HomeMy WebLinkAbout20220318Notice_of_Application_Order_No_35349.pdfNOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35349 1
Office of the Secretary
Service Date
March 18, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
On February 28, 2022, Idaho Power Company (“Company”) applied to the Idaho
Public Utilities Commission (“Commission”) for an order (1) finding that all actual North Valmy
Power Plant (“Valmy”) investments from January 1, 2019, through December 31, 2021, were
prudently incurred; (2) validating that the Company has accurately quantified the Valmy balancing
account true-up as a result of the inclusion of actual costs through December 31, 2021, and updated
forecasted investments through December 31, 2025; and (3) confirming its request satisfies the
annual reporting required by Commission Order No. 34349. Application at 1. The Company
requested that its Application be processed by Modified Procedure. Id. at 6.
The Commission now issues this Notice of Application and Notice of Modified
Procedure setting deadlines for interested persons to comment on the Application and for the
Company to reply.
BACKGROUND
Valmy is a coal-fired power plant that consists of two units and is located near
Winnemucca, Nevada. Application at 2. NV Energy co-owns the plant with the Company and is
Valmy’s main operator. Id. The Company exited coal-fired operations of Unit 1 on December 31,
2019. Order No. 33983. The Company anticipates that it will exit from Valmy Unit 2 by end of
2025. Application at 2; see also Case No. IPC-E-21-43.
In Order No. 34349, the Commission approved a balancing account mechanism
designed to smooth revenue requirement impacts associated with the shutdown of Valmy and
allow for full recovery of Valmy-related costs near the plant’s end-of-life. Id. at 2. The
Commission also approved Valmy-related investments forecasted through December 31, 2025, to
IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR A
DETERMINATION VALIDATING THE
NORTH VALMY POWER PLANT
BALANCING ACCOUNT TRUE-UP
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CASE NO. IPC-E-22-05
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 35349
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be included in the levelized revenue requirement mechanism. See Id; see also Order Nos. 34349
and 33771. Order No. 34349 directed the Company (1) to file annual reports detailing the amounts
recorded to the Valmy balancing account, and (2) to submit a filing to true-up the balancing
account with forecast-to-actuals no later than February 28, 2022. See Order No. 34349 at 4; see
also Application at 3.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED the Company states that “there have been a number
of investments required to operate Valmy in a safe, efficient, and reliable manner, including
investments required to ensure environmental compliance as well as a number of investments for
routine asset replacement.” Application at 3. The Company states it completed 57 projects totaling
$4.66 million between January 1, 2019, and December 31, 2021. Id. The Company stated that since
2018, the largest expenditures were those made for reliability purposes—$2.04 million. Id. at 3-4.
However, the largest single investment made at Valmy for the same time-period was for repair of
the Unit 2 turbine high pressure/intermediate pressure section shell steam leak—$1.24 million. Id.
at 4.
YOU ARE FURTHER NOTIFIED that the Company provided its spending and
investment forecast for 2022 through 2025 in a Confidential Exhibit as required by Order No.
34349. Id.
YOU ARE FURTHER NOTIFIED the Company states that there are four costs
included in its balancing account: (1) the accelerated depreciation associated with existing Valmy
plant investments; (2) the return on the undepreciated capital investments at Valmy; (3) nonfuel
operations and maintenance (“O&M”) reductions; and (4) decommissioning costs related to the
Valmy shutdown. Id. Order No. 34349 approved an Idaho jurisdictional levelized revenue
requirement of $29.90 million that includes all Valmy-related plant investments as of December
31, 2018, projected additions to the Valmy plant through 2025, current and future non-fuel O&M
savings through December 31, 2025, and projected decommissioning costs. Id.
YOU ARE FURTHER NOTIFIED The Company represents that updating the
levelized revenue requirement based on the Valmy balancing account true-up with plant
investment balances and actual O&M savings through December 31, 2021, as well as future
investments and O&M savings through December 31, 2025, results in an annual levelized revenue
NOTICE OF APPLICATION
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ORDER NO. 35349 3
requirement of $31.68 million on an Idaho jurisdictional level, including $32.28 million associated
with existing investments, $2.86 million related to incremental investments, $1.10 million in
decommissioning costs, $4.45 million in non-fuel O&M savings, and a load variance
overcollection of $101,318—all representing an increase of $1.78 million from the revenue
requirement approved in Order No. 34349. Id. at 5.
YOU ARE FURTHER NOTIFIED that although Order No. 34349 requires the
Company’s filing to include a rate change effective June 1, 2022, the Company is not requesting
to adjust customer rates at this time. However, if the Commission determines that a June 1, 2022,
rate change is appropriate, the Company’s filing includes the necessary quantifications for the
Commission to calculate a rate change resulting from the annual levelized revenue requirement.
Id.
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission’s office. These documents are also
available on the Commission’s website 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.
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 this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments. Persons must file written comments by June 22, 2022. Comments must be
filed through the Commission’s website or by e-mail unless computer access is unavailable. To
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35349 4
comment 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
secretary@puc.idaho.gov
Street Address for Express Mail:
11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714
For Idaho Power Company:
Lisa D. Nordstrom
1221 West Idaho Street (83702)
P.O. Box 70
Boise, ID 83707
lnordstrom@idahopower.com
dockets@idahopower.com
Matt Larkin
1221 West Idaho Street (83702)
P.O. Box 70
Boise, ID 83707
mlarkin@idahopower.com
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
July 8, 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 the Company’s Application be processed by Modified
Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
comments must do so by June 22, 2022. The Company must file any reply comments by July 8,
2022.
IT IS FURTHER ORDERED that the 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35349 5
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 18th day
of March 2022.
ERIC ANDERSON, PRESIDENT
JOHN CHATBURN, COMMISSIONER
JOHN R. HAMMOND JR., COMMISSIONER
ATTEST:
Jan Noriyuki
Commission Secretary
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