20250220Objection to MP and Motion to Consolidate.pdf

RECEIVED
Thursday, February 20, 2025
IDAHO PUBLIC
Eric L. Olsen(ISB#4811) UTILITIES COMMISSION
ECHO HAWK& OLSEN, PLLC
505 Pershing Ave., Ste. 100
P.O. Box 6119
Pocatello, Idaho 83205
Telephone: [phone]
Facsimile: [phone]
Email: elo(a)echohawk.com
Attorney for Intervenor Idaho Irrigation Pumpers Association, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER CASE NO. IPC-E-24-44
COMPANY'S APPLICATION FOR
APPROVAL OF A SPECIAL CONTRACT IDAHO IRRIGATION PUMPERS
AND TARIFF SCHEDULE 28 TO PROVIDE ASSOCIATION'S OBJECTION TO
ELECTRIC SERVICE TO MICRON IDAHO MODIFIED PROCEDURE,
SEMICONDUCTOR MANUFACTURING DEMAND FOR HEARING,AND
(TRITON) LLC MOTION TO CONSOLIDATE FOR
HEARING WITH INTERRELATED
CASES
Idaho Irrigation Pumpers Association, Inc. ("IIPA"),pursuant Rules of Procedure 56, 203,
247, and 256, and hereby objects to the Commission's processing of this Case under rules of
modified procedure, demands that a technical hearing be held in this Case, and moves the
Commission to consolidate this Case for hearing with Idaho Power Company's ("IPC")
interrelated cases IPC-E-24-45 and IPC-E-24-46. In support of this the Objection to Modified
Procedure processing,Demand for Technical Hearing,and Motion to Consolidate,IIPA represents
as follows:
BACKGROUND
1. IPC filed this Case on December 6, 2024 seeking approval of a special contract
with Micron Idaho Semiconductor Manufacturing(Triton)LLC("Micron")which requires IPC to
provide Micron between 40MW and 495MW of electricity between 2026 and 2030 and up to
IDAHO IRRIGATION PUMPERS ASSOCIATION,INC.'S OBJECTION TO MODIFIED PROCEDURE,DEMAND
FOR HEARING,AND MOTION TO CONSOLIDATE—Page 1
CASE NO.IPC-E-24-44

507MW thereafter. If Micron's contract demand requirements materialize, along with other new
large load customers such as Brisbie LLC/Meta Platforms, Inc. (collectively "Meta"), IPC's
overall plant in service would approximately double by 2030 with resulting additional revenue
requirements for IPC's other customer classes. The Commission issued Order No. 36446 on
January 27, 2025 processing this Case under modified procedure and setting a comment deadline
of March 12,2025 or just 44 days for interested parties to comment or object to this historic special
contract. IIPA intervened in this Case and served data requests on IPC on February 12, 2024. The
Industrial Customers of Idaho Power("ICIP") and Micron have also intervened in this Case.
2. IPC filed IPC-E-24-45 on December 27, 2024 seeking a certificate of public
convenience and necessity ("CPCN") for a 100MW battery storage project which would be
principally used to help meet the increased demand due to Micron's special contract beginning in
2026. The Commission issued Order No. 36454 on February 3, 2025 processing this case for
technical hearing and setting an intervention deadline. IIPA intervened in this case on February
18, 2025. ICIP and Micron have also intervened in this interrelated case.
3. IPC Filed IPC-E-24-46 on December 27, 2024 seeking a CPCN to enter a 35 year
term Power Purchase Agreement("PPA")with Jackalope Wind,LLC for the purchase of 30OMW
wind generation which would also be used to help meet the increased demand due to Micron's
special contract beginning in 2027. The Commission issued Order No. 36450 on January 30, 2025
processing this case for technical hearing and setting an intervention deadline. IIPA intervened in
this case on February 18, 2025. ICIP and Micron have also intervened in this interrelated case.
4. IPC is also in the process of seeking approval the 320MW Blacks Creek Solar
Project in IPC-E-24-42 ("Blacks Creek"). Blacks Creek is the third installment under the Brisbie
special contract(IPC-E-21-42) to procure resources for Meta's new treasure valley data center.
IDAHO IRRIGATION PUMPERS ASSOCIATION,INC.'S OBJECTION TO MODIFIED PROCEDURE,DEMAND
FOR HEARING,AND MOTION TO CONSOLIDATE—Page 2
CASE NO.IPC-E-24-44

