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HomeMy WebLinkAbout20231115Direct Bradley Heusinkveld in Support of Stipulation and Settlement.pdfIDAHO PUBLIC UTILITIES COMMISSION, Case No. ICP-E-23-11 ICL; Settlement Testimony of B. Heusinkveld Matthew A. Nykiel (ISB No. 10270) 710 N. 6th St. Boise, Idaho 83702 Phone: (719) 439-5895 Email: matthew.nykiel@gmail.com Attorney for the Idaho Conservation League BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR ELECTRIC SERVICE IN THE STATE OF IDAHO AND FOR ASSOCIATED REGULATORY TREATMENT ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-11 TESTIMONY IN SUPPORT OF SETTLEMENT STIPULATION OF BRADLEY J. HEUSINKVELD FOR THE IDAHO CONSERVATION LEAGUE November 15, 2023 RECEIVED 2023 NOVEMBER 15, 2023 4:18PM IDAHO PUBLIC UTILITIES COMMISSION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 HEUSINKVELD, DI Idaho Conservation League Page 1 I. INTRODUCTION AND TESTIMONY Q. Please state your name. A. My name is Bradley J. Heusinkveld. Q. Please state your employer, business address, and position. A. I am the Energy Policy Associate for the Idaho Conservation League. My business address is 710 N. 6th Street, Boise, Idaho. Q. Please describe your educational and professional background. A. I hold a Batchelor of Science Degree in Chemistry from the University of Puget Sound and Juris Doctorate from Lewis & Clark Law School. Prior to pursuing a law degree, I worked as an analytic chemist, first under contract for the Environmental Protection 10 CERCLA Emergency Response program in Seattle, Washington, and then for Glorietta Geoscience, Inc., a hydrogeology consulting firm in Santa Fe, New Mexico. Integrated Resource Planning, efficiency program development, and other avenues for energy and decarbonization advocacy. I frequently engage in utility dockets at the Idaho brought by Intermountain Gas Company and Avista Corporation in the past calendar year. I advise my colleagues at ICL on energy and regulatory matters as they intersect with other with colleagues across the Pacific and Intermountain West on regional energy advocacy. // 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 HEUSINKVELD, DI Idaho Conservation League Page 2 My organizational goal is to promote access to affordable and reliable energy that ensures the quality of life of Idahoans by protecting clean air, clean water, resilient landscapes and critical to all, a stable climate system. Q. Have you previously testified before the Commission? A. General Rate Case, AVU-E-23-01, at technical hearings before the Commission on August 2, 2023. My testimony was limited in scope to the written responses of Lauren McCloy, a colleague employed by the Northwest Energy Coalition. Q. What is the purpose of your testimony in this proceeding? A. The purpose of my testimony is to support the settlement stipulations agreed to by all intervenor parties -E-23-11. Intervenor parties (collectively, Parties are: The Company filed a proposed settlement agreement and an accompanying motion with the Commission on October 27, settlement and recommends the Commission adopt it without material alteration or conditions. // // // 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 HEUSINKVELD, DI Idaho Conservation League Page 3 Q. Do you believe the settlement is in the public interest and meets fair, just, and reasonable standards. A. Yes. Parties agreed to the proposed settlement following extensive negotiations and , work papers, discovery, and data requests. Importantly, all Parties agreed to the settlement in its totality. Staff and intervenors collectively represent a diverse set of customer groups and interests. Reaching an agreeable compromise between all twelve Parties necessitated balancing these interests, while ICL believes the settlement is a fair compromise and in the public interest. Parties arrived at moderate reductions in revenue requirement, rate of return, revenue adjustments, and reasonable alterations to rate design elements. Broadly, these adjustments would reduce bill impacts to customers, more equitably spread revenue burdens between customer classes, gradually change rate design elements, and better align cost allocation to system costs. We believe the application. Q. How did the Parties arrive at settlement? A. Settlement meetings with the Company began on September 18, 2023 followed by a series meetings between Staff and intervenors. All parties attended, in person or remotely. While the contents of the negotiations remain confidential under Commission Rule 272, the parties extensively negotiated the multitude of issues presented by the C application, resulting in several iterative settlement proposals. Individual parties supported positions with various analyses and sample work papers, some of which are incorporated into the proposed settlement before the Commission. Over three weeks of meetings 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 HEUSINKVELD, DI Idaho Conservation League Page 4 concluding on October 5, 2023, Parties and the Company gradually moved towards the broad contours of a prospective agreement while addressing individual issues and navigating inherent tensions and trade-offs between party positions. Staff and all the intervenor parties aligned around a wholistic offer, which the Company accepted before drafting and revising the proposed settlement and motion delivered to the Commission on October 27, 2023. Q. Did ICL advocate for any settlement provisions? A. Yes. During negotiations ICL advocated for several positions and, at times, supported the requests of other parties. In other instances, we withheld commentary or deferred to the positions and analysis of others. To reach agreement, we moderated our positions to accommodate other parties and the Company. Q. How does the Settlement Address the Idaho Conservation Leagues interests? A. aims to promote energy efficiency and renewable integration as steps toward decarbonization. We believe the proposed settlement offers a marked improvement If adopted by the Commission, the settlement would more gradually increase monthly customer charges, an issue we focused on in previous dockets before the Commission, as it impacts rate payer interests in efficiency, intraclass equity, and its relation to long term resource planning and , commitment to develop a revenue neutral bill protection program, and engagement with parties on examining cost of service methodologies. Additionally, the settlement allows the Company to better utilize investment tax credits, support demand side management programs, and manage its efficiency programs. