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HomeMy WebLinkAbout20211220Final_Order_No_35263.pdfORDER NO. 35263 1 Office of the Secretary Service Date December 20, 2021 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION On May 11, 2021, Idaho Power Company (“Company”) applied for approval of its 2021 Load Curtailment and Interruption Plan (“LCIP”) and for authority to update its Electric Service Rule J “Continuity, Curtailment, and Interruption of Electric Service” (“Rule J”). The Company requested its Application be processed by Modified Procedure. On July 13, 2021, the Commission issued a Notice of Application and set a deadline for interested persons to intervene. Order No. 35101. The Idaho Irrigation Pumpers Association, Inc. intervened. On August 27, 2021, the Commission issued a Notice of Modified Procedure establishing public comment and Company reply deadlines. Order No. 35149. Staff filed comments to which the Company replied. On September 28, 2021, Staff presented a memo asking if the Commission “wish[ed] to hold a telephonic customer hearing pursuant to Idaho Code § 61-532.” The Commission declined, citing the similarity of its Modified Procedure rules, IDAPA 31.01.01.201-.204., to a customer hearing and the opportunity for interested persons to request a hearing under those rules. Having reviewed the record in this case, we issue this Order approving the Company’s Application. THE APPLICATION The LCIP combines elements of the Modified Regional Plan1 and Rule J Procedures.2 Prior to the LCIP, the Modified Regional Plan addressed only long-term regional energy shortages and Rule J Procedures covered short-term emergencies. The LCIP combines both long and short- term operational activities the Company can initiate during emergencies. 1 The Modified Regional Plan was originally filed in 1993 after the Commission required a modification to the Regional Plan concerning non-compliance penalties. The Modified Regional Plan became the State Curtailment Plan. See Order No. 25643. 2 Rule J Procedures are “high-level guidelines employed by the Company to temporarily interrupt electric service to its customers during emergencies and power shortages and are intended to provide equitable guidelines for the curtailment of power while minimizing adverse impacts to customers and maintaining overall system reliability.” IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR APPROVAL OF ITS LOAD CURTAILMENT AND INTERRUPTION PLAN ) ) ) ) ) CASE NO. IPC-E-21-13 ORDER NO. 35263 ORDER NO. 35263 2 The LCIP addresses the Company’s operational approach to (1) initiation of Load Curtailment; (2) Automatic, Remote, and Manual Actions; (3) Curtailment Stages; (4) Block Rotation; (5) Emergency Load Shed Groups; and (6) Return to Service. The 2021 LCIP incorporates the Company’s approach to dealing with Curtailment and Interruption, including provisions for demand response and emergency shed groups, clarifying the types of entities that can order the Company to initiate load curtailment and events that could precipitate load curtailment activities. Certain events can trigger load curtailment under the 2021 LCIP, including: (1) fire, floods, drought, winds, generation failures, lack of generation capacity, equipment failures, and governmental authority; (2) actions taken to protect the performance, integrity, reliability, or stability of the Company’s—or any connected—electrical system; (3) actions taken by the Company that it deems are necessary or prudent to protect people or equipment; and (4) cyber- attacks or software failure of any part of the Company’s generation, transmission, or distribution system protection or control systems. THE COMMENTS 1. Staff Comments Staff recommended the Commission approve the Company’s 2021 LCIP and update to its Rule J. Staff believed the Company’s 2021 LCIP and updated Rule J meet the legal requirements set forth in Idaho Code § 61-532 which requires the Commission to consider: (a) the consistency of the plan with the public health, safety, and welfare; (b) the technical feasibility of implementation of the plan; and (c) the effectiveness with which the plan minimizes the impact of any curtailment. Staff stated the Company’s update reforms its LCIP to work congruently with its Rule J—which was last updated in 2002. Staff noted that the North American Electric Reliability Corporation was granted authority to regulate bulk-power system planning and reliability following the Company’s last update. This regulatory change alone provided justification for the Company to update its plans. Staff reviewed the notification procedures required by relevant state and regulatory authorities. Staff also reviewed the Company’s Emergency Response Communication Plan (“ERCP”) and believed it would benefit from additional detail regarding notification requirements and communication protocols during curtailment, disaster, and emergency situations. Staff ORDER NO. 35263 3 recommended the Company meet with relevant state agencies to develop a plan to clearly define communication requirements and protocols to be exercised in the event of an emergency. Staff was concerned that the Company did not solicit input from customers and other stakeholders who would be impacted by a curtailment event. Staff believed the Company would benefit from additional input and recommended the Company meet with PUC Staff, municipal electric providers, electric co-ops, demand-side management participants, and other stakeholders to improve the plan’s notification procedure to improve notification processes and minimize stakeholder impacts during curtailment events. 2. Company Reply Comments The Company responded to Staff’s recommendation for additional action by the Company. The Company committed to relaying feedback to ensure its ERCP contains the appropriate level of detail to maximize its effectiveness. Including meeting with Staff and interested parties, the Company stated its plan to incorporate any enhancements into its annual internal ERCP by early 2022. The Company also agreed to meet with Staff and other stakeholders to improve the LCIP’s notification procedure to minimize impacts from future curtailments. The Company anticipated holding discussions with stakeholders before summer 2022. COMMISSION DECISION AND FINDINGS The Commission has jurisdiction over this matter under Title 61 of the Idaho Code. The Company is an electrical corporation and public utility. Idaho Code §§ 61-119 and -129. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and contracts of public utilities and to determine whether they are just, reasonable, preferential, discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code §§ 61- 501, -502 and -503. Idaho Code § 61-532 requires the Commission to act upon curtailment plans submitted by utilities by either adopting or rejecting the plans. Having reviewed the record, including the Company’s 2021 LCIP and updated Rule J, we hereby approve the Company’s Application. We appreciate the Company filing its updated curtailment plan for Commission review. We find that updated curtailment plans are critical to ensuring reliable service to customers, especially in times when transmission across the west is more constrained during periods of peak demand. We also find that utilities having updated curtailment plans is in the public interest. We encourage the Company to work with Staff and interested entities who might be affected during curtailment events to update this Commission regarding its curtailment plans on a more regular ORDER NO. 35263 4 reporting schedule. The Company should also work with Staff and interested parties to enhance its communication and notification policies and procedures associated with the LCIP and ERCP. O R D E R IT IS HEREBY ORDERED that the Company’s Application is approved. 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 about any matter decided in this Order. Within seven (7) 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 20th day of December 2021. PAUL KJELLANDER, PRESIDENT KRISTINE RAPER, COMMISSIONER ERIC ANDERSON, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\IPC-E-21-13 Curtailment\orders\IPCE2113_final_dh.docx