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HomeMy WebLinkAboutDirect J. Ellsworth.tif ELLSWORTH, DI 1 Idaho Power Company Q. Please state your name, business address, and 1 present position with Idaho Power Company (“Idaho Power” or 2 “Company”). 3 A. My name is Jared L. Ellsworth and my business 4 address is 1221 West Idaho Street, Boise, Idaho 83702. I am 5 employed by Idaho Power as the Transmission, Distribution & 6 Resource Planning Director for the Planning, Engineering & 7 Construction Department. 8 Q. Please describe your educational background. 9 A. I graduated in 2004 and 2010 from the 10 University of Idaho in Moscow, Idaho, receiving a Bachelor 11 of Science Degree and Master of Engineering Degree in 12 Electrical Engineering, respectively. I am a licensed 13 professional engineer in the State of Idaho. 14 Q. Please describe your work experience with 15 Idaho Power. 16 A. In 2004, I was hired as a Distribution 17 Planning engineer in the Company’s Delivery Planning 18 department. In 2007, I moved into the System Planning 19 department, where my principal responsibilities included 20 planning for bulk high-voltage transmission and substation 21 projects, generation interconnection projects, and North 22 American Electric Reliability Corporation’s reliability 23 compliance standards. I transitioned into the Transmission 24 Policy & Development group with a similar role, and in 25 ELLSWORTH, DI 2 Idaho Power Company 2013, I spent a year cross-training with the Company’s Load 1 Serving Operations group. In 2014, I was promoted to 2 Engineering Leader of the Transmission Policy & Development 3 department and assumed leadership of the System Planning 4 group in 2018. In early 2020, I was promoted into my 5 current role as the Transmission, Distribution and Resource 6 Planning Director. I am currently responsible for the 7 planning of the Company’s wires and resources to continue 8 to provide customers with cost-effective and reliable 9 electrical service. 10 Q. What is the Company’s request in this case? 11 A. Idaho Power is requesting the Idaho Public 12 Utilities Commission (“Commission”) grant the Company a 13 Certificate of Public Convenience and Necessity (“CPCN”) to 14 acquire new dispatchable energy storage with 100 megawatts 15 (“MW”) of operating capacity and necessary to meet the 16 identified capacity deficiency in 2026. 17 Q. What is the purpose of your testimony in this 18 case? 19 A. The purpose of my testimony is to inform the 20 Commission of the Company’s need for new resources to meet 21 an identified capacity deficit in 2026 as informed by a 22 Loss of Load Expectation (“LOLE”) methodology utilized in 23 the 2021 Integrated Resource Plan (“IRP”), again in the 24 2023 IRP, and subsequently further enhanced through system 25 ELLSWORTH, DI 3 Idaho Power Company reliability evaluations. I will describe the most recent 1 assessment of system reliability and its impact to the 2 capacity deficit identified in the annual capacity position 3 utilized in the 2023 IRP. Finally, I will provide support 4 for the acquisition of resources to address the identified 5 near-term capacity needs. 6 Q. Is this the same assessment of system 7 reliability that was performed to support the Company’s 8 request in Case No. IPC-E-24-12, Idaho Power Company’s 9 Application for Approval of a Market Purchase Agreement 10 filed on March 18, 2024, and Case No. IPC-E-24-16, Idaho 11 Power Company’s Application for a Certificate of Public 12 Convenience and Necessity for the Boise Bench Battery 13 Storage Facility? 14 A. No, it is not. The Company has performed an 15 updated assessment of system reliability since Case Nos. 16 IPC-E-24-12 and IPC-E-24-16 were filed that identifies a 17 2026 capacity deficit range of 41 MW to 61 MW with 18 continued growth in that deficit in 2027 and beyond. 19 I. BACKGROUND 20 Q. What is the goal of the IRP? 21 A. The goal of the IRP is to ensure: (1) Idaho 22 Power’s system has sufficient resources to reliably serve 23 customer demand and flexible capacity needs over a 20-year 24 planning period, (2) the selected resource portfolio 25 ELLSWORTH, DI 4 Idaho Power Company balances cost, risk, and environmental concerns, (3) 1 balanced treatment is given to both supply-side resources 2 and demand-side measures, and (4) the public is involved in 3 the planning process in a meaningful way. Idaho Power uses 4 Energy Exemplar’s AURORA’s Long-Term Capacity Expansion 5 (“LTCE”) modeling platform to develop portfolios, through 6 the selection of a variety of supply- and demand-side 7 resource options, that are least-cost for a variety of 8 alternative future scenarios while meeting reliability 9 criteria. To verify the top performing portfolios meet the 10 Company’s reliability requirements, Idaho Power utilizes a 11 LOLE methodology. 