Application.tif

CERTIFICATE OF ATTORNEY
ASSERTION THAT INFORMATION CONTAINED IN AN IDAHO PUBLIC UTILITIES
COMMISSION FILING IS PROTECTED FROM PUBLIC INSPECTION
Case No. IPC-E-24-46
Application of Idaho Power Company for Approval of a Power Purchase
Agreement with Jackalope Wind, LLC, and for a Certificate of Public Convenience
and Necessity for the Jackalope Wind Project
The undersigned attorney, in accordance with Commission Rules of Procedure 67,
believes that the Direct Testimony of Jared Ellsworth and the Direct Testimony of
Eric Hackett and Exhibits 2, 3, 4, 5, and 6 of the Direct Testimony of Eric Hackett
dated December 27, 2024, contain information that Idaho Power Company and a
third party claim are trade secrets, business records of a private enterprise require
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 27th day of December 2024.
Donovan E. Walker
Attorney for Idaho Power Company
APPLICATION - 1
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]

Attorney for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF A POWER PURCHASE
AGREEMENT WITH JACKALOPE WIND,
LLC, AND A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY FOR
THE JACKALOPE WIND PROJECT.
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CASE NO. IPC-E-24-46

APPLICATION

Idaho Power Company (“Idaho Power” or “Company”), in accordance with Idaho
Code §§ 61-501, 61-502, 61-503, 61-508, 61-526; as well as Rule of Procedure (“RP”)
52, 112 and 201 hereby respectfully makes application to the Idaho Public Utilities
Commission (“Commission” or “IPUC”) for an order (1) approving the 35-year Power
Purchase Agreement (“PPA”) between Jackalope Wind, LLC and Idaho Power Company
supplying approximately 300 megawatts (“MW”) to the Company’s system (“Jackalope
Wind PPA”), and (2) granting Idaho Power a Certificate of Public Convenience and
Necessity (“CPCN” or “Certificate”) to acquire ownership in a wind turbine generator
APPLICATION - 2
power plant providing approximately 300 MW of generation. Both the Jackalope Wind
PPA and ownership in the wind turbine generator power plant (“Jackalope Wind Project”),
collectively, referred to as the “Jackalope Project”, are necessary to position the Company
to meet its obligation to provide safe, reliable service to its customers.
Accompanying this Application are two sets of testimony. The Direct Testimony of
Jared L. Ellsworth presents the Company’s need for new resources to meet an identified
capacity deficit in 2027 as informed by the 2021 Integrated Resource Plan (“IRP”), again
in the 2023 IRP, and subsequently further enhanced through system reliability
evaluations, which led to the solicitation through a Request for Proposals (“RFP”) seeking
to acquire energy and capacity necessary to address the identified near-term capacity
needs. Mr. Ellsworth then describes the most recent assessment of system reliability and
its impact to the capacity deficit, supporting the acquisition of resources to address the
identified near-term capacity needs. The Direct Testimony of Eric Hackett provides an
overview of the competitive resource acquisition process undertaken to meet Idaho
Power’s identified capacity deficiency in 2027, and the resulting fair and competitive RFP
process that was fully compliant with the required Oregon resource procurement rules,
leading to the selection of least-cost, least-risk resources necessary to meet the
Company’s electric energy needs in 2027, including the Jackalope Project for which Idaho
Power is requesting approval of the Jackalope Wind PPA and requesting the Commission
grant a CPCN for the Jackalope Wind Project in this proceeding.
I. CORPORATE STATUS
1. Idaho Power is a corporation incorporated under the laws of the state of
Idaho. Idaho Power is engaged in the business of generating, purchasing, transmitting,
APPLICATION - 3
and distributing electric energy and providing retail electric service in the states of Idaho
and Oregon. Idaho Power’s principal offices are situated in Boise, Idaho, and its address
is 1221 West Idaho Street, Boise, Idaho 83702. Copies of Idaho Power’s Articles of
Incorporation and Certificates of Convenience and Necessity are on file with the
Commission. Idaho Code § 61-528.
II. BACKGROUND
2. The annual capacity positions identified in the 2021 Integrated Resource
Plan (“IRP”) were deficits of approximately 101 megawatts (“MW”) in 2023, 186 MW in
2024, 311 MW in 2025, 560 MW in 2026 and 665 MW in 2027. As described more
completely in the Direct Testimony of Mr. Ellsworth, the Company recognizes that during
the near-term resource decision-making phase, the annual capacity positions can be very
fluid and therefore regularly performs system reliability assessments. Idaho Power
constantly monitors resource needs, and in the face of growing loads and deficits has
responded with added and appropriate urgency to acquire additional low-cost, reliable
sources of generation and capacity, as evidenced by the Company’s consecutive
requests for CPCNs to acquire resources to be online in 2023,1 2024,2 2025,3 and 2026.4
Idaho Power expects to acquire additional resources each year thereafter through (at
least) 2028. See, OPUC Case No. UM 2317, In the Matter of Idaho Power Company’s
Application for Approval of 2028 All-Source Request for Proposals to Meet 2028 Capacity
Resource Need.

