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HomeMy WebLinkAbout20210806Adelman Direct.pdfBEFCIRE THE IDAITO PUBLTC UTITTTIES COMMISSION IN THE MATTER OF IDAIIO POTIER COMPAhIY' S PETTTION TOR APPROVAT OTA CUSTOMER SURCHARGE AT{D MODITIED IINE ROUTE CONFIGUBATTON FOR CONSTRUCTTON OE A NEII 138 KV TRANS}{ISSION LINE IN THE WOOD RIVER VATLEY IDAHO POITER COMPAT$Y DIRECT TESTIMONY RYA}I N. ADELMAN cAsE NO. IPC-E-2L-25 I , ) I ) l I ) or 1 Q. Please state your name and business address. 2 A. My name is Ryan Adelman. My business address 3 is l22l West Idaho Street, Boise, Idaho 83702. 4 Q. By whom are you employed and in what capacity? 5 A. I am employed by Idaho Power Company ("Idaho 6 Power" or "Company") as the Vice President of Power Supply. 7 Q. Please describe your educational background. 8 A. I graduated in 1-996 from the University of 9 Idaho, Moscow, Idaho, receiving a Bachelor of Science 10 Degree in Civil Engineering. I am a registered 11 professional engineer in the state of Idaho. fn 2018, f 1,2 earned a Master of Business Admj-nistration Degree through L3 Boise State University's Executive MBA program. fn 201,9, I 74 completed the Energy Executive Course through the 15 Universj-ty of fdaho. 16 O. Please describe your work experience with 11 Idaho Power. 18 A. From 2004 to 2008, I was employed by ldaho 19 Power as an engineer in Power Production's Civil 20 Engineeri-ng Group. In 2008, f became an Engineering 21. Leader, initially responsible for the Langley Gulch power 22 plant project, and later for the Power Production Civil 23 Engineering Department. In 201-5, I was promoted to Senior 24 Manager of the Projects Department where I managed the 25 Project Managernent and Cost and Controls group. In 20L8, T ADELMAN, Dr l- Idaho Power Company 1 1ed the Company's Southeast fdaho area as a Regional 2 Manager. In 2019, I was promoted to Vj-ce President of 3 Transmj-ssion and Distribution Engineering and Construction, 4 later renamed to Planning, Engineering and Construction. In 5 2A20, I transi-tj-oned to my current posJ-tion, Vice President 5 of Power Supply, where my responsibiLities include 7 supervj-sion over Idaho Power's jointly owned coal assets, 8 load serving operations, and merchant activitj-es. 9 A. Have you previously submitted testimony to the 10 Commission in relation to a new 138 kilovolt (*kV") 11 transmissj-on line ("Transmission Line") into the Wood River 12 Valley area? 13 A. Yes. In November of 201,6, in my role as 14 Manager of the Projects Department, I submitted Direct 15 Testimony in support of the Company's request for a 1,6 Certificate of Publ-ic Convenience and Necessity (*CPCN") to 17 construct a new Transmission Llne and related facilities to 18 provide redundant service from the Wood River substation, 19 near Hailey, ID, into the Ketchum substation, Case No. IPC- 20 E-L6-28. My previous testimony in the CPCN case described 2L the various options for redundant eLectrical service into 22 the Wood River Valley area, as well- as the costs, benefits, 23 and detriments of each of the viable options. The 24 Commission ultj-mately granted the Company's requested CPCN 25 for a line route configuration consisting of overhead ADELMAN, DI Idaho Power 2 Company 1 transmission from the hlood River substation to the 2 transition point near Elkhorn Road, then underground 3 transmission to the Ketchum substation. 4 Q. What is the purpose of your testimony in this 5 proceeding? 6 A. The purpose of my testimony is to describe the 7 local permitting activities with Blaine County, as wel-l- as 8 the proposed fine route and configuration of the new 9 transmission line and underground distribution ("OwI Rock 10 Road Route"), as described in detail in Idaho Power 11 Company's Petj-tion for Approval of a Customer Surcharge and 72 Modified Line Configuration for Construction of a New 138 13 kV Transmission T,ine in the Viood River Va11ey ("Petition"). 14 O. Have you prepared any exhibits? 15 A. Yes. This testimony includes the following: 16 Exhibit 1 - Transmission Line Route "Placemat" from Blai-ne I7 County Planning & Zoning ProceedingS, Exhibit 2 Einal 18 Conditional Use Permit (March 15, 202L), Exhibit 3 - OwI 19 Rock Road Route, and Exhibit 4 - 20t.9 CPCN Route Cost 20 Estimate. 2L I. LOCAL PERMITEING EFEORTS 22 O. V{hat is the purpose of the proposed new Transmi-ssion Line? A. The proposed Transmission Line will provide redundant service from the Wood River substation near 23 ADELMAN, DI 3 Idaho Power Company 24 z3 1 Hailey to the Ketchum substation, located within the Sun 2 Valley city limits, 3 Currently, the north portion of Blaine County 4 ("North County"), incl-uding the cities of Ketchum and Sun 5 Valley, is served by a s5-ngle power source: Idaho Power's 6 Wood River-Elkhorn-Ketchum 138 kV transmission line 1 ("Existing Transmission Line"). The proposed Transmission 8 Line would add a second power source to the North County, 9 thereby providing fu11y redundant el-ectrical servj-ce to the 1-0 area. Without the new Transmission Liner dn extended power 1-1 outage on the Exiting Transmission Line could have a 12 devastati-ng impact on the North County, particularly during 13 extreme weather conditions, potentially jeopardizJ-ng 14 essentiaf services and public safety. In addition to its 15 reliability benefits, the Transmission Line would also 16 a1low Idaho Power to de-energize the Existing Transmissj-on L7 Lj-ne in order to make necessary repairs and upgrades to 18 that line safely and effj-ciently. 1,9 O. Please detail the history of l-oca1 permitting 20 activities related to the Transmission Line. 2L A. Over the past 14 years, Idaho Power has 22 carried out extensive public involvement and local 23 permitting efforts related to the Transmission Line 24 project. The Company's efforts to construct the 25 Transmission Line began in 2007 with the formation of a ADELMAN, DI 4 Idaho Power Company l_ 2 3 4 5 6 1 8 9 Community Advisory Committee ("CAC-), which developed the Wood River Electrical- PIan ("WREP") - a comprehensive plan for future transmission facilities in the V0RV. The WREP emphasized the need for a second transmission source to the North Va11ey, which would be fulfill-ed by the Transmissj-on Line. Following ldaho Power's WREP process, the Company, on April 23, 2014, filed for a Conditional Use Permit ("CUP") for the Transmission Line with the Blaine County Planning and Zoning Commissj-on (*P&Z Commission"). The inltial P&.2 proceedings focused on potential alternate backup power sources (discussed below), wlth participation by several groups incl-uding the Wood River Renewable Energy Working Group and the Ketchum Energy Advisory Committee. This CUP application was ul-timately denied, but Idaho Power filed an amended CUP application for the Transmission Line wlth the P&Z on September 9, 2016. As outlined in that application, the Transmj-ssion Line would run overhead from the Wood River Substation to Buttercup Road, where 1t woul-d conti-nue overhead north along Buttercup Road and Highway 75 to a point where the Transmission Line would transition underground at either Elkhorn Road (Option 1) or the southern end of Hospital Drive (Option 2). The additj-onal Transmission Li-ne undergrounding between Elkhorn Road and South Hospital ADELMAN, DI 5 Idaho Power Company 10 11 1.2 13 1-4 t_5 16 1.1 18 19 20 21 22 23 24 25 1 Drive under Option 2 would be paid for by a Local 2 fmprovement District ('LID") or other financing options. 3 The P&Z Commj-ssion he1d public hearings on Idaho 4 Power's CUP application on October 13, November 10, and 5 December 7, 2016, and on January 5, 2A17, and also held a 6 public workshop on the Transmisslon Line project on October 1 20, 2076. During these public hearings, the P&Z Commission 8 requested that Idaho Power divide the Transmission Llne 9 south of Elkhorn Road into five segments, for a more in- 10 depth analysis of the routing and undergrounding options 11 within each segment, including undergroundlng costs. 72 O. Vf,hat was the result of this CUP application? 