Loading...
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”) issue an order (1) 13 approving the 35-year Power Purchase Agreement (“PPA”) 14 between Jackalope Wind, LLC and Idaho Power Company 15 supplying approximately 300 megawatts (“MW”) to the 16 Company’s system (“Jackalope Wind PPA”), and (2) granting 17 Idaho Power a Certificate of Public Convenience and 18 Necessity (“CPCN”) to acquire ownership in a wind turbine 19 generator power plant providing approximately 300 MW of 20 generation. Both the Jackalope Wind PPA and ownership in 21 the wind turbine generator power plant (“Jackalope Wind 22 Project”), collectively, referred to as the “Jackalope 23 Project”, are necessary for the Company to continue to 24 provide safe, reliable electric service in 2027 and beyond. 25 ELLSWORTH, DI 3 Idaho Power Company Q. What is the purpose of your testimony in this 1 case? 2 A. The purpose of my testimony is to inform the 3 Commission of the Company’s need for new resources to meet 4 an identified capacity deficit in 2027 as informed by a 5 Loss of Load Expectation (“LOLE”) methodology utilized in 6 the 2021 Integrated Resource Plan (“IRP”), again in the 7 2023 IRP, and subsequently further enhanced through system 8 reliability evaluations. I will describe the most recent 9 assessment of system reliability and its impact to the 10 capacity deficit identified in the previous system 11 reliability assessment. Finally, I will provide support for 12 the acquisition of resources to address the identified 13 near-term capacity needs. 14 Q. Is this the same assessment of system 15 reliability that was performed to support the Company’s 16 request in Case No. IPC-E-24-12, Idaho Power Company’s 17 Application for Approval of a Market Purchase Agreement 18 filed on March 18, 2024, and Case No. IPC-E-24-16, Idaho 19 Power Company’s Application for a Certificate of Public 20 Convenience and Necessity for the Boise Bench Battery 21 Storage Facility? 22 A. No. It is, however, the same system 23 reliability assessment performed to support the Company’s 24 request in Case No. IPC-E-24-45, Idaho Power Company’s 25 ELLSWORTH, DI 4 Idaho Power Company Application for a Certificate of Public Convenience and 1 Necessity for Two Battery Storage Facilities, which is 2 currently pending with the Commission. Case No. IPC-E-24-45 3 is specific to the 2026 capacity deficiency while this case 4 presents the Company’s annual capacity position in 2027, 5 identifying a 2027 capacity deficit range of 298 MW to 320 6 MW. 7 I. BACKGROUND 8 Q. What is the goal of the IRP? 9 A. The goal of the IRP is to ensure: (1) Idaho 10 Power’s system has sufficient resources to reliably serve 11 customer demand and flexible capacity needs over a 20-year 12 planning period, (2) the selected resource portfolio 13 balances cost, risk, and environmental concerns, (3) 14 balanced treatment is given to both supply-side resources 15 and demand-side measures, and (4) the public is involved in 16 the planning process in a meaningful way. Idaho Power uses 17 Energy Exemplar’s AURORA’s Long-Term Capacity Expansion 18 (“LTCE”) modeling platform to develop portfolios, through 19 the selection of a variety of supply- and demand-side 20 resource options, that are least-cost for a variety of 21 alternative future scenarios while meeting reliability 22 criteria. To verify the top performing portfolios meet the 23 Company’s reliability requirements, Idaho Power utilizes a 24 LOLE methodology. 25 ELLSWORTH, DI 5 Idaho Power Company Q. Please explain the Loss of Load Expectation. 1 A. The LOLE is a statistical measure of a 2 system’s resource adequacy, describing the expected number 3 of event-days per year that a system would be unable to 4 meet demand. As utilities continue to add more renewable 5 energy to the electric grid, analyzing the effect variable 6 energy resources have on system reliability has become more 7 critical. The LOLE methodology recognizes that the output 8 of variable energy resources, such as wind and solar, 9 change with time (with their hourly output being dependent 10 on a multitude of factors like weather and environmental 11 conditions); it is essential to capture and value that 12 variability. 