20220315Notice_of_Amended_Application_Order_No_35346.pdf

NOTICE OF AMENDED APPLICATION
AMENDED NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35346 1

Office of the Secretary
Service Date
March 15, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On April 9, 2021, Idaho Power Company (“Company”) applied for Commission
approval of its capacity deficiency period determination for avoided cost calculations under the
Public Utility Regulatory Policies Act of 1978 (“PURPA”) and Order Nos. 32697, 33084, 33159,
and 34659. Based on its second amended 2019 Integrated Resource Plan (“IRP”) the Company
asked for Commission approval of the capacity deficiency period with a first deficit occurring in
August 2028.
On April 28, 2021, the Commission issued its Notice of Application and Notice of
Modified Procedure setting comment deadlines. Order No. 35023.
On June 10, 2021, the Industrial Customers of Idaho Power (“ICIP”) intervened. On
June 14, 2021, Idaho Hydroelectric Power Producers Trust dba IdaHydro (“IdaHydro”) intervened.
The Commission granted intervention to the ICIP and IdaHydro. See Order No. 35084.
On June 25, 2021, the Commission issued Notice of Modified Procedural Schedule
setting new comment deadlines. See Order No. 35091.
This matter appeared on the Commission’s Decision meeting agenda on October 12,
2021, as a fully submitted matter.
On December 10, 2021, IdaHydro filed a motion for an order setting a capacity
deficiency date in summer 2023. On December 27, 2021, the Company responded to IdaHydro’s
motion requesting the Commission deny IdaHydro’s motion.
On February 4, 2022, the Company filed a motion and amended application (“Amended
Application”). On February 15, 2022, IdaHydro filed supplemental information to support its
position that no additional process was necessary.
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF THE CAPACITY
DEFICIENCY TO BE UTILIZED FOR
AVOIDED COST CALCULATIONS
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CASE NO. IPC-E-21-09

NOTICE OF AMENDED
APPLICATION

AMENDED NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35346
NOTICE OF AMENDED APPLICATION
AMENDED NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35346 2

This matter appeared on the agenda for the Commission’s March 9, 2022, decision
meeting under Matters in Progress. At the decision meeting, a motion was made and seconded to
move the matter to fully submitted since the matter was technically closed when the various
motions and Amended Application were filed.
The Commission now issues this Notice of Application and establishes deadlines for
interested persons to comment on the Amended Application and for the Company to reply.
BACKGROUND
Under PURPA, the Commission has established a surrogate avoided resource (“SAR”)
method and an IRP method to calculate avoided cost rates for qualifying facilities (“QFs”). Under
both methods, a QF receives capacity payments only after the applicable capacity deficit date is
reached. Order Nos. 33377, 33159, and 33898. The first deficit date under the IRP method will
float (change) to reflect the changes in the QF queue, while the first deficit date under the SAR
method will not float to reflect the changes in the QF queue. Order No. 33933.
The capacity deficiency period is determined through the IRP planning process and is
submitted to the Commission in a proceeding separate from the IRP docket. The capacity deficit
date determined in the IRP process is presumed to be correct as a starting point but will be subject
to the outcome of the capacity deficiency case. Order No. 32697.
COMMENTS
Consistent with the comment deadlines established in Order No. 35091 the parties filed
timely comments on the Application.
IdaHydro requested the Commission set the capacity deficit date in mid-summer 2023
which it offered was congruent with the Company’s notice of intent to seek requests for proposals
to fill a projected capacity need as early as summer 2023.
Staff believed the Company should update the first capacity deficit date from the
second amended 2019 IRP which was the basis of the Company’s Application. Staff recommended
the Company:
• Utilize the most recent load forecast developed by the Company;

• Reduce the amount of Market Purchases from southern pathways by 310
MW and only include 50 MW starting in 2021;

• Allow non-PURPA PPAs to expire on their actual expiration dates;
NOTICE OF AMENDED APPLICATION
AMENDED NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35346 3

• Reflect contract changes since the preparation of the Load and Resource,
which include PURPA contract updates identified in Response to Staffs
Production Request No. 7 and approval of the Jackpot Solar contract; and

• Correct the capacity value of Valmy Unit 2 and Bridger.