13 A. The P&Z Commission issued its Eindings of 74 Fact, Conclusions of Law, and Decision on ldaho Power's CUP 15 application on March \t 20L7, denying the appllcation by a 16 4-]- vote. Ll The Pe.Z Commission based its denial on two primary 18 concerns: (1) the installation of taller poles along 19 Buttercup Road and Highway 15, where the Transmission Line 20 would be combined with the existing distribution line, and 2l (2) the j-nstallation of the overhead Transmission Line 22 between St. Luke's Hospital and Elkhorn Road, where there 23 is currently no overhead primary distribution line. 24 The Decision from the P&Z on March t, 20L7, states: 25 "Even where a dj-stribution line exists today, a new ADELMAN, DI 6 Idaho Power Company 1 transmj-ssion line lwouldl be higher and wider than the 2 existing distribution line. A new transmission 1j-ne wil-l- be 3 higher up to 15 feet and about six inches wider. See the 4 Plan & Profile Drawings in the application materials. Based 5 on a great deal of written and verbal public comments, 6 changes of this nature are substantlal enough to i-mpact the 7 open, relatlvely rural character and the property values 8 from Buttercup at Vfest Meadow to the hospital. Where an 9 exj-sting distribution line does not exist along Hospital 10 Dr. and then along ej-ther the highway or the bike path to 11 the north from there, a new transmission line will not be 72 harmonious and appropriate in appearance with the existing 13 or intended character of this area. A new transmission l-1ne 74 would convert this from a riparian area north and south of 15 the river to more of an industrial-like area." 16 O. Please explain what occurred after the P&Z 77 Commission's denial of the CUP. 18 A. Idaho Power appealed the P&.2 Decision to the 19 County Board and, at an appeal hearlng on August 7, 20L7, 20 the County Board denied Idaho Power's appeal by a 2-1, vote, 27 as set forth in its Decj-sion and Order dated September L2, 22 2077. In that Order, the County Board agreed with the P&.2 23 Commission's concerns regarding the visual impact of the 24 Transmission Line and referenced Idaho Power's application 25 to the IPUC requesting authorization for the Transmission ADELMAN, DI Idaho Power 7 Company 1 Li-ne: 2 "The Board is cognizant of paral1eI proceedings 3 before the fdaho Public Utilities Commission (PUC) on the 4 question of whether a redundant transmission l-ine is needed 5 in this area. Assuming that the PUC determines that a 6 redundant transmission line is needed to serve northern 7 Blaine County, IPC could obtain conditional approval from 8 the County by relocating and/or reducing the visual impact 9 of the transmission line, especially within the Highway 15 10 corri-dor. " 11 O. Ir{hat was occurring at the IPUC during this time? 1,2 A. As referenced above, the CPCN case at the IPUC 13 was filed in 20t6 and active during the above P&Z !4 proceedings. On September 15, 2017, the IPUC issued its 15 final order granting the CPCN. 76 O. Pl-ease describe the recent permitting activities L7 related to the Transmission Line. 18 A. On November 20, 2017, Idaho Power filed a new CUP 19 application with the P&Z Commission to construct the 20 Transmissj-on Line as authorized pursuant to the IPUC's 21 CPCN. Idaho Power's P&Z application was based on the route 22 outlined in the CPCN (*CPCN Route"), and Idaho Power also 23 worked with the P&.2 Commj-ssion to identify: (1) any desj-red 24 "micro-siting" adjustments for the overhead Transmission 25 Line within the CPCN Route, and (2) any additional burials ADELMAN, DI 8 Idaho Power Company 1 of the Transmission Line within the CPCN Route, which would 2 be funded by Blaine County. 3 Idaho Power conducted extensive engagement with the 4 P&Z Commission in connection with its November 20l.7 CUP 5 application. The Company presented its CUP application 6 rnaterials in a joint workshop with the Pe.Z Commission and 7 the County Board on February 8, 2078. The Company also 8 partj-cipated in two joint mediation sessions with the Pe.Z 9 Commissj-on and County Board on June 11 and September 6, 10 2018. The P&.2 Commission also held a lengthy public 11 hearing process for fdaho Power's CUP application, with 72 meetings hel-d on November 73, 15, and 27 and December 6, 13 2018. 14 During the Pe.Z Commission's public meetings, Idaho 15 Power and the P&.2 Commission presented an extensive L6 analysis of micro-siting options and potential- additional l7 burial-s of the Transmission Line, based on the five 18 Transmission Line segments previously identified by the P&Z \9 Commission. Specifically, Idaho Power provided plan and 20 profile drawings showing the proposed pole locations for 2L each of the approximately 180 poles for the CPCN route. 22 Idaho Power and the P&.2 Commission reviewed each pole 23 location and made micro-siting adjustments for a number of 24 pole locations along the length of the Transmission Lj-ne ADELMAN, DI 9 Idaho Power Company 1 route. fdaho Power also provided a "placemat" drawing of 2 the CPCN Route, showing the estimated cost of burying the 3 new Transmission Line and existing distribution Ij-ne in 4 each of the five Transmission Line segments reviewed by the 5 P&.2 Commission. The Transmission Line Route "Placemat" 6 from Blaine County Planning & Zonj-ng Proceedings can be 7 found in Exhibit 1. 8 Based on its extensive review of the Transmi-ssion 9 Lj-ne with Idaho Power, the P&Z Commission approved Idaho 10 Power's CUP application for the Transmission Line by 11 Findings of Eact, Conclusions of Law, and Decision dated 12 January 15, 20!9. The P&Z Commission Decision did not 13 approve a speclfic route for the Transmission Line. 74 Instead, it provided a prioritized series of seven 15 underground options for the Transmission Line and existing L6 distribution lines for the County Board to consider. The l7 Pe.Z deferred to the County Board for this selection process 18 because only the County Board could commit Bl-aine County to 19 fund the various Transmission Line burial options. 20 O. V[as this decj-sion appealed. What was the 2l result of the appeal? 22 A. Several parties appealed the P&.2 23 Commisslon's 'January 15, 2079, Decision approving the 24 Transmission Line CUP to the County Board. The County 25 Board issued j-ts Decj-sion on Appeal on June 4, 2019, which ADELMAN, DI 10 Idaho Power Company 1 affirmed the P&Z Commission's CUP grant, with the condition 2 that "the entire transmissj-on line be undergrounded from 3 the Wood River Substation north to the City of Ketchum." 4 However, the Decision on Appeal also recognized that it 5 could be difflcult to secure the required funding to bury 6 the entire Transmission Line and left open the possible 7 consideration of an overhead line configuration if funding 8 options were not viable. 9 Q. What occurred after the Decision on Appeal? 10 A. As described in the current Petition, the 11 County Board explored several funding options, but 12 determined that it had no realistic option for funding the 13 fulL burial- of the Transmission l,ine. The County Board 14 then held public stakeholder meetings on September 3, 10, 15 and 2l- , 2020, to explore alternate burial options for the L6 Transmission Li-ne. Idaho Power participated in each L7 stakeholder meeting and provided engineering and financial- 18 information for the Transmission Line to assist with Bl-aine 79 County's review. The County Board reviewed several partial 20 underground options for the Transmj-ssion Line, including 21, the underground options listed in the P&Z Commission's 22 Declsion approving the Transmission Line CUP on uTanuary 15, 23 20]-9. 24 Drawing on the alternate configurations developed by 25 the P&Z Commission, the County Board expressed interest in ADELMAN, DI 11 Idaho Power Company 1 a partial undergrounding option that woul-d: 1) bury the 2 Transmission Li-ne an additional 1.1 miles south from 3 Elkhorn Road to South Hospital Drive, and 2) bury the 4 existing distribution line for approximately B miles along 5 the planned Transmission Line route along Buttercup Road 6 and Highway 75 ("Distribution Line") . Idaho Power's cost 7 estimate for this option i-s approximately $8.4 million: I $2.7 million for the Transmission Line burial and $5.7 9 million for the Distribution Line burial. 10 As described in the Direct Testimony of Timothy 11 Tatum, the County Board inquired about potential funding by t2 Blaine County customers through franchise fees or a 13 surcharge on Idaho Power's customer bi11s. After Idaho L4 Power indicated that a surcharge was feasible, the Company 15 developed a flat charge for different customer classes to 16 cover the additional- cost of undergrounding the !'l Transmission Line and Distribution Line. 18 The County Board conducted a non-scientific public 19 survey of Blaine County resj-dents in November 2020 to 20 determine public support for Transmisslon Line burial- 2l options and individual cost assessments. The survey showed 22 support for the $8.a mil-Lion undergrounding proposal funded 23 by estimated fixed monthly charges, with 57 percent of 24 respondents strongly supporting or somewhat supporting this ADELMAN, Dr 12 Idaho Power Company 1- optj-on, compared with 31 percent strongly opposing or 2 somewhat opposing the option. 