PacifiCorp v. Idaho Public Utilities Commission

The Idaho Supreme Court affirmed the Idaho Public Utilities Commission’s denial of a request by the owner-operator of a natural gas power plant in Washington to recoup from Idaho customers the compliance costs associated with Washington’s Climate Commitment Act (CCA), which requires greenhouse gas emitters to purchase allowances when their emissions in Washington exceed certain limits. The court found that the Commission had “regularly pursued its authority” and acted within its statutory powers when it determined that allowing the owner-operator to recover CCA compliance costs would be contrary to the Commission’s statutory mandate to determine “just, reasonable or sufficient rates.” The Commission concluded that because the CCA allocated no-cost allowances that only benefitted the power plant’s Washington customers, allowing the owner-operator to recover CCA compliance costs from Idaho customers would create discriminatory customer classes. The court found that this determination was “based on the Commission’s careful evaluation of the provisions and impact of Washington’s CCA” and that it was “precisely the type of judgment call entrusted to the Commission. The court did not address the Commission’s second basis for the denial, which was that Washington would be required to bear the costs under the terms of a 2020 protocol between the owner-operator and six states where the owner-operator provides services.