20180330Decision Memo - Avista.pdf

DBCISION MEMORANDUM
COMMIS SIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:KARL T. KLEIN
DEPUTY ATTORNEY GENERAL
DATE: MARCH 29,2018
SUBJECT:IDAHO FOREST GROUP'S AND IDAHO CONSERVATION LEAGUE'S
LATE PETITIONS TO INTERVENE IN THE INVESTIGATION INTO
THE IMPACT OF F'EDERAL TAX CODE REVISIONS ON UTILITY
COSTS AND RATEMAKING _ CASE NO. GNR-U-18-01.
On February 22,2018, the Commission set a March 6,2018 intervention deadline for
this case. Order No. 33991. About two weeks after the intervention deadline ran, Idaho Forest
Group LLC (IFG) and Idaho Conservation League (ICL) separately petitioned to intervene. The
rules for late petitions to intervene, and the late petitions filed by IFG and ICL, are summarized
below.
RULES GOVERNING LATE PETITIONS TO INTERVENE
Commission Rules provide that a petitioner seeking intervention must state its "direct
and substantial interest . . . in the proceeding." IDAPA 31.01.01 .012. Petitions to intervene that
are not timely filed "must state a substantial reason for delay." IDAPA 31.01.01.073. "The
Commission may deny or conditionally grant petitions to intervene that are not timely filed for
failure to state good cause for untimely filing, to prevent disruption, prejudice to existing parties
or undue broadening of the issues, or for other reasons." Id. Also, "Intervenors who do not file
timely petitions are bound by orders and notices earlier entered as a condition of granting the
untimely petition." Id.
IFG'S PETITION
On March 19,2018, IFG filed a Petition for Leave to lntervene and Notice of Partial
Waiver of Service. IFG states it has a direct and substantial interest in this case because its lumber
milling and processing facilities are served under Avista Corporation's Schedule Z5-Extra Large
IDECISION MEMORANDUM
TO:
General Service-ldaho, and this case could materially affect IFG's electric rates and terms and
conditions of service. IFG Petitionat2.
IFG asserts its late intervention would not prejudice other parties because IFG has filed
its petition relatively early in the case. IFG notes it filed its petition before the utilities' March 30,
2018 deadline to report on the effect of the tax changes, and before any party had taken a
substantive position in the case. Id. at l. IFG states its intervention "will not unduly broaden the
issues or cause delay," and that it only wants to participate in the case relating to Avista. IFG thus
waives service of all process that is not relevant to Avista. Id. at3.
No one has opposed IFG's petition.
ICL'S PETITION
ICL filed its petition to intervene on March 20,2018. ICL explains its petition was late
because ICL did not realize it had a direct and substantial interest in this case until after the March
6,2018 intervention deadline had run. According to ICL, on March 16,2018, it received a notice
that parties to Washington's Avista/Hydro One merger docket had reached a settlement that
implicates federal tax issues. A day earlier, on March 15, 2018, the Idaho Commission's Staff had
asked ICL and other parties to Idaho's Avista/Hydro One merger docket to reschedule settlement
conferences in that case. ICL explains "[t]he combined impact of the notice filed in Washington
and the rescheduling of the settlement conference in ldaho, leads ICL to claim a direct and
substantial interest in this investigation into the impact to Avista of federal tax code changes
regarding how this issue impacts our direct and substantial interest in the Avista and Hydro One
merger docket." ICL Petition at L
ICL states it has a direct and substantial interest in this proceeding because the ICL's
Sandpoint field offrce is a commercial customer of Avista, and the ICL has about 700 members
who take residential service from Avista. ICL, on its own and its members behalves, claims a
direct and substantial interest in the case arising from the potential for changes in the federal tax
code to impact electric rates and services. ICL notes it brings a unique and valuable perspective
to the case because of its interest in ensuring money collected for one public pulpose, paying taxes,
is used for another public purpose. Id. at2.
ICL asserts that its late intervention would not prejudice other parties or cause delay.
ICL filed its petition to intervene before any party had filed proposals or information relating to
2DECISION MEMORANDUM
Avista (id. at l), and ICL's interest in this case is limited to Avista. Id. at2. Further, ICL agrees
to be bound by existing schedules. Id. at l.
ICL waives service of all filings not relevant to Avista. Id. at2.
No one has opposed ICL's petition.
COMMISSION DECISION
l. Does the Commission wish to grant the IFG's late petition to intervene?
2. Does the Commission wish to grant the ICL's late petition to intervene?
Lt4c
Karl T. Klein
Deputy Attorney General
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JDECISION MEMORANDUM