3 tl0hile the County Board continued to review 4 undergrounding options for the Transmission Llne project in 5 the faII of 2020, ds well as potential alternative energy 6 sources for Blalne County, Idaho Power advised the County 7 Board in October 2020 that, after further anal-ysis, the 8 Company would be able to extend the Transmission Line 9 burial farther south a dj-stance of 1.4 miles (an additional 10 0.3 miles from the prior option) from El-khorn Road to near 11 OwI Rock Road, under Idaho Power's same estimated fixed t2 surcharge assessment per customer over an approximately 20- 13 year period. 14 The total estimated incremental cost of this "OwI Rock 15 Road Route" is $9.8 million, based on the $5.7 million 1"6 Distribution Line burial estimate, and a $4.1- million 1-l Transmission Li,ne burial estimate to OwI Rock Road. 18 O. Did fdaho Power explore alternatives for the 19 Transmission Line? 20 A. Yes. In addition to conducting the 2L transmission evaluation through the WREP planning process, 22 fdaho Power worked with the WREP CAC, the Wood River 23 Renewable Energy Working Group, and the Ketchum Energy 24 Advisory Committee to review other potential energy sources ADELMAN, DI 13 Idaho Power Company 1 to provide backup power for the North County. Based on 2 this review, Idaho Power produced a report entitled 3 Northern Wood River Va11ey-Local Backup Electrical Supply 4 Report in October 2015 ("Backup Power Report"). The report 5 was further updated in November 201,6. 6 The U.S. Department of Energy's Idaho National 7 Laboratory (which has more than 1,000 megawatts of hybrid 8 power, soIar, and wind energy systems deployed at 9 Department of Defense and j-ndustry/utility sites around the 10 world) provlded independent technical review and feedback 11 for the Backup Power Report. 12 The Backup Power Report analyzed diesel generation, 13 natural gas generation, and solar generation as potential 74 backup power sources, after determj-ning that wind 15 generation, geothermal generati-on, and biomass qeneration 16 were not viable alternatives for the WRV. 11 The installation costs and the annuaL mai-ntenance 18 costs, respectively, for the three backup energy sources 19 analyzed in the Backup Power Report would be significantly 20 higher than the installation and maintenance costs for the 2l Transmission Line. The alternative backup power cost 22 comparisons to the estimated $30 million Transmission Line 23 are as follows: Diesel Engine ($57 million total 24 installation cost/$l- miLlion annual operations & ADELMAN, Dr t4 Idaho Power Company l- maintenance), Gas Turbine ($101 million/$0.455 million) and 2 PV plus Battery Storage ($924 million/$3.45 million). 3 O. Did Idaho Power revisit the costs used 1n the 4 Backup Power Report to determine if alternatives were 5 viable? 6 A. Yes. Idaho Power reviewed the Backup Report and 7 determj-ned that, while the cost of alternative energy 8 technologJ-es has gone down since the Backup Report was 9 developed, the outcome remains the same - the Transmission 10 Line remains is by far the most cost-effective solution to 11 provide the North County with reliable electric servj-ce. 72 O. Please describe the most recent permitting 13 activities rel-ated to the reconfiguration of the 14 Transmission line to consider partial undergrounding. 15 A. On December 22, 2020, Idaho Power filed an tG application to the County Board for CUP approval of the Owl 77 Rock Road Route funded by the surcharge. The County Board 1-8 held public hearings on Idaho Power's appllcation on 19 uTanuary 12 and February 9, 2021. 20 The County Board approved Idaho Power's application at 2L the February 9, 202L, public hearing, fj-nalized the 22 Conditions of Approval at its March 9, 2021, meeting, and 23 issued j-ts Findings of Eact, Conclusj-ons of Law and 24 Decisj-on on March 15, 202L ("Fina1 CUP"). ADELMAN, DI 15 Idaho Power Company 1 Under the Final CUP, the Blaine County Commission 2 modified the "all underground" condition for the 3 Transmission Line included in the County Board's initial 4 June 4, 2019, CUP grant, replacing that condition with the 5 partial underground condition set forth in the Final CUP 6 for the Owl- Rock Road Route. Exhibit 2 is a copy of the 7 Einal CUP.1 I 9 XI. CEAITGES TO TRAIISil(ISSION LIIIE ROI'ITE COITFICUNATION 10 O. Please describe the Transmissj-on Line 11 configuration approved by the IPUC in the CPCN. 12 A. In its CPCN, the IPUC approved the Company's 13 preferred route for the Transmission Line. Under the CPCN 1-4 Route, the Transmission Line would be located overhead from 15 the Wood River Substation to Buttercup Road and continue 16 overhead north along Buttercup Road and Highway 75 to 77 Elkhorn Road, where the Transmission Line would transition 18 underground for approximately two mil-es to the Elkhorn 19 Substation. Along Buttercup Road and Hlghway 15, the 20 overhead Transmission Line would be combined with the 21 existing distribution line in an "underbuilt" configuration 22 - that is, built directly below the above-ground 1 On April 9, 2021, a group of Blaine County residents filed a Petition for 'Judicial Review in Blaine County District Court of the March 15, 2021,, Einal CUP. ADELMAN, DI L6 Idaho Power Company 1 transmj-ssion line on the same poles. 2 a. What is the estimated cost of the Transmj-ssion 3 Line as confi-gured in the CPCN? 4 A. Idaho Power's cost esti-mate for the CPCN Route 5 Transmission Line was $30 million in the 201-6-2071 6 Commission CPCN proceedings. The Company prepared an 7 updated $35 million cost estimate for the CPCN Route in I 2079, working with its engj-neering consultant, Power 9 Engineers of Hailey, one of the leading underground 10 transmission engineering flrms in the United States. 11 Exhibit 4 is the updated CPCN Route cost estj-mate from L2 2019. 13 The updated CPCN Route cost estimate includes a 1"4 number of micro-siting adjustments for Transmission Line l-5 pole locations (as requested by the P&Z Commission) and 16 several Idaho Power electrical system upgrades that could l7 be more efficiently and economically installed as part of 18 the overall Transmission Line project (such as installing a 19 new ring bus at the Wood River Substation to enhance loca1 20 switching capacity). 21 Idaho Power plans to prepare a final cost estimate of 22 the CPCN Route with Power Engineers when the Transmission 23 Line construction is ready to begin on the OroL Rock Road 24 Route. This timing will allow Idaho Power to util-ize the 25 most current cost information avail-able for both overhead ADELMAN, DI I7 fdaho Power Company 1 and underground transmission construction from the pre- 2 construction pricing for the Owl Rock Road Route. 3 O. Please describe the requested changes to the 4 approved CPCN Route configuratj-on. 5 A. The Company and the County Board have agreed 6 to modifications to the CPCN Route that would extend the 7 Transmission Line buriaL further south a distance of L.4 I mil-es, from Elkhorn Road to near Owl- Rock Road. In 9 addition, rather than placing the existing dlstribution 10 l-ines along Buttercup Road and Highway 75 as under-build on 11 the new overhead Transmission Line structures, the existing L2 distribution lines along this approximately 7.5-mile 13 distance would be buried under the proposed Owl Rock Road 14 Route. 15 These changes will both reduce the height of the 1,6 transmission poles and reduce the number of lines in the 11 air (the Transmission Line will have three energized wires 18 while the existing distribution line has between three and 19 six energized wires and one neutral- wire). The proposed Owl 20 Rock Road Route is Exhibit 3. 2! O. How much do these modifications add to the 22 cost of the project? 23 A. The total- esti-mated incremental cost of this 24 Owl Rock Road Route is $9.8 million, based on a $5.7 25 million Distribution Line burj-a1 estimate, plus a $4.1 ADELMAN, DI 18 Idaho Power Company 1 million Transmission Line burial estimate from Elkhorn Road 2 to Owl- Rock Road, bringing the total current estimate of 3 the Owl- Rock Road Route to approximately $45 milIion. 4 Q. How were the estimated costs to underground 5 the Transmission Line determined? 6 A. At the request of the P&Z Commission, Idaho 7 Power identified five segments along the route of the 8 Transmission Line and provided separate incremental cost 9 estimates for each segment for burying the Transmisslon 10 Line and also burying the existing distributj-on line in 11 those segments where the distribution line is present. The t2 P&Z Commission requested these "segment-by-segment" cost 13 estimates to eval-uate which segirnents might be worth burying 14 with County funding. The burial costs were estimated as 15 "incremental costs" over the cost of overhead construction L6 for the Transmission Line. !7 0. Has the County Board agreed to this revised l-8 route? 