20111021Power and Cassia County Comments.pdf

Douglas J. Balfour, Chartered R E C E
230 W. Lewi
P.O. Box 490 2011 OCT 2\ AM 8: 25
PocateUo, ID 83204-f90
Phone: [phone]
Fax: [phone]
E-ma dbal068(Jma.com
October 19,2011
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Idaho Public Utilties Commission
P.O. Box 83720
472 Vl. Washington
Boise,ID 83720-0074
RE: Idaho Power / IRP / Rocky Mountain Power Rate Case
Ladies and Gentlemen:
With ths letter is a letter from the Board of County Commissioners of Cassia County and
Power County, Idaho. Please consider that letter to be comments on both Idaho Power's 2011
Integrated Resources Plan, and Rocky Mountain Power's Rate Case.
DOUG~ALFO
DJB/jay
cc: Kerr McMuray, Vicki Meadows, Ron Fun
Delane Anderson, Scott Bedke, Brent Stoker, Brett Crompton
POWER COUN
STATE 01' IDAHO
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Octobe 6, 201 i
Idah Public Utilities Commission
P.O. Box 83720
472 W. Washingtn
Boise, ID 83720-0074
RE: Ida Powe Gateway Wes Traission Line Project
This letter is sent frm th Bo of County Commssone of Power Coun Ida and the Boar of
County Commissioner of Casia County Idaho conceng Idaho Power and! Ro Mountan Power's
Gateway West Trasmisson Line Project. Both Powe County and Cassia County ar Cooperati
Agencies with th Buru of La Mangemet for the Envirnmenta Impa Anys on ths prject.
The Draft Environmenta Impa Statement ha ben releaed for public review an commnt, with th
review period ening Ocber 28, 2011.
In genera plea consde th lett to be cots to th !PUC on Ida Powr's 2011 In
Resour Plan (IR), an on the Roc Mouta rate ca. Ths lett is to reuest the IPC tae notice
of th fact tht Idao Powe and Rocky Mountan Power ar spedig an plan to sp a lot of money
on what we believ to be an un an il advise project. Eventuly Ida Power may ver well
come before the Ida Public Utiliti Commssion to sek eith prprova of th project pu to
Idao Code 561-541, or follwi th prjec to sek. th the cot inctU be recove from rae
paye. Rocky Mounta Powe ha aly so to rever trssion prjec co in th curt
rate ca. Th unign Counti wish to mae the IPUC awa tht th Counties do not believe the
Gaeway West Prject to be advisable, an th Integr Resce Plan should be amended to reflect
tht praicaity.
Idaho Powe ha submitt documts to th BLM, inicaing th thir pur$ê and ne fo ths prjec
is largely ba upn thei anysis for dean fur eletrcity, esti in 2007, 2008 an 200. At th
time of subission of inorion to th BLM for the BIS coerg th powe ne, Idao Powe wa
ope uner its 2009 IRP. Cha i of th Gaway Wes Dr EnvIta Impa Statement
addr th purse and ne for the prje an Ida Power's demad prjections, ba up
assumions contaed in th 200 IRP.
Th Counties believ tht may of the aspton us by Idao Powe, to jusfy this extry
expeve project ar faulty, ba upon asptons th ar not likely, or have no prn tr sinc
th 2009 IRP. Any condtions tht exist seer year ago which may have incat a ne for th
Gay West Prje have cith disape or be prven incorrt.
Idao Powe ha rently iss a new an revise IR, th 20 I 1 verion. 1Ie 2011 IR speifically
st th Ida Power's "averge sytem loa fore is lowe th th 2009 IR avee syst loa
foret in all yea of the fore. The slow down in the natona and servce-ar economy cause
loa grwt to slow signficatly. In addition the signficat incr in asum DSM combined with
rel electrc price assumptons th incorprate esmates of asumed cabon legilation seed to
dere th for of ave loa."