12 Q. Please explain the Loss of Load Expectation. 13 A. The LOLE is a statistical measure of a 14 system’s resource adequacy, describing the expected number 15 of event-days per year that a system would be unable to 16 meet demand. As utilities continue to add more renewable 17 energy to the electric grid, analyzing the effect variable 18 energy resources have on system reliability has become more 19 critical. The LOLE methodology recognizes that the output 20 of variable energy resources, such as wind and solar, 21 change with time (with their hourly output being dependent 22 on a multitude of factors like weather and environmental 23 conditions); it is essential to capture and value that 24 variability. 25 ELLSWORTH, DI 5 Idaho Power Company Q. What inputs are derived from the LOLE 1 methodology that are utilized in the AURORA LTCE model? 2 A. Idaho Power implements the LOLE methodology 3 through an internally developed Reliability and Capacity 4 Assessment Tool (“RCAT”) which is capable of producing 5 inputs such as a Planning Reserve Margin (“PRM”) and 6 resource Effective Load Carrying Capability (“ELCC”) 7 values. The PRM metric can be defined as the percentage of 8 expected capacity resources above forecasted peak demand. 9 The ELCC calculation is a reliability-based metric used to 10 assess the capacity contribution of variable and energy-11 limited resources. The PRM and ELCC values that are 12 calculated using the LOLE methodology are a direct input to 13 the AURORA LTCE model. 14 Q. How are the PRM and ELCC values utilized? 15 A. Because the AURORA LTCE model and the RCAT are 16 two separate tools, a translation is required between the 17 probabilistic LOLE analysis performed in RCAT and the 18 portfolios produced by the AURORA LTCE model. First, PRM 19 and ELCC values are calculated using the LOLE methodology, 20 which serve as direct inputs to the AURORA LTCE model. 21 After AURORA solves for and produces portfolios, select 22 resource buildouts and their corresponding data are 23 analyzed with the LOLE methodology and tested to ensure 24 they meet the pre-designated reliability hurdle through the 25 ELLSWORTH, DI 6 Idaho Power Company calculation of annual capacity positions. It is critical 1 when comparing future resource portfolios that each plan 2 achieves at least a base reliability threshold. Figure 1 3 below illustrates the model consolidation process. 4 Figure 1. Idaho Power’s Reliability Flowchart 5 6 Q. Have the LOLE-derived annual capacity 7 positions replaced the previously utilized load and 8 resource balance? 9 A. Yes. While they serve the same purpose, to 10 determine capacity deficiencies, the annual capacity 11 position calculation is a 2023 IRP methodology improvement 12 that replaced the load and resource balance process 13 performed in prior IRP filings. The load and resource 14 balance was a tabulated plan that helped visually ensure 15 Idaho Power had sufficient resources to meet projected 16 customer demand including a margin to account for extreme 17 conditions, reserves, and resource outages, identifying 18 ELLSWORTH, DI 7 Idaho Power Company resource deficiencies during the 20-year IRP planning 1 horizon. Beginning with the 2023 IRP, to better align with 2 and represent the probabilistic reliability analyses 3 utilized and to be consistent with best practices in the 4 industry, the RCAT was utilized to calculate annual 5 capacity positions in place of the deterministic load and 6 resource balance. The LOLE-derived annual capacity position 7 calculation is a better indication of resource reliability 8 as compared to the previously utilized load and resource 9 balance. The goal is the same under both processes: 10 identification of the timing of the Company’s first 11 resource need, or the point at which Idaho Power’s 12 reliability requirements may not be met. 13 Q. If the goal of both processes is the same, how 14 is the LOLE-derived annual capacity position calculation an 15 IRP methodology improvement? 