19 A. Yes. As described above in detail, on December 20 22, 2020, Idaho Power fil-ed an application to the County 2L Board for CUP approval of the Owl Rock Road Route funded by 22 a Blaine County customer surcharge. The County Board 23 approved Idaho Power's application at the February 9, 2Q21, 24 public hearing, finalized the Condj-tions of Approval at its 25 March 9, 2021, meeting, and i-ssued its Eindings of Fact, ADELMAN, DT 19 Idaho Por^rer Company 1 Conclusions of Law and Decision on March 15, 2021 ("Fina1 2 cuP"). 3 Under the Final CUP, the County Board modified the 4 "a11 underground" condition for the Transmissj-on Line 5 included in the County Board's initial June 4t 2019, CUP 6 grant, replacing that condition with the partial 7 underground condition set forth in the Einal CUP for the B Owl- Rock Road Route. 9 Q. Who is responsible for the additional costs of 10 the OwI Rock Road route? 11 A. The additional incremental cost of the Owl 72 Rock Road Route (specifically, the cost of burying the 13 approximately 8 mil-es of existing distribution lines, ds L4 well as the additional 1.4 miles of underground l-5 transmission) are to be funded by Blaine County customers. 16 Because rdaho Power wilt manage the Transmission 71 Line project on a total project basis, the Company will 18 calculate the actual- cost of the additional Ow1 Rock Road 19 Route burials as the difference between (1) the total 20 estimated project cost of the CPCN Route and (2) the total 2L actual project cost of the Owl Rock Road Route. This 22 difference i-n cost wil-I represent the incremental amount of 23 the Owl Rock Road Route to be financed through the 24 surcharge mechanism as described in Mr. Tatum's testimony. 25 O. Please summarize your testimony. ADELMAN, DI 20 Idaho Power Company L A. In my testimony, I provide a detailed account 2 of the permitting activities for the Transmlssion Line and 3 descrj.be the proposed changes to the CPCN-approved routing 4 of the Transmission Line that reeult in the Ow1 Rock Road 5 Route to which the Cornpany and the Blaine County Commission 6 have agreed. 7 O. Does this conclude your testimony? I A. Yee. I 10 ADEIMAN, DI 2L Idaho Power Company 1 2 3 4 5 6 STATE OE IDAHO 19 20 2L 22 23 24 August 202\. 25 26 27 28 29 30 31 AITESTATIODI OF TESltIlDNT c f daho Residing a Boise, Idaho My commj-ssion expires:09 /10 /2025 ADELMAN, DI 22 Idaho Power Company County of Ada 7 I, Ryan N. Adelman, having been duly sworn to 8 testify truthfully, and based upon my personal knowledge, 9 state the following: 10 I am employed by Idaho Power Company as a Vice 11 President of Power Supply and am competent to be a witness 12 in this proceeding. 13 I declare under penalty of perjury of the laws of L4 the state of ldaho that the foregoing pre-filed testimony 15 and exhibits are true and correct to the best of my l-6 information and bel-ief . 77 DATED this 4tt' day of August 2021. 18 ss. . Adelman SUBSCRIBED AND SIIIORN to before me this 4th day of CHiISTY LYN DAYENNOTT Not rY ?ubllc - St tGof ld.ho Comlt$$lon ]lumber 5Zt7O my Go{ttinhslon ErPkcr ScP t0, 2024 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPG.E.21-25 IDAHO POWER COMPANY ADELMAN, DI TEST!MONY EXHIBIT 1 North Valley Redundant Line Prq Location: North Hospital Drive to Elkhorn Road Distance: 0.7 Miles Transmission UG Cost: $I,SOO,OOO Segment 5 Location: South Hospital Drive to Elkhorn Road Distance: 1.1 Miles Transmission UG Cost: $2,700,000 Location: Owl Rock to Elkhorn Rd Distance: 1.4 Miles Transmission UG Cost: $4100,000 Location: Highway Crossing Transmission UG Cost $1,500,000 Segment 4 Location: East Fork Road to Hosp Distance: 3.2 Miles Distribution UG Cost: $2,000,000 Transmission UG Cost: $8,300,000 Segment 3 Location: Distance: Distribution UG Cost: Transmission UG Cost: Butte to Ea 2.9 t! |2,7( f9,ot BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-21-25 IDAHO POWER COMPANY ADELMAN, DI TESTIMONY EXHIBIT 2 Regarding the application of: ldaho Power Company for a Conditional Use Permit (CUP)to place a 138-kV redundant transmission line from the Wood River Substation just north of Hailey to the Ketchum Substation on Sun Valley Rd. within the City of Sun Valley. Findings of Fact, Conclusions of Law and Decision ORIGINAL BTAINE COUNTY BOARD OF COMMISSIONERS Public Hearing Date: January L2,2O2L & February 9,202L Requested Action: Public hearing and consideration of an application by ldaho Power Co. for a Public Utility Facility Conditional Use Permit to construct, maintain, and operate a 138-kV, overhead and underground, redundant transmission line from the Wood River Substation north of Hailey east to Buttercup Rd. then along the west side of Buttercup Rd. to Highway 75 and then north along the highway until it enters the City of Ketchum at the Elkhorn Rd. light. ln order to maintain the existing power pole heights, the applicant is proposing to bury the existing distribution lines and building the transmission line overhead to a proposed underground transition structure to be located near Owl Rock Road, where the line will continue underground to Elkhorn Rd. The transmission line runs through rural Blaine County Zoning Districts of Light !ndustrial (Ll), Low Density Residential (R-1), Planned Residential Development (R-2), Residential/Agricultural (R-5), Medium Density Residential (R-.4) and Recreation Development (RD) before entering the Cities of Ketchum and Sun Valley. Representative: Patrick Harrington, Corporate Secretary Tom Barber, Project Manager Applicable Regulations: Blaine County Zoning Ordinance Title 9, including Chapters: 7,9, tO,11, 13, L5,25; Title 8, Blaine County Comprehensive Plan. l. Application, Notice, Exhibits & General Facts 1. Application: A request to modify a condition of an approved conditional use permit was received by the Administrator on December 23, 2O2O. 2. Notice: Public notice for this application was as follows: A. Lega! notice was published in the ldaho Mountain Express on December 23,2020 & January 20,2O2L B. Notice was mailed on December 2L,2020 & January L9,2O2L to Political Subdivisions including the municipalities. C. Notice was mailed on December 30, 2020to surrounding landowners within 300' of the exterior boundaries of the proposed transmission Iine and applicable public water systems. D. On-site notice was posted on ldaho Powe/s Wood River Substation driveway at its intersection with SH 75, Buttercup Rd. and the SH 75 intersection, and Elkhorn Rd'SH 75 intersection on Decemb er 22,2020 & February 2,}OZL at least 7 days prior to the hearing. rdaho power No* *"JTl,$$i8l i*"-1,fli,':?'XlYii:ili3I-ttYr-r"" January r2,202r case No. tJi'l=l):ri Page I of 14 R. Aderman, rPC Page 1 of 14 il E. Application materials on the Blaine County webpage December 23,2020. F. A Display Ad was published on January 5,Z:OZL & January 2L,2OZL G. Public Water System Notification was mailed December 30, 2020 & January 20,2027 ) Motion: Upon motion by Commissioner Fosbury, second by Commissioner McCleary, and by a vote of 3 to 0, the Commission found notice to be in compliance with applicable regulations 59-25-4 of the Zoning Ordinance. 3. Any disclosures (i.e. conflicts of interest, site visits or ex parte communications)? The Land Use and Building Services Director attended and participated in most of the Citizens Advisory Committee (CAC) meetings. This role was ex officio and not as a voting (to the extent that votes were taken), citizen participant. Commissioners al! received public comments directly by way of emailwhich were forwarded to the Land Use Department and made part of the public record. Ex parte communication by Kiki Tidwell in the form of public comment received by the Board in the morning sessions on March 2 &9,2OZLin the Board of Commissioners weekly public hearing. 