Staff Comments at 10.
Staff also recommended that the Commission open a generic docket to determine the
timing of the deficiency date filing in relation to the timing of the IRP.
The Company replied to Staff and IdaHydro, acknowledging, “an apparent difference
between the first capacity deficit date that appears in the acknowledged 2019 Amended IRP (2028)
and that which is referenced in the Company’s Notice of Intent to seek requests for proposals and
the Request for Proposals itself seeking generation to meet an identified capacity deficit in 2023.”
Idaho Power Reply Comments at 2.
IDAHYDRO’S MOTION
IdaHydro’s motion asks the Commission to set the Company’s capacity deficiency date
in summer 2023. IdaHydro cited the Company’s concurrence that summer 2023 was the correct
capacity deficiency date. IdaHydro’s motion was based on the Company’s subsequent Case No.
IPC-E-21-41 filed on December 3, 2021, which seeks Commission approval to begin resource
procurements to meet a summer 2023 capacity deficit identified in the second amended 2019 IRP.
On February 15, 2022, IdaHydro filed a supplement to its motion—a copy of the Company
response to IdaHydro’s production request where the Company responded, “Idaho Power’s 2021
[IRP] filed on December 30, 2021, indicates a first capacity deficit in July 2023.” Second
Declaration of C. Tom Arkoosh Exhibit A. Based on this statement, IdaHydro believed this matter
requires “no additional elaboration as to the appropriateness of setting the power company’s first
deficit date in the Summer of 2023.” IdaHydro Supplemental Information at 1.
NOTICE OF AMENDED APPLICATION
YOU ARE HEREBY NOTIFIED that the Company proposes that the Commission
allow it to amend its Application to seek a first capacity deficit of July 2023, based upon the 2021
IRP and consistent with the request for proposals issued to meet deficits starting in 2023. The
Company states “the 2019 IRP was amended twice, and the Commission’s consideration and
eventual acknowledgement of the Second Amended 2019 IRP was considerably delayed.”
NOTICE OF AMENDED APPLICATION
AMENDED NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35346 4

Amended Application at 5. Additionally, the Company notes the second amended 2019 IRP was
the first avoided cost first deficit update since “the Commission changed filing requirements from
the time at which the IRP is filed to the time after which the IRP is acknowledged,” which it states
resulted in a delay of the Commission considering and setting its first capacity deficit. Id.
YOU ARE FURTHER NOTIFIED that the Company’s Amended Application includes
the Load and Resource Balance Data from the 2021 IRP which shows capacity deficits of 101 MW
in July of 2023, 186 MW in July of 2024, and 311 MW in July of 2025.
YOU ARE FURTHER NOTIFIED that the Company requests a first capacity deficit
date of July 2023 for SAR and IRP avoided cost calculation. The Company also requests that the
Commission direct that future capacity deficiency filings for avoided cost rates be made when the
IRP is filed, rather than at the time the IRP is acknowledged.
YOU ARE FURTHER NOTIFIED that the Amended Application and Attachment 1
are available for public inspection during regular business hours at the Commission’s office. These
documents are also available on the Commission’s web site at www.puc.idaho.gov. Click on the
“ELECTRIC” icon, select “Open Cases,” and 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.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
AMENDED NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission 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 persons desiring to state a position on the
Amended Application may file a written comment explaining why the person supports or opposes
the Amended Application. Persons who would like a hearing must specifically request a hearing
in their written comments. Persons shall have until March 31, 2022 to file written comments.
NOTICE OF AMENDED APPLICATION
AMENDED NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35346 5

Comments must be filed through the Commission’s website or by e-mail unless computer access
is unavailable. To comment by electronically, please access the Commission’s website at
www.puc.idaho.gov. Click the “Case Comment Form” and complete the form using the case
number as it appears on the front of this document. To file by e-mail, the customer must e-mail the
comments to the Commission Secretary and the Company at the e-mail addresses listed
below. If computer access is unavailable, then comments may be mailed to the Commission and
Company at these addresses:
For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714
For Idaho Power Company:

Donavan E. Walker
Regulatory Dockets
1221 West Idaho Street (83702)
P.O. Box 70
Boise, ID 83707
[e-mail]
[e-mail]

Camille Christen
Energy Contracts
1221 West Idaho Street (83702)
P.O. Box 70
Boise, ID 83707
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
April 7, 2022.
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.
O R D E R
IT IS HEREBY ORDERED that IdaHydro’s Motion to Dismiss is denied. This case
is reopened and will be processed to allow the public an opportunity to review and comment on
the Company’s Amended Application.
NOTICE OF AMENDED APPLICATION
AMENDED NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35346 6

IT IS FURTHER ORDERED that the Company’s Amended Application be processed
by Modified Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in
submitting written comments on the Amended Application must do so by March 31, 2022. The
Company must file any reply comments by April 7, 2022.
IT IS FURTHER ORDERED that Parties should continue to comply with Order No.
35058, issued June 3, 2021. All pleadings should be filed with the Commission electronically and
shall be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between Parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 15th day
of March 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

//ABSTAIN TO AVOID CONFLICT//

JOHN R HAMMOND JR, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-21-09\Orders\IPCE2109_ntc amend app mod_dh.docx