20181219Petition for Intervenor Funding.pdf

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Norman M. Semanko, ISB #4761
PARSONS BEHLE & LATIMER
800 West Main Street, Suite 1300
Boise, ID 83702
Telephone: [phone]
Facsimile: 208.562.4901
NS emanko@parsonsbehle. com
[e-mail]
Attorneys for Intervenor Avista Customer Group
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF HYDRO ONE
LIMITED AND AVISTA CORPORATION
FOR APPROVAL OF MERGER
AGREEMENT
CASE NOS. AVU-E-I7-09
AVU-G-17-05
AVISTA CUSTOMBR GROUP'S
PETITION FOR INTERVENOR
FUNDING
1 COMES NOW, Intervenor Avista Customer Group ("ACG"), through its counsel, and,
2 pursuant to Idaho Code $ 6l-617A and Rules 053 and 16l through 165 of the Rules of
3 Procedure of the Idaho Public Utilities Commission ("IPUC"), Idaho Administrative Code
4 ("IDAPA") 31.01.01, hereby petitions the IPUC for an award of intervenor funding.
5 A. Background
6 ACG is an unincorporated nonprofit association, composed of utility ratepayers,
7 taxpayers, and concerned citizens, including electrical and natural gas utility service customers
8 of the Co-Applicant, Avista Corporation. ACG members stand to be impacted by potential
9 cost or rate increases resulting from the proposed merger of Avista Corporation with Hydro
10 One Limited. ACG filed a petition to intervene seeking denial of the application to approve
11 the proposed merger, which petition was granted by the IPUC.
AVISTA CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page 1
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1 In accordance with IPUC Rule 053(07)(a), the facts upon which this Petition is based
2 are delineated below, along with the relevant statute, rule, order or other controlling law upon
3 which they are based.
4 In accordance with IPUC Rule 053(07Xd), the entities against which this Petition is
5 brought are identified as Co-Applicants Avista Corp. and Hydro One.
6 B. Award of Costs of Intervention and Cases in Which Intervenors Mav
7 Anplv for Fundine
s The requirements of Idaho Code $ 6l-617A(2) and IPUC Rule 16l are met because
9 Avista is a regulated electric public utility company that has been involved in the production,
L0 transmission and distribution of energy in eastern Washington, northern Idaho, and parts of
\t southern and eastern Oregon since 1889 and reported gross Idaho intrastate annual revenues
t2 exceeding Three Million, Five Hundred Thousand Dollars ($3,500,000) (see Joint Application
13 and Appendices filed with the IPUC on September 14,2017, and other financial documents on
L4 file in this matter), and Petitioner's fees and costs do not exceed $40,000. If the application is
15 approved, Hydro One would also satisfy this requirement, as the owner of Avista.
L6 The proposed merger of Avista and Hydro One was denied in the State of Washington
t7 (see Washington Utilities and Transportation Commission's December 5, 2018 decision
18 denying the companies' Joint Applicationfor Transfer of Properfl on file in this matter), and
19 is currently pending with the IPUC, following the technical hearing held on November 26-27,
20 2018, and the post-hearing briefing filed on December 7 ,2018.
27 ll
22 ll
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1 C. Itemized List of Expenses
In accordance with IPUC Rule 162(01), following is an itemized list of costs and fees.2
3
4
5
6
7
8
9
Messenger Service
Photocopies
Color Copies
Postage
Legal Feesl
TOTAL
$ 30.00$ 1,1 19. l5$ 124.00$ 1s9.22
$ 22.980.00
$ 24,412.37
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21.
D. Statement of Proposed Findinss and Material Contribution Therefrom
In accordance with IPUC Rule 162(02), the proposed findings and recommendations
of ACG can be found in Avista Customer Group's Petition to Intervene dated June 27 , 2018;
Comments of Avista Customer Group dated June 27 ,2018; Avista Customer Group's Response
in Opposition to Motion to Admit and Approved First Amendment to Stipulation and Settlement
dated November 21,2018; and Avista Customer Group's Post-Hearing Brief Regarding ldaho
Code $ 61-327 dated December 7,2018; namely, that the proposed merger between Hydro
One and Avista Corp. be denied in its entirety.
ACG argued that Idaho Code $ 6l-327 applies to, and bars, the proposed acquisition.
ACG also argued that it cannot be approved under Idaho Code $ 6l-328 because it is not in the
public interest and could result in cost or rate increases to Avista and/or its customers. ACG
also provided extensive cross-examination at hearing, thereby contributing materially to the
IPUC's ultimate decision in this matter.
