20181221Petition for Intervenor Funding.pdf

Benjamin J. Otto (ISB No. 8292)
710 N 6'h Street
Boise,ID 83701
Ph: [phone]x12
Fax [phone]
[e-mail]
Attorney for the Idaho Conservation League
IN THE MATTER OF THE JOINT
APPLICATION OF HYDRO ONE
LIMITED AND AVISTA
CORPORATION FOR APPROVAL OF
MERGER AGREEMENT
iii:cll'/[D
:t;ilr:il21 &['t ll:21
0r\+
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
)
)
)
)
)
CASE NO. AVU-8.17-09
AVU-G-17-0s
IDAHO CONSERVATION LEAGUE
APPLICATION FOR INTERVENOR
FUNDING
COMES NOW, the Idaho Conservation League ("ICL"), pursuant to Idaho Code $ 6l-617 A and
IDAPA 31.01.01.161-165 with the following application for intervenor funding. ICL is an
intervenor pursuant to Order No. 33932. This application is timely pursuant to the Commissions
instruction at the technical hearing to submit such applications by December 21,2018.
I. Idaho Code $ 61-6174 and IDAPA Rule 31.01.01.161 Requirement
Avista Corporation is a regulated electric and gas utility and with gross Idaho intrastate,
annual revenues exceeding three million, five hundred thousand dollars ($3,500,000.00).
II. Idaho Code $ 61-617A(2) and IDAPA Rule 31.01.01.162 Requirements
l.Itemized list of Expenses
The attached Exhibit A is an itemized list of expenses incurred by ICL this proceeding.
Idaho Code empower the Commission to award "legal fees, witness fees, and reproduction
costs". I.C. $ 6l-617A. As listed in more detail in Exhibit A, in the docket ICL reviewed Avista
Application and Testimony, gained status as a party to the case, reviewed relevant discovery
ICL Application for Intervenor Funding
AVU-E- 17-09 / AVU-G- r 7-0s
1
December 21,2018
ili.
request, negotiated specific terms in the settlement agreement, and made filing and appearances
to support the same. ICL seeks recovery for these legal fees; we do not seek recoverable
production costs or non-recoverable postage costs and messenger services. In all of these efforts
ICL focused on issues directly relevant to our interests and sought to use our time and the time
and resources of the other parties in the most efficient manner possible. IDAPA 31.01.01.162.01
2. Statement of Proposed Findings
ICL proposes the Commission approve the merger settlement stipulation. As stated in
ICL's Comments filed on June 20, 2018, the settlement agreement should be approved because it
meets the criteria for approving the transfers of public utility property in Idaho Code $ 3l-328.
The transaction is in the public interest because it directly results in money flowing to Idaho
customers that would not occur without the merger. The "ring fencing" provisions in the
Settlement before the Commission do in fact protect Idahoans from political interference by a
provisional government in a different country. The utilities promised to, and hold the ongoing
burden of proof to continually show, that customer's costs for service will not increase due to
this transaction. Avista has promised to, and Hydro One has made the enforceable commitment
to fully enable Avista's ability to, maintain public utility property in the public service. ICL
recommends the Commission approve the stipulation and settlement in this docket. IDAPA
3 1.01 .01. I 62.02
3. Statement Showing Costs
ICL requests $12,950 in intervenor funding, as shown in Exhibit A. Both the hourly rate
and hours expended are reasonable for this complex case. ICL's council has nine years of direct,
specialized experience appearing before the Idaho PUC. The hourly rate of $175 reflects this
ICL Application for Intervenor Funding
AVU-E-l 7-09 / AVU-G-17-05
2
December 21,2018
experience and the local market conditions. The merger of two public utilities is a rare and
complex process to engage in. To effectively represent our members' interest, ICL reviewed the
utility application and other filings to identifu the subset of issues directly relevant to our issues.
