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HomeMy WebLinkAbout20230613Comments of Commission Staff.pdfCHRIS BURDIN DEPUTY ATTORNEY GENERAL U " IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 SSN BOISE,IDAHO 83720-0074 (208)334-0314 IDAHO BAR NO.9810 Street Address for Express Mail: 11331 W CHINDEN BLVD,BLDG 8,SUITE 201-A BOISE,ID 83714 Attorneyfor the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S PETITION TO EXTEND THE )CASE NO.IPC-E-23-17 FILING DATE OF ITS 2023 INTEGRATED )RESOURCEPLAN ) )COMMENTS OF THE )COMMISSION STAFF COMMISSION STAFF ("STAFF")OF the Idaho Public Utilities Commission,by and through its Attorneyof record,Chris Burdin,Deputy AttorneyGeneral,submits the following comments. BACKGROUND On May 5,2023,Idaho Power Company ("Company")filed a petition ("Petition")with the Idaho Public Utilities Commission ("Commission")for a three-month extension to file the Company's 2023 electric integrated resource plan ("IRP").The Company requests that the Commission modify the filing date of the 2023 IRP from the last business day of June 2023 to the last business day of September 2023.The Company requested that its Petition be processed through modified procedure. The Company represents that its IRP examines the demand for energy over the next 20 years and identifies the best strategy to meet the forecasted demand for its customers.Petition at STAFF COMMENTS 1 JUNE 13,2023 2.The Company updates its IRP every two years and describes the Company's projected need for additional electricity and the resources needed to balance customer load,system reliability, environmental responsibility,efficiency,risk,and cost.Id. The Company represents that at the start of the 2023 process,the Company planned to share preliminarymodeling results in the Spring of 2023;however,input changes,model refinements,and model validation and verification have taken more time than expected.Id.at 4. The Company represents that permitting the Company to delay filing until the end of September of 2023 will ensure a more complete process,and that a delay is in the public interest and good cause exists to allow the modification of the filing date to allow public participation more fully prior to filing.Id. STAFF ANALYSIS Staff recommends that the Commission grant the Company's request to file the 2023 IRP no later than the last business day of September 2023.Staff believes the delayed filing will enable a better final report which will benefit ratepayers,and it will minimallyimpact upcoming filings that are dependent upon the IRP.Staff also recommends that the Company include an action item in the 2023 IRP to ensure timely delivery of the 2025 IRP. Verifying Model Accuracy is Important Staff believes that the recent model input changes are significant,and that verification of the revised models is both important and time consuming.Therefore,Staff agrees that delaying the IRP deadline to validate the accuracy of the models and to analyze the results is in the best interest of customers. The Company's fundamental reason for requesting a delay is that "input changes,model refinements,and model validation and verification have taken more time than expected." Petition at 4.The Company cited two recent changes to major IRP inputs.First,it expanded and refined its Effective Load Carrying Capability ("ELCC")model.Second,it adjusted the modeling parameters and assumptions for Jim Bridger Units 3 and 4,based on recent updates announced in PacifiCorp's 2023 IRP filing.These major input changes not only impact the model results,but they "extend the time needed for model setup,validation,verification,and portfolio analysis."Id.at 3. STAFF COMMENTS 2 JUNE 13,2023 In its Final Order regarding the Company's 2021 IRP,the Commission said,"the planning process is worthwhile when Idaho Power strenuously evaluates model inputs,verifies the model logic,and collaborates with engaged stakeholders."Order No.35603 at 8.In its Comments on the 2021 IRP,Staff also highlighted the importance of validating the models used to plan the Company's resources.Staff Comments,Case No.IPC-E-21-43 at 14. Customer Participationis Important The IRP Advisory Council ("IRPAC")membership consists of major industrial customers,irrigation representatives,elected officials,members of the environmental community,public utility commission representatives,and other interested parties.These members have actively participated in the IRP planning and scenario development for the past nine (9)months.The Company represents that because of the modeling delays,there is insufficient time to let the IRPAC review the modeling results and offer feedback to the Company.The Company states that it values the IRPAC consultation process,and to allow robust participation by the IRPAC,the Company requests an extension of the schedule.Staff agrees with this justification. Furthermore,after the IRPAC review,it is customary to open the IRP to 14 days of public review and comment before filing the report with the Commission.Unless the deadline is extended,this review will be forfeited.Staff believes the public review is important,which adds more justification for extending the deadline. Impacts from a Delayed IRP are Negligible Two recurring filings typically rely on the IRP data,so an IRP delay could impact these other filings.Staff believes the impacts will be negligible. Staff believes the Annual Load and Natural Gas Forecast Update case should not be affected.The updated forecasts become effective on October 15th of each year,and the Company typically uses the latest load and natural gas forecasts available at that time,not necessarily the most recent IRP. A delayed IRP will delay update of the Capacity Deficiency Date ("CDD")filing,which is used to determine the start of eligibilityfor avoided capacity payments for new Public Utility Regulatory Policy Act ("PURPA")contracts.See Order Nos.33917 and 34649.However,since STAFF COMMENTS 3 JUNE 13,2023 the Company is currentlyin deficit,and is expected to remain in deficit over the next three years, the capacity deficiency date will likelynot change;therefore,Staff believes this to be a negligible consideration. Pattern of Delay Staff is concerned that this is the second consecutive IRP that the Company has requested an extension.In addition,although the 2019 IRP was technicallysubmitted by the deadline,it had to be subsequently reworked,delaying the final submission by several months.To avoid a recurring pattern,Staff recommends that the Commission require the Company to submit a plan and schedule to ensure timelydeliveryof the 2025 IRP as part of the 2023 IRP action plan. STAFF RECOMMENDATION Staff recommends the Commission approve the following: Approve the Company's request to file the 2023 IRP no later than the last business day of September 2023;and Require an action item in the 2023 IRP to ensure timely deliveryof the 2025 IRP. Respectfully submitted this day of June 2023. Chris Burdin Deputy AttorneyGeneral Technical Staff:Matt Suess i:umisc/comments/ipce23.17cbmscomments STAFF COMMENTS 4 JUNE 13,2023 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 13TH DAY OF JUNE 2023, SERVED THE FOREGOING COMMENTS OF THE COMMSSION STAFF,IN CASE NO.IPC-E-23-17,BY E-MAILING A COPY THEREOF,TO THE FOLLOWING: LISA D NORDSTROM ALISON WILLIAMS MEGAN GOICOECHEA ALLEN IDAHO POWER COMPANY IDAHO POWER COMPANY PO BOX 70 PO BOX 70 BOISE ID 83707-0070 BOISE ID 83707-0070 E-MAIL:awilliams@idahopower.com E-MAIL:lnordstrom@idahopower.com mgoicoecheaallen@idahopower.com ipcdockets@idahopower.com SECRETARY CERTIFICATE OF SERVICE