request to extend the 2021 IRP filing deadline. The extension will provide time and opportunity for customer and stakeholder participation and input that will help the Company develop a least-cost, least-risk IRP. Additionally, Staff, ICL, and the City supported the Company’s request. Based on the record, we find it fair, just, and reasonable to grant Idaho Power’s Petition and extend the 2021 IRP filing deadline to December 31, 2021. O R D E R IT IS HEREBY ORDERED that Idaho Power’s Petition is granted. The Company must file its 2021 IRP by the last business day of December 2021. THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) ORDER NO. 35053 4 days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 27th day of May 2021. PAUL KJELLANDER, PRESIDENT KRISTINE RAPER, COMMISSIONER ERIC ANDERSON, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\IPC-E-21-06\Orders\IPCE2106_final_jh.docx