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 HEUSINKVELD, DI Idaho Conservation League Page 5 Q. How did ICL evaluate the settlement stipulations? A. ICL assessed the settlement stipulations in their totality. While we advocated for a number of provisions, we ultimately agreed to the proposal as a whole, based on its fairness and compatibility with the public interest. application and the stipulations are interrelated, and fairness requires delicate balancing and co-consideration. We believe the negotiations and proposed settlement before the Commission accommodate this balance, and so offer our support. We would have been unlikely to accept a bifurcated settlement with some parties agreeing on individual issues and disagreeing on others. In this instance, an all-parties, all-issues settlement was key to our evaluation of a fair and just offer. II. CONCLUSION Q. What are your recommendations regarding the proposed settlement? A. I recommend the Commission accept the proposed settlement in whole without material alteration or condition. It represents a fair compromise between the Company and P concerns, and accommodates the public interest. Q. Do you offer other concluding remarks? A. Yes. I appreciate the efforts of the Staff, Company, and Parties in this matter. In my opinion, the breadth and complexity of matters in this rate case is impressive and was well handled. Reaching settlement required respect, tact, and flexibility from all, and it is good to see commonality emerge from our various posts and perspectives. Q. Does this conclude your testimony? A. Yes, it does. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 HEUSINKVELD, DI Idaho Conservation League Page 6 DECLARATION OF BRADLEY J. HEUSINKVELD I, Bradley J. Heusinkveld, declare under penalty of perjury under the laws of the state of Idaho: 1. My name is Bradley J. Heusinkveld. I am employed by the Idaho Conservation League as Energy Policy Associate. 2. On behalf of the Idaho Conservation League, I present this pre-filed direct testimony. 3. To the best of my knowledge, my testimony is true and accurate. I declare that the above statement is true to the best of my knowledge and belief, and that I understand it is made for use as evidence before the Idaho Public Utilities Commission and is subject to penalty of perjury. SIGNED this 15th Day of November 2023 in Boise, Idaho. Signed : Bradley J. Heusinkveld IDAHO PUBLIC UTILITIES COMMISSION, Case No. ICP-E-23-11 Idaho Conservation League Certificate of Service Page 1 CERTIFICATE OF SERVICE I hereby certify that on this 15th day of November, 2023, I delivered true and correct copies of the foregoing TESTIMONY to the following persons via the method of service noted: /s/ Matthew A. Nykiel Matthew A. Nykiel (ISB No. 10270) Attorney for Idaho Conservation League Electronic Mail Only (See Order No. 35058): Idaho Public Utilities Commission Jan Noriyuki Commission Secretary jan.noriyuki@puc.idaho.gov secretary@puc.idaho.gov Commission Staff Chris Burdin Deputy Attorney General Idaho Public Utilities Commission chris.burdin@puc.idaho.gov Idaho Power Company Lisa Nordstrom Megan Goicoechea Allen Donovan Walker lnordstrom@idahopower.com mgoicoecheaallen@idahopower.com dwalker@idahopowr.com Tim Tatum Connie Aschenbrener Matt Larkin ttatum@idahopower.com caschenbrenner@idahopower.com mlarkin@idahopower.com Clean Energy Opportunities for Idaho Kelsey Jae Law for Conscious Leadership 920. N. Clover Dr. Boise ID, 83703 kelsey@kelseyjae.com Mike Heckler Courtney White mike@cleanenergyopprotunites.com courtney@cleanenergyopprotunites.com IIPA Eric Olsen Echo Hawk & Olsen, PLLC P.O. Box 6119 Pocatello, ID 83205 Lance D. Kaufman, Ph.D 2623 Blue Bell Pl. Corvallis OR, 97330 lance@aegisinsight.com IDAHO PUBLIC UTILITIES COMMISSION, Case No. ICP-E-23-11 Idaho Conservation League Certificate of Service Page 2 ICIP Peter Richardson Richardson Adams, PLLC peter@richardsonadams.com Dr. Don Reading 280 Silverwood Way Eagle ID, 83616 Micron Technology, Inc. Jim Swier Micron Technology, Inc. 8000 S. Federal Way Boise ID, 83707 Austin Rueschhoff Thorvald Nelson Austin W. Jensen Holland & Hart, LLP darueschhoff@hollandhart.com tnelson@hollandhart.com awjensen@hollandhart.com aclee@hollandhart.com clmoser@hollandhart.com IdaHydro Tom Arkoosh Arkoosh Law Office 913 W. River St., Suite 450 P.O. Box 2900 tom.arkoosh@arkoosh.com erin.cecil@arkoosh.com City of Boise Ed Jewel Daryl Early Deputy City Attorneys 150 N. Capitol Blvd., PO Box 500 Boise, ID 83701-0500 ejewell@cityofboise.org dearly@cityofboise.org boca@cityofboise.org Wil Gehl Boise City Dept. of Public Works wgehl@cityofboise.org Federal Executive Agencies Peter Meier U.S. Department of Energy 1000 Independence Ave. SW Washington, D.C. 20585 peter.meier@hq.doe.gov Dwight Etheridge Exeter Associates 5565 Sterrett Place, Suite 310 Columbia, MD 21044 detheridge@exeterassociates.com NW Energy Coalition Diego Rivas NW Energy Coalition 1101 8th Ave. Helena, MT 59601 diego@nwenergy.org Benjamin J. Otto 1407 W. Cottonwood Court Boise, ID 83702 ben@nwenergy.org Walmart, Inc. Justina A. Caviglia, pro hac vice Parsons Behle & Latimer 50 West Liberty St., Ste. 750 Reno, NV 89502 jcaviglia@parsonsbehle.com Stephen Chriss Walmart, Inc. 2608 Southeast J Street Bentonville, AR 72716 Stephen.chriss@walmart.com