13 Q. What inputs are derived from the LOLE 14 methodology that are utilized in the AURORA LTCE model? 15 A. Idaho Power implements the LOLE methodology 16 through an internally developed Reliability and Capacity 17 Assessment Tool (“RCAT”) which is capable of producing 18 inputs such as a Planning Reserve Margin (“PRM”) and 19 resource Effective Load Carrying Capability (“ELCC”) 20 values. The PRM metric can be defined as the percentage of 21 expected capacity resources above forecasted peak demand. 22 The ELCC calculation is a reliability-based metric used to 23 assess the capacity contribution of variable and energy-24 limited resources. The PRM and ELCC values that are 25 ELLSWORTH, DI 6 Idaho Power Company calculated using the LOLE methodology are a direct input to 1 the AURORA LTCE model. 2 Q. How are the PRM and ELCC values utilized? 3 A. Because the AURORA LTCE model and the RCAT are 4 two separate tools, a translation is required between the 5 probabilistic LOLE analysis performed in RCAT and the 6 portfolios produced by the AURORA LTCE model. First, PRM 7 and ELCC values are calculated using the LOLE methodology, 8 which serve as direct inputs to the AURORA LTCE model. 9 After AURORA solves for and produces portfolios, select 10 resource buildouts and their corresponding data are 11 analyzed with the LOLE methodology and tested to ensure 12 they meet the pre-designated reliability hurdle through the 13 calculation of annual capacity positions. It is critical 14 when comparing future resource portfolios that each plan 15 achieves at least a base reliability threshold. Figure 1 16 below illustrates the model consolidation process. 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 ELLSWORTH, DI 7 Idaho Power Company Figure 1. Idaho Power’s Reliability Flowchart 1 2 Q. You indicated the RCAT and AURORA serve 3 different purposes in Idaho Power’s planning process, how 4 is the data exchanged between the two models translated 5 and aligned? 6 A. To better assess the dynamic diversity benefit 7 caused by a changing resource mix, and to synchronize the 8 models, beginning with the 2023 IRP a feedback process was 9 implemented between the AURORA LTCE model and the RCAT. 10 Under the feedback process, the annual capacity positions 11 for an AURORA LTCE main case portfolio buildout were 12 calculated using the RCAT. Once the annual capacity 13 positions were known, the PRM in the AURORA LTCE model was 14 modified in years that had significant resource changes so 15 that both models identified a similar annual capacity 16 position. The feedback loop continued until the main case 17 portfolio was reliable under the LOLE threshold. The 18 ELLSWORTH, DI 8 Idaho Power Company resulting AURORA-produced optimized main case portfolios 1 provide the least-cost, least-risk future resource 2 buildouts. 3 II. ANNUAL CAPACITY POSITION 4 Q. You indicated the Company updated the system 5 reliability assessment following the procurement of 6 resources reviewed in Case Nos. IPC-E-24-12 and IPC-E-24-16 7 (“Approved 2026 Resources”). Why was the system reliability 8 assessment updated? 9 A. The Company recognizes that during the near-10 term resource decision-making phase, the annual capacity 11 positions can be very fluid. In addition, in the face of 12 growing loads, Idaho Power constantly monitors resource 13 needs and responds with added urgency, as evidenced by 14 Idaho Power’s consecutive requests for CPCNs to acquire 15 resources to be online in 2023, 2024, 2025 and 2026.1 The 16 most recent system reliability assessment, which (1) 17 assumes the online date for the Boardman to Hemingway 18 transmission line (“B2H”) is beyond summer of 2027, (2) 19 includes the procurement of the Approved 2026 Resources as 20 well as the resources for which Idaho Power has requested a 21 CPCN in Case No. IPC-E-24-45, and (3) reflects the 22 acceleration of the commercial operation date of the PVS 2, 23 1 Case Nos. IPC-E-22-13, IPC-E-23-05, IPC-E-23-20, IPC-E-24-12, IPC-E- 24-16, and IPC-E-24-45. ELLSWORTH, DI 9 Idaho Power Company LLC, solar facility,2 has identified a capacity deficit in 1 the range of 298 MW to 320 MW in 2027. 