1 Case No. IPC-E-22-13.
2 Case Nos. IPC-E-23-05 and IPC-E-23-20.
3 Case No. IPC-E-23-20.
4 Case Nos. IPC-E-24-16 and IPC-E-24-45.
APPLICATION - 4
3. Under Idaho law, Idaho Power has an obligation to provide adequate,
efficient, just, and reasonable service on a nondiscriminatory basis to all those that
request it within its service area. Idaho Power has experienced and expects sustained
load growth, thereby requiring the addition of new resources. To meet its obligation to
reliably serve customer load and fill capacity deficiencies identified in 2026 and 2027, the
Company conducted a competitive solicitation through the issuance of an All-Source RFP
seeking to acquire a combination of energy and capacity resources. Idaho Power did not
define the type of resource (i.e., wind, solar, gas, or battery storage) desired; however,
the Company outlined that the deficit could require as much as 1,100 megawatts (“MW”)
of variable energy resources and a minimum of 350 MW of peak capacity to help meet
Idaho Power’s previously identified capacity needs in 2026 and 2027 (“2026 RFP”). The
procurement process resulted in the identification of least-cost, least-risk resources
necessary to fill the identified 2027 capacity deficiency of 298 MW to 320 MW. The
proposed acquisitions, as described herein, are necessary and required in order to
continue to provide reliable and adequate electric service to Idaho Power’s customers
starting in the summer of 2027 and into the future.
III. OREGON PROCUREMENT RULES
4. The Commission, in Case No. IPC-E-10-03, initiated a case seeking to
establish competitive bidding guidelines for the RFP process. In 2013, the Commission
closed Case No. IPC-E-10-03 without establishing Idaho-specific resource procurement
guidelines, but rather directing Idaho Power to follow the RFP guidelines applicable to its
Oregon service territory. The Oregon RFP guidelines to which the Commission referred
were later codified into the administrative rules of the Public Utility Commission of Oregon
APPLICATION - 5
(“OPUC”) resource procurement rules.5 The OPUC resource procurement rules impose
competitive bidding requirements upon an electric utility for the “acquisition of a resource
or a contract for more than an aggregate of 80 MWs and five years in length,” among
other requirements.
5. On September 15, 2022, Idaho Power filed an Application with the OPUC
initiating a rule compliant RFP process to acquire resources to be online in 2026 and
2027. Subsequently an independent evaluator was appointed, and the Company went
through all the required steps associated with issuance of the RFP, receipt and evaluation
of bids, and ultimately the approval of a final shortlist of prospective projects to meet the
2026 and 2027 deficits. The OPUC found that Idaho Power conducted a fair and
competitive resource acquisition procurement process in accordance with the OPUC
competitive bidding rules, which resulted in OPUC approval of a final shortlist of the least-
cost, least-risk resources. OPUC Order No. 24-055, Docket UM 2255, Feb. 22, 2024.
The Company used the results from that approved final shortlist, selecting the most cost-
effective project identified through the extensive competitive bidding process, the
Jackalope Project, to help meet the 2027 capacity deficiency, and for which Idaho Power
is requesting the Commission approve the Jackalope Wind PPA and grant a CPCN for
the Jackalope Wind Project in this proceeding.
IV. RESOURCE PROCUREMENT PROCESS
6. On September 15, 2022, Idaho Power commenced the competitive bidding
process, filing a request with the OPUC to (1) open a docket for approval of the 2026
RFP, (2) appoint an Independent Evaluator (“IE”) to oversee the RFP process, and (3)