I Norman M. Semanko's services were billed at a discounted rate of $200/hour (standard rate
is $350/hour), foratotal of 98 hours; associate attorney Christina W. Hardesty's services were billed
at $200/hour, for a total of 2.9 hours; and paralegal Janelle L. Finfrock's services was billed at
$155/hour, foratotal of8 hours.
AVISTA CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page 3
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1 The requirement of Idaho Code $ 61-617A(2)(a) is satisfied because said proposed
2 findings and recommendations materially contributed to the decision to be rendered by the
3 IPUC.
4 E Statement Showins Costs
5 The fees and costs ACG seeks to recover are reasonable and, as such, meet the
6 requirements of Idaho Code $ 6l-617A(2Xb) and IPUC Rule 162(03). Attorney Norman M.
7 Semanko's standard hourly rate is $350 per hour, and in this case his services were rendered
8 at a discounted rate of $200 per hour. The firm's costs were charged at its standard rates:
9 photocopies at $0.15 per page; color copies at $0.80; messenger rates at $7.50 to $40,
10 depending on distance; and postage constitutes actual costs as disbursed.
11 F. Explanation of Cost Statement and Statement of Financial Hardshin
12 ACG's funding, as an unincorporated nonprofit association, comes predominantly from
13 individuals, most of whose contributions are unpredictable, sporadic and limited in amount.
1.4 ACG has incurred reasonable, but still considerable, expenses participating in this important
15 proceeding. Even with intervenor funding, participation in this IPUC case constitutes a
16 significant hardship because ACG has incurred expenses during the course of the proceeding,
17 not if and when intervenor funding may later become available.
18 The fees and costs identified above constitute a significant financial hardship for ACG,
L9 and the requirements of Idaho Code $ 6l-617A(2)(b) and IPUC Rule 162(04) are met.
20 G. Statement of Difference
2t IPUC ,orrO*, a"n***"ra'), provided valuable input in her direct testimony
22 regarding the proposed merger underlying this litigation, see Direct Testimony of Terri Carlock
23 dated November 6, 2018. Although Staff s direct testimony in this case agreed with ACG's
AVISTA CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page 4
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contention that Idaho Code $ 61-327 may provide a total bar to the proposed merger, Staffls
post-hearing briefing ultimately concluded that the transaction was not barred under the statute.
Staff also contended that most of the public interest and rate concerns with the proposed merger
under Idaho Code $ 6l-328 were adequately addressed in the proposed settlement.
ACG respectively disagreed, arguing that Idaho Code $ 6l-327 applies to and bars the
proposed acquisition of Avista by Hydro One, and that it also failed to meet the requirements
of Idaho Code $ 6l-328. Such results are unchanged by Staffls contention that there would be
no impact to cause customer rates increase were the merger to go forward, or by the recent
formation of Olympus Equity in Idaho. Compare Direct Testimony of Terri Carlock dated
November 6,2018 and Commission Staff's Post-Hearing Brief Regarding ldaho Code $ 6l-
327 dated December 7,2018, with Avista Customer Group's Petition to Intervene dated
Jl;rne 27, 2018, Comments of Avista Customer Group dated June 27, 2018, Avista Customer
Group's Response in Oppositton to Motion to Admit and Approved First Amendment to
Stipulation and Settlement dated November 21,2018, and Avista Customer Group's Post-
Hearing Brief Regarding ldaho Code $ 61-3 27 dated December 7 , 2018.
Of course, all other intervenors in this matter supported the merger application and
proposed settlement. ACG did not. The requirements of Idaho Code $ 61-617A(2)(c) and
IPUC 162(05) are met by the clear difference between ACG's proposed findings from those of
Staff and the other parties.
H. Statement of Recommendation: ACG Addressed Issues of Concern to the
General Bodv of Users and Consumers
ACG's position addressed issues of concern to the general body of utility users and
consumers. As noted previously, ACG is an unincorporated nonprofit association, composed
AVISTA CUSTOMER GROUP'S PETITION FOR INTERVBNOR FUNDING - Page 5
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of utility ratepayers, taxpayers and concerned citizens, including electrical and natural gas
utility service customers of Avista Corp. ACG's position against the proposed merger is
because it is barred under Idaho Code $ 61-327; it is not in the public interest for Avista to be
owned and/or controlled, directly or indirectly, by Hydro One andlor the Province of Ontario,
and said transaction could result in higher rates for Avista and its customers, particularly given
the control over Hydro One and its wholly owned subsidiaries, as demonstrated by the Province
of Ontario. All of these are issues of concern to Avista users and customers. As such the
requirements of Idaho Code $ 61-617A(2Xd) and IPUC Rule 162(06) have been met.