Thus Ida Power's own docents indca tht th anysis tht bee the undeying bøis for
Gateway Wes ha be grly modified an reise. Thc Counties believe these chaes signficatly
queon th purse and ne for ths prect. The Countie ar concerned th th Gateway Wes
Prject if allowe to pro, will substtially incree rates for all rae payers in th Idaho Power
service ara. Th Counties believe this would be unecessar, as curnt forests do not provide a ne
for th Gateway Wes Prject.
When th Gateway Wes Prject wa fit prented, Idao Powe assued th ther would be can
legislation, cither in the form of ca and tre or a cabon ba ta. Given Ul curt political climate
towa those tw poibilities thos appe to be very fauty asumptons, an ye on upon whidi Idah
Powe projec the ne for wind power fr th Gateway West Project.
The 200 IR prumed tht Hom Materials would ben opetions in Jim 2011 an re ful
caity by Ap 2011. It is now Ocber 2011 an opeons have Jlt bè Th we simil
asption in the 200 IR, including a proection tht the housing slow down would reer an oth
customers of Ida Powe would incre their dema. 'Tse have not proven out.
In adtion, Idao Powe ha on its own, ad natu ga peng plants, an is cutly bulding th
Laely Gulch plant, whch will prvide an on dema pe capaity of 300 mewa.
Th cot of wind en ha ver publicy be crticize by Idalo Powe, wh have baicaly clai
th they do not wat, no do th ne any adtion wid generaed enrg. '
Th 2011 IR discus th Gatey Wes Prje but only as a long teiplan to be consid in
2021 to 2030. "It is importt to note th th Gaeway Wes Prject wa includ in eah reso
portio fur ony th send te (10) ye peod wh th curnt trsson conts re thaddition of ne tnsson caity for reur to be adde in Sout Ida ea of th Tre
Valley loa ceter". Th 2011 IRP went on to state tht "althgh reurs in th prfe poolio for
th send te (10) yea peod we anyz wi th addition of th Gaway West Trassion
Prject, Ida Power pls to continue permttng th Gateway Wes Prjec be of un
asciat with th loction of reures plan so fa in th futu an th long lea ti reuir to
pet high volta tission prjec".
It is importt to note th th ne te, te (10) ye, aeon plan 201 1-20i6, do no even coider
th Gay Wes Prje.
Th obou re fo ths is explai abve, is th Ida Power rely dO no ne th Gateway
West Prjec an it do not fit well withn Ida Po's futu plas. In th trssion plll
setion of th 2011 IR, th Gay West Pr is not even mentione. It is ob th GayWes is . muc mo re pobility th wh wa as by Ida Powe in its pu an ne
totIBLM.
The Wesrn Electrcity Coordatin Counsel (WCC) ha rently anoun a propo to revaluate
reliabilty critera an speifcaly their seartion crteria. Agai, tht WECC setion crtea is a
major factor in the prposa for th Gateway West Prject. To prced uner asumptions th may
chage, which may greatly alte the routs, would be inappropriate at this tie.
The Gateway West Project thus baically bemes a purly merchat transsion lin, to trsmit
electrcal power from coal an wi genertion in Wyoming to aras of ¡Californa an the des
Southwest, all at grea expens to Idaho Power rate payer.
The Public Utilties Commssion ha an aweme rensibilty to the rate payer, to prote thm
agns unecessa or extrvagat expees tht may fid their way into the rate ba. The rate payer
depend upon the IPUC for ths fucton. Rate payers need the PUC to aser its power and custome
protetion on ths project, imiately. Th maorty of th Gaeway Westi route ar in Idao. Th
Tota cost for the project, to be borne by Rocky Mountan Power and Ida Power ra paye is in an
excess of two (2) bilion dollar, and climbing steaily. Given the uncertty of may of the
asumptions tht lea to this prposa, cauton should be exercise before proing.
For the abve res, and may more known to th PUC, Powe an Casa County reue th Ida
Public Utilties Commission to review and re-anyz Idaho Power's pacipation in the Gateway Wes
Traission Project.
v cr Tru Your,
~c~
Cassia County Board of County Commssioners
~VICKI MEADOWS, Chaan
Power County Boar of County Commissione