5 Oregon Administrative Rule (“OAR”) 860-089-0010 et seq.
APPLICATION - 6
approve the proposed 2026 RFP scoring and modeling. On December 27, 2022, the
OPUC approved the selection of London Economics International, LLC (“LEI”) as the IE
for Idaho Power’s 2026 RFP and evaluation of 2026 RFP resources. The OPUC also
approved the concurrent discussion of both scoring and modeling methodologies and
preparation of the draft 2026 RFP.
7. The Company worked with OPUC Staff and stakeholders to finalize the draft
2026 RFP and on June 8, 2023, Idaho Power formally issued the 2026 RFP, soliciting
bids for (1) energy market purchases and (2) new or existing resources. The 2026 RFP
was well received with 192 bids from 31 different bidders across 47 resources sites,
summing to more than 15 gigawatts of resources. Approximately 40 percent of the bids
reflected a commercial operation date by June 1, 2026, the remaining 60 percent of the
bids reflected a projected commercial operation date after June 1, 2026. The bids
included a variety of ownership structures, including many bids that would result in bidder-
owned resources (i.e., PPA’s, and Battery Storage Agreements), as well as three
benchmark bids across three sites, submitted by Idaho Power’s Power Supply
department.
8. The direct testimony of Mr. Hackett details the bid evaluation process which
was consistent and prescriptive as described in the 2026 RFP, ultimately identifying the
final shortlist of projects, including four with commercial operation in 2027. Confidential
Exhibit No. 2 to Mr. Hackett’s Direct Testimony lists the 2027 projects identified on the
final shortlist. As required under the OPUC competitive bidding rules, the OPUC approved
Idaho Power’s final shortlist on February 22, 2024. Once the most cost-effective 2027
APPLICATION - 7
projects were identified, the Company began negotiations with developers for
procurement of the resources necessary to meet Idaho Power’s 2027 capacity deficit.
V. RESOURCE DESCRIPTIONS
9. The bid evaluation process of the project proposals submitted through the
2026 RFP is designed to identify the combination and size of the proposed resources that
will maximize customer benefits while ensuring Idaho Power meets its energy and
capacity needs. Upon conclusion of the approximately 15-month mandated competitive
bidding rule-compliant process, the Company began negotiations with developers for
procurement of the resources necessary to meet the identified 2027 capacity deficit. On
October 29, 2024, Idaho Power executed agreements associated with the most cost-
effective project that was able to meet the June 1, 2027, commercial operation date, the
Jackalope Project, consisting of the Jackalope Wind PPA supplying approximately 300
MW to the Company’s system, and the Idaho Power-owned Jackalope Wind Project, also
supplying approximately 300 MW of generation.
Jackalope Wind PPA
10. The Jackalope Wind PPA is 35-year PPA between Idaho Power and
Jackalope Wind, LLC, who, under the terms of the PPA, will construct, own, operate and
maintain a 300 MW wind powered generation facility located in Sweetwater County,
Wyoming, supplying approximately 300 MW to the Company’s system for the period of
35 years from a commercial operation date of June 1, 2027. An executed copy of the PPA
is attached as Confidential Exhibit No. 4 to Mr. Hackett’s Direct Testimony. The PPA
contains levelized, fixed pricing for the 35-year term and provides that it will not become
effective unless the Commission approves all of the PPA's terms and provisions and
APPLICATION - 8