16 A. In the 2021 IRP, the Company derived static 17 PRM and resource ELCC values that were held constant 18 throughout the 20-year planning horizon. As the RCAT and 19 AURORA serve different purposes in Idaho Power’s planning 20 process, the Company recognized that further efforts were 21 needed to translate and align the data exchanged between 22 the two models. Historically, the PRM was based on the peak 23 load of a given year plus some additional amount to account 24 for abnormal weather events or equipment outages. This 25 ELLSWORTH, DI 8 Idaho Power Company method worked well to ensure reliability for Idaho Power as 1 a summer peaking utility with mostly flexible generation 2 resources. However, as the wider industry, and the Company, 3 experience increased reliance on variable energy resources, 4 whose hour-to-hour and season-to-season generation changes, 5 it is no longer viable to only contemplate peak hour 6 requirements. 7 To ensure that AURORA would recognize similar 8 capacity needs as identified by the RCAT, the Company 9 developed seasonal PRM values for years in the planning 10 horizon that experience significant changes in the resource 11 buildout, better representing the seasonal resource needs. 12 Historically, when a portfolio added predominantly flexible 13 generation resources it was also sufficient to give these 14 resources a static peak capacity contribution as it was 15 harmonious with a static PRM. As variable energy resource 16 and energy limited resource additions increase, static 17 values no longer account for the reduced peak capacity 18 contribution due to saturation nor do they capture the 19 diversity benefit (positive or negative) of a mix of 20 different types of variable energy resources and energy 21 limited resources. 22 Q. Were any changes made to the use of resource 23 ELCC values as well? 24 A. Yes. The ELCC of future variable energy 25 ELLSWORTH, DI 9 Idaho Power Company resources and energy limited resources are dependent upon 1 the resources built before them, making the ELCC 2 calculation of future resources challenging. Idaho Power 3 implemented seasonal resource specific ELCC saturation 4 curves for variable energy resources and energy limited 5 resources in the AURORA LTCE model for the 2023 IRP. 6 Q. Please explain the synchronization of the RCAT 7 and the AURORA LTCE model. 8 A. To better assess the dynamic diversity benefit 9 caused by a changing resource mix, a feedback process was 10 implemented between the AURORA LTCE model and the RCAT for 11 the 2023 IRP. Under the feedback process, the annual 12 capacity positions for an AURORA LTCE main case portfolio 13 buildout were calculated using the RCAT. Once the annual 14 capacity positions were known, the PRM in the AURORA LTCE 15 model was modified in years that had significant resource 16 changes so that both models identified a similar annual 17 capacity position. The feedback loop continued until the 18 main case portfolio was reliable under the LOLE threshold. 19 The resulting AURORA-produced optimized main case 20 portfolios provide the least-cost, least-risk future 21 resource buildouts. 22 // 23 // 24 // 25 ELLSWORTH, DI 10 Idaho Power Company II. ANNUAL CAPACITY POSITION 1 Q. How has Idaho Power’s capacity needs changed 2 since the system reliability assessment was performed for 3 Case Nos. IPC-E-24-12 and IPC-E-24-16? 4 A. The system reliability assessment for which 5 the capacity need identified in Case Nos. IPC-E-24-12 and 6 IPC-E-24-16 was based, which assumed the online date for 7 Boardman to Hemingway (“B2H”) is beyond summer of 2026, 8 identified a capacity deficit of 236 MW in 2026. With the 9 Commission’s approval of the market purchase agreement in 10 Case No. IPC-E-24-12,1 and issuance of a CPCN in Case No. 11 IPC-E-24-16 for the Boise Bench battery storage facility, 12 the 2026 capacity deficit decreased to 122 MW. 13 Q. Has the Company updated the system reliability 14 assessment since identification of the 122 MW capacity 15 deficit in 2026 following the procurement of resources 16 reviewed in Case Nos. IPC-E-24-12 and IPC-E-24-16? 