20210218Notice_of_Application_Order_No_34928.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34928 1

Office of the Secretary
Service Date
February 18, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On January 14, 2021, PacifiCorp, d/b/a/ Rocky Mountain Power (“Rocky Mountain
Power” or “Company”) applied to the Commission for approval of the Property Transfer
Agreement (“Transfer Agreement”) between the Company and the Klamath River Renewal
Corporation (“Renewal Corporation”). The Company requests the Commission determine that the
property disposition is in the public interest by July 15, 2021.
The Commission now issues Notice of Modified Procedure and sets deadlines for
interested persons to comment on the Application, and for the Company to reply.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Transfer Agreement provides for transfer of
four hydroelectric dams—J.C. Boyle, Copco No. 1, Copco No. 2, and Iron Gate (collectively,
“Lower Klamath Project”)—from the Company to the Renewal Corporation, along with
approximately 8,000 acres of real property and personal property associated with the dams.
Application at 1. The Company states that approval of the Transfer Agreement is necessary for
dam removal to begin. Id. at 16. The Company states the Transfer Agreement “provides for
PacifiCorp’s reservation of easements for all transmission, distribution, service, substation, and
communications assets required to preserve the safe and reliable function of the utility system after
the land upon which the assets are located is transferred to the Renewal Corporation.” Id.
YOU ARE FURTHER NOTIFIED that the Company states the transfer of the Lower
Klamath Project to the Renewal Corporation is in the public interest because it is lower cost and
lower risk than relicensing the dams. Id. at 2. The Lower Klamath Project has been operating on
annual licenses from the Federal Energy Regulatory Commission (“FERC”) since the original
license issued in 1954 expired in 2006. Id. at 4.
IN THE MATTER OF ROCKY MOUNTAIN
POWER’S APPLICATION FOR APPROVAL
OF THE TRANSFER OF THE LOWER
KLAMATH HYDROELECTRIC PROJECT
GENERATING FACILITIES
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CASE NO. PAC-E-21-01

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 34928
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34928 2

YOU ARE FURTHER NOTIFIED that the Klamath Hydroelectric Settlement
Agreement (“KHSA”) was executed by the Company and 48 parties, including the states of Oregon
and California, the U.S. Department of Interior, the U.S. Department of Commerce’s National
Marine Fisheries Service, several Native American tribes, and irrigation, conservation, and fishing
groups in 2010. Id. at 4-5. The KHSA provides $450 million in public funds to cover the costs of
dam removal. Id. at 5. The Company will collect $200 million from Oregon and California
customers through dam removal surcharges, and the remaining $250 million would be funded
through California bond funding. Id. at 5, 7. The Public Utility Commission of Oregon and the
California Public Utilities Commission approved the KHSA surcharges. Id. at 7. The Company
has not requested dam removal cost recovery from Idaho customers. Id.
YOU ARE FURTHER NOTIFIED that the KHSA was amended in 2016 because of
Congressional inaction. Id. at 7-8. Rather than relying on Congressional action, the amended
KHSA established a process to transfer the Company’s FERC license for the Lower Klamath
Project to the Renewal Corporation, which would then surrender the FERC license. Id. at 8. The
amended KHSA relies on FERC’s authority under the Federal Power Act to review and approve
the license transfer and surrender. Id. In July 2020, FERC approved a partial transfer of the Lower
Klamath Project license from the Company to the Renewal Corporation but required PacifiCorp
to remain as a co-licensee. Id. at 10. To satisfy the Company’s internal requirements regarding
the KHSA, and to satisfy FERC’s concerns, the Company, the states of Oregon and California, the
Renewal Corporation, the Karuk Tribe, and Yurok Tribe entered into a Memorandum of
Agreement, which removes PacifiCorp from the FERC license and makes the states and the
Renewal Corporation co-licensees. Id. at 10-11. A new license transfer application was submitted
to FERC on January 13, 2021. Id. at 11.
YOU ARE FURTHER NOTIFIED that the Company will transfer its property interests
in the Lower Klamath Project to the Renewal Corporation once all anticipated FERC Orders and
state disposition approvals are secured. Id. at 12-13. The Company seeks state approvals of its
Transfer Agreement with the Renewal Corporation so property transfer can occur when the license
transfer is accepted. Id. at 13. Under the Federal Power Act, a license transferee must show it
holds fee title to the properties subject to the license before the license transfer can be effective.
Id.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34928 3

YOU ARE FURTHER NOTIFIED that the Company describes the Renewal
Corporation’s budget, including contingency reserve, for dam removal and restoration work, and
compliance with FERC requirements for additional assurances in case of cost overruns. Id. at 14-
15. The Company also describes agreements related to easements, hatcheries, conditions
precedent, and environmental conditions in the Transfer Agreement. Id. at 16-17.
YOU ARE FURTHER NOTIFIED that the Company requests approval under Idaho
Code § 61-328. Id. at 17-25.
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission’s office. These documents are also
available on the Commission’s web site at www.puc.idaho.gov. Click on the “ELECTRIC” icon,
select “Open Cases,” and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically Idaho
Code §§ 61-501 to 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission’s Rules of Procedure, IDAPA
31.01.01.201 through .204. The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person or party desiring to state a position
on this Application must file a written comment in support or opposition with the Commission
by May 19, 2021. The comment must contain a statement of reasons supporting the comment.
Persons desiring a hearing must specifically request a hearing in their written comments. Written
comments concerning this Application shall be sent electronically, unless email is not available,
to the Commission and the Applicant at the email addresses reflected below:

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34928 4

For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Email: [e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, Idaho 83714

For Rocky Mountain Power:

Ted Weston
Idaho Regulatory Affairs Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
Salt Lake City, UT 84116
Email: [e-mail]

John Hutchings
Senior Attorney
Rocky Mountain Power
1407 West North Temple, Suite 320
Salt Lake City, UT 84116
Email: [e-mail]

Please send all data requests regarding this
Application in Microsoft Word to:

[e-mail]

If email is unavailable, then

Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97232

Comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via email may do so by accessing the
Commission’s home page located at www.puc.idaho.gov. Click the “Case Comment Form” and
complete the comment form using the case number as it appears on the front of this document.
These comments must also be sent to the Applicant.
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
June 2, 2021.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34928 5

O R D E R
IT IS HEREBY ORDERED that the Company’s Application be processed by Modified
Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting written
comments must do so by May 19, 2021. The Company must file any reply comments by June 2,
2021.
IT IS FURTHER ORDERED that parties should continue to comply with Order No.
34781, issued September 17, 2020. All pleadings should be filed with the Commission
electronically and shall be deemed timely filed when received by the Commission Secretary. See
Rule 14.02. Service between parties should also be accomplished electronically. Voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 18th
day of February 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\PAC-E-21-01\Order\PACE2101_ntc app mod proc_ej.docx