declares that all payments the Company makes for purchases of energy will be allowed
as prudently incurred expenses for ratemaking purposes. Exhibit 5 to the PPA sets forth
the Contract Price for Contract Years 1 through 35 on a dollars per megawatt-hour
('MWh") basis. The PPA is similar in many ways to the numerous energy sales
agreements approved by the Commission pursuant to the Company's obligations under
Public Utility Regulatory Policies Act of 1978 ("PURPA"), but also contains additional
other terms and conditions consistent with industry standard, non-PURPA power
purchase agreements including pricing, security, and other terms of service.
Jackalope Wind Project
11. Concurrent with execution of the Jackalope Wind PPA, on October 29,
2024, the Company executed a Build Transfer Agreement (“BTA”) with Jackalope Wind
II Holdings, LLC, for the purchase of the Jackalope Wind Project that will supply
approximately 300 MW of generation. The Jackalope Wind Project is co-located with the
wind turbine generator power plant in Sweetwater County, Wyoming, that is providing
generation under the Jackalope Wind PPA, the combined Jackalope Project will provide
600 MW of wind generation. Jackalope Wind II Holdings, LLC, or its affiliates are
developing and constructing the approximately 600 MW wind turbine generator facility.
The BTA is structured as a sale by Jackalope Wind II Holdings, LLC, and purchase by
Idaho Power of approximately 300 MW of the facility upon completion. The BTA is
included as Confidential Exhibit No. 5 to the Direct Testimony of Mr. Hackett.
VI. CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
12. Idaho Power has an obligation to provide adequate, efficient, just, and
reasonable service on a nondiscriminatory basis to all those that request it within its
APPLICATION - 9
certificated service territory. Idaho Code §§ 61-302, 61-315, 61-507. The Commission
must assure that the rates Idaho Power charges its customers and that the rules and
regulations by which it provides service are just, reasonable, nondiscriminatory, and non-
preferential. Idaho Code §§ 61-501, 61-502, 61-503, 61-507, 61-508. The Company
must acquire the Jackalope Wind Project, supplying approximately 300 MW of
generation, to meet the identified capacity deficits on its system in order to comply with
its continuing obligation to serve customers, and thus is requesting an order from the
Commission affirming that the public convenience and necessity requires the same. The
proposed acquisition represents a cost-effective means of providing adequate and
reliable service to the customers in Idaho Power’s certificated service territory. The
Commission has the express authority to order a utility to build new structures, or to
upgrade and/or improve existing plant and structures, in order to secure adequate service
or facilities.
Whenever the commission, after a hearing had upon its own
motion or upon complaint, shall find that additions,
extensions, repairs or improvements to or changes in the
existing plant, scales, equipment, apparatus, facilities or other
physical property of any public utility . . . ought reasonably to
be made, or that a new structure or structures should be
erected, to promote the security or convenience of its
employees or the public, or in any other way to secure
adequate service or facilities, the commission shall make and
serve an order directing such additions, extensions, repairs,
improvements, or changes be made or such structure or
structures be erected in the manner and within the time
specified in said order.