17 A. Yes. The Company recognizes that during the 18 near-term resource decision-making phase, the annual 19 capacity positions can be very fluid. In addition, in the 20 face of growing loads, Idaho Power constantly monitors 21 resource needs and responds with added urgency, as 22 evidenced by Idaho Power’s consecutive requests for CPCNs 23 to acquire resources to be online in 2023, 2024, 2025 and 24 1 Order No. 36309. ELLSWORTH, DI 11 Idaho Power Company 2026.2 The most recent system reliability assessment, which 1 assumes the online date for B2H is beyond summer of 2026, 2 and includes the procurement of resources in Case Nos. IPC-3 E-24-12 and IPC-E-24-16, has identified a capacity deficit 4 in the range of 41 MW to 61 MW in 2026. 5 Q. What drove the changes to the annual capacity 6 positions for 2026 in the most recent system reliability 7 assessment? 8 A. Any time the system reliability evaluation is 9 performed, Idaho Power includes the most up-to-date load 10 and resource inputs. The modeling input updates that have 11 occurred since identification of the 122 MW deficit that 12 remained after considering the additional resources 13 addressed in Case Nos. IPC-E-24-12 and IPC-E-24-16 are 14 primarily related to: (1) an updated load forecast, (2) 15 inclusion of a wildfire risk factor, (3) an updated 16 generation unit outage schedule, and (4) the acceleration 17 of the commercial operation date of the PVS 2, LLC, solar 18 facility. 19 With the continued high load growth in the Company’s 20 service area, the load forecast is consistently monitored 21 and updated as new information becomes available. Idaho 22 Power has experienced numerous wildfire-related outages on 23 2 Case Nos. IPC-E-22-13, IPC-E-23-05, IPC-E-23-20, IPC-E-24-12, and IPC- E-24-16. ELLSWORTH, DI 12 Idaho Power Company major tie lines used to import power. The Company is 1 fortunate to have some diversity in transmission lines, and 2 that diversity will continue to expand in the future with 3 additions to the transmission system. However, given the 4 prevalence of wildfires in the recent past, the Company has 5 incorporated a small adjustment to the availability of 6 certain transmission facilities. Additionally, due to 7 permitting delays, planned maintenance of one of the Oxbow 8 hydro units has been shifted from 2026 to 2027, providing 9 some additional capacity in 2026. Permitting delays have 10 become more common over the past five years due to 11 increased permitting requirements, reduced government 12 staffing, and greater public opposition to projects. This 13 has driven Idaho Power to consider and plan for the impact 14 of potential and actual project delays. 15 Q. Are there any other near-term known changes, 16 operational enhancements, limitations, or constraints on 17 the existing system, that would inform the Company’s 18 resource needs today? 19 A. Yes. Order No. 36322 issued on September 13, 20 2024, in Case No. IPC-E-24-20, Idaho Power’s Application 21 for Approval of the First Amendment to the Power Purchase 22 Agreement with PVS 2, LLC, approved the change in the 23 Scheduled Commercial Operation Date contained in the Power 24 Purchase Agreement from December 31, 2026, to May 31, 2026, 25 ELLSWORTH, DI 13 Idaho Power Company further reducing the 2026 capacity deficit. Assuming the 1 project meets it commercial operation date, the addition of 2 the solar does not fully address the Company’s capacity 3 deficit but will reduce the capacity deficit to the range 4 of 41 MW to 61 MW in 2026. 5 Q. Why is the capacity deficit a range between 41 6 MW and 61 MW, rather than a single capacity deficit as 7 presented previously? 8 A. Idaho Power has been experiencing a 9 significant increase to its winter peak load, as evidenced 10 by the Company’s all-time winter peak load record of 2,719 11 MW on January 16, 2024, surpassing the previous record by 12 over 100 MW and causing an energy emergency alert as 13 discussed below. In light of this new winter peak load 14 record, and because of the greater winter peak-day 15 temperature variability, the Company recognized the need to 16 revise its peak winter load forecasting methodology. For 17 the purposes of making resource decisions while the load 18 forecast was being updated, the Company began assessing its 19 capacity position under a range which utilizes two versions 20 of the load forecast; first being the 70th percentile peak 21 load for all months as was done in the 2023 IRP, second 22 being the 70th percentile peak load for March through 23 October, but utilizes a 95th percentile peak load for 24 ELLSWORTH, DI 14 Idaho Power Company November through February, which better addresses peak load 1 variability due to winter temperatures. 