BASES FOR OBJECTION,DEMAND FOR HEARING,AND
MOTION TO CONSOLIDATE
5. IIPA welcomes IPC's efforts to reduce negative impacts on existing customers
through a marginal cost energy charge in the Micron special contract. While IIPA agrees with the
goal of holding existing customers harmless in the face of Micron's massive expansion, IIPA is
concerned that the contract does not provide material protections to IPC's other existing customer
classes.
6. IIPA has material concerns with the Micron special contract and the resources
procured to meet the special contract in cases IPC-E-24-44 and IPC-E-24-46. The special contract
is structured such that the impact to existing customer classes is material. Based on IIPA's initial
analysis, the special contract terms may lead existing customers to subsidize Micron by as much
$147 million per year. While intra-class subsidies are inevitable, this is an unreasonably large
transfer of wealth to Micron, a company that is already receiving over$6 billion in grants and tax
breaks to assist in its microchip fabrication plant expansion.
7. Micron's special contract proposes setting demand rates using embedded cost
pricing and energy rates using marginal cost pricing. This would be acceptable if IPC procured
100 percent of Micron's energy through market purchases, as this would ensure that incremental
costs are limited to energy costs rather than fixed costs. However, IPC applications for new
resources, filed within weeks of this Case, demonstrate that IPC intends to procure resources in a
manner that reduces marginal energy costs while increasing marginal fixed costs.
8. In IPC-E-24-45, IPC is requesting the Commission issue a CPCN to secure battery
capacity resources to meet the Micron's contract demand. Because battery resources are relatively
short lived, and have low effective load carrying capacity, particularly for flat loads such as
IDAHO IRRIGATION PUMPERS ASSOCIATION,INC.'S OBJECTION TO MODIFIED PROCEDURE,DEMAND
FOR HEARING,AND MOTION TO CONSOLIDATE—Page 3
CASE NO.IPC-E-24-44

Micron's expected load, batteries have an extremely high demand cost. Existing customers are
being asked to cover the cost of these uneconomic resources while providing Micron with the
benefit of existing, low cost and efficient hydro and steam facilities. The marginal demand costs
for Micron is as much as $40 per kW-month, while Micron only pays $20 per kW-month because
the special contract only charges marginal cost pricing for energy and not for capacity.
9. The marginal energy cost is $0.0368 per kwh while embedded energy costs
$0.0326, a difference of only 13 percent. If,rather than procuring batteries, IPC procured capacity
through market purchases, the demand costs for serving Micron would not be recovered through
the demand charge, they would be recovered through the energy charge, effectively shielding
existing customers from this unacceptable interclass cost subsidy.
10. IPC and Micron have structured the special contract in this Case in such a manner
that the types of resource procured greatly affects how Micron's special contract impacts existing
customers classes. This makes it necessary to analyze and vet new resource procurement in IPC-
E-24-45 and IPC-E-24-26 in concert with the approval of Micron's special contract in this Case.
REQUESTED RELIEF
11. The rates proposed in the Micron special contract do not accurately reflect the cost
of service and likely would end up causing IPC's existing customer classes to subsidize Micron's
power service of up to $147 million per year. Thus, the proposed special contract rates are
unreasonable and not in the public's interest.
12. As set forth herein, IIPA respectfully requests and moves the Commission issue an
order(1) processing this case for a technical hearing to allow the parties sufficient time to vet the
special contract's terms and effect on IPC's existing customers and (2) consolidating this Case
with IPC's cases IPC-E-24-45 and IPC-E-24-46 so that these resource acquisition cases can be
IDAHO IRRIGATION PUMPERS ASSOCIATION,INC.'S OBJECTION TO MODIFIED PROCEDURE,DEMAND
FOR HEARING,AND MOTION TO CONSOLIDATE—Page 4
CASE NO.IPC-E-24-44

concurrently considered at the same time in light of the material effect IPC's new resource
selection has on Micron's special contract.
13. Oral argument is respectfully requested on IIPA's Objection to Modified
Procedure, Demand for Technical Hearing, and Motion to Consolidate other resource cases.
DATED this 20th day of February, 2025.
ECHO HAWK& OLSEN
ZJ9�, ��
ERIC L. OLSEN
IDAHO IRRIGATION PUMPERS ASSOCIATION,INC.'S OBJECTION TO MODIFIED PROCEDURE,DEMAND
FOR HEARING,AND MOTION TO CONSOLIDATE—Page 5
CASE NO.IPC-E-24-44

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 20th day of February, 2025, I served a true, correct and
complete copy of the Petition of Idaho Irrigation Pumpers Association, Inc. for Leave to Intervene
to each of the following, via U.S. Mail or private courier, email or hand delivery, as indicated
below:
Monica Barrios-Sanchez, Commission Secretary ❑ U.S. Mail
Idaho Public Utilities Commission ❑ Hand Delivered
P.O. Box 83720 ❑ Overnight Mail
Boise, ID 83720-0074 ❑ Telecopy(Fax)
secretary�a,puc.idaho.�ov ® Electronic Mail (Email)
Megan Goicoechea Allen ❑ U.S. Mail
Donovan E. Walker ❑ Hand Delivered
Connie Aschenbrenner ❑ Overnight Mail
Grant Anderson ❑ Telecopy(Fax)
Idaho Power Company ® Electronic Mail (Email)
1221 W. Idaho Street(83702)
P.O. Box 70
Boise, ID 83707
mgoicoecheaallen(cr�,idahopower.com
dwalkerg,idahopower.com
docketskidahopower.com
caschenbrennergidahopower.com
ganderson(k idahopower.com
Lance Kaufman, Ph.D. ❑ U.S. Mail
2623 NW Bluebell Place ❑ Hand Delivered
Corvallis, OR 97330 ❑ Overnight Mail
lance(a),ae isg insi hg t.com ❑ Telecopy(Fax)
® Electronic Mail (Email)
Austin Rueschhoff ❑ U.S. Mail
Thorvald A. Nelson ❑ Hand Delivered
Austin W. Jensen ❑ Overnight Mail
Kristine A.K. Roach ❑ Telecopy(Fax)
Holland&Hart, LLP ® Electronic Mail (Email)
Micron Technology, Inc.
555 17th Street Suite 3200
Denver