20211117Notice_of_Suspension_of_Schedule_Order_No_35222.pdf

ORDER NO. 35222 1
Office of the Secretary
Service Date
November 17, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
AUTHORITY TO INCREASE ITS RATES
FOR ELECTRIC SERVICE TO RECOVER
COSTS ASSOCIATED WITH THE JIM
BRIDGER POWER PLANT
)
)
)
)
)
)
)
)
)
)
)
CASE NO. IPC-E-21-17

NOTICE OF SUSPENSION OF
PROCEDURAL SCHEDULE AND
DISCOVERY

NOTICE OF SUSPENSION OF
EFFECTIVE DATE

ORDER NO. 35222

This matter comes before the Commission on Idaho Power Company’s (“Company”)
and Commission Staff’s (“Staff”) Joint Motion to Suspend Procedural Schedule (“Joint Motion”)
filed October 1, 2021. On October 1, 2021, intervenors Idaho Conservation League (“ICL”) and
Sierra Club responded by filing their Response to Joint Motion to Suspend Schedule (“Response”).
Thereafter, on October 7, 2021, the Company replied to the Response by filing their Reply to Joint
Motion Response (“Company Reply”).
Having reviewed the record, including the Joint Motion, Response, and Company
Reply, the Commission issues this Order suspending the procedural schedule and discovery until
the Company files an update or requests to set the procedural schedule once more information is
known but in no event later than December 31, 2021. The Commission’s decision is further
explained below. The Commission also suspends the proposed effective date that the Company
requested in its Application.
BACKGROUND
The Company and PacifiCorp jointly own the Jim Bridger Power Plant (“Bridger”)
plant located in Wyoming. Application at 2. Bridger is comprised of four coal-fired units built in
the 1970s. Id. PacifiCorp owns two-thirds of Bridger and is the plant operator. Id. The Company
owns one-third. Id. On June 3, 2021, the Company applied to the Commission for authorization to
accelerate the depreciation schedule for Bridger to allow the plant to be fully depreciated and
recovered by December 31, 2030. Id. at 1.
In its Application, the Company also asked to establish a balancing account and the
necessary regulatory accounting to track the incremental costs and benefits associated with the
ORDER NO. 35222 2
Company’s cessation of participation in coal-fired operations at Bridger. Id. The Company also
asked that customer rates be adjusted to recover the associated incremental annual levelized
revenue requirement of $30,825,729 with an effective date of December 1, 2021, which equates
to an overall increase of 2.53 %. Id. The Company separately proposed rate changes associated
with the Depreciation Application in Case No. IPC-E-21-18 in addition to this Application. Id. at
1-2. The Company is also filing one set of proposed tariff sheets specifying the proposed rates for
providing retail electric service to customers in the state of Idaho for both proposed rate changes.
Id. at 8. The Company requested its Application be processed under Modified Procedure. Id. at 9.
On June 24, 2021, the Commission issued a Notice of Application and set a deadline
for intervention. Order No. 35088. The Commission granted intervention into this matter to the
Industrial Customers of Idaho Power (“ICIP”); ICL; the City of Boise (“Boise City”); Sierra Club;
Clean Energy Opportunities, Inc., d/b/a Clean Energy Opportunities for Idaho (“CEO”); and
Micron Technology, Inc. (“Micron”). Order Nos. 35094, 35102, and 35119. On July 28, 2021, the
Commission issued a Notice of Parties.
THE JOINT MOTION, RESPONSE, AND COMPANY REPLY
In the Joint Motion the Company and Staff asked the Commission “to suspend
responses to discovery requests and further processing of this docket to address new developments,
namely PacifiCorp’s proposal to convert Bridger Units 1 and 2 from burning coal to burning gas
and the ongoing negotiation over the Wyoming State Implementation Plan (“Wyoming SIP”). Joint
Motion at 3-4.
The Company and Staff argued in summary, that it was not possible to substantively
respond to discovery requests in this matter until greater clarity was achieved concerning Bridger
emission limits and possible coal-to-gas unit conversion. Id. at 4. The Company and Staff did not
put any time limits on how long it would take until the Company made a filing recommending
next steps in this matter. Id.
In their Response, ICL and Sierra Club in summary, argued that they were not opposed
to a short delay in the matter, but that uncertainties surrounding PacifiCorp’s proposal to amend
the existing Wyoming SIP and the Company’s independent analysis of whether to change plans
from exiting Bridger would likely be resolved by the end of 2021. Response at 5. ICL and Sierra
Club argued that delaying this matter until more information is known is unreasonably vague and
fails to provide the Company’s customers with certainty regarding the future of the Bridger plant
ORDER NO. 35222 3
and any associated rate changes. Id. ICL and Sierra Club requested that the Company be ordered
to work with parties to establish a procedural schedule that reflects the likely resolution of the
Wyoming SIP process and the Company’s resource planning by the end of 2021. Id. They also
requested that discovery not be suspended regarding coal-related costs at Bridger. Id. Lastly, they
requested that the Company file monthly updates on the Wyoming SIP negotiations and the
Company’s independent assessment of the options for Bridger. Id.
The Company in its Company’s Reply argued, in summary, that it did not expect a need
for the requested suspension to extend beyond calendar year 2021 and so ICL and Sierra Club’s
recommended actions were unnecessary. Company’s Reply at 2. The Company committed to filing
an update or request to set the procedural schedule once more information is known, but in no
event later than December 31, 2021. Id.
COMMISSION FINDINGS AND DECISION
Having reviewed the Joint Motion, Response, and Company’s Reply, we find that good
cause exists to suspend the procedural schedule and discovery in this matter until the Company
files an update or requests to set the procedural schedule once more information is known, but no
later than December 31, 2021. We note that the parties who filed the Joint Motion and Response
agree that uncertainties exist as to the coal-to-gas conversion of the Bridger plant and the Wyoming
SIP process. The Company, ICL, and Sierra Club agree that those uncertainties should be resolved
by the end of this year. We thus find it reasonable to suspend the procedural schedule and discovery
as discussed herein.
The Company’s requested proposed effective date is December 1, 2021. This matter
will take additional time to process after the procedural schedule and discovery suspension
discussed herein and we find it necessary to suspend the proposed effective date. We find that no
party will be prejudiced by the suspension of the effective date, and no harm will come to
ratepayers as a result. Accordingly, pursuant to the Commission’s authority under Idaho Code §
61-622(4), we suspend the proposed effective date for 30 days and 5 months, or until May 31,
2022, unless the Commission issues an earlier order accepting, rejecting, or modifying the
Company’s Application.
O R D E R
IT IS HEREBY ORDERED that the Joint Motion is granted in part and denied in part
consistent with our discussion above. The procedural schedule and discovery in this matter is
ORDER NO. 35222 4
suspended until the Company files an update or requests to set the procedural schedule once more
information is known, but no later than December 31, 2021.
IT IS FURTHER ORDERED that the proposed effective date is suspended for 30 days
and 5 months, or until May 31, 2022, unless the Commission issues an earlier order accepting,
rejecting, or modifying the Company’s Application.
///
ORDER NO. 35222 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 17th
day of November, 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

i:\legal\electric\ipc-e-21-17 jim bridger\orders\ipce2117_joint motion_order_es.docx