I. Statement of Showins Class of Customer
To the extent ACG represents a specific Avista Corp. customer class, it is the residential
class. IPUC Rule 162(07).
J. Awards
The specific requirements of Idaho Code $ 6l-611A(2)-(5) and IPUC Rule 165(01Xa)-
(e) have been met as indicated above.
The award of intervenor funding is requested to be paid within twenty-eight (28) days
of the order of the IPUC awarding intervenor funding. IPUC Rule 165(02).
The award of intervenor funding paid by Avista and/or Hydro One will be an allowable
business expense in the next rate case and shall be chargeable to the class of customers
represented by the intervenors. IPUC Rule 165(03).
This Petition is permitted, as ACG is not in direct competition with Avista Corp. or
Hydro One and thus payment of ACG's expenses are not prohibited by Idaho Code $ 6l-
617 A(s).
AVISTA CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page 6
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1 WHEREFORE, Petitioner ACG, pursuant to Idaho Code $ 6l-617A(5) and IPUC Rule
2 053-07(c), includes the following prayer for relief:
3 1. For an award of intervenor funding to ACG in the amount of $ 24,412.37 against
4 Co-Applicants Avista Corp. and/or Hydro One as follows:
5 2. That such award of intervenor funding be paid within twenty-eight (28) days of
6 the order of the IPUC awarding intervenor funding;
7 3. That such award of intervenor funding be an allowable business expense in its
8 next rate case and be chargeable to the class of customers represented by the intervenors; and
9 4. For such other and further relief as the IPUC may determine to be just and
10 proper.
DATED this l9th day of December, 2018.
BEHLE & LATIMER
By:
orman M.
AVISTA CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page 7
4837-7533-3505v4
P
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing document was served on the
following on this 19th day of December,2078 by the following method:
Larry A. Crowley, Director
The Energy Strategies Institute, Inc
3738 S Harris Ranch Ave
Boise, ID 83716
[e-mail]
Peter J. Richardson
Richardson, Adams, PLLC
515 N 27th Street
Boise, ID 83702
peter@richardsonadams. com
Benjamin J. Otto
Idaho Conservation League
710 N. 6th Street
Boise, lD 83702
botto@idahoconservation. org
Elizabeth Thomas, Partner
Kari Vander Stoep, Partner
K&L Gates, LLP
925 4th Ave., Ste. 2900
Seattle, WA 98104-l158
liz.thomas@kl gates.com
kari.vanderstoeo@klsates. com
dirk.middents@kleates. com
Ronald Williams
Williams Bradbury, PC
P.O. Box 388
Boise, ID 83701
ron@williamsbradbury. com
U.S. First Class Mail, Postage Prepaid
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AVISTA CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page 8
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David J. Meyer, Esq.
Vice President and Chief Counsel of
Regulatory and Govemment Affairs
Avista Corporation
l41l East Mission Ave.
Spokane, WA99220
david. meyer@ avistacorp. com
avistadockets@avistacorp. com
Linda M. Gervais
Senior Manager, Regulatory Policy
Regulatory Affairs
P.O. Box 3721MSC-27
Spokane, WA99220
Linda. gervais@avistacorp. com
Brandon Karpen
Deputy Attorney General
Idaho Public Utilities Commission
472W Washington
Boise, ID 83702
Brandon. karpen@puc. idaho. eov
Washington and Idaho Northern District
Counsel ofLabors
Danielle Franco-Malone
Schwerin Campbell Barnard Iglitzin
Lavitt LLP
l8 W Mercer Street, Ste. 400
Seattle, WA 98119-3971
[e-mail]
Dr. Don Reading
6070 Hill Road
Boise, ID 83703
dreadin g@mindsprine. com
Brady M. Purdy
Attorney at Law
2019 N. 17th Street
Boise, ID 83702
[e-mail]
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AVISTA CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page e
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Ganick L Baxter
Idaho Department of Water Resources
322E. Front Street
P.O. Box 83720
Boise, ID 83720-0098
Ganick. baxter@idwr. idaho. gov
deanj [e-mail]
caro l.hauen@clearwaterpaper. com
[e-mail]
j o hn j aco bs@c learwaterpaper. com
[e-mail]
ualhan. smith@clearwaterpaper. com
Patrick. ehrbar@avi stacorp. com
j scarlett@hydroone. com
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AVISTA CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page l0
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