4. Background:o September 2015: ldaho Power Company files a Conditiona! Use Permit (CUP) Application for a 138kV Redundant Transmission lineo March 2,20L7= CUP Application denied by Planning and Zoning Commission. September L2,2Ot7t Board of County Commissioners affirms the Planning and Zoning Decisiono September 15, 2Ol7z Public Utilities Commission Order Number 33872 grants ldaho Power Co. a Certificate of Public Convenience & Necessity ("CPCN")o November 17,2OL7z ldaho Power files an CUP application for the 138kV Transmission Lineo February 8, 2018: ldaho Power presented CUP application materials in a ioint workshop with Planning and Zoning and the Board of County Commissionerso June l,!,,zOLg and September 24,2018: ldaho Power collaborated in two joint mediation sessions with Planning and Zoning and the Board of County Commissionerso November 13, 15,27 & December 4 2018: Planning and Zoning public hearings on CUPe January 15, 2020: Planning and Zoning Findings of Foct, Conclusions of Low ond Decision signed approving the CUP with various declsion options, contingent on county funding sources.. May 6,2019: Appealhearinge June 6,20L92 Board of County Commission decision on appealo Februarv 18, 2020 County hires consultants to look at finance optionso September 3, 1:O,2l,,2O2Oz Blaine County holds stakeholder meetingso November 2020: ldaho Power proposes a fixed flat fee surcharge to underground existing distribution and portions of the overhead redundant 138kV transmission line. Deadline of December 15.o Novembet 2O-23,202A:300 person Blaine County survey to better understand public opinions on funding choices FINDINGS OF FACT AND CONCLUSIONS OF LAW Idaho Power North Wood River Valley 138 kV Transmission Line Project - CUP-BCC January 12,2021 Page 2 of 14 Exhibit No. 2 Case No.lPC-E-2'l-25 R. Adelman, IPC Page 2 oI 14 Summary: The applicant requested a modification of the condition of approval within the June 4,2019 Decision by the Board of Commissioners. Specifically, to address this portion of the Board's decision which states: While imposing such o condition (complete transmission line undergroun dl will require difficult discussions on the funding alternatives, the Boord believes that these funding discussions should be fully exhousted before ony consideration of on overheod tronsmission line in this oreo. Depending upon the results ol these funding processes, lurther considerotion ond deliberotion may be necessary to "continue to work together on these issues, os there moy still be opportunities to find oreas of common interest ond common ground." Accordingly, the Boord offirms the Commission's decision with the modificotion that it require os o condition of approvol thot the entire transmission line be undergrounded from the Wood River Substotion north to the City of Ketchum. The applicants requested the Countv Board of Commissioners modifv its "all underRround" condition to a "partial underground" condition based on the prooosed Owl Rock Route. The proposal is to underground the 8 miles of existing distribution line running from east of the Wood River Substation along Buttercup Rd north and the redundant transmission line from Owl Rock Road (See Exhibit B Pole #165)to the underground conduit located near the Elkhorn Road intersection. This would place the redundant 138kV power line, above ground from the Wood River Substation to Owl Rock Road at similar heights to existing distribution poles. This would require a flat fee surcharge option to all Blaine County customers over an approximate 20 year period. (Exhibit A-1) 5. Exhibits: The following Exhibits are attached hereto as referenced. All application documents were received at the Blaine County Planning office on December 23,2020 unless otherwise noted. "A" Exhibits- Application: A-1 Cover Letter A-2 Exhibit A: Design Map Owl Rock Route A-3 Exhibit B: Plan And Profile Drawings Owl Rock Route A-4 Exhibit C:Structural Drawings Owl Rock Route A-5 Exhibit D: Structure Photos Owl Rock Route A-5 Surrounding Landowner List, L2l3Ol2O2O "8" Exhibits-Background Documents B-1: Blaine County Board of County Commissioners Decision on Appeal, June 2019 B-2: Blaine County Planning and Zoning Findings of Fact, January 2019 B-3: ldaho Public Utility Commission's CPCN Order No.33872 "C" Exhibits-Additional Documents C-1: Condition #14 Comment ldaho Power L-S-2O?,L C-2: Communication cable summary L-5-2O2L C-3: Transmission line underground transition structure example C-4: ldaho Power Funding Proposal L-5-202L C-5: Brad Mullins Comments on Exhibit C-4 L-6-2OZL C-6: Plan and Profile Drawings with Communication L-6-2021 rdahopowerNo**""H3}$ifl lft-I,ffi *S:Hn'X':jff -tt$-r."Iamaryt2.2o2t Page 3 of 14 Exhibit No.2 Case No. IPC-E-2'|-25 R. Adelman, IPC Page 3 of 14 "D" Exhibits: Public Comment- received as of February8,2O2L D-1 Cox Communications Comments -L.7.2L D-2 Ed Lawson letter to Blaine County 11.18.18 D-3 Jini Griffith recd 1.11.2021 D-4 Margaret Bishop recd 1.11.2021 D-5 Elise Lufkin recd t.Ll.ZO2L D-5 Mark Vegwert recd L.LL.ZO2L D-7 Shawnna Schmidt recd t.lL.2OZL D-8 John Milner -Kim Taylor recd 1.11.2021 D-9 Gina Parsons Lagergren recd L.LL.ZO2L D-10 Ken Lagergren recd L.LL.2OZL D-11Cindy Mann recd L.L2.?02L D-12 Steve Shafran recd L.L2.2OZL D-13 M att Youd all and Melody Lilesrecd 1 .L2.202L D-14 Collett Pruitt recd L.L2.2O2L D-15 KikiTidwell recd 1.13.21 D-16 KikiTidwell response to Commissioner Greenberg recd 1.13.21 D-17 Jim Speck for Michael Engl recd L.L9.202L D-18 Perry Boyle recd L.25.2O21 D-19 Fritz Haemmerle recd t.27.2027 D-20 Dorothy Schinella recd 2.L.2L D-21Dr. Kathleen Baltz recd 2.8.2021 D-22 Beth Chiodo recd2.8.2O2L D-23 Emily Knowles recd 2.8.2021 D-24 KikiTidwell recd 2.8.2021 D-25 Kiki Tidwell email thread and findings-recd 2.8.202L D-26 Michelle Pabarcius recd 2.8.202L D-27 Allison Goodwin recd 2.8.2021 D-28 Nancy Fenn recd 2.8.202L D-29 Maria Muir recd 2.8.202L D-30 Cam and Margie Cooper recd2.8.2O2L D-31 Curt Cod Mays recd 2.8.202L D-32 Cam and Margie Cooper recd2.8.2O2L D-33 Cindy Mann recd2.8.2O2L D-34Julie Boraks, Pharm D. recd 2.8.2A2L D-35 Timmie Ryerson recd2.8.2O2L D-35 Cody Boeger recd 2.8.202L D-37 Jill Payette recd 2.8.2027 D-38 Bill Boeger recd 2.8.2021 D-39 Reed Boeger recd 2.8.2021 D-40 Linda Pertel recd 2.8.2021 D-4l Juanita Young recd 2.8.2021 FINDINCS OF FACT AND CONCLUSIONS OF LAW ldaho Power North Wood River Valley 138 kV Transmission Unc Project - CUP-BCC Janaary l2,202l Page 4 of 14 Exhibit No. 2 Case No.IPC-E-21-25 R. Adelman, IPC Page 4 ol'14 II. STANDARDS OF EVALUATION The applicant requested the Board of County Commissloners modify its "all underground" condition to a "partial underground" condition based on the Owl Rock Route proposalwithin the updated C.U.P. application. At the outset, the Board interprets its Code and the June 4 2019, Decision as authorizing its consideration of this rehearing. While the ability to impose and rehear conditions is ordinarily a matter for Planning and Zoning Commission review, the undergrounding condition placed upon the permit here was imposed by the Board as part of its authority to modify the Commission's decision on appeal. See BCC S 9-32-4(El. As such, the Board believes that it has the discretion to rehear this matter as lt was the decision-making body that placed the undergrounding condition upon lPCs conditional use permit. See BCC S 9-32-4(AX2). Furthermore, the Board's June 6, 2019, Decision clearly contemplated that further proceedings would be necessary if the Board was unable to secure funding for undergrounding the entire line. The standards of evaluation have been previously reviewed. Please see the following exhibits which review these standards: B-1: B-2: Blaine County Board of County Commissioners Decision on Appeal, June 2019 Blaine County Planning and Zoning Findings of Fact, January 2019 FINDINGS OF FACT AND CONCLUSIONS OF LAW Idaho Power North Wood River Valley 138 kV Transmission Line Project - CUP-BCC lanu,ary l2,2l2l Page 5 of 14 The Board of County Commission revlewed these four (4f standards that could not be met with the previous CUP Application with both transmlssion and distribution lines built above ground. (7) Blaine County Code Section 9-25-3(A)(2) (compliance with the generol and/or specific objectives of the comprehensive plon); (2) Bloine County Code Section 9-25-3(A)(3) (will be hormonious and oppropriote with chorocter of the generol vicinity); (3) Bloine County Code Section 9-25-3(A)H) @ill not be hazordous or disturbing to existing or future neighboring uses); (4) Bloine County Code Section 9-25-3(A)(9) (will nat result in the destruction, loss or domoge of o noturol, scenic or historic feoture of mojor importonce). The modification of the "all-underground" conditlon to a "partial-undergroundingi' of the transmission line starting at Owl Rock Rd combined with the burying of the distribution lines from the Wood River Substation to immediately north of the Cold Springs Mobile Home Park (Formerly named the Gypsy Trailer Park| does enable the Board compliance with these standards of evaluation. Exhibit No. 2 Case No. IPC-E-2'|-25 R. Adelman, IPC Page 5 of 14 II. 9.25.3: CONDTIONAT USE PERMIT STANDARDS FOR EVALUATION: A, Review: The commission or the boord lor hearing examinerl shnll review the porticulor locts ond circumstonces ol eoch proposed conditionol use ln the terms ol the following stondards and sholl find odequote evldence showing that such use dt the proposed location: 7. Will, in fact, constitute q conditional use os estoblished lor the zoning district involved;) Findings: Complies. The use is a permanent 'public utility facility'. The project traverses land zoned Light Industrial (Ll), R-1, R-2, R-5, R-.4 and RD before entering the jurisdictions of the cities of Ketchum and Sun Valley. Public utility facilities are allowed by the issuance of a Conditional Use Permit for all of the aforementioned zoning districts. 