2 III. MEETING THE CAPACITY DEFICIENCY 3 Q. How does the Company propose to address the 4 2026 capacity deficit presented in this case? 5 A. First, in August 2024, an opportunity arose 6 for Idaho Power to purchase 50 MW of firm energy delivered 7 to its border, for the months of June 2026 through August 8 2026, around the clock, seven days a week. While this 9 short-term purchase will reduce the projected capacity 10 deficit identified for 2026, it only has the effect of 11 deferring, not eliminating, Idaho Power’s resource needs 12 in future years. 13 Q. Is the Company procuring any additional 14 resources to address the remaining deficit? 15 A. Yes. As described in the Direct Testimony of 16 Mr. Hackett, Idaho Power was not able to execute an 17 agreement for a third project submittal with a June 1, 18 2026, commercial operation date resulting from the 2026 19 RFP, and therefore has procured alternative resources, two 20 Company-owned battery storage facilities that will each 21 provide 50 MW of operating capacity. The additional 100 MW 22 of operating capacity provided by the battery storage 23 facilities will ensure Idaho Power continues to provide 24 safe, reliable electric service in 2026 and beyond. 25 ELLSWORTH, DI 15 Idaho Power Company Q. How does the addition of the 50 MW summer 2026 1 market purchase and procurement of the two alternative 2 resources, the two battery storage facilities providing 3 100 MW of operating capacity, impact that capacity deficit 4 in 2026? 5 A. Absent the methodological changes to the 6 market purchase assumptions and the peak load forecasts, 7 and assuming all projects reach commercial operation on 8 time, the addition of the 50 MW summer 2026 market 9 purchase and two battery storage facilities providing 100 10 MW of operating capacity would reduce the 2026 capacity 11 deficit of 41 MW) to 61 MW to a sufficient capacity length 12 position of 7 MW to 44 MW. Although it could be argued 13 that more capacity length is justifiable should Idaho 14 Power experience unforeseen project delays or longer-term 15 resource outages, the Company believes this sufficiency 16 range is acceptable and reflects prudent resource planning 17 in light of increasing resource costs and growing annual 18 capacity deficiencies. The addition of the battery storage 19 facilities will support continued safe, reliable 20 operations in 2026 and beyond. 21 Q. Why do you believe there is sufficient support 22 for the procurement of the Idaho Power-owned battery 23 storage facilities providing a combined 100 MW of 24 operating capacity? 25 ELLSWORTH, DI 16 Idaho Power Company A. The resource acquisitions presented in this 1 case were pursued and procured as a least-cost, least-risk 2 method of meeting the capacity deficits first identified 3 in the Company’s 2021 IRP, again in the 2023 IRP, and 4 subsequently with the results of the updated system 5 reliability evaluation. The fluidity of the capacity 6 deficit period, and continued high load growth, and supply 7 chain disruptions and delays further supports these 8 resource procurements which combined are necessary to 9 adequately address 2026 capacity deficits. 10 Q. Are there any additional operational 11 considerations that support the resource procurements 12 presented in this case? 13 A. Yes. In addition, the battery storage 14 providing a combined 100 MW of operating capacity will 15 provide support during energy emergencies; Idaho Power has 16 experienced two energy emergencies in the recent past. The 17 first energy emergency occurred on September 6, 2022, 18 during a hot summer day. The second energy emergency 19 occurred on January 13, 2024, during a cold winter 20 morning. Prior to these recent energy emergencies, the 21 Company had not been in an energy emergency for over a 22 decade. 23 Q. How does the combined 100 MW of additional 24 battery storage capacity fit within the Company’s future 25 ELLSWORTH, DI 17 Idaho Power Company needs? 