20240808Staff Comments - Redacted.pdf

RECEIVED
Thursday, August 8, 2024 2.48.01 PM
IDAHO PUBLIC
UTILITIES COMMISSION
ADAM TRIPLETT
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 10221
Street Address for Express Mail:
11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY'S APPLICATION FOR ) CASE NO. IPC-E-24-20
APPROVAL OF THE FIRST AMENDMENT )
TO THE POWER PURCHASE AGREEMENT )
WITH PVS 2, LLC ) REDACTED COMMENTS OF
THE COMMISSION STAFF
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission, by and
through its Attorney of record, Adam Triplett, Deputy Attorney General, submits the following
comments.
BACKGROUND
On May 16, 2024, Idaho Power Company("Company"), applied for approval of the First
Amendment("First Amendment") to its Power Purchase Agreement with PVS 2, LLC ("PPA").
The PPA was approved by the Commission in Order No. 36197 on May 28, 2024, in Case No.
IPC-E-24-01.
The Company represents that the First Amendment would change only the Scheduled
Commercial Operation Date contained in the PPA from December 31, 2026, to May 31, 2026.
STAFF COMMENTS I AUGUST 8, 2024

STAFF ANALYSIS
Staff believes that it is reasonable to change the Scheduled Commercial Operation Date
from December 31, 2026, to May 31, 2026. Staff recommends that the Commission approve the
updated First Amendment contained in Attachment A.
Brisbie is a special contract customer that is offsetting its annual energy load with
dedicated solar PPAs procured by the Company for Brisbie under the Company's Clean Energy
Your Way—Construction ("CEYW-CO") framework. The Commission has approved Pleasant
Valley Solar 1, LLC ("PVS 1") and Pleasant Valley Solar 2, LLC ("PVS 2") through
Commission Order Nos. 35739 and 36197. However, the Company is requesting the
Commission to approve a change to the Scheduled Commercial Operation Date of PVS 2
through the proposed First Amendment to better align with Brisbie's load ramp. Staff s review
focused on Brisbie's anticipated load in 2026, the potential impact of using the original
Scheduled Commercial Operation Date, the 110% annual energy limit, and the proposed First
Amendment.
Brisbie's Anticipated Load in 2026
Staff believes that compared to the original Scheduled Commercial Operation Date of
December 31, 2026, the proposed Scheduled Commercial Operation Date of May 31, 2026,
better aligns with Brisbie's anticipated load in 2026.
Brisbie's load forecast is projected to ramp throughout 2026. See Response to Staff
Production Request No. 1(a). Table No. 1 below shows Brisbie's capacity deficit based on their
anticipated peak load and the amount of dedicated capacity of the PVS 1 solar facility. As can
be seen in the table, Brisbie starts incurring a capacity deficit starting in June of 2026. Based on
this information, Staff believes the proposed Scheduled Commercial Operation Date of May 31,
2026,better aligns with Brisbie's anticipated load in 2026.
STAFF COMMENTS 2 AUGUST 8, 2024

Table No. 1: Brisbie's Load Forecast and ELCCs of PVS 1 and PVS 2
June 2026 July 2026 August 2026
Brisbie's Load' (MW)
PVS 1 ELCC2 (MW) 62' 62 62
Brisbie's Deficit(MW)
PVS 2 ELCC (MW) 394 39 39
Potential Impact of Using the Original Scheduled Commercial Operation Date
Staff believes that by using the original Scheduled Commercial Operation Date for PVS 2
of December 31, 2026, the reliability of the Company's system could be affected. Without
pulling in the date to align with Brisbie's anticipated load, the Company's summer reliability of
2026 could be at increased risk. In addition, the 2023 Integrated Resource Plan("IRP")
identified that the Company's first capacity deficiency period will appear in the summer of 2026.
2023 IRP at 174. Because of the potential for schedules to slip for some of the resources being
planned for the Company's summer capacity deficit in 2026, Staff believes that pulling up the
date of PVS 2's operation date could mitigate the impact, if any implementation delays occur.
110%Annual Energy Limit
Staff verified that the 110% annual energy limit is not exceeded by pulling in the PVS 2's
Scheduled Commercial Operation Date. In order to ensure that renewable resource projects will
be appropriately sized, Section 7.1 of Special Contract between Brisbie and the Company in
Case No. IPC-E-21-42 required that the parties should enter into procurement of renewable
resource projects "with an aggregate total Project nameplate capacity rating times applicable Project
capacity factor not to exceed 110%of the Total Supply Obligation". In other words,the total
generation combining all projects should not exceed 110% of the annual Total Supply Obligation.
1 See Response to Staff Production Request No. 1(c).
z ELCC stands for Effective Load Carrying Capability,and it is used to assess the capacity contribution of variable
generation to reliably meet demand during high-risk hours.
'62 MW ELCC is calculated by 200 MW nameplate capacity of PVS 1 multiplied by 31.21%ELCC. See Schedule
33.
a 39 MW ELCC is calculated by 125 MW nameplate capacity of PVS 2 multiplied by 31.54%ELCC. See Response
to Staff Production Request No. 1(c).
STAFF COMMENTS 3 AUGUST 8, 2024