9-2-7: DEFINITIONS OF WORDS AND TERMS: . . . PUBLIC UTILITY AND PUBLIC SERVICE FACILITIES: Structures essentioltofurnishing the public with electric power two hundred thirty (230) kilovolts or less, gos, water supply, water treotment, and public seruices, including power plonts or substotions, woter treotment plants or pumping stations, fire stotions, police stations or snow storoge locations. . . . 2.Will be hqrmonlous with and in accordqnce with the general objectives or with any speciftc objefiive ol the comprehensive plon ond/or thls title; The applicant refers to Section 13 of the Comprehensive Plan; Public Services, Focilities, ond Utilities. More specifically the lntroduction, Purpose, and Utilities sections that state: lntroduc/;ion This section is o guide for decision moking for public services, facilities and utilities in Bloine County. Predictions of continued population growth make plonning for future utilities and public service facilities essentiol. Bloine County is a resort community ond the north portion of the county experiences seosonol fluctuotions in populotion os high os three times its permonent population. Utilities ond public focilities must hove the obility to occommodote such fluctuations. Blaine County will hove o greoter opportunity to effectively serve the future needs of its permonent and visitor populotion with coreful plonning. Purpose The purpose of the Public Services, Focilities, ond Utilities section is to identify the county's facilities and utilities, as set forth in ldoho Code 67-6508 (f), ond provide on inventory of previous ond existing conditions, discuss oreos of service ond methods of operotion, estimate projected future needs, ond provide recommendotions for desirable gools ond objectives based on this informotion. lltilities Public Utilities include basic services which provide for the energy, communicotion, water delivery and public woste removol needs of the county. These focilities include public ond investor owned ond/or privote utilities. Public utilities ore reguloted by stote ond federol commissions. FINDINCS OF FACT AND CONCLUSIONS OF LAW Idaho Power North Wood River Valley 138 kV Transmission Line Project - CUP-BCC lanuuy 12,2021 Pagc 6 of 14 Exhibit No.2 Case No. IPC-E-21-25 R. Adelman, lPC Page 6 of 14 Sections of the Comprehensive Plan specifically addressing electric power: Electric Power ldoho Power serues Blaine County with two (2) 738,000-volt tronsmission lines. Both transmission lines terminate at the Wood River Substotion, two (2) miles north of Hoiley. One 738,000-volt tronsmission line from Wood River to Ketchum serves the northern oreos ol the county. ln order to provide reliable service ond meet projected populotion ond load growth, ldoho Power plonning includes: 7. A second 738,000-volt tronsmission line from the Wood River substotion (just north of Hailey) to Ketchum. Chapter L3; Conclusions ond Recommendotion section states: Electrical Power 2. All tronsmission ond distribution wire service in the Scenic Corridors of State Highwoy 75, Federol Highwoy 9j, and Federol Highway 20 should be undergrounded. Existing overheod tronsmission lines should be placed underground as technology ond funding become avoiloble. New distribution instollations should be oll undergrounded. ln rurol oreos where undergrounding covers long distonces ond would require o disproportionote expense, provision should be made for relief from this requirement for single-fomily residences. 3. Blaine County should explore vorious funding options, i.e., user fees, local improvement districts, or bonding, to occomplish the Comprehensive Plon gools for undergrounding electric seruice when those gools differfrom filed ldaho Public Utilities Commission toriffs. ln ony event, the county should explore the possibility of undergrounding ollwire in the Scenic Highwoy Corridors in conjunction with future highwoy improvements. Chapter 6; AestheticValues section states.' Utility lines ore olso o negative visuol intrusion. Blqine County shollodopt o policy of requiring the undergrounding of all utility lines wherever possible. ln the Scenic Corridors, this sholl be of the highest priority. The location ond alignment of roodwoys con presente or enhonce specific scenic qualities, which should be considered in future olignment planning. Locotion ol necessory, but often unsightly, public utilities should be ploced out of the view corridors whenever possible. Cost alone shall not be the deciding foctor for such relocotion. Chapter 5; Natural Environment section of the 2018 adopted Comprehensive plan also states the importance of Vistas ond Scenic lntegrity. Reiterating the importance Blaine County places on the Scenic Highway Overlay District to preserve the landscape and mountain views along Highway 75. The comprehensive plan indicates that planning of the 138k transmission line has been in discussion for 24 years. lt also clearly states that the preferred method for all utilities is to underground them wherever possible and to reduce visual impacts along the Scenic Highway Overlay District. Section 13 of the Comprehensive Plan also recognizes that: ldoho Power Company operotes under a FINDINGS OFFACT AND CONCLUSIONS OFI-AW Idaho Power North Wood River Valley 138 kV Transmission Line Project - CLJP-8C€ January l2,202l Page 7 of 14 Exhibit No.2 Case No. IPC-E-21-25 R. Adelman, IPC PageT ol 14 Certificote of Public Convenience ond Necessity gronted by the ldoho Public Utilities Commission, ond is subject to the Generol Rules, regulotions, and Rotes opproved by the Commission. transmission line to best meet both the objectives of the Comprehensive Plan and the P.U.C. Order 3382. The undergrounding of the entire 138kv Transmission Line proved to be cost prohibitive and would therefore cause a significant burden to county residents. However, the Board finds that the modified conditions of approval bring it into compliance with the conditional use permit standards of evaluation and in accordance with the comprehensive plan. The modified conditions meet the comprehensive plan Aesthetic Values within the Scenic Corridor by keeping the height of the new poles similar to the height of the distribution poles along this route today while reducing the number of powerllnes from at least 5 to 3. ln addition, new poles would not be erected where they do not exist today along Hospital Drive and the bike path north to Elkhorn Rd. While cost was prohibitive for the all underground condition, the partial undergrounding condition is in accordance with the desired outcome of reducing the impact on scenic values and cost to county residents. Based on the conditions attached to this decision and positive conclusions on the other criteria, the Board finds that this application complies with the general goals and objectives of the Comprehensive Plan. The partial undergrounding condition balances the feasibility of fully undergrounding against the reduction of visual impact as stated in the comprehensive plan. ?.Will be designed, constructed, operoted ond mointained to be hormonious ond appropriote in dppeoronce with the existing or intended choracter of the generol vicinity and thot such use will not chonge the essentiol character ol the same oreo. All outdoor lighting sholl comply with chopter 29A of this title; The "general vicinity" of thls project is Highway 75 which is designated by Blaine County and the State of ldaho as a Scenic Highway. Title 2 in the Blaine County Code defines the Scenic Corridor as; An oreo of significont scenic importonce to Bloine County os o representation of the rural chorocter and generol ottroctive beouty of the County. Scenic corridor 1 (SC1) includes the orea on both sides of Stote Highwoy 75 north of the eost to west Glendale Rood intersection thot is visible from said Stote Highwoy 75. The designoted scenic trovelwoy contoined within SCLs Stote Highwoy 75, corrying the lorgest volume of commuter, recreotional, ond tourism troffic in Bloine County. Currently ldaho Power has distribution lines on much of the proposed route. The modified condition will bury the distribution line and replace the existing above ground distribution poles and lines with the 138k transmission line. The transmission line willthen be undergrounded from Owl Rock Road north to the Ketchum Substation. This modified condition will eliminate the concerns of the 8'7"-7.4' taller poles since they will be similar to the existing heights. ln addition, the above-ground transmission line will have 3 lines and a leased communication line reducing the number of lines currently vlsible today. (See Exhibits A-2-A-5). With the proposed "micro-siting" of the line primarily from East Fork Rd. north, this status quo option will improve