You don't need a 1.5 HP pump for a 17K pool. I use a 1 HP pump on my approx 29K gallon pool and it works just fine. In fact, the smaller pump might make your filter more efficient because it won't be as likely to overdrive the filter. I'll let the equipment pros chime in on the 2-speed pump question, but you are wasting money to go with a 1.5 HP pump, both in terms of price of pump itself, and also in terms of energy used.
BTW, welcome to the forum!!
Janet
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