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HomeMy WebLinkAbout20240806IPC to Staff 51-58.pdf 0-10AM POWER. LISA D. NORDSTROM Lead Counsel Inordstrorn(Widahopower.com RECEIVED August 6, 2024 Tuesday, August 6, 2024 IDAHO PUBLIC VIA ELECTRONIC FILING UTILITIES COMMISSION Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A (83714) PO Box 83720 Boise, Idaho 83720-0074 Re: Case No. IPC-E-24-07 Application of Idaho Power Company for Authority to Increase Rates for Electric Service to Recover Costs Associated with Incremental Capital Investments and Certain Ongoing Operations and Maintenance Expenses Dear Commission Secretary: Attached for electronic filing, please find Idaho Power Company's Response to the Seventh Production Request of the Commission Staff to Idaho Power Company. Due to the collectively voluminous confidential and non-confidential information provided in response to data requests in this case, the Company is posting the attachments to these requests to the secure FTP site to allow parties to view the requested information remotely unless otherwise noted in the response. Because certain attachments contain confidential information, the FTP site is divided between confidential and non-confidential information. The login information for the non-confidential portion of the FTP site has been provided to all parties that have intervened to date. The login information for the confidential portion of the FTP site will be provided to the parties that execute the Protective Agreement in this matter. If you have any questions about the attached filing, please do not hesitate to contact me. Very truly yours, Lisa D. Nordstrom LDN:sg Enclosures CERTIFICATE OF ATTORNEY ASSERTION THAT INFORMATION CONTAINED IN AN IDAHO PUBLIC UTILITIES COMMISSION FILING IS PROTECTED FROM PUBLIC INSPECTION Case No. IPC-E-24-07 Idaho Power Company's Application for Authority to Increase Rates for Electric Service to Recover Costs Associated with Incremental Capital Investments and Certain Ongoing Operations and Maintenance Expenses The undersigned attorney, in accordance with Commission Rules of Procedure 67, believes that the attachment in Response to Request No. 58 to Idaho Power Company's Response to the Seventh Production Request of the Commission Staff dated August 6, 2024, contains information that Idaho Power Company and/or a third party claim are trade secrets, business records of a private enterprise required by law to be submitted to or inspected by a public agency, and/or public records exempt from disclosure by state or federal law (material nonpublic information under U.S. Securities and Exchange Commission Regulation FD) as described in Idaho Code § 74-101, et seq., and/or § 48- 801, et seq. As such, it is protected from public disclosure and exempt from public inspection, examination, or copying. DATED this 6th day of August 2024. LISA D. NORDSTROM Attorney for Idaho Power Company LISA D. NORDSTROM (ISB No. 5733) DONOVAN E. WALKER (ISB No. 5921) MEGAN GOICOECHEA ALLEN (ISB No. 7623) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 Inordstrom(aMdahopower.com dwalker idahopower.com mgoicoecheaallenCabidahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) OF IDAHO POWER COMPANY TO ) CASE NO. IPC-E-24-07 INCREASE RATES FOR ELECTRIC ) SERVICE TO RECOVER COSTS ) IDAHO POWER COMPANY'S ASSOCIATED WITH INCREMENTAL ) RESPONSE TO THE SEVENTH CAPITAL INVESTMENTS AND ) PRODUCTION REQUEST OF THE CERTAIN ONGOING OPERATIONS ) COMMISSION STAFF TO IDAHO AND MAINTENANCE EXPENSES. ) POWER COMES NOW, Idaho Power Company ("Idaho Power" or "Company"), and in response to the Seventh Production Request of the Commission Staff ("Commission" or "Staff") to Idaho Power Company dated July 30, 2024, herewith submits the following information: IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 1 REQUEST FOR PRODUCTION NO. 51: Please provide documentation and explain the accounting treatment applied to any fines or penalties assigned to the Company or representatives acting as the Company's agent during the course of Capital Project related activities impacting any Public Right-Of-Way. RESPONSE TO REQUEST FOR PRODUCTION NO. 51: The Company records all fines and penalties to FERC account 426.3 Penalties, which is an account that is excluded from operating expenses for recovery in a rate case. The Company has not been assessed any fines or penalties related to Capital Project activities impacting any Public Right-of-Way. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 2 REQUEST FOR PRODUCTION NO. 52: Please describe if the Company has any criteria in place to determine if Contractors are ineligible to bid on or be awarded a contract with the Company. RESPONSE TO REQUEST FOR PRODUCTION NO. 52: Yes, the Company has criteria in place to determine if Contractors are ineligible to bid on or be awarded a contract with the Company. Common factors that may render a contractor ineligible to participate in a competitive bid or be the successful respondent include financial instability, past performance issues (i.e., quality, safety), conflicts of interest, unresolved litigation claims, inability to provide licenses or certifications pertaining to the specific work, services, and material requested. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 3 REQUEST FOR PRODUCTION NO. 53: Please provide the following documentation for the "Bathroom/Core Upgrade Each Floor At CHQ" project referenced in IPC-E-24-07 response to Production Request No. 5. The information returned should encompass the full life of the project. If any of the information requested below cannot be provided or is not available, please explain why it is not available or cannot be provided. a. Please provide the approved Initial Project Plan including the following: i. Initial project scope; ii. Initial project budget; iii. Initial proposed schedule; and iv. Evidence that the Initial Project Plan and budget were approved at the appropriate level. b. Please provide the Baseline Construction Project Plan including the following: i. Baseline project scope; ii. Baseline project budget broken down by Work-Breakdown Structure ("W BS"). iii. Baseline project schedule broken down by WBS; iv. If the baseline construction project scope, budget, and/or schedule deviated from the Initial Project Plan, please explain the differences, explain the reason for the change, and provide evidence that the changes were approved at the appropriate level; v. Project status reports and action items; and vi. Contractor change orders. c. Please provide the following related to completion of the project: IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER -4 i. Baseline construction budget-to-actual comparison by WBS and by year; ii. Baseline construction schedule-to-actual comparison by WBS; iii. For any budget-to-actual cost overages by major WBS category that is over 5%, please explain the reason for the differences and provide evidence that the amount was approved at the appropriate level; and iv. Please explain any deviations in schedule from the baseline construction schedule. RESPONSE TO REQUEST FOR PRODUCTION NO. 53: a. Budget ID CHQB190012 is associated with a multi-year project that will upgrade the bathrooms on each floor of the Corporate Headquarters ("CHQ") building. The costs identified in the Company's Response to Request for Production No. 5 — Confidential Attachment are specific to the remodel of the CHQ basement bathrooms. There is no project plan document however the following provides more information related to the project: i. The costs associated with Budget ID CHQB190012 included in the Company's request in this case are associated with the remodel of the CHQ basement bathrooms due to a large water leak caused by excessive rain and the overpowering of the city storm water system. This caused a 10" drain line to fail in the CHQ basement above both bathrooms and locker rooms. This project was scheduled and budgeted for 2026 but due to the extreme damage it was moved forward and completed in 2024. While the CHQ basement bathroom was not originally scheduled for a remodel until 2026, the original scope of refurbishing the restrooms with new tile, plumbing fixtures, toilet partitions, IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 5 lighting and ceiling tile remained the same. The circulation core area of each floor was to receive new lighting and floor covering. ii. This was an unscheduled, unbudgeted project for the year it occurred. It was scheduled for 2026 with a budget of $600,000 but needed to be accelerated and completed earlier due to the extensive damage that was caused by the failed drain piping. Once identified as needed in 2023, the project was bid out to multiple contractors, and the lowest bid awarded the project. iii. The initial schedule was to have the restrooms and core area completed by February 2024. iv. See the Company's Response to Request for Production No. 17(a)(iv) for an explanation of the capital project budget approval processes. This project was approved in Budget Update 4 during the fourth quarter of 2023 with a total budget of $602,895 due to the failure of the drain piping. b. There is no construction project plan document as construction plans have not changed since the initial scope. i. The project scope did not change following identification in the initial scope. ii. There is no Microsoft Project Schedule WBS associated with this project. As an alternative, the following is a summary of the actual project costs by year, through July 31, 2024, and by detailed cost element, similar to the WBS function in Microsoft Project Schedule. Please note, the chart below excludes Allowance for Funds Used During Construction and overheads. