20230614Final_Order_No_35816.pdf

ORDER NO. 35816 1
Office of the Secretary
Service Date
June 14, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S PETITION TO MODIFY
ORDER NO. 34031’S TIMEFRAME FOR A
PRUDENCE DETERMINATION OF HELLS
CANYON COMPLEX EXPENDITURES
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CASE NO. IPC-E-23-13

ORDER NO. 35816

On April 21, 2023, Idaho Power Company (“Idaho Power” or “Company”) petitioned the
Idaho Public Utilities Commission (“Commission”) to modify Order No. 34031’s timeframe for a
prudence determination of the Hells Canyon Complex (“HCC”) expenditures incurred after
December 31, 2015. Petition at 1.
The Company represented it informally conferred with Commission Staff and the Irrigation
Pumpers Association, Inc. (“Signing Parties”)—who signed the Settlement Stipulation
(“Settlement”) filed in Case No. IPC-E-16-32—about this extension and no party objected. Id. at
5.
On May 5, 2023, the Commission issued a Notice of Petition and Notice of Modified
Procedure establishing public comment and Company reply deadlines. Order No. 35771.
Staff filed comments to which the Company notified Staff it would not be filing a reply.
No other comments were received.
The Commission now issues an order granting a modified timeframe for a prudence
determination for the HCC.
THE PETITION
The HCC “consists of three hydroelectric projects (dams, reservoirs, and powerhouses) on
the segment of the Snake River forming the border between Idaho and Oregon.” Petition at 2. HCC
has “approximately 1,167 megawatts of nameplate generation capacity” and the Company is
required to obtain a license from the Federal Energy Regulatory Commission (“FERC”) to operate
HCC. Id. Idaho Power represented the previous license expired on July 31, 2005, and it has been
operating HCC under “annual licenses since July 2005” while its FERC relicensing application is
pending. Id.
In Case No. IPC-E-16-32, the Company sought a prudence review of all HCC relicensing
expenses incurred through the end of 2015. In 2018, the Commission approved the Settlement on
HCC relicensing expenses incurred through December 31, 2015, and required the Company to

ORDER NO. 35816 2
request a “prudence determination for expenditures incurred between December 31, 2015 and
April 13, 2023” within five years from the Commission’s approval of the 2018 Settlement. Order
No. 34031.
The Company represented it has taken important steps to obtain the final FERC license,
notably the 2019 resolution of contested Clean Water Act § 401 certification issues with Idaho and
Oregon required for a final FERC license. Petition at 3-4; 33 U.S.C. § 1341(a)(1).
The Company stated FERC anticipated its “draft supplemental Environmental Impact
Statement (“EIS”) will be published in June 2023 and the final supplemental EIS will be issued in
December 2023.” Petition at 4. The Company represented the draft EIS and final supplemental
EIS are required prior to a final FERC license being issued and signal to the Company that a final
FERC determination and license could be issued sometime in 2024 or 2025. Id.
The Company argued this information about an anticipated FERC license supports
modifying the timeframe for the prudence determination of HCC expenditures incurred after
December 31, 2015 as initially agreed to and later approved in Order No. 34031. Id. The Company
argued this modification promotes judicial economy, because the Company would otherwise be
required to file two requests for prudence determinations of the HCC expenditures in a short period
of time—one in 2023, consistent with the timeframe of Order No. 34031, and then a second request
in 2024 or 2025, following the anticipated FERC license. Id. at 4. For these reasons, the Company
asked to file a prudence determination within 12 months of receiving the final FERC license; and
alternatively, if the final FERC license is not received by year-end 2025 as anticipated, the
Company asked to file a prudence determination in early 2026. Id.
STAFF’S COMMENTS
Staff reviewed the Company’s Petition and supported the Company’s request to extend the
timeframe for a prudence determination of the HCC expenditures. Staff Comments at 3-4. Staff
noted “significant progress” from the Company toward obtaining a final FERC license and agreed
that the Company would be required to file two prudence determinations in a short window of time
if the Commission rejected the requested extension. Id. at 3. As proposed by the Company, Staff
recommended the Company file a prudence determination within 12 months of receiving the final
FERC license, or in early 2026, if the final FERC license is not received by year-end 2025. Id. at
4.

ORDER NO. 35816 3
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-502 and 61-
503. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and 61-503.
The requested modification promotes judicial economy as the Company would otherwise
be required to file two requests for prudence determinations of the HCC expenditures in a short
period of time—one in 2023, consistent with the timeframe of Order No. 34031, and then a second
request in 2024 or 2025, following the anticipated issuance of a final FERC license. The Company
has been diligent in its efforts to obtain the final FERC license, and without objection from the
Signing Parties of the Settlement it is reasonable to adjust the timeframe based on the Company’s
representations that a final FERC license may be issued in 2024 or 2025. Therefore, the
Commission finds it reasonable to modify the timeframe for the required prudence determination
originally set in Order No. 34031.
O R D E R
IT IS HEREBY ORDERED that the Company’s request for a modification of the
timeframe in Order No. 34031 for the prudence determination of HCC expenditures incurred after
December 31, 2015, is granted.
IT IS FURTHER ORDERED that the Company is directed to file a prudence determination
of HCC expenditures incurred after December 31, 2015, within 12 months of receiving the final
FERC license, or in early 2026, if the final FERC license is not received by year-end 2025.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.

ORDER NO. 35816 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 14th day of
June 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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