20230302Application.pdf

LISA D. NORDSTROM
Lead Counsel
[e-mail]
March 2, 2023
VIA ELECTRONIC FILING
Jan Noriyuki, Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg 8,
Suite 201-A (83714)
PO Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-23-07
In the Matter of the Application of Idaho Power Company for an Order
Approving the Transfer of Certain Assets Associated with Ritter Island
Dear Ms. Noriyuki:
Enclosed for electronic filing please find Idaho Power Company’s Application in the
above matter.
If you have any questions about the attached documents, please do not hesitate
to contact me.
Very truly yours,
Lisa D. Nordstrom
LDN:sg
Enclosures
RECEIVED
2023 March 2, PM 4:33
IDAHO PUBLIC
UTILITIES COMMISSION
APPLICATION - 1

LISA D. NORDSTROM (ISB No. 5733)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]

Attorney for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ORDER APPROVING THE TRANSFER
OF CERTAIN ASSETS ASSOCIATED
WITH RITTER ISLAND.

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CASE NO. IPC-E-23-07

APPLICATION

Idaho Power Company (“Idaho Power” or “Company”), in accordance with Idaho
Code § 61-328 and 61-524 and Rule of Procedure 52, hereby respectfully makes
application to the Idaho Public Utilities Commission (“Commission”) for an order
approving the proposed conveyance of approximately 1.09 acres of land (“Ritter Island
Parcel”), located in Gooding County, Idaho, to the Idaho Department of Parks and
Recreation (“IDPR”). The Ritter Island Parcel is visually depicted on the map found in
Attachment 1.
In support of this verified Application, Idaho Power asserts as follows:
I. BACKGROUND
1. In 1989, the Company acquired approximately 1.09 acres of land on Ritter
APPLICATION - 2

Island, located in the Thousand Springs area of the Snake River, south of Hagerman,
Idaho, as part of a Federal Energy Regulatory Commission (“FERC”) required mitigation
package associated Idaho Power’s mid-Snake hydro facilities— Bliss, Lower Salmon, and
CJ Strike. At the time of this acquisition, the Ritter Island Parcel was one parcel within a
portion of certain lands in the Thousand Springs area of Gooding County owned by The
Nature Conservancy (“TNC”), a nonprofit corporation centered around environmental
stewardship. The totality of these lands was referred to as the “Thousand Springs
Project,” which was acquired by TNC to preserve and protect the Thousand Springs area.
In anticipation of mitigation for mid-Snake relicensing, Idaho Power facilitated TNC’s
purchase of these properties. Correspondingly, TNC granted Idaho Power a conservation
easement on several of the parcels. Additionally, TNC conveyed two homesites on Ritter
Island to Idaho Power.
2. In 2006, TNC sold its interest in the Thousand Springs properties to IDPR
to ensure long-term protection and management by the state in a location where IDPR is
already actively managing resources and property. Following this transaction, IDPR was
the sole owner of the Thousand Springs properties and the lands located on Ritter Island,
with the exception of the Ritter Island home sites, which had been conveyed to Idaho
Power in 1989.
3. In the early 2000’s, Idaho Power received new FERC licenses for its mid-
Snake hydro facilities and two of four parcels with conservation easements were used as
mitigation. Subsequent to issuance of the new licenses, Idaho Power entered into a
settlement agreement with the United States Fish and Wildlife Service (“USFWS”)
addressing Endangered Species Act (“ESA”) protected aquatic snails, allowing for load
APPLICATION - 3

following at the hydro projects. As part of its approval of this settlement agreement, FERC
increased the amount of aquatic habitat required for mitigation purposes.
4. In order to meet the increased requirement for aquatic habitat mitigation,
Idaho Power began negotiations to acquire the necessary lands around the mid-Snake
hydro facilities. Through these discussions, Idaho Power worked with IDPR to reach
agreement towards applying the remaining two parcels with conservation easements on
IDPR-owned portions of the Thousand Springs Project to help meet the increased
mitigation requirement. In exchange for supporting Idaho Power’s proposal and
associated management plan with FERC, IDPR asked Idaho Power to relinquish the two
homesites it owns on Ritter Island to IDPR, resulting in a win-win situation for Idaho Power
and IDPR. For Idaho Power, the ability to utilize the existing conservation easements
would assist the Company in satisfying the increased FERC-imposed aquatic habitat
mitigation, while the conveyance of the Ritter Island Parcel would make IDPR the sole
owner of lands on Ritter Island. It is Idaho Power’s understanding that without the
conveyance, IDPR is unable to attain funding to expand their efforts on the island due to
encumbrances associated with Idaho Power’s ownership of the Ritter Island Parcel.
II. DESCRIPTION OF TRANSACTION
5. Under the proposed transaction, Idaho Power would transfer the Ritter
Island Parcel at zero cost to IDPR. As discussed in further detail below, this conveyance
is the result of negotiations that ultimately led to the relicensing of the Company’s mid-
Snake hydro facilities, which provide clean, reliable, low-cost electricity to Idaho Power’s
customers.