2 Q. What drove the changes to the annual capacity 3 positions for 2027 in the most recent system reliability 4 assessment? 5 A. Any time the system reliability evaluation is 6 performed, Idaho Power includes the most up-to-date load 7 and resource inputs. The modeling input updates that have 8 occurred are primarily related to 1) an updated load 9 forecast, 2) inclusion of a wildfire risk factor, and 3) an 10 updated generation unit outage schedule. 11 With the continued high load growth in the Company’s 12 service area, the load forecast is consistently monitored 13 and updated as new information becomes available. Idaho 14 Power has experienced numerous wildfire-related outages on 15 major tie lines used to import power. The Company is 16 fortunate to have some diversity in transmission lines, and 17 that diversity will continue to expand in the future with 18 additions to the transmission system. However, given the 19 prevalence of wildfires in the recent past, the Company has 20 incorporated an adjustment to the availability of certain 21 transmission facilities. Additionally, due to permitting 22 2 Order No. 36322 issued on September 13, 2024, in Case No. IPC-E-24-20, Idaho Power’s Application for Approval of the First Amendment to the Power Purchase Agreement with PVS 2, LLC, approved the change in the Scheduled Commercial Operation Date contained in the Power Purchase Agreement from December 31, 2026, to May 31, 2026. ELLSWORTH, DI 10 Idaho Power Company delays, planned maintenance of one of the Oxbow hydro units 1 has been shifted from 2026 to 2027, adding to the capacity 2 deficit in 2027. 3 Q. Why is the capacity deficit a range between 4 298 MW and 320 MW, rather than a single annual capacity 5 deficit as presented previously? 6 A. Idaho Power has been experiencing a 7 significant increase to its winter peak load, as evidenced 8 by the Company’s all-time winter peak load record of 2,719 9 MW on January 16, 2024, surpassing the previous record by 10 over 100 MW and causing an energy emergency alert as 11 discussed below. In light of this new winter peak load 12 record, and because of the greater winter peak-day 13 temperature variability, the Company recognized the need to 14 revise its peak winter load forecasting methodology. For 15 the purposes of making resource decisions while the load 16 forecast was being updated, the Company began assessing its 17 capacity position under a range which utilizes two versions 18 of the load forecast; first being the 70th percentile peak 19 load for all months as was done in the 2023 IRP, second 20 being the 70th percentile peak load for March through 21 October, but utilizing a 95th percentile peak load for 22 November through February, which better addresses peak load 23 variability due to winter temperatures. 24 // 25 ELLSWORTH, DI 11 Idaho Power Company III. MEETING THE CAPACITY DEFICIENCY 1 Q. How does the Company propose to address the 2 2027 capacity deficit presented in this case? 3 A. As described in the Direct Testimony of Mr. 4 Hackett, on October 29, 2024, Idaho Power executed 5 agreements associated with the Jackalope Project, which 6 consists of the Jackalope Wind PPA, supplying 7 approximately 300 MW to the Company’s system, and the 8 Idaho Power-owned Jackalope Wind Project, also supplying 9 approximately 300 MW of generation. 10 Q. How does the addition of the Jackalope Project 11 impact the capacity deficit in 2027? 12 A. Including the methodological changes to the 13 market purchase assumptions and the peak load forecasts, 14 and assuming all 2026 projects and the Jackalope Project 15 reach commercial operation on time, the addition of the 16 Jackalope Wind PPA and the Jackalope Wind Project would 17 reduce the 2027 capacity deficit of 298 MW to 320 MW to a 18 capacity deficit of 203 MW to 217 MW. The addition of the 19 Jackalope Project, the first of the 2027 final shortlist 20 projects procured as a result of the 2026 RFP, will 21 support continued safe, reliable operations in 2027 and 22 beyond. 