20230524Comments.pdf

CLAIRE SHARP ODEPUTYATTORNEYGENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE,IDAHO 83720-0074
[phone]
IDAHO BAR NO.8026
Street Address for Express Mail:
11331 W CHINDEN BLVD,BLDG 8,SUITE 201-A
BOISE,ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )COMPANY'S PETITION TO MODIFY )CASE NO.IPC-E-23-13ORDERNO.34031'S TIMEFRAME FOR A )PRUDENCE DETERMINATION OF HELLS )CANYON COMPLEX EXPENDITURES )COMMENTS OF THE
)COMMISSION STAFF
COMMISSION STAFF ("STAFF")OF the Idaho Public Utilities Commission,by and
through its Attorney of record,Claire Sharp,Deputy AttorneyGeneral,submits the following
comments.
BACKGROUND
On April 21,2023,Idaho Power Company ("Idaho Power"or "Company")petitioned to
modify Order No.34031's timeframe for a prudence determination of the Hells Canyon
Complex ("HCC")expendituresincurred after December 31,2015 ("Petition").Petition at 1.
The Company represents it informally conferred with the parties'who signed ("Signing Parties")
the Settlement Stipulation ("Settlement")filed in Case No.IPC-E-16-32 about this extension and
no party objected.Id.at 5.
I The Settlement was signed by the Company,Commission Staff and the IrrigationPumpers Association,Inc.
STAFF COMMENTS 1 MAY 24,2023
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.Id.at 2.HCC
has approximately 1,167 megawatts of nameplate generation capacity.Id.The Company is
required to obtain a license from the Federal Energy Regulatory Commission ("FERC")to
operate HCC.Id.Idaho Power represents the previous license was to expire on July 31,2005.
Id.The Company asserts that it has an application pending with FERC to obtain relicensing of
HCC and in the interim has been operating HCC under annual licenses since July 2005.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.Order No.34031.
In 2019,the Company resolved "§401 certification issues in dispute"with Idaho and
Oregon,which was required for the final FERC license.Petition at 3-4.
This Petition requests a modification of Order No.34031's timeframe for a prudence
determination of HCC expendituresincurred after December 31,2015.Id.at 1.
The Company represents it has diligently worked to obtain the final license from FERC,
but believes circumstances warrant extending the Order No.34031 timeframe for a prudence
determination of HCC expenditures.Id.at 3.
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.Id.at 4.The Company represented that the draft EIS and fmal supplemental
EIS are required prior to a fmal FERC license being issued.Id.
The anticipated draft EIS and final supplemental EIS dates of June 2023 and December
2023,respectively,signal to the Company that it could have a final FERC determination and
license sometime in 2024 or 2025.Id.
The Company represented that this anticipated FERC determination,if received,supports
modifyingthe timeframe for the prudence determination of HCC expenditures incurred after
December 31,2015.Id.The Company stated this extension would promote judicialeconomy,
because the Company would otherwise be required to file two requests for prudence
determination of the HCC expendituresin a short period of time-one in 2023,consistent with
STAFF COMMENTS 2 MAY 24,2023
the timeframe of Order 34031,and then a second request in 2024 or 2025,dependingon the
anticipated FERC determination.Id.
The Company stated it would request a prudence review of HCC relicensing expenditures
incurred between December 31,2015 and December 31,2025,in early 2026 if the HCC license
is not received by year-end 2025.Id.
STAFF ANALYSIS
Staff supports the Company's request to file for a prudence determination within 12
months of receiving the final license,or in the event a final license is not received by year-end
2025,in early 2026 for prudence of expendituresincurred throughyear-end 2025.
Staff's recommendation is based on its review of the Company's petition,case records in
the IPC-E-16-32 docket,Staff comments,Order No.34031 and HCC Annual Reports filed in
2018 through 2022.The HCC Annual Reports include all expendituresincurred since December
31,2015 -the point in which Idaho Power's expenditures covered in the prudence request in
Case No.IPC-E-16-32 concluded.These expenditureswill be evaluated for prudency in another
case.
Idaho Power has made significant progress on obtaining a new long-term license for the
HCC.For example,one area of contention in 2018 was over the §401 certification.That
certification needs approval from both Idaho and Oregon before FERC will issue a license.In
2018,the states were not able to reach an agreement and resolution seemed uncertain.Other
necessary qualifications for a new FERC license were hinging on the §401 certification,such as
the Endangered Species Act (ESA)consultation,which would not happen until after the §401
certification process is completed.However,the two states reached an agreement in 2019.
Given this agreement,the Company believes the final license will be issued in 2024 or 2025.
Absent approval of the requested modification,the Company would have to file two prudence
determination cases,one in 2023 for the five years of expenses since 2018,per Order No.34031,
and another in 2025 for the remaining two years.If this petition is approved,the final prudency
determination for HCC could be consolidated into one case.
STAFF COMMENTS 3 MAY 24,2023
STAFF RECOMMENDATION
Staff recommends the Commission approve the Company's petition to modify the timing
of the prudence determination requirement approved by Order No.340311,from five years after
the Stipulation was approved on April 13,2018,and instead approve a prudence determination
within 12 months of receiving the final FERC license,or in the event a final license is not
received by year-end 2025,to file in early 2026 for prudence of expenditures incurred through
year-end 2025.
Respectfully submitted this day of May 2023.
Claire Sharp
Deputy AttorneyGeneral
Technical Staff:Laura Conilogue
i:umisc/comments/ipce23.13csiccomments
STAFF COMMENTS 4 MAY 24,2023
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 24**DAY OF MAY 2023,SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF,INCASENO.IPC-E-23-13,BY E-MAILING A COPY THEREOF,TO THEFOLLOWING:
LISA D NORDSTROM MATT LARKINMEGANGOICOECHEAALLENCOURTNEYWAITESIDAHOPOWERCOMPANYIDAHOPOWERCOMPANYPOBOX70POBOX70BOISEID83707-0070 BOISE ID 83707-0070E-MAIL:[e-mail] E-MAIL:[e-mail]
[e-mail] [e-mail]
[e-mail]
SC
CERTIFICATE OF SERVICE