20240918IPC to Staff 80-81_83-84 - Supplemental (Redacted).pdf

LISA D. NORDSTROM
Lead Counsel
[e-mail]

September 18, 2024

VIA ELECTRONIC FILING

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 Supplemental
Response to the Eleventh 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.

Sincerely,

Lisa D. Nordstrom

LDN:sg
Attachments
' a1DA11> POWER .
RECEIVED
Wednesday, September 18 2024
IDAHO PUBLIC
UTILITIES COMMISSION

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 Idaho Power Company’s Supplemental Response to the Eleventh
Production Request of the Commission Staff dated September 18, 2024, contains
information that Idaho Power Company and a third party and/or a third party claim are
trade secrets 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 18th day of September 2024.

Lisa D. Nordstrom
Attorney for Idaho Power Company

IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 1
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: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]

Attorneys for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY TO INCREASE RATES FOR
ELECTRIC SERVICE TO RECOVER
COSTS ASSOCIATED WITH
INCREMENTAL CAPITAL
INVESTMENTS AND CERTAIN
ONGOING OPERATIONS AND
MAINTENANCE EXPENSES.

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CASE NO. IPC-E-24-07

IDAHO POWER COMPANY’S
SUPPLEMENTAL RESPONSE TO
THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION
STAFF TO IDAHO POWER

COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and in
response to the Eleventh Production Request of the Commission Staff (“Commission” or
“Staff”) to Idaho Power Company dated August 19, 2024, herewith supplements the
following information:

IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 2
REQUEST FOR PRODUCTION NO. 80: Please clarify if Capital Project BID
FRBS230001 - 60 MW Franklin BESS has achieved the Substantial Completion
milestone shown in the Build Transfer Agreement - Appendix B as amended April 26,
2024, and documentation of the date that Idaho Power Transmission provided backfeed
power to the project.
a. If so, please provide the Form of Substantial Completion Funds Flow Statement;
or
b. If not, please provide new estimated dates for the remaining unmet milestones as
outlined in the Build Transfer Agreement - Appendix B as amended April 26, 2024,
associated liquidated damages expected to be incurred by the new estimated
dates, and how the damages will be credited in customer rates.
SUPPLEMENTAL RESPONSE TO REQUEST FOR PRODUCTION NO. 80:
a. Capital Project BID FRBS230001, the 60 MW Franklin BESS, has not achieved
Substantial Completion. Performance tests, which is the final stage to meet
Substantial Completion, were delayed a couple of weeks in order to rectify some
telecommunication compatibility issues. These have been rectified and are
currently being tested.
b. Guaranteed Substantial Completion Date is anticipated by September 30, 2024,
with Final Acceptance in October 2024.
The response to this Request is sponsored by Eric Hackett, Projects and Resource
Development Director, Idaho Power Company.

IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 3
REQUEST FOR PRODUCTION NO. 81: Please provide documentation verifying
the date each of the following milestones were met for Capital Project BID HMWY230003
- 36 MW Hemingway BESS. If the guaranteed date shown in IDP0061 – Hemingway
Expansion - Exhibit D was not met, please include the actual completion date, associated
liquidated damages incurred for that milestone, and how the damages will be credited in
customer rates.
a. Delivery of Collection Segment;
b. Delivery of PCS/MVT Sets; and
c. Delivery of Energy Segments.
SUPPLEMENTAL RESPONSE TO REQUEST FOR PRODUCTION NO. 81:
c. The liquidated damages associated with this Milestone amount to approximately
. The liquidated damages will be applied as a credit to net power supply
expenses and therefore will flow back to customers through the PCA. Note, Idaho
Power cannot provide exact liquidated damage amounts because the Company
has not been invoiced for the ensuing milestone payments and liquidated damages
have not actually been withheld. Ambiguity can exist within the contract between
the seller and buyer on the total days of delay based on potential force majeure
claims, buyer caused delay, etc. Therefore, Idaho Power’s estimate was based
on a literal read of the contract liquidated damages formula through the current
date but because liquidated damages are still potentially accruing, the value is
approximate.
The response to this Request is sponsored by Eric Hackett, Projects and
Resource Development Director, Idaho Power Company.
-

IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 4
REQUEST FOR PRODUCTION NO. 83: Please provide documentation verifying
the date each of the following milestones were met for Capital Project BID BMSU220002
40 MW Black Mesa BESS. If the guaranteed date shown in IDP0090 – Black Mesa -
Exhibit D was not met, please include the actual completion date and associated
liquidated damages incurred for that milestone, and how the damages will be credited in
customer rates.
a. Delivery of Collection Segment;
b. Delivery of PCS/MVT Sets; and
c. Delivery of Battery Segments.
SUPPLEMENTAL RESPONSE TO REQUEST FOR PRODUCTION NO. 83:
a. The Company estimates liquidated damages of approximately . The
liquidated damages will be applied as a credit to net power supply expenses and
therefore will flow back to customers through the PCA. Please see the Response
to Request for Production No. 81(c) for a description of how the estimated
liquidated damages amount was developed.
c. Idaho Power estimates liquidated damages associated with this Milestone amount
to be approximately . The liquidated damages will be applied as a credit
to net power supply expenses and therefore will flow back to customers through
the PCA. Please see the Response to Request for Production No. 81(c) for a
description of how the estimated liquidated damages amount was developed.
The response to this Request is sponsored by Eric Hackett, Projects and Resource
Development Director, Idaho Power Company.
-
-

IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 5
REQUEST FOR PRODUCTION NO. 84: Please clarify if Capital Project BID
BMSU220002 40 MW Black Mesa BESS has achieved the Commissioning milestone.
a. If so, please provide the Form of Commissioning Certificate; and
b. If not, please provide new estimated dates for all remaining unmet milestones as
outlined in IDP0090 – Black Mesa - Exhibit D of the Battery Energy Supply
Agreement, associated liquidated damages expected to be incurred by the new
estimated dates, and how the damages will be credited in customer rates.
SUPPLEMENTAL RESPONSE TO REQUEST FOR PRODUCTION NO. 84:
a. Capital Project BID BMSU220002, the 40 MW Black Mesa BESS, has not
achieved the Commissioning milestone pursuant to the contract because Idaho
Power will not accept the commissioning certificate until all required items
identified in the commissioning checklist have been completed. The supplier ran
into an issue with the inverters that has required derating of a number of batteries
within the facility. While the project is in-service, the Company is maintaining the
position that commissioning has not technically been accomplished per the
contract. This is a key point as it allows Idaho Power to withhold the milestone
payment for commissioning ensuring there is incentive by the supplier to rectify the
issues. Commissioning not being deemed complete does not invalidate the in-
service date of the facility.
b. Commissioning is anticipated prior to the end of September 2024 with Final
Acceptance in October.
The response to this Request is sponsored by Eric Hackett, Projects and Resource
Development Director, Idaho Power Company.

IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 6

DATED at Boise, Idaho, this 18th day of September 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 SUPPLEMENTAL RESPONSE TO THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 7
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on the 18th day of September 2024, I served a true and
correct copy of Idaho Power Company’s Supplemental Response to the Eleventh
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
Chris Burdin
Deputy Attorney General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg No. 8
Suite 201-A (83714)
PO Box 83720
Boise, ID 83720-0074

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Industrial Customers of Idaho Power
Peter J. Richardson
Richardson Adams, PLLC
515 N. 27th Street
Boise, Idaho 83702

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Dr. Don Reading
280 Silverwood Way
Eagle, Idaho 83616

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Idaho Irrigation Pumpers Association,
Inc.
Eric L. Olsen
ECHO HAWK & OLSEN, PLLC
505 Pershing Avenue, Suite 100
P.O. Box 6119
Pocatello, Idaho 83205

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Lance Kaufman, Ph.D.
2623 NW Bluebell Place
Corvallis, OR 97330
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IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 8
Idaho Conservation League
Brad Huesinkveld
710 N. 6th Street
Boise, Idaho 83702
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Micron Technology, Inc.
Austin Rueschhoff
Thorvald A. Nelson
Austin W. Jensen
Kristine A.K. Roach
Holland & Hart LLP
555 17th Street, Suite 3200
Denver, CO 80202

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Jim Swier
Micron Technology, Inc.
8000 South Federal Way
Boise, ID 83707
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City of Boise
Ed Jewell
Deputy City Attorney
Boise City Attorney’s Office
150 N. Capitol Blvd.
P.O. Box 500
Boise, Idaho 83701

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IDAHO POWER COMPANY’S SUPPLEMENTAL RESPONSE TO THE ELEVENTH PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER - 9
Steven Hubble
Boise City Dept. of Public Works
150 N. Capitol Blvd.
P.O. Box 500
Boise, Idaho 83701-0500

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Federal Executive Agencies
Peter Meier
Emily W. Medlyn
U.S. Department of Energy
1000 Independence Ave., S.W.
Washington, DC 20585

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Stacy Gust
Regulatory Administrative Assistant