ICL monitored the discovery process to find additional support for our issues and avoid repeating
requests made by other parties. Having identified specific issues directly related to our interest,
ICL participated in the settlement negotiations, submitted specific proposals for consideration,
and engaged directly with parties to efficiently represent our interests. After Hydro One
announced a new board of directors and CEO, ICL reassessed the case and whether the
settlement continued to further our interests. Concluding that the utility commitments do in fact
protect Idahoans, ICL filed comments stating our position. After the late intervention of other
parties, ICL reviewed the subsequent filings, participated in additional settlement negotiations
and the technical hearing. In every instance, ICL focused on using our time and resources
carefully. For the reasons above - efficiently managing our time, collaboratively working
towards solutions, and an hourly rate that reflects the market - we recommend the Commission
find ICL's requested costs "reasonable in amount". IDAPA 31.01.01.162.03.
4. Explanation of Cost Statement
ICL is a nonprofit organizations supported solely through charitable donations from our
members and supporters. ICL does not have any financial interest in the outcome of the
proceeding that is distinct from any Avista customer who stands to gain from the rate credits
available in this merger. In this proceeding, we represent our members and supporters who are
ratepayers of Avista, as well as any Idahoan concemed about transitioning to a clean energy
future while maintaining local control over our utilities and fair-priced, reliable service. While
ICL Application for Intervenor Funding
AVU-E-1 7-09 / AVU-G-1 7-05
J
December 21,2018
ICL budgets annually for our programs and costs, this unexpected utility merger required ICL to
incur additional costs to provide "full and fair representation" before the Commission as
contemplated by Idaho Code $ 6l-617A.
Idaho PUC Rules of Procedure requires that a licensed attorney represent organizations.
IDAPA 31.01.01.043.ICL retains a licensed attorney on staff dedicated entirely to issues that
arise under Idaho's public utilities laws. ICL dedicates this full-time, highly trained staff member
to provide consistent, professional, and impactful advocacy for our members and supporters. The
cost of employing and training this staff member is a significant financial commitment for a
charitable organization. Further, ICL's annual planning allocates this staff member's time and
resources to efforts expected to occur that can impact our program goals. When unexpected
utility proposals arise that impact our interest, ICL must reallocate dedicated and limited
resources without sacrificing equally important goals in other areas that our annual budget must
support. For this unexpected and complex case filed by the utilities, the intervenor funding award
is important to ICL's ability to represent our interests here while maintaining the ability meet
other organizational goals and priorities we have promised to our supporters.
ICL consistent involvement in these issues had a meaningful impact in controlling our
costs here. We used our understanding of Idaho utility law and procedure, and negotiating
abilities, to efficiently capture our interests in the settlement agreement and efficiently protect
those interest in the technical hearing. As explained here and listed in Exhibit A, ICL's costs are
reasonable and incurring these costs created an ongoing hardship to reallocate our limited budget
to achieve our goals. IDAPA 31.01.01.162.04.8y awarding full cost recovery here, the
Commission will "encourage participation in all stages of all proceedings before the commission
so that all affected customers receive full and fair representation in those proceedings." I.C. $ 6l-
ICL Application for Intervenor Funding
AVU-E-l 7-09 / AVU-G- I 7-05
4
December 21,2018
6174.
5. Statement of Difference
ICL provided unique contributions to the settlement regarding Colstrip, Resource
Planning, Energy Conservation Funding, and Environmental Commitments. Because the
settlement negotiations are confidential, ICL cannot describe in detail the difference in positions
among parties regarding these issues. ICL can disclose that we played a major roll in shaping
Commitments 52,53,54,55,56,57,58,61,69,70, and 71. Once we agreed to the settlement,
like other signatories, ICL did not take a position materially different from Staff because we had
achieved our desired goals by negotiating the Commitments listed above. IDAPA
31.01.01.162.05.