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 6 ACTUAL Column Labels Row Labels 2023 2024 Grand Total General Plant Cost Elements Excl Power Supply • Labor 21,S69.38 8,747.60 30,316.98 + Materials 8,169.68 5,513.20 13,682.88 Purchased Services 417,136.60 48,228.60 465,365.20 • Other Expenses 11.18 11.18 Grand Total 446,875.66 62,500.58 509,376.24 iii. See part (b)(ii). iv. See the Response to Request for Production No. 53 — Attachment for a copy of the initial construction schedule for the remodel of the CHQ basement bathroom. There were no deviations between the initial schedule and the construction schedule. v. There were no status reports associated with this project. vi. There were no change orders associated with this project. c. i. Not applicable. See part (b)(ii). ii. Not applicable. See part (b)(ii). iii. Not applicable. The remodel of the CHQ basement bathrooms scheduled for 2026 had an initial budget of $600,000 and actual project costs are approximately $500,000. iv. There were two schedule deviations during construction. First, during the main drain line replacement, Idaho Power discovered the check valve to the Boise city storm water system had failed in the open position and required replacement. The lead time for this item caused the schedule to slip by 10 IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER- 7 weeks. The second was related to the main drain line which was changed from schedule 40 PVC to schedule 80 PVC for durability reasons. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 8 REQUEST FOR PRODUCTION NO. 54: In its response to Production Request No. 5, the Company identifies "Non-Criteria Based Equipment" with a cost of $287,746. Please provide the business case for this expenditure, any other options that were explored, their cost, and justification as to why this solution was chosen. RESPONSE TO REQUEST FOR PRODUCTION NO. 54: The Non-Criteria Based Equipment identification is associated with the purchase of equipment that is part of Idaho Power's critical business function and used in day-to-day operations. The costs of $287,746 closed to plant during the January 1, 2024 through June 30, 2024, as reflected in the Response to Request for Production No. 5, are the result of two equipment purchases: (1) the replacement of a trailer mounted four drum puller for $268,396, and (2) the purchase of an additional zero-turn lawn mower for $19,350. In 2023, a member of the public hit and totaled one of the 2,000 pound four-drum pullers utilized by the Canyon and Payette operations centers. The four drum puller is a critical piece of line equipment. A puller is used to pull wire through carriers so it can be placed on the cross arms of a pole. The four drum puller allows for four power lines to be installed at one time. Power is diffused from the engine to the reels over a hydraulic drive train. The Company evaluated two four drum puller replacement options, one diesel- powered with the same specifications as the totaled unit for approximately $175,000, and an all-electric stringing equipment version for approximately $245,000. Due to the immediate availability and its ability to charge on-board requiring fewer trips to the operations center for fuel, diesel pullers had lead times of 10 to 12 months, the decision was made to purchase the all-electric drum puller. The electric version includes safeguard limits for the wire size and length that can be pulled, providing prevention of line breakage IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 9 and damage, while also operating at a quieter level than the diesel counterpart. In addition, the Company received approximately $82,000 in insurance proceeds from damage to the old drum puller, helping to offset the costs of the new drum puller. Note, the insurance proceeds are recorded in Account 108 — Accumulated Provision for Depreciation, offsetting the costs recorded in Account 101 — Electric Plant in Service. Finally, the purchase also supports Idaho Power's movement towards electrification of its fleet. The second Non-Criteria Based Equipment purchase was a zero-turn lawn mower for use at the CJ Strike parks complex. The CJ Strike parks complex includes over 100 campsites between the three parks, North Park and Scout Park, and Cottonwood Park, consisting of over 60 acres of turf that needs mowed weekly. The complex is staffed with three full time employees and one seasonal employee between the months of April and September. The