1 A. With the additional 100 MW of battery storage2 and considering the 50 MW market purchase is for 2026 3 only, the Company is forecasting a 298 MW to 320 MW 4 capacity deficit in 2027. This large deficit is driven 5 substantially by load growth between 2026 and 2027. The 6 large deficit just one year after acquisition of the 7 additional 100 MW of battery storage illustrates the need 8 for the investment. 9 Q. Are there any financial considerations between10 acquiring additional resources in 2026 as compared to 11 2027? 12 A. Yes. As explained in more detail in Mr.13 Hackett’s testimony, the Company expects battery storage 14 costs to increase for projects being placed in-service 15 after 2026 due to increases in tariffs associated with 16 materials from Asia, further supporting the time-limited 17 nature of this cost-effective acquisition. 18 Q. Did the Company evaluate any alternative19 solutions for meeting the 2026 capacity deficiency to avoid 20 building a new resource? 21 A. Yes. As I discussed earlier in my testimony,22 as part of the IRP process, the Company uses AURORA’s LTCE 23 modeling platform to develop portfolios, through the 24 selection of a variety of supply- and demand-side resource 25 ELLSWORTH, DI 18 Idaho Power Company options, that are least-cost for a variety of alternative 1 future scenarios while meeting reliability criteria. The 2 future supply- and demand-side resources available to meet 3 identified capacity deficiencies, whose costs are generally 4 based on the 2022 Annual Technology Baseline report 5 released by the National Renewable Energy Laboratory,3 6 include new gas-fired resources, wind, solar, battery 7 storage, market purchases via available transmission 8 capacity, demand response and energy efficiency. The 9 Preferred Portfolio from the 2023 IRP, which included a 10 July 2026 online date for B2H, identified the conversion of 11 Valmy Units 1 and 2 to natural gas, the procurement of 100 12 MW of solar as the most cost-effective resources for 13 meeting the identified capacity deficits in 2026 along with 14 19 MW of energy efficiency potential (identified in the 15 energy efficiency potential study). In addition, as part of 16 the 2023 IRP modeling, the Company evaluated an alternative 17 B2H online date beyond July 2026 should there be a delay in 18 receiving permits, supply chain constraints, or other 19 unforeseen events, assuming an online date for B2H of 20 November 2026. This evaluation is identifying the most 21 cost-effective alternative for meeting the identified 22 capacity deficit should the B2H online date be delayed to 23 November 2026. 24 3 atb.nrel.gov/. ELLSWORTH, DI 19 Idaho Power Company Q. What additional resources were selected as 1 cost-effective alternatives for meeting the capacity 2 deficiency under a scenario with a November 2026 B2H online 3 date and the conversion of both Valmy units to natural gas? 4 A. When compared to the 2023 IRP Preferred 5 Portfolio, in 2026 an additional 300 MW of solar was 6 selected, 400 MW in total, as well as 155 MW of battery 7 storage and 40 MW of demand response, indicative of the 8 Company’s need to procure resources to continue to provide 9 safe, reliable electric service to its customers in 2026 10 and beyond. 11 Q. What actions has Idaho Power taken to-date to 12 acquire resources to ensure continued safe, reliable 13 electric service in 2026? 14 A. Under Idaho law, Idaho Power has an obligation 15 to provide adequate, efficient, just, and reasonable 16 service on a nondiscriminatory basis to all those that 17 request it within its certificated service area.4 Further, 18 as indicated by Order No. 35643, Idaho Power is responsible 19 for planning and managing its load and resource portfolio 20 and the Commission expects “the Company to closely monitor 21 its projected capacity needs going forward and to act 22 proactively to ensure a robust RFP process can be 23 4 Idaho Code §§ 61-302, 61-315, 61-507. ELLSWORTH, DI 20 Idaho Power Company completed.”5 Therefore, in order to meet its obligations to 1 reliably serve customers, on September 15, 2022, Idaho 2 Power filed an application with the Public Utility 3 Commission of Oregon (“OPUC”) to open an independent 4 evaluator selection docket to oversee the Request for 5 Proposals (“RFP”) process.6 The Company’s compliance with 6 the OPUC competitive bidding guidelines, which the 7 Commission directed Idaho Power to follow as well7 and is 8 discussed in greater detail in the direct testimony of Mr. 9 Hackett, ultimately led to a competitive solicitation 10 through the issuance of the 2026 All-Source RFP, seeking a 11 combination of energy and capacity resources that provide a 12 minimum of approximately 350 MW of peak capacity and up to 13 1,100 MW of variable energy resources for 2026 and 2027 14 (“2026 RFP”). 