23 Q. You have indicated a capacity deficit will 24 still exist in 2027 even with the Jackalope Project. Will 25 ELLSWORTH, DI 12 Idaho Power Company Idaho Power need to procure more resources to meet the 1 identified 2027 need? 2 A. Yes. However, because there are time 3 constraints associated with the Jackalope Wind PPA and the 4 Jackalope Wind Project contracts, Idaho Power is only 5 filing a request for approval of the Jackalope Project 6 agreements at this time. 7 Q. Why do you believe there is sufficient support 8 for the procurement of the Jackalope Project? 9 A. The resource acquisitions presented in this 10 case were pursued and procured as a least-cost, least-risk 11 method of meeting the capacity deficits first identified 12 in the Company’s 2021 IRP, again in the 2023 IRP, and 13 subsequently with the results of the updated system 14 reliability evaluation. The fluidity of the capacity 15 deficit period, continued high load growth, and supply 16 chain disruptions and delays further support these 17 resource procurements which are necessary to adequately 18 address 2027 capacity deficits. 19 Q. Are there any additional benefits beyond the 20 Jackalope Project being a least-cost, least-risk resource 21 necessary for meeting Idaho Power’s capacity needs? 22 A. Yes. Even absent the Company’s capacity needs, 23 the results of the AURORA modeling show that the Jackalope 24 Project would save customers money over the project’s life 25 ELLSWORTH, DI 13 Idaho Power Company because it will provide Idaho Power cost-effective energy, 1 allowing the Company to reduce its reliance on existing, 2 more expensive, energy resources. 3 This economic benefit is illustrated in London 4 Economic International LLC’s (“LEI”) Closing Report: 2026 5 All Source Request for Proposals for Peak Capacity and 6 Energy Resources dated December 1, 2023 (“December 2023 7 LEI Report”), provided as Confidential Exhibit No. 3 to 8 the Direct Testimony of Mr. Hackett. As can be seen in 9 Figure 32, a list of the portfolio sensitivities analyzed, 10 Portfolios 1 and 4 are nearly equivalent, the only 11 difference being the inclusion of the Jackalope Project in 12 Portfolio 1. While Portfolio 4 is insufficient at meeting 13 the Company’s 2027 resource needs, the intent of Portfolio 14 4 was to provide a portfolio cost basis absent resource 15 additions in 2027. With a cost of , Portfolio 16 1, which includes the Jackalope Project, is approximately 17 lower cost than Portfolio 4,3 illustrating the 18 robust economic value of the Jackalope Project. 19 Q. Did the Company evaluate any alternative 20 solutions for meeting the 2027 capacity deficiency to avoid 21 building a new resource? 22 A. Yes. As I discussed earlier in my testimony, 23 as part of the IRP process, the Company uses AURORA’s LTCE 24 3 December 2023 LEI Report, page 62. ELLSWORTH, DI 14 Idaho Power Company modeling platform to develop portfolios, through the 1 selection of a variety of supply- and demand-side resource 2 options, that are least-cost for a variety of alternative 3 future scenarios while meeting reliability criteria. The 4 future supply- and demand-side resources available to meet 5 identified capacity deficiencies, whose costs are generally 6 based on the 2022 Annual Technology Baseline report 7 released by the National Renewable Energy Laboratory,4 8 include new gas-fired resources, wind, solar, battery 9 storage, market purchases via available transmission 10 capacity, demand response and energy efficiency. The 11 Preferred Portfolio from the 2023 IRP, which included a 12 July 2026 online date for B2H, identified the conversion of 13 Valmy Units 1 and 2 to natural gas, the combined 14 procurement of 400 MW of wind, 375 MW of solar, and 5 MW of 15 battery storage as the most cost-effective resources for 16 meeting the identified capacity deficits in 2027 along with 17 20 MW of energy efficiency potential (identified in the 18 energy efficiency potential study). The results are 19 indicative of the Company’s need to procure resources to 20 continue to provide safe, reliable electric service to its 21 customers in 2027 and beyond. 22 4 atb.nrel.gov/. ELLSWORTH, DI 15 Idaho Power Company Q. What actions has Idaho Power taken to-date to 1 acquire least-cost, least-risk resources to ensure 2 continued safe, reliable electric service in 2027? 