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HomeMy WebLinkAbout27835.docx(text box: 1)BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE SCHEDULED DECEMBER 1999 ELECTRIC INTEGRATED RESOURCE PLAN (IRP) FILING OF PACIFI­CORP DBA UTAH POWER & LIGHT COMPANY. ) ) ) ) ) ) ) CASE NO. UPL-E-98-4 ORDER NO. 27835 On November 27, 1998, PacifiCorp dba Utah Power & Light Company (PacifiCorp; PCp; Company) filed a letter request with the Idaho Public Utilities Commission (Commission) requesting Commission authorization to postpone its scheduled December 1999 electric Resource Market Planning Program (RAMPP-6; IRP) filing until December 2000, and then every two years thereafter.  By prior Commission Order No. 22299, the Company is required to file a biennial resource management report (now IRP or Integrated Resource Plan) describing the status of the Company’s electric resource planning.   In support of its request, PacifiCorp notes changes occurring in the electric utility industry at national and state levels and represents that delaying the completion of its RAMPP-6 for one year will allow a more thorough investigation of the impacts of these changes and will result in a report that will provide information that will be of greater value to the Commission and interested parties. During the additional year PacifiCorp intends to continue to host a series of RAMPP advisory group meetings to discuss the following non-inclusive list of topics: ●Development of a load forecast ●What constitutes the load incorporated in an IRP ●Appropriate time horizon ●Alternative scenario risk analysis ●Appropriate level of demand side acquisition ●Fuel price forecasts and impacts ●Wholesale price forecasts and impacts ●Impacts of carbon taxes ●Alignment of generation engineering lives and planning lives ●Analysis of impacts of life extending capital additions ●Impact of BPA subscription power ●Reduction in industrial load due to direct access ●Transmission system operational changes (ISO) and up-grades ●Potential changes to IRP rules Much of the advisory group’s analysis, the Company contends, will use RAMPP-5 as the starting point.  RAMPP-5 reflects that the Company will need no new generation resources until 2010.  Sensitivities involving varying planning assumptions to reflect the impacts of the topics listed above, the Company states,  will provide information that the Company and the RAMPP advisory group will use to direct the development of RAMPP-6.   PacifiCorp contends that the Company remains committed to the Integrated Resource Plan (IRP) process and believes that it provides a valuable tool to enhance communication between the Company, regulatory staffs and interested parties. COMMISSION FINDINGS The Commission has reviewed and considered the filings of record in Case No. UPL-E-98-4 and related Orders for other regulated electrics.  We have also reviewed our underlying IRP Order No. 22299 (Case No. U-1500-165) regarding scheduled filings. We note that on July 23, 1998, in Order No. 27636 (Case Nos. WWP-E-98-8 & WWP-G-98-1) and on August 27, 1998, in Order No. 27700 (Case No. IPC-E-98-11) the Commission in the respective cases authorized The Washington Water Power Company (Water Power) and Idaho Power Company (Idaho Power) to postpone their scheduled 1999 IRP filings.  In our Orders we acknowledged recent changes and activity in the electric industry and anticipated future changes in the industry at the national and state levels, e.g., customer choice, retail competition; open market; deregulation; and reregulation. We find that the changes occurring in the electric industry provide sufficient basis and reasonable grounds for granting the requested relief, i.e., a one year postponement in PacifiCorp’s scheduled electric IRP filing.  We find it reasonable to treat the Company’s filing as a Rule 53(a) petition requesting modification, amendment or stay of an existing Order.  We further find it reasonable upon a finding of good cause to grant the requested relief without further notice or Modified Procedure. Although we find it reasonable to grant PacifiCorp’s requested deferral, we note that the Company makes specific mention that its  present RAMPP-5 indicates that the Company has no plans for acquiring additional generation resources until the year 2010.  The Company requests a deferral in filing its IRP because of changes in the electric industry.  In recent remarks by Judi Johansen, Administrator of Bonneville Power Administration, she states that Bonneville’s “White Book”, an annual articulation of loads and resources, indicates that “under critical water in a cold winter, the region is 7,000 MW short, with 3,000 MW of shortage in the federal system and the rest spread among utilities.”  This Commission has related concerns regarding the reliability and short term adequacy of regional power and how it affects our regulated electrics and their ability to satisfy growth-related demand.  Clearly with electrics all going to the market to satisfy deficit peak requirements, the ability of the market to satisfy such deficits is in question.  Is there a present need for construction of generation resources?  Is there adequate transmission capacity?  What technological changes if any, are on the horizon that may reduce the demand for new generation resources?  What is the future role of conservation and renewables?  To such end, we are interested in the Company’s plans to address increased demand in a time of decline in regional surplus.  We intend to look into this matter this coming year and will be making inquiries of PacifiCorp and our other regulated electric utilities. CONCLUSIONS OF LAW The Idaho Public Utilities Commission has jurisidiction over this matter and over PacifiCorp dba Utah Power & Light Company, an electric utility, pursuant to the authority and power granted under Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.   O R D E R In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and PacifiCorp dba Utah Power & Light Company is hereby authorized to postpone its scheduled December 1999 electric IRP filing (RAMPP-6) until December 2000, and then is required to file every two years thereafter.  Reference Order No. 22299. THIS IS A FINAL ORDER.  Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order.  Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration.  See Idaho Code § 61-626. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this                  day of December 1998.                                                                                                                                       DENNIS S. HANSEN, PRESIDENT                                                                                            RALPH NELSON, COMMISSIONER                                                                           MARSHA H. SMITH, COMMISSIONER ATTEST:                                                                  Myrna J. Walters Commission Secretary vld/O:UPL-E-98-4.sw COMMENTS AND ANNOTATIONS Text Box 1: TEXT BOXES Office of the Secretary Service Date December 23, 1998