20220406Reply Comments.pdf

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C. Tom Arkoosh,lSB No. 2253
ARKOOSH LAW OFFICES
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Attorneys for IdaHydro
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OF THE CAPACITY
DEFICIENCY TO BE UTILIZED FOR
AVOIDED COST CALCULATIONS
Case No. IPC-E-21-09
IDAHYDRO'S REPLY COMMENTS
COMES NOW the Idaho Hydroelectric Power Producers Trust, an ldaho Trust, d/b/a
IdaHydro ("IdaHydro"), by and through its counsel of record, C. Tom Arkoosh of Arkoosh Law
Offices, and hereby submits the following reply comments pursuant to Order No. 35346:
Introduction
Idaho Power Company ("ldaho Power") has asked the Idaho Public Utilities Commission
("Commission") to adopt2023 as its first capacity deficiency year. No participant in the pending
docket has asserted that Idaho Power will be capacity deficient no later than July 2023. No
participant seeks a hearing. The docket has been pending since June 3, 2021. Under the
Commission's procedural rules, now is time to determine the matter.
Comments
PURPA directs utilities to purchase power from cogenerators and small power producers
at avoided cost. Payment for two components, energy and capacity, comprise the avoided cost.
l8 CFR 292.304. In December2012, the Commission separated payments for energy and for
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IDAHYDRO'S REPLY COMMENTS - Page 1
capacity, delaying capacity payments until Idaho Power was capacity deficient. Order No.
32697. According to the Order, determination of the capacity deficiency date occurs from the
initiation of a docket following the completion of the lntegrated Resource Plan. The capacity
deficiency date determined by the Integrated Resource Plan is presumed correct.
Idaho Power filed its initial Application in this docket on June 3,2021, seeking a capacity
deficiency date in 2028. Subsequently, Idaho Power found itself in need of more immediate new
capacity, which caused it to file the IPC-E-21-41 docket seeking permission to acquire capacity
without employment of the Commission's competitive procurement rules. Consequently, on
February 4, 2022, Idaho Power filed an Amended Application seeking to set the capacity
deficiency date no later than July 2023. The Commission accepted the Amended Application and
ordered it be processed on modified procedure.
Discovery in this matter places the capacity deficiency date in July 2023:
REQUEST NO. l: When is or will Idaho Power Company be capacity deficient?
RESPONSE TO IDAHYDRO'S REQUEST NO. l: Idaho Power's 2021
Integrated Resource Plan filed December 30, 2021, indicates a first capacity
deficit in July 2023. Additionally, on February 4, 2022, Idaho Power filed a
Motion and Amended Application in docket IPC-E-21-09 "Application for
Capacity Deficiency To Be Utilized For Avoided Cost Calculations" which seeks
to establish a first capacity deficiency of July 2023 for purposes of PURPA
avoided cost pricing.
The response to this Request is sponsored by Mark Annis, Regulatory Consultant,
Idaho Power Company.
See Second Declaration of C. Tom Arkoosh.
This is the most recent Integrated Resource Plan, and thus presumed correct.
The Commission's Procedural Rule 204 provides on modified procedure the Commission
"may set the matter for hearing or may decide the matter and issue its order on the basis of the
written positions before it." No participant has requested a hearing. And no party has contested
IDAHYDRO'S REPLY COMMENTS - Page2
the 2023 deficiency date.
This matter is ripe for decision upon the uncontested position of the Amended Application
to set the capacity deficiency date no later than luly 2023.
The Staff has filed Amended Comments suggesting that Idaho Power include further
calculations in its supply and demand calculations and file the updated information "and a new
first capacity deficiency date as a compliance filing that incorporates [suggested] changes."
Further, the Staff suggests that the Commission initiate a generic docket to investigate if the
capacity deficiency docket be initiated at a different time than currently required.
Staffs analysis of Idaho Power's Application regarding the first deficit date is only
relevant when there is a question as to when the power company may or may not be resource
deficit. That is: fine tuning issues with great granularity such as what is the appropriate
magnitude of the planning reserve margin or when (or if) the Boardman to Hemingway line will
be operational are only relevant to an analysis that is trying to pinpoint exactly when the utility
will be resource deficit at some unknown date in the future. However, that is not the issue in this
docket. The answer to the question of when Idaho Power is currently capacity deficit is not
murky and does not require resolution of any of the issues raised by Staff.
Idaho Power has admitted it is actively acquiring capacity resources that will be placed in
service in 2023. Therefore, Idaho Power is, by definition, resource deficit in 2023. Whether or
not the Commission agrees such acquisitions are prudent, wise, or even legitimate ratepayer
obligations is irrelevant to answering the question at the heart of this case, which is: when is
Idaho Power acquiring new capacity resources? The answer is2023. No other date is supported
by the evidence and no other date complies with this Commission's obligation to implement
PURPA in such a way that QFs are allowed the opportunity to offer capacity to the utility in lieu
IDAHYDRO'S REPLY COMMENTS - Page 3
of the utility's acquisition of a like amount of capacity from another source.
PURPA projects (QFs) have the right to make their capacity available to the utility in
order to allow the utility to displace capacity acquisitions from other sources. If this Commission
ignores the fact that Idaho Power is acquiring capacity in 2023 and therefore sets a first deficit
date for PURPA purposes at any time beyond2023, it will have deprived QFs of a fundamental
right that is guaranteed to them under federal law. As this Commission is well aware, FERC
requires that capacity payments be made whenever a QF offers capacity and energy such that it
permits an electric utility to reduce firm power purchases. 45 Fed. Reg. 12214, 12216 (February
25, 1980). Any determination by this Commission of a deficit date beyond the date (2023) on
which Idaho Power is actually acquiring new capacity resources violates this fundamental tenant
of PURPA and FERC's implementation of that law.
DATED this 6m day of April2022.
ARKOOSH LAW OFFTCES
C. Tom Arkoosh
Attorney for IdaHydro
IDAHYDRO'S REPLY COMMENTS - Page 4
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on the 6m day of April2022,I served a true and correct copy
of the foregoing document(s) upon the following person(s), in the manner indicated:
Commission Secretary
Idaho Public Utilities Commission
I l33l W. Chinden Blvd., Building 8,
Suite 201-A
P.O. Box 83720
Boise, lD 83720-0074
Dayn Hardie
Idaho Public Utilities Commission
I l33l W. Chinden Blvd., Building 8,
Suite 201-,{
P.O. Box 83720
Boise, lD 83720-0074
Donovan E. Walker
Regulatory Dockets
Idaho Power Company
l22l West Idaho Street (83702)
P.O. Box 70
Boise, lD 83707
Camille Christen
Energy Contacts
Idaho Power Company
l22l West Idaho Street (83702)
P.O. Box 70
Boise,lD 83707
Peter J. Richardson
Richardson Adams, PLLC
515 N.27s St.
P.O. Box 7218
Boise, lD 83702
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IDAHYDRO'S REPLY COMMENTS - Page 5
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C. Tom Arkoosh
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