3 A. Under Idaho law, Idaho Power has an obligation 4 to provide adequate, efficient, just, and reasonable 5 service on a nondiscriminatory basis to all those that 6 request it within its certificated service area.5 Further, 7 as indicated by Order No. 35643, Idaho Power is responsible 8 for planning and managing its load and resource portfolio 9 and the Commission expects “the Company to closely monitor 10 its projected capacity needs going forward and to act 11 proactively to ensure a robust RFP process can be 12 completed.”6 Therefore, in order to meet its obligations to 13 reliably serve customers, on September 15, 2022, Idaho 14 Power filed an application with the Public Utility 15 Commission of Oregon (“OPUC”) to open an independent 16 evaluator selection docket to oversee the Request for 17 Proposals (“RFP”) process.7 The Company’s compliance with 18 the OPUC competitive bidding guidelines, which the 19 Commission directed Idaho Power to follow as well8 and is 20 discussed in greater detail in the direct testimony of Mr. 21 Hackett, ultimately led to a competitive solicitation 22 5 Idaho Code §§ 61-302, 61-315, 61-507. 6 Page 13. 7 Docket UM 2255. 8 Order No. 32745. Case No. IPC-E-10-03. ELLSWORTH, DI 16 Idaho Power Company through the issuance of the 2026 All-Source RFP, seeking a 1 combination of energy and capacity resources that provide a 2 minimum of approximately 350 MW of peak capacity and up to 3 1,100 MW of variable energy resources for 2026 and 2027 4 (“2026 RFP”). 5 Given the significant timeframe related to the RFP 6 process under the OPUC competitive bidding guidelines, 7 which spans nearly 15 months and is solely related to the 8 RFP process and diligence and excludes the time required 9 for contract negotiation and execution, material 10 procurement, and construction, which can add another two to 11 six years to the process, the 2026 RFP was responsive to 12 the resource needs identified in the Company’s 2021 IRP 13 filing, which included near-term preferred portfolio 14 additions of wind, solar, storage, cost-effective energy 15 efficiency measures, the conversion of coal units to 16 natural gas, incremental demand response, and B2H coming 17 online in 2026. The RFP needed to remain flexible to 18 account for the fluidity of the Company’s annual capacity 19 positions as well as any potential delays in the B2H online 20 date and other projects. Ultimately, the 2027 resources 21 selected through the RFP process were based on the 22 recently-identified capacity deficiency of 298 MW to 320 MW 23 in 2027. Note, this 298 MW to 320 MW deficit is perfect 24 capacity, so it requires Idaho Power to procure 25 ELLSWORTH, DI 17 Idaho Power Company significantly more megawatts of nameplate capacity, 1 depending on the ELCC of each resource. 2 Through the Company’s robust competitive bidding 3 process, Idaho Power identified the most cost-effective 4 bids from the 2026 RFP evaluation as necessary to fill the 5 2027 capacity deficit. The first, most cost-effective bid 6 resulted in the execution of the Jackalope Wind PPA, 7 supplying Idaho Power’s system with approximately 300 MW of 8 generation and the Company-owned Jackalope Wind Project, 9 also providing approximately 300 MW of generation. 10 IV. CONCLUSION 11 Q. Please summarize your testimony. 12 A. Idaho Power’s most recent system reliability 13 evaluation has identified a capacity deficiency range of 14 298 MW to 320 MW in 2027. In response to this resource 15 need, the Company has identified the Jackalope Project, 16 providing a combined 600 MW of wind generation, as the 17 least-cost, least-risk resource for which Idaho Power is 18 requesting the Commission approve the Jackalope Wind PPA 19 and grant a CPCN for the Jackalope Wind Project at this 20 time. 21 Q. Does this complete your testimony? 22 A. Yes, it does. 23 ELLSWORTH, DI 18 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 employed 4 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 this 8 pre-filed direct testimony in this matter. 9 3. To the best of my knowledge, my pre-filed 10 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