background mountain views over what they are today, views that are recognized and appreciated by the State and Blaine County. FINDINGS OF FACT AND CONCLUSIONS OF LAW Idaho Power North Wood River Valley 138 kV Transmission Line Project - CUP-BCC lanuary 12,2021 Page 8 of 14 Exhibit No.2 Case No.IPC-E-21-25 R. Adelman, IPC Page 8 of 14 4. Will not be hazordous or disturbing to existing or luture neighboring uses; ) Findings: Complies with conditions Based on the conditions attached to this decision, the Board finds that this application complies with this criteria. The modified conditions and micro siting mitigate the disturbance to existing and future neighboring uses by keeping pole heights similar to existing distribution poles and by eliminating the need for new infrastructure where it does not currently exist. The need for a redundant line and the route generally were set by Public Utilities Commission Order 33872. The transmission line will comply with all National ElectricalSafety Code standards and is consistent with ldaho Power transmission line installations throughout the company's service area subject to the continuing oversight of the Public Utilities Commission. ldaho Power modeled the EMF levels for the transmission !ine and determined that the EMF levels will be significantly lower than the EMF standards established by the lnternational Commission on Non-lonizing Radiation Protection. The applicant has stated (Exhibit B-1) that the proposed powerlines will a have a lower risk than the current distribution line. The conditions also address setting the poles back to ITD safety standards where currently some of the poles north of Owl Rock Rd are set too close to Highway 75 creating vehicle safety concerns. 5.Will be serued odequately by essentiol publicfacilities and seruices such as highwoys, streets, police ond fire protection, drainage strudures, reluse disposol, woter and sewer ond schools; or that the persons or agencies responsible for the estoblishment of the proposed use shqll be able to provide odequotely any such seruices; transmission line would be easily accessible by ldaho Power from existing roads, improving !daho Power's ability to repair the transmission line efficiently in order to minimize the scope and duration of outages. By contrast, access to ldaho Power's existing transmission line over rugged terrain would be far more difficult and could significantly delay outage restoration work. The proposed route is adjacent to roadways and therefore accessible for maintenance and emergency services. Will not create excessive additionol requirements at public cost for public focilities ond seruices ond wlll not be detrimental to the economic welfore olthe community; The undergrounding components of this application will be paid for through a surcharge by ldaho Power Company customers at no public expenditure. There will be no public funding spent toward the undergrounding of the existing distribution or redundant 138kV transmission line. Public funding may be considered to offset the burden to ldaho Power Company customers and indigent residents needing financial assistance. (See Condition L7l. 6. FINDINGS OF FACT AND CONCLUSTONS OF LAW Idaho Power North Wood River Valley I38 kV Transmission Line Project - CUP-BCC January 12,2021 Page 9 of 14 Exhibit No.2 Case No. IPC-E-21-25 R. Adelman, IPC Page 9 of 14 7,Will not lnvolve uses, activities, processes, materiols, equipment and conditions ol operotion that will be detrimentol to ony percons, property or the general welfare by reason of excessive production of troffic, noise, smoke,fumes, glare, dust, odors, vibratioa, water pollution or salety hazards. Water pollution includes impact to surface and ground woter and gotoble water sources. When the proposed use involves a potential contaminant source or potential contominant os set forth in oppendix A of this title, on lile in the county, and is locoted within a wellhead protection area, the commission shall consider the impact of the project on potable water sources and determine whetherthere is sutftcient inlormotion in the record to demonstrute thatthe project has been designed to mitigate adverse impactto potoble water source(s); conditions, a 138-kV transmission line should not emit excessive noise. The transmission lines do emit some noise which can vary depending on weather conditions and quality of the lines. lt is not likely to be considered "excessive" unless a person is in the immediately vicinity of the line during those conditions. There will be no traffic generated once the transmission line is constructed. There will be a temporary increase in traffic diversions and lane restrictions, particularly during construction of the underground portion of the transmission line. ldaho Power will coordinate with Blaine County, Ketchum, Sun Valley, and ldaho Transportation Department (lTD) to develop traffic control plans while crews work along roads. The project will be designed, constructed and operated under National Electric Safety Code (NESC) requirements and restrictions. Many segments of this project are within wellhead protection areas. The poles will be metal and thus will not require a wood preservative. Any "underground" river crossing would hang from existing conduit on the new bridge if feasible from a safety and engineering standpoint (Condition #5). It would benefit the homeowners in Northridge Subdivision to have the powerlines moved further from their backyards on the northern edge of the powerline easement. (Condition # 20) This will reduce safety, noise, and aesthetic concerns. ln addition, this would make ldaho Power's maintenance and repair of the line easier and help avoid fences, trees and irrigation systems when constructing a new line. Based on the conditions attached to this decision, the Commission finds that this application complies with this criteria. 8.Will hove vehiculor approoches to the propefi which shall be designed os not to creote on interference with traffic on sufiounding public thoroughfores; traffic flows or driver views. No specific vehicular approaches to these public facilities are proposed or considered necessary. The location of a construction stage area or the volume of traffic to operate and maintain this line is unknown. FINDINCS OF FACT AND CONCLUSIONS OF LAW Idaho Power North Wood River Valley 138 kV Transmission Line Project - CUP-BCC January 12,2021 Page l0 of 14 Exhibit No.2 Case No. IPC-E-21-25 R. Adelman, IPC Page 10 of 14 9. Wilt nat result ln the destrudion, loss or domoge ol a noturql, scenic or historic feature of moJor lmportance; ond Findings: Complies with conditions Based on the conditions attached to this decision, the Board finds that this application will not result in the loss of an existing natural or scenic feature of major importance. Along this stretch of Highway 75, scenic features of major importance do exist as recognized by the State of ldaho and Blaine County. This new line will not degrade these features further than the existing line does. 10, t the opplicant or londowner with respect to on opplicotion for o conditionol use permit under this chopter is, the commisslon orthe boord, in oddition to oll other opplicable stondords ond criteria hereunder, sholl take into occount the plons ond needs of the stote, or any ogency, boord, department, institution or distrlctthereof, os required by ldaho Code section 57-6528. ) Findings: N/A This criteria is not applicable. ldaho Power Co. is not the State of ldaho, or any agency, board, department, institution, or district of the state. The Public Utility Commission (P.U.C.) is a "board" which stated in its order: "That redundancy is needed to provide adequate and reliable service to the north valley...and thus grant the company's (ldaho Power's) required CPCN (Certificate of Public Convenience and Necessity) authorizing construction of a second transmission line." (Page 15 of Order # 338721 lll. Decision Options and Possible Conditions ) Motion: Having considered the evidence in the record, upon motion by Commissioner Greenberg, seconded by Commissioner McCleary, and by vote of 3 to 0, the Board hereby approves the requested modification to the Conditional Use Permit granted to ldaho Power Company to build a redundant transmission line; specifically, to approve IPC's request to modify the undergrounding condition imposed in the BCCs June 4, 2019 appeal decision to permit partial undergrounding of the transmission line north of Owl Rock Road, as well as the undergrounding of existing distribution lines from east of the Wood River Substation along Buttercup Rd. to the existing undergrounding location north of the Cold Springs Mobile Home Park (formerly known as the Gypsy Trailer Park) as presented by the applicant and discussed at this public hearing subject to the following conditions: Conditions of Arproval 1. ldaho Power Company shall underground the estimated 8 miles of ldaho Powe/s existing distribution lines from the Buttercup Rd./Meadow Dr. intersection east of the Wood River Substation to a point North of the Cold Springs Mobile Home Park. 2. Underground the redundant 138kV transmission line an estimated 1.4 miles starting at Owl Rock Road and continuing to the Elkhorn Rd. intersection, where the transmission line will continue underground into the City of Ketchum. FINDINGS OF FACT AND CONCLUSIONS OF LAW Idaho Power North Wood River Valley I 38 kV Transmission Line Project - CUP-BCC January 12,2021 Pagellof14 Exhibit No, 2 Case No. IPC-E-2'|-25 R. Adelman, IPC Page 't 1 ot 14 3. The above ground transmission line shall be built as depicted in Exhibit C-5: Plan & Profile Drawings with Communlcation !,Z.21..ZO2O, recognizing minor construction adjustments may be needed based on rock and soil conditions and above ground obstacles. 