employees provide customer service, as well as grounds and facilities maintenance seven days per week. The turf was being managed with two zero-turn mowers, taking approximately 25 hours per week to mow the turf. With the addition of a third mower, that time will be cut by approximately 30 percent, while also enabling an additional staff member to assist in managing mowing when other work is complete. Also, the additional mower provides a backup unit if one mower goes down and needs repair. Further, the Company purchased an Exmark mower, the same manufacturer of the mowers used at CJ Strike and the Oxbow parks currently because of familiarity with the units, interchangeable parts, exceptional reliability, and excellent customer support from Horizon, the Exmark dealer. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 10 The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 11 REQUEST FOR PRODUCTION NO. 55: In its response to Production Request No. 5, the Company identifies "AVTEC Consoles At Dispatch" project with a cost of $171,995. The description provided did not provide clarity regarding the work that was done. Please provide the following and if any of the information requested below cannot be provided or is not available, please explain why it is not available or cannot be provided: a. Please provide a description and documentation on the other solutions that were explored. b. As the 5-year contract was expiring, it was known that either a contract renewal or another solution was required to avoid a gap in support, please provide what steps are being put in place to avoid a similar situation that would require an expenditure of$150,000 in unbudgeted capital. c. The Business Need provided indicates that an upgrade of dispatcher workstations is planned for this year and that there are efficiencies in performing the work simultaneously. i. Please provide clarification if this was indeed completed as a single solution; and ii. Please provide the expected savings in the efficiencies mentioned on an annual basis. RESPONSE TO REQUEST FOR PRODUCTION NO. 55: a. The Avtec console system was installed in 2018 as part of the project to replace the Idaho Power two-way radio communication system. The purchase price of the system at that time was $604,988. The Avtec consoles are comprised of hardware IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 12 peripherals connected to dispatcher workstations, with software installed on the workstations that allows dispatchers to manage communications with field employees. In 2017, an RFP was issued soliciting multiple console system manufacturers. Avtec was the successful respondent due in part to technical deficiencies of competitor solutions that were required to interface with the Company's two-way radio system. The $171,995 that closed to plant year to date June 2024 was due to the replacement of a portion of the Avtec console system that had been discontinued. Rather than replacing the entire system, which would include the replacement of the hardware and software, the completion and testing of the required communications systems integrations, and the training of dispatchers in the new system, at a much higher cost, Idaho Power replaced only the part of the system that was discontinued. Further, the upgrade extended the life of other components that did not require replacement. Given the system initially cost $604,988 in 2017, the partial replacement at $171,995 was a more cost-effective solution. b. The contract was known and planned to expire at five years and both parties anticipated a renewal to maintain support services although it was not planned that the console hardware would need to be upgraded as the previous equipment would no longer be supported. Avtec had communicated this to customers, but Idaho Power inadvertently excluded the project costs in the 2024 budget. The Company and Avtec have developed an annual process to review the published end-of-life/end-of-support dates for communications systems to understand IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 13 manufacturer's technology roadmaps and inform Idaho Power's future strategy and resulting budget. C. (i). Yes, the hardware and software were changed simultaneously with the upgrades of the dispatcher workstations. (ii). The efficiencies referenced are in small part financial and in larger part due to the reduced dispatcher operations impact of a single disruption versus multiple disruptions. The update cadence of Avtec hardware and software products do not always align with the cadence of workstation replacements. Idaho Power was able to accomplish both tasks by coordinating the work. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 14 REQUEST FOR PRODUCTION NO. 56: In its response to Production Request No. 5, the Company identifies "CHQ-6 Conference Room Furniture" project with a cost of $153,419. The description provided did not provide clarity regarding the work that was done. Please provide the following and if any of the information requested below cannot be provided or is not available, please explain why it is not available or cannot be provided: a. Please explain what was done with existing furnishings. If the existing furnishings were resold, please specify for what amount; and b. Please explain why the conference room redecorating needs to be completed with the "Bathroom/Core Upgrade Each Floor At CHQ" as stated in the Business Need for this project. Please provide additional details of savings from completing this work simultaneously. RESPONSE TO REQUEST FOR PRODUCTION NO. 56: a. The existing furniture was disposed of due to age and quality. b. There were separate Budget ID's for the CHQ Restroom/Core upgrades and the CHQ Conference Room Upgrades, BIDs CHQB190012 and CHQB190014, respectively. The conference room upgrades were designed and bid along with the restroom and core upgrades in order to reduce costs by combining scopes into a larger project and providing better pricing on lighting orders. The consolidation also caused less disruption on each floor as both projects could be completed at one time. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 15 REQUEST FOR PRODUCTION NO. 57: IPC-E-24-07 response to Production Request No. 5 identifies "Purchase 3 Destination Trlrs For Seasonal Wrkrs At HCC" with a cost of $254,075. Please provide the following and if any of the information requested below cannot be provided or is not available, please explain why it is not available or cannot be provided: a. Please provide the business case for this expenditure, any other options that were explored, their cost, and justification as to why this solution was chosen; b. Does the Company charge rent to the seasonal workers? If so, please provide the total rent revenue; c. Please explain what is done with the trailers in the off-season; d. Please explain what "Park" the Company is referencing in the Business Need of the project; and e. Please explain the roles and responsibilities of each of the seasonal workers at HCC referenced in the response. RESPONSE TO REQUEST FOR PRODUCTION NO. 57: a. There is no business case document specific to this project, the purchase of three trailers for seasonal workers at the Hells Canyon Complex ("HCC"). Idaho Power continually investigates lowest-cost housing options for employees working in remote locations and explored RV hook up sites for the HCC seasonal workers. However most seasonal workers do not have access to an RV. In the past, the Company rotated seasonal employees through other field houses but was having conflicts with other Idaho Power crews using the houses. b. Idaho Power does not currently charge rent to the seasonal employees however IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 16 seasonal employees are responsible for replacing the propane they use and providing upkeep on the unit they occupy. c. The trailers will be winterized at this time however the Company anticipates they will be used, year-round, post- HCC license issuance, because work will intermittently continue into the fall and winter (e.g. fish weir monitoring, recreation use surveys, and construction projects at our parks). d. The trailers are used for seasonal employees who work at any of Idaho Power's four major overnight parks: Hells Canyon Park, Copperfield Park, McCormick Park, and Woodhead Park. In addition, they will be used at less-developed sites like Carter's Landing, Copperfield Boat Launch and Oxbow Boat Launch. e. Seasonal employees conduct maintenance including plumbing, irrigation, mowing, pruning, weed control, light carpentry including painting, repairing park amenities, and replacing signs. Employees also provide customer service, such as explaining rules, access information, and liaising between law enforcement and the Company. They also monitor systems, including sewer lift pump status, irrigation timers, irrigation intakes, and public drinking water. The response to this Request is sponsored by Matt Larkin, Revenue Requirement Senior Manager, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 17 REQUEST FOR PRODUCTION NO. 58: Please provide the information requested as it pertains to the "GridMod Single Vendor Platform" project discussed in Company witness Colburn's Direct at 28. If any of the information requested below cannot be provided or is not available, please explain why it is not available or cannot be provided. a. Please explain and reconcile the