With the proposed Scheduled Commercial Operation of May 31, 2026, the 1101/0 limit
will still be met for the period of June 2026 through May 2027. See Response to Staff
Production Request No. 4. During that period, the combined generation from PVS 1 and PVS 2
is approximatel} megawatt hours ("MWh"), and the Total Supply Obligation is
approximately- MWh. Id.
First Amendment
The Company and PVS 2, LLC, executed the First Amendment to modify the Scheduled
Commercial Operation Date. However, the First Amendment contains two mistakes. First,the
page numbering in the First Amendment references three pages when there are only two pages.
Second, the last paragraph of Page 2 of the First Amendment is intended to state the"First
Amendment,"but it mistakenly states the "Second Amendment."
The Company corrected the mistakes by filing an updated First Amendment in Response
to Staff Production Request No. 5, where corrections were handwritten and initialed by counsel
for the Company. The Company also stated in the response that the Company obtained PVS 2's
consent and permission to make the identified handwritten corrections. Staff includes the
updated First Amendment in Attachment A of Staffs comments and recommends approval of
the updated First Amendment.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the updated First Amendment contained
in Attachment A.
Respectfully submitted this 8' day of August 2024.
A&6n Triplett
Deputy Attorney General
Technical Staff: Yao Yin
I:\Utility\UMISC\COMMENFS\IPC-E-24-20 Comments-Redwted.docx
STAFF COMMENTS 4 AUGUST 8, 2024

DocuSign Envelope ID:54558DAA-70CD-48BF-AB79-05WADD2591
FIRST AMENDMENT TO THE POWER PURCHASE AGREEMENT
BETWEEN
PVS 2, LLC
AND
IDAHO POWER COMPANY
This First Amendment to the Power Purchase Agreement("First Amendment")is effective
as of May 14 ,2024("Effective Date")and is entered into by and between Idaho Power Company,
an Idaho corporation ("Idaho Power") and PVS 2, LLC, a Utah limited liability company
("Seller"), (individually a"Party" and collectively the"Parties").
WHEREAS, Idaho Power entered into the Power Purchase Agreement ("PPA") with the
Seller on December 5, 2023, for the purchase and sale of energy and Green Tags for the benefit of
Brisbie, LLC ("Brisbie"or"Customer")pursuant to a Special Contract between Idaho Power and
Brisbie ("Special Contract"). The PPA was filed for review and approval with the Idaho Public
Utilities Commission("Commission")on January 3,2024. Commission Staff filed its Comments
regarding the PPA on April 3,2023, recommending approval of the PPA. Case No. IPC-E-24-01.
WHEREAS, the Special Contract between Idaho Power and Brisbie was filed for review
and approval with the Commission on December 22, 2021, and approved by Order No. 35777 on
May 11,2023. Case No. IPC-E-21-42.
WHEREAS, the PPA contains a Scheduled Commercial Operation Date of December 31,
2026,and the Parties desire to enter into this First Amendment to the PPA to change the Scheduled
Commercial Operation Date to May 31,2026,and submit the same for the Commission's approval.
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, the Parties hereto agree as follows:
1. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part of
the PPA, as amended, by this reference to the same extent as if these recitals were set forth in full
at this point.
2. Amendment. (new language is underlined,and deleted language uses stAketl3reugh)
Section 1.123 of the PPA shall hereby be Amended as follows:
"1.123 `Scheduled Commercial Operation Date' means MayDeeeffilff 31, 2026, subject
to adjustment for delays due to Events of Force Majeure,delay beyond the date set forth in
or otherwise agreed pursuant to Section 3.1.4, and Interconnection Delay."
3. Commission Approval. The obligations of the Parties under this First Amendment are subject
to the Commission's approval of this First Amendment and such approval being upheld on appeal,
if any, by a court of competent jurisdiction.
oW
Fuss 2, LLC Attachment A
Amendment to PPA page 1 of�
Case No. IPC-E-24-20
Comments
August 8, 2024

DocuSign Envelope ID:54558DAA-70CD-48BF-AB79-058AOADD2591
4. Effect of Amendment. Except as expressly amended by this First Amendment,the terms and
conditions of the PPA remain unchanged.
5. Capitalized Terms. All capitalized terms used in this First Amendment and not defined herein
shall have the same meaning as in the PPA.
6. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit
of the Parties hereto, and their respective heirs,executors, administrators, successors, and assigns,
who are obligated to take any action which may be necessary or proper to carry out the purpose
and intent hereof.
7. Authority. Each Party represents and warrants that as of the Effective Date: (i) it is validly
existing and in good standing in the state in which it is organized, (ii) it is the proper party to
amend the PPA,and(iii) it has the requisite authority to execute this First Amendment.
8. Counterparts. This First Amendment may be executed in any number of counterparts, each
of which shall be deemed an original and all of which taken together shall constitute a single
T 1
instrument. 1 rst
IN WITNESS WHEREOF, the Parties hereto have caused this p3e6Q Amendment to be
duly executed as of the date above written.
IDAHO POWER COMPANY PVS 2, LLC
By: AJ auk Kt t y,,S By:
Name: Adam Richins Name: Luigi Resta
Title: SVP &Chief Operating Officer Title: Authorized Sigagtory
PVS 2, LLC Attachment A
First Amendment to PPA Page 2 of r
Case No. IPC-E-24-20
Comments
August 8, 2024

CERTIFICATE OF SERVICE
I HERE BY CERTIFY THAT I HAVE THIS 8th DAY OF AUGUST 2024,
SERVED THE FOREGOING REDACTED COMMENTS OF THE COMMISSION STAFF
IN CASE NO. IPC-E-24-20, BY E-MAILING A COPY THEREOF, TO THE
FOLLOWING:
DONOVAN E WALKER ENERGY CONTRACTS
MEGAN GOICOECHEA ALLEN IDAHO POWER COMPANY
IDAHO POWER COMPANY PO BOX 70
PO BOX 70 BOISE ID 83707-0070
BOISE ID 83707-0070 E-MAIL: energycontractsAidahopower.com
E-MAIL: dwalker idahopower.com
mgoicoecheaallena idahopower.com
dockets c_idahopower.com
r
PATRICIA JORDAN, SECRETARY
CERTIFICATE OF SERVICE