15 Given the significant timeframe related to the RFP 16 process under the OPUC competitive bidding guidelines, 17 which spans nearly 15 months and is solely related to the 18 RFP process and diligence and excludes the time required 19 for contract negotiation and execution, material 20 procurement, and construction, which can add another two to 21 six years to the process, the 2026 RFP was responsive to 22 the resource needs identified in the Company’s 2021 IRP 23 5 Page 13. 6 Docket UM 2255. 7 Order No. 32745. Case No. IPC-E-10-03. ELLSWORTH, DI 21 Idaho Power Company filing, which included near-term preferred portfolio 1 additions of wind, solar, storage, cost-effective energy 2 efficiency measures, the conversion of coal units to 3 natural gas, incremental demand response, and B2H coming 4 online in 2026. The RFP needed to remain flexible to 5 account for the fluidity of the Company’s annual capacity 6 positions as well as any potential delays in the B2H online 7 date and other projects. Ultimately, the 2026 resources 8 selected through the RFP process were based on the then-9 identified capacity deficiency of 236 MW in 2026. Note, 10 this 236 MW deficit is perfect capacity, so it requires 11 Idaho Power to procure significantly more megawatts of 12 nameplate capacity, depending on the ELCC of each resource. 13 Through the Company’s robust competitive bidding 14 process, Idaho Power identified the most cost-effective 15 bids from the 2026 RFP evaluation as necessary to fill the 16 2026 capacity deficit. The first bid resulted in the 17 execution of a 200 MW contract with Powerex for a capacity-18 based product and firm energy contract effective June 2026, 19 for which the Company received approval in Case No. IPC-E-20 24-12 with Order No. 36309. The second bid selected was a21 benchmark resource, the Idaho Power-owned 4-hour battery 22 storage facility providing up to 150 MW of operating 23 capacity, and the resource the Company requested the 24 Commission grant a CPCN in Case No. IPC-E-24-16, which was 25 ELLSWORTH, DI 22 Idaho Power Company approved with Order No. 36386. With the inclusion of these 1 two resources, plus the accelerated commercial operation 2 date of the PVS 2, LLC solar facility, the most recent 3 system reliability assessment has identified that a 4 capacity deficit range of 41 MW to 61 MW in 2026 remains, 5 assuming all projects meet the scheduled commercial 6 operation date (e.g., all 2025 resources, the Boise Bench 7 battery storage systems, PVS 1 and PVS 2, and the Valmy 8 Units 1 and 2 natural gas conversions). 9 IV. CONCLUSION10 Q. Please summarize your testimony.11 A. Idaho Power’s most recent system reliability12 evaluation has identified a capacity deficiency range of 41 13 MW to 61 MW in 2026. In response to this resource need, the 14 Company has identified Idaho Power-owned battery storage 15 facilities providing 100 MW of operating capacity as least-16 cost, least-risk resources for which Idaho Power is 17 requesting the Commission grant a CPCN at this time. 18 Q. Does this complete your testimony?19 A. Yes, it does.20 ELLSWORTH, DI 23 Idaho Power Company DECLARATION OF JARED L. ELLSWORTH 1 I, Jared L. Ellsworth, declare under penalty of 2 perjury under the laws of the state of Idaho: 3 1. My name is Jared L. Ellsworth. I am employed4 by Idaho Power Company as the Transmission, Distribution & 5 Resource Planning Director for the Planning, Engineering & 6 Construction Department. 7 2. On behalf of Idaho Power, I present this8 pre-filed direct testimony in this matter. 9 3. To the best of my knowledge, my pre-filed10 direct testimony is true and accurate. 11 I hereby declare that the above statement is true to 12 the best of my knowledge and belief, and that I understand 13 it is made for use as evidence before the Idaho Public 14 Utilities Commission and is subject to penalty for perjury. 15 SIGNED this 27th day of December 2024, at Boise, 16 Idaho. 17 18 Signed: ___________________ 19 20