APPLICATION - 4

III. IDAHO CODE § 61-328
6. Pursuant to Idaho Code § 61-328, an electric utility must obtain approval
from the Commission before it sells or transfers ownership in any generation,
transmission, or distribution plant located in Idaho.
Before authorizing the transaction, the public utilities
commission shall find: (a) That the transaction is consistent
with the public interest; (b) That the cost of and rates for
supplying service will not be increased by reason of such
transaction; and (c) That the applicant for such acquisition or
transfer has the bona fide intent and financial ability to operate
and maintain said property in the public service.

Idaho Code § 61-328(3).
7. The proposed transfer of the 1.09-acre Ritter Island Parcel meets the
above-stated requirements of Idaho Code § 61-328(3). The transaction is in the public
interest as it resulted in the successful negotiation of a settlement agreement that led to
FERC’s approval of new licenses for the mid-Snake hydro facilities. Absent the settlement
agreement, Idaho Power would have likely been required to seek out other costlier
options to provide the incremental habitat mitigation required by FERC’s new license
requirements. Lack of reaching settlement in this case could have resulted in extended
costly litigation associated with obtaining the new licenses and/or the requirement to
acquire other mitigation properties at further expense to the Company. By utilizing lands
acquired under a prior settlement negotiation in 1989, the Company was able to resolve
this portion of the current settlement with no incremental cost to customers.
Consequently, the cost of rates for supplying service will not be increased by this
transaction.
APPLICATION - 5

8. As a governmental body whose mission is to improve the quality of life in
Idaho through outdoor recreation and resource stewardship, IDPR has the bona fide
intent and financial ability to operate and maintain the land in the public service.
IV. PROPOSED ACCOUNTING
9. The original cost of the 1.09 acres of land was $504,985.48. To record the
conveyance of the land, the original cost would be removed from FERC Account 101,
Electric Plant-in-Service, with an offset to FERC Account 426.1, Donations.
V. MODIFIED PROCEDURE
10. Idaho Power believes that a technical hearing is not necessary to consider
the issues presented herein, and respectfully requests that this Application be processed
under Modified Procedure; i.e., by written submissions rather than by hearing. RP 201 et
seq.
VI. COMMUNICATIONS AND SERVICE OF PLEADINGS
11. Communications and service of pleadings with reference to this
proceeding should be served on the following:
Lisa D. Nordstrom Matt Larkin
Idaho Power Company Idaho Power Company
1221 West Idaho Street (83702) 1221 West Idaho Street (83702)
P.O. Box 70 P.O. Box 70
Boise, Idaho 83707 Boise, Idaho 83707
[e-mail] [e-mail]
[e-mail]

VII. REQUEST FOR RELIEF
12. Idaho Power respectfully requests a Commission order authorizing the
proposed conveyance of the 1.09 acre Ritter Island Parcel to IDPR consistent with the
requirements of Idaho Code §61-328.

APPLICATION - 6

DATED at Boise, Idaho, this 2nd of March 2023.

LISA D. NORDSTROM
Attorney for Idaho Power Company

STATE OF IDAHO )
) ss.
County of Ada )
VERIFICATION
LISA D. NORDSTROM, being duly sworn, deposes and states that she is an
attorney for Idaho Power Company, that she has read the foregoing Application and
knows the contents thereof, and that the same are true to the best of her knowledge and
belief.
LISA D. NORDSTROM
SUBSCRIBED AND SWORN TO before me, a notary public of the state of Idaho,
this 2nd day of March 2023.
APPLICATION - 7
Notary Public for Idaho
Residing at Meridian, Idaho My commission expires:-'-1""""1/---0=2=/2"""0 ___ 2_4 ___ _
APPLICATION - 8
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on the 2nd day of March 2023, I served a true and correct
copy of Idaho Power Company’s Application upon the following named parties by the
method indicated below, and addressed to the following:

Commission Staff
Dayn Hardie
Deputy Attorney General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg No. 8,
Suite 201-A (83714)
PO Box 83720
Boise, ID 83720-0074

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Idaho Department of Parks and Recreation
Heidi Burks
Adam Zaragoza
Idaho Department of Parks and Recreation
PO Box 83720
5657 Warm Springs Ave.
Boise, Idaho 83714

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________________________________
Stacy Gust, Regulatory Administrative
Assistant

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-23-07
IDAHO POWER COMPANY
ATTACHMENT NO. 1
Idaho Power Ritter Island Parcel
Land to be conveyed to Idaho Department of Parks and Recreation
Legend
1000 Springs Resort
Idaho Power Ritter Island Parcel
Lemmon falls
Ritter Island State Park
THOUSAND SPRINGS - Power Plant
THOUSAND SPRINGS SUBSTATION
1000 ft
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