different in-service dates, and differences in the projects, if any, for the first phase of this project from the following information provided by the Company: i. In response to Production Request No. 35 in the 2023 Rate Case, Confidential Attachment 1 has an in-service date of 7/31/2020 for "IVVC GridMod Project Phase 4"; ii. In response to Production Request No. 36 in the 2023 Rate Case, Confidential Attachment 1 has an in-service date of 1/31/2023 for "GridMod Single Vendor Platform"; and iii. In this rate case, Colburn Direct at 30 identifies an in-service date of October 2024 for this project. b. Please provide the annual expenses related to the software vendors providing Energy Management Systems, Outage Management System and a Distribution Management System / Integrated Volt/VAR Control services for the past three years. c. Please provide the total estimated capital expense and annual O&M expense for the "GridMod Single Vendor Platform." Please provide supporting workpapers. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 18 d. Please provide the status of any funding that has been applied for or awarded through the Infrastructure Investment and Jobs Act or any other source to offset the cost of this project. e. Please provide any expected savings from this project. Please identify where the Company applied any savings in this rate case. f. Please explain how this new platform will integrate with the existing software systems used for wildfire mitigation. RESPONSE TO REQUEST FOR PRODUCTION NO. 58: a. The two projects, while both the results of Idaho Power's grid modernization efforts, are different. In the 2023 Rate Case, the test year included the replacement of an Automated Capacitor Control ("ACC") system with the development of a new integrated volt-var control ("IVVC") system. The IVVC system replaced a 22-year- old DOS-based system that was nearing its end of life and was unable to provide direct and coordinated voltage control offered by more modern systems such as the IVVC system. Replacing the ACC with the IVVC provided the Company with the ability to better control devices and gather data in real-time, allowing the Company to improve power quality and voltage levels, optimize efficiency, and provide visibility and control to engineers and operators to better manage the distribution system. The IVVC was placed in service in July 2020. The single vendor platform, also a project that is a part of Idaho Power's grid modernization initiative, included the consolidation of three vendor solutions, into one. The Company currently leverages three stand-alone grid control systems for managing the bulk electric system, optimizing distribution assets, and IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 19 responding to customer outages. The systems are the (1) Energy Management ("EMS")/Supervisory Control and Data Acquisition ("SCADA") system, (2) Outage Management System ("OMS"), and the (3) IVVC, a Distribution Management System ("DMS"). Because these systems are independent, they require three sets of hardware, three network models, three support organizations, and complex integrations between the systems. Consolidating the disparate systems will reduce total cost of ownership, lower cyber security threats, and improve user proficiency and organizational support. The three systems will still exist but under one platform. The common architecture will allow Idaho Power to optimize internal support structures through shared resources and reduce the Company's total cost of ownership through bundling support and licensing costs. The single vendor platform project, assigned Budget ID BOBN220002, is anticipated to be placed in service in October 2024 and, as evidenced by the Work Breakdown Structure provided in the Company's Response to Request for Production No. 32(b)—Attachment 1 work began in 2023. Specific tasks necessary for the project are assigned work order numbers and once completed and the product is used and useful, the work order is placed in service, which may be prior to the entire project being completed. The costs identified in the 2023 Rate Case in the Response to Production Request No. 36 — Confidential Attachment 1, included as the Response to Production Request No. 58(a) — Confidential Attachment in this proceeding, with an in-service date of January 2023 were IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 20 associated with three work orders under Budget ID BOBN220002 that had been placed in service. b. The following summarizes the annual O&M expenses specific to the software related to the EMS, OMS and IVVC services for the past three years: 2021 2022 2023 EMS 243,816 258,552 271,478 OMS 222,157 237,469 236,740 IVVC 143,793 175,023 