6. Statement of Recommendation
ICL proposed findings address issues of concern for all customers Avista. All customers,
regardless of class, share a strong interest in ensuring that any utility merger serves the public
interest, will not cause rate increases, and produces a utility fully regulated by the Commission
with the bona fide intent and ability to continue serving the public. ICL pursued these common
interest when negotiating and supporting the merger Commitments by focusing on addressing the
long-term cost risk of the failing Colstrip plant and securing additional funding for community
contributions and energy conservation programs. Both of these examples deliver broad benefits
to Avista customers and not just ICL. We recommend the Commission adopt this merger
because it protects all Idahoans interests while delivering real monetary benefits to all customers.
rDAPA 3 1.0 1.0 1. I 62.06.
ICL Application for Intervenor Funding
AVU-E-1 7-09 / AVU-G-r 7-0s
5
December 21,2018
7. Statement Showing Class of Customer
Our individual members and supporters who are customers of Avista are in the residential
class. ICL's Sandpoint, Idaho office is a small commercial customer of Avista. IDAPA
3 1.01.01.162.07.
WHEREFORE, ICL respectfully requests the Commission grant this application.
DATED this 2lst day of December 2018.
Benjamin J. Otto
Idaho Conservation League
ICL Application for Intervenor Funding
AVU-E-17-09 / AVU-G-1 7-05
6
December 21,2018
Exhibit A
Cost Statement for Idaho Conservation League
Investigate Avista's application and direct
testimony
6.s
Prepare and file Petition to Intervene .5
Review discovery by all parties 4
Prepare for and participate in the settlement
negotiations, follow up, and stipulation
drafting.
20
Prepare and file Comments in support of
the Stipulation
2.5
Review the late-intervention and associated
filings, prepare for and participate in
additional scheduling conference
3.5
Prepare for and participate in additional
settlement negotiations
t2
Review additional testimony filed by
utilities and Staff
aJ
Prepare for and participate in technical
hearing of November 26 - 27 .
22
Hours: 74
Rate: $175/hr
Total: $12,950
ICL Application for Intervenor Funding
AVU-E- r 7 -09 I AVU-G-1 7-05
7
December 21,2018
CERTIFICATE OF SERVICE
I certifr that on the 2lst day of December 2019, I delivered true and correct copies of the
foregoingAPPLICATION FOR INTERVENOR FUNDING to the followingvia the service
method noted:
Benjamin J. Otto
Hand delivery:
Diane Hanian
Commission Secretary (Original and seven copies provided)
Idaho Public Utilities Commission
427W. Washington St.
Boise,lD 83702-5983
Electronic Mail only:
Avista
David |. Meyer, Esq.
Patrick Ehrbar
Avista Corporation
David.meyer@avistacorp. com
Patrick.ehrbar@avistacorp. com
Hydro One
Iames Scarlett
Hydro One
[e-mail]
Elizabeth Thomas, Partner
Kari VanderStoep, Partner
K&L Gates, LLP.
[e-mail]
Kari.vanderstoep@klgates. com
[e-mail]
Idaho Forest Group
Ronald L. Williams
Williams Bradbury, P.C.
[e-mail]
Dean I. Miller
deanj [e-mail]
Larry A Crowley
The Energy Strategies Institute, Inc.
[e-mail]
AVU-E-17-09
CERTIFICATE OF SERVICE
Clearwater Paper
Peter ]. Richardson
Richardson & Adams, PLLC
[e-mail]
Dr. Don Reading
[e-mail]
Community Action Partnership Association
Brad M Purdy
Attorney At Law
[e-mail]
Washington and Northern ldaho District
Council of Laborers
Danielle Franco-Malone
Schwerin Campbell Barnard Iglitzin & Lavitt
LLP.
[e-mail]
Idaho DWR
Garrick L. Baxter
Idaho Department of Water Resources
[e-mail]. gov
Avista Customer Group
Norman M. Semanko
nsemanko@parsonsbehle. com
[e-mail]
December 21,2018