4. Obtain all necessary easements for 138kV transmission line above and below ground and distribution undergrounding. ldaho Power will work with property owners to try to secure satisfactory easements to locate the Transmission Line within the "Stock Drive" strip located west of Highway 75,tor portions of the Transmission Line (approximately 2,5 milesf to be located along the west side of Highway 75. ldaho Power will also work with Blaine County staff to explore opportunitles for locating the Transmission Line in the Stock Drive. tf ldaho Power and Blaine County determine in good faith that satisfactory easements are not available for the Stock Drive (at minimal cost other than potentially reimbursing landowners for their out-of-pocket costs for granting the easements!, then ldaho Power will have the option of locating the Transmission Line within the west side of the Highway 75 right-of-way, similar to the location of the current ldaho Power distribution line but setback to ITD safety standards. 5. Additional micro-siting shall occur for the above ground transmission as follows: a. At Pole # 89 and 90 where the distributlon line crosses the Big Wood River, the applicant shall run its conduit on the exlsting bridge instead of boring under the river, if feasible from a safety and engi neering standpolnt. b. Pole #!10-96 adjacent to Audubon Place, shal! be micro-located (i.e., moving a pole location to the extent possible) to reduce visibility from driveways (Pole #921 and maximizing the screening provided by the established conifers but not to a location that would compromise the integrity of the bike path, c. Poles #99 thru #106 shall align with the bike path, more or less, as shown on Exhibit B but far enough from the path that it does not compromise the structural Integrity of the bike path pavement or create a safety hazard. 6. Shall install the "H" type underground transition structure (or structure less conspicuous) at the Owl Rock Road Transition location. lnstall plantings including conifers to grow at an adequate height and width to screen the underground transition structure(sl from Highway 75. Design plan shall be submitted to the Land Use Department and approved by the Board of Commissioners. The ldaho Power structure wall shal! be located west of Highway 75 and adhere to ITD Safety standards in regards to setback. 7. Noxious weed mitigation and re-seeding of native seed mix shall occur in all disturbed areas. Areas of disturbance shall be monitored by tdaho Power on an annual basis for five years to ensure the establishment of desirable vegetation and the abatement of noxious weeds. 8. A financial security in the amount of 30% of the estimated cost of the revegetation approved by the Administrator shall be collected and held for up to five (51 growing seasons to ensure at least 80% establishment of the plants as determined by the Administrator. 9. Applicant shall comply with all applicable zoning, building, fire and health district regulations. FINDINGS OF FACT AND CONCLUSIONS OF LAW Idaho Power North Wood River Valley 138 kV Transmission Line Project - CUP-BCC January 12,202t Page 12 of 14 Exhibit No. 2 Case No. IPC-E-21-25 R. Adelman, IPC Page 12 of 14 10. Night time work shall be minimized to the extent possible. 11. The applicant shall notify Cox Communications and other lessees of work plans and schedules. 12. Poles shall be of corten steel material.') : '. l.l ..;.t. 13. A nottce shall be sent out by ldaho Power to tandowners wlthin 30d df itrd n"*i'ransmission line prior to and about the commencement of construction. 14. Proof of cost shall be submitted to the Blaine County Land Use Department when project is completed. 15. Any modifications to the plans or approved uses shall require further zoning review, and may be subject to additional regulations pursuant to the Blaine County Zoning Ordinance. 16. ldaho Power Company shall address the need for a clause in any financing order by the ldaho Public Utilities Commission to allow for prepayment of any Blaine County only project costs or surcharges towards the additional costs of the modified project, as well as a procedure for doing so. 17. ldaho Power Company shall address with the P.U.C. the need to provide indigent residents with financial assistance to meet the additional cost of the surcharge. 18. Cox Communication shall have access to lease for a single communications wire only on the above ground transmission line, lncluding raising up to 19 poles to match heights and locations described in Exhibit C2. 19. Wireless communication additions are not permitted by this CUP approval. A separate permit shall be obtained for these facilities. 20. Transmission Poles #5-9 shall be located to the northern edge of the ldaho Power Easement to alleviate proximity to the adjacent residences. ldaho Code $57-6535(c) Notice: The owner of the property subject to this application and decision may request a regulatory taking analysis pursuant to l.C. 67-8003. FINDINGS OF FACT AND CONCLUSIONS OF LAW Idaho Power North Wood River Valley 138 kV Transmission Line Project - CUP-BCC January 12,2021 Page 13 of 14 Exhibit No. 2 Case No. IPC-E-21-25 R. Adelman,lPC Page 13 of '14 IT IS SO ORDERED. DATED tnis /6 day of March, 2021 BLAINE COUNW PLANNING AND ZONING COMMISSION By: D CERTIFICATE OF MA!LING The undersigned person hereby certifies that on th" 15 fAd ", otflarnL, zoz!,she served a true and correct copy of the foregoing document by depositing the same in the U.5. Mail addressed as follows or by service otherwise as noted: ldaho Power Company, Patrick Harrington PO BOX 7O Boise, ldaho 83707 Land Use Staff f FINDINGS OF FACT AND CONCLUSIONS OF I.A'W Idaho Power North Wood River Valley 138 kV Transmission Linc Pmject - CUP-BCC January t2.2021 Page 14 of 14 Exhibit No. 2 Case No.IPC-E-21-25 R. Adelman, IPC Page 14 ol 14 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-21-25 IDAHO POWER COMPANY ADELMAN, DI TESTIMONY EXHIBIT 3 Owl Rock Road Route North Valley Redundant Line Project locrtlon: Owl Rock Road to Elkhorn Road Dlstancc: 1.4 Miles Tr.nsmlsslon UG Cost: S4,1m,000 Locruon: South Hospital Drive to Buttercup Rd./ W. Meadow Drive Dlstrnce:8.0 Miles Dlstrlbudon uG Crst: 55,700,000 Owrhad lrfMi$bn. Utdlgnund oirfibution s(fbo Undsgmnd lrsi$rbr undcrgund Dlrtrhlbn Scdo Undqgurd TmElkrion l*tbn olnhr.d lrmlnlorr l{o Dhlbulbn Sxtlon Exhibit No.3 Case No. IPC-E-21-25 R. Adelman, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-21-25 IDAHO POWER COMPANY ADELMAN, DI TESTIMONY EXHIBIT 4 North Wood River Valley Project Revised cost estimate August L5,1OL9 Description Overhead Transmlsslon Wood River Sub to Elkhorn Rd, Underground to Ketchum Sub Overhead 138-kV (w/ Engineering) Uncrossing T Line @ Wood River Sub Distribution Underbuild Underground 138kV (w/engineering) Wood River 138-kV Line Terminal Communications 138-kV Line Switches 138-kV Line Terminals IPC Management / lnspection Surveying Sub-Total 1 ContinBency Overheads* Expenses to date (w/OH) Sub-Total 2 AFUDC* Sionificont Possible Con@ ptuo I Vorionces : Right-Of-Way / Easements Underground Bore 3,969,048 300,000 1.,345,5t7 9,L56,L75 996,615 1,133,000 680,701 1,956,069 400,000 6,Or1,138 3,020,569 2,230,286 s 31,429,119 8%5 2,5t4,329 935,000 200,000 s s s s s s s s s 30% LSYo 5 200,000 5 2O,L37,L26 s s s s s Total Over/Underground Transmission Option:$ 35,078,443 Notes: All costs are preliminary and subject to change. Costs are based on conceptual design level estimates and may increase or decrease as the design is developed. Costs include contingency, current overheads, and estimated AFUDC, Overheads and AFUDC are subject to change based on current / future rates. Exhibit No.4 Case No. IPC-E-21-25 R. Adelman, IPC Page 1 of 1