182,587 Grand Total 609,766 671,043 690,805 c. See the Company's Response to Request for Production No. 32(a) — Confidential Attachment 2 for the business case for the project. The estimated capital costs are presented in Table 19 — Estimated project costs on Page 33 of the business case while the annual O&M expenses are presented in Table 20 — Estimated ongoing annual costs. Option C details the costs specific to the vendor selected for the single vendor platform project. d. The Company received a $1.5 million grant from the State of Idaho under the Energy Resiliency Grant Program for the foundation phase of the single vendor platform project. e. See the Company's Response to Request for Production No. 32(a) — Confidential Attachment 2 for the business case for the project. As presented on page 19, the financial analysis results indicate expected revenue requirement savings of approximately $3 million on a net present value basis. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 21 f. Phase one of the single vendor platform project will allow for the operation of the SCADA devices for control during a Public Safety Power Shutoff ("PSPS"). Phase two will integrate to the outage map and drive customer communication for any outages, including during a PSPS event. The response to this Request is sponsored by Mitch Colburn, Vice President of Planning, Engineering, and Construction, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 22 DATED at Boise, Idaho, this 6th day of August 2024. LISA D. NORDSTROM Attorney for Idaho Power Company DONOVAN E. WALKER Attorney for Idaho Power Company MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 23 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 6th day of August 2024, 1 served a true and correct copy of Idaho Power Company's Response to the Seventh Production Request of the Commission Staff to Idaho Power upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Hand Delivered Chris Burdin U.S. Mail Deputy Attorney General Overnight Mail Idaho Public Utilities Commission FAX 11331 W. Chinden Blvd., Bldg No. 8 FTP Site Suite 201-A (83714) X Email Chris.Burdin(c�puc.idaho.gov PO Box 83720 Boise, ID 83720-0074 Industrial Customers of Idaho Power Hand Delivered Peter J. Richardson U.S. Mail Richardson Adams, PLLC Overnight Mail 515 N. 27' Street FAX Boise, Idaho 83702 FTP Site X Email peterC@richardsonadams.com Dr. Don Reading Hand Delivered 280 Silverwood Way U.S. Mail Eagle, Idaho 83616 Overnight Mail FAX FTP Site X Email dreading(@mindspring.com Idaho Irrigation Pumpers Association, Hand Delivered Inc. U.S. Mail Eric L. Olsen Overnight Mail ECHO HAWK & OLSEN, PLLC FAX 505 Pershing Avenue, Suite 100 FTP Site P.O. Box 6119 X Email elo _echohawk.com Pocatello, Idaho 83205 Lance Kaufman, Ph.D. Hand Delivered 2623 NW Bluebell Place U.S. Mail Corvallis, OR 97330 Overnight Mail FAX FTP Site X Email lance aegisinsight.com IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 24 Idaho Conservation League Hand Delivered Matthew A. Nykiel U.S. Mail 710 N. 6t" Street Overnight Mail Boise, Idaho 83702 FAX FTP Site X Email matthew.nykiel(Dgmail.com Brad Heusinkveld Hand Delivered Idaho Conservation League U.S. Mail 710 N. 6t" Street Overnight Mail Boise, Idaho 83702 FAX FTP Site X Email bheusinkveld(a)idahoconservation.org Micron Technology, Inc. Hand Delivered Austin Rueschhoff U.S. Mail Thorvald A. Nelson Overnight Mail Austin W. Jensen FAX Kristine A.K. Roach FTP Site Holland & Hart LLP X Email 555 17' Street, Suite 3200 darueschhoff(c)_hol land hart.com Denver, CO 80202 tnelson(a)-hol land hart.com awjensen _hol land hart.com karoach(a)hollandhart.com acleeC@hollandhart.com mamcmillen(a-),hollandhart.com Jim Swier Hand Delivered Micron Technology, Inc. U.S. Mail 8000 South Federal Way Overnight Mail Boise, ID 83707 FAX FTP Site X Email iswier(a)micron.com City of Boise Hand Delivered Ed Jewell U.S. Mail Deputy City Attorney Overnight Mail Boise City Attorney's Office FAX 150 N. Capitol Blvd. FTP Site P.O. Box 500 X Email Boise, Idaho 83701 BoiseCityAttorneyCa�cityofboise.org ejewell cityofboise.org IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 25 Steven Hubble Hand Delivered Boise City Dept. of Public Works U.S. Mail 150 N. Capitol Blvd. Overnight Mail P.O. Box 500 FAX Boise, Idaho 83701-0500 FTP Site X Email sh u bbleCcDcityofboise.org Federal Executive Agencies Hand Delivered Peter Meier U.S. Mail Emily W. Medlyn Overnight Mail U.S. Department of Energy FAX 1000 Independence Ave., S.W. FTP Site Washington, DC 20585 X Email Pete r.meier(o-)hg.doe.gov emily.medlyn(a-),hg.doe.gov Stacy Gust Regulatory Administrative Assistant IDAHO POWER COMPANY'S RESPONSE TO THE SEVENTH PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER- 26