Idaho Code § 61-508.

13. A CPCN or Certificate represents the exercise by the Commission of
foundational authority and principles that are necessary in Idaho’s system of permitting
regulated, vertically integrated, public utilities to exist and to provide necessary services
APPLICATION - 10
to the public. Certificates have been utilized in various ways from the time that Idaho’s
statutory system of public utility regulation was enacted by the Legislature in 1913, Idaho
Code § 61-101, et seq., to the present time. After nearly 100 years of legislative
enactments, Commission orders, and Idaho Supreme Court reviews, the Certificate
remains the embodiment of the Commission’s fundamental power and authority to, at the
most basic level, authorize and direct a public utility to serve in the public interest. See
Idaho Power & Light Co. v. Blomquist et al., 26 Idaho 222, 141 P.1083 (1914); Idaho Op.
Atty. Gen. No. 87-2, 1987 WL 247587 (Idaho A.G.).
14. In the broadest sense, a Certificate allows a company that meets the
definition of a “public utility” pursuant to Idaho Code § 61-129 to exclusively provide its
service to the public in a specified geographic region, its service territory. It is a codified
part of the “regulatory compact” whereby the utility takes on the exclusive obligation/right
to serve all those requesting service within its service territory and, correspondingly,
submits itself to the rate and service quality regulation of the Commission. In a more literal
sense, a Certificate from the Commission is required for the construction or extension of
a line, plant, or system by any street, railroad, gas, electrical, telephone, or water
corporation. Idaho Code § 61-526. § 61-526 also provides that “if public convenience
and necessity does not require or will require such construction or extension [of a line,
plant, or system] the commission . . . may, after hearing, make such order and prescribe
such terms and conditions for the locating or type of line, plant or system affected as to it
may seem just and reasonable . . . .” A CPCN is required for the utility to construct a new
generation resource or plant but is not required to increase the capacity of existing
generating facilities. Id.
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VII. RATEMAKING TREATMENT FOR THE JACKALOPE WIND PROJECT
15. Idaho Power is not requesting binding ratemaking treatment for the
Jackalope Wind Project in this case. The Company’s request in this case is that the
Commission find Idaho Power has met the requirements of Idaho Code § 61-526 and
issue an order granting a CPCN to acquire ownership in the wind turbine generator power
plant providing approximately 300 MW of generation necessary to meet the identified
capacity deficiency in 2027. The Company will make a future filing to address the cost
recovery associated with this project.
VIII. FINANCING THE JACKALOPE WIND PROJECT
16. Idaho Power maintains investment grade credit ratings with Standard &
Poor’s Ratings Services and Moody’s Investors Service, with a long-term issuer rating of
BBB and Baa1, respectively. The Company maintains ready access to the capital markets
and to instruments providing for its liquidity. Idaho Power has a $400 million revolving
credit facility with its banking syndicate, which may be increased to $600 million under
specified conditions, which matures on December 7, 2029. The Company has an option
to request an additional one-year extension of the agreement, subject to certain
conditions. Idaho Power also has authority from state regulatory commissions to issue up
to $1.2 billion in aggregate principal amount of debt securities, $900 million of which
remained available as of November 30, 2024. The Company also has access to
commercial paper markets, as well as a balance of cash and investments on its balance
sheet. Additionally, Idaho Power has access to capital and credit outside of existing
mechanisms and instruments, such as through term loans, letter of credit, and other
instruments. IDACORP, the parent entity of Idaho Power, sold 3,221,982 shares of
APPLICATION - 12
IDACORP common stock in November 2023 under a forward sale agreement which was
settled for cash at IDACORP in 2024 for approximately $292 million. Approximately $92
million of the proceeds remain at IDACORP, which will primarily be used to infuse equity
to Idaho Power as needed. The Company intends to finance the Jackalope Wind Project
supplying approximately 300 MW of generation with a combination of available cash and
operating cash flow, available credit facilities and borrowing and debt issuances, and
future equity infusions by IDACORP.
IX. COMMUNICATIONS AND SERVICE OF PLEADINGS
17. Communications and service of pleadings with reference to this Application
should be sent to the following:
Donovan E. Walker Tim Tatum
Lead Counsel Vice President, Regulatory Affairs
Idaho Power Company Idaho Power Company
1221 West Idaho Street (83702) 1221 West Idaho Street (83702)
P.O. Box 70 P.O. Box 70
Boise, Idaho 83707 Boise, Idaho 83707
[e-mail] [e-mail]
[e-mail]

X. MODIFIED PROCEDURE
18. The Company believes that a hearing is not necessary to consider the
issues presented herein, and respectfully requests that this Application be processed
under Modified Procedure; i.e., by written submissions rather than by hearing. RP 201, et
seq. If, however, the Commission determines that a technical hearing is required, the
Company stands ready to present its testimony and support the Application in such
hearing.
19. The PPA has provisions whereby if IPUC approval is not obtained within six
months of filing (on or before June 27, 2025), then a day-for-day extension of time to the
APPLICATION - 13
Scheduled Commercial Operation Date and Commercial Operation Date may occur until
issuance of a IPUC decision. If IPUC approval does not happen withing twelve months of
filing, then the Agreement may be terminated by the Seller. Similarly, the BTA contains
provisions whereby the IPUC grant of the required CPCN must be obtained prior to the
Outside Firm Date, which is June 30, 2026, or either party may terminate the BTA.
Consequently, Idaho Power respectfully requests a procedural schedule that would allow
a Commission Order on or before June 27, 2025.
XI. REQUEST FOR RELIEF
Idaho Power respectfully requests that the Commission issue an order (1)
approving the 35-year PPA between Jackalope Wind, LLC and Idaho Power Company
supplying approximately 300 MW to the Company’s system, and (2) granting Idaho Power
a CPCN to acquire ownership in a wind turbine generator power plant providing
approximately 300 MW of generation. Because approval of this request is necessary to
position Idaho Power to meet its obligation to provide safe, reliable service to its
customers, the Company respectfully requests that the Commission issue an order as
soon as practicable, but in any event no later than June 27, 2025, to allow for sufficient
lead time for financing, procurement, and construction of the wind powered generation
facility and to avoid additional delay and possible termination of the agreements.
DATED at Boise, Idaho this 27th day of December 2024.

DONOVAN E. WALKER
Attorney for Idaho Power Company