PUC Acknowledges Idaho Power’s 2019 IRP Reflecting Shift Away from Coal

The Oregon Public Utility Commission (PUC) approved Idaho Power’s transition away from coal power when it recently acknowledged the company’s latest Integrated Resource Plan (IRP - Order No. 21-184). We are happy to report that the acknowledged plan incorporates many recommendations CUB made in the interest of Idaho Power’s residential customers.

This Order concludes the utility’s two-years-long planning process. The IRP is a 20-year resource planning document that electric and gas utilities in Oregon are required to submit to the PUC every two years. The plan describes the utility’s analysis of cost and risk of acquiring various supply side and demand side resources to serve customers in the least-cost, least-risk way. The acknowledgement of an IRP establishes that the PUC deems the analysis presented by the utility in its IRP as reasonable and meeting the least-cost, least-risk criterion.

Idaho Power’s near-term plans include early exit from several coal plants. These actions are outcomes of economic analyses that show that leaving these coal plants earlier than previously planned saves customers significant amounts on their utility bills over time. The IRP shows that Idaho Power customers would receive significant benefits if the utility exited its Valmy Coal Plant Unit 2 by December 2022, as opposed to the previous date of 2025. The PUC acknowledged this action item on CUB’s recommendation. Other early coal plant exits that were acknowledged include Jim Bridger Units 1 and 2, in 2022 and 2026 respectively.

CUB also supported the utility’s plans to continue with construction related activities for the Boardman to Hemingway (B2H) transmission line. The PUC acknowledged these plans.

The B2H project is important in many ways. B2H is a 290-mile transmission line that will run from eastern Oregon to southwestern Idaho. It will deliver about 1000 MW of electricity from mostly clean and renewable energy sources, especially during summer when customers on the utility’s system have the highest need for power. This transmission line is jointly owned by Idaho power, PacifiCorp (parent company of Pacific Power), and Bonneville Power Administration. New transmission lines entail millions of dollars in investment. The utility’s analysis shows B2H as part of the lowest cost resource portfolios that will provide cheap and clean electricity to customers and help Idaho Power meet its clean energy goal.

However, there is strong opposition to this project from local communities. These communities argue that there are cheaper alternatives and that, if constructed, the line will distort the regional landscape. CUB supported this project as it got selected in Idaho Power’s lowest cost portfolios. However, how much of this cost will be shared by Oregon customers will be a matter of a future prudence review by the PUC.

Additionally, CUB advocated for Idaho Power to accelerate the inclusion of cheap demand response resources in its long-term plan, and start planning for these programs early on. The PUC’s Order directs the utility to follow CUB’s recommendation.

Integrated resource planning plays a critical role in CUB’s ongoing commitment to protect the interests of Oregon’s residential utility customers. Through participating in this IRP process, CUB has ensured that Idaho Power actively plans on early coal plant exits, plans aggressively for cheaper demand response resources, and only seeks resources that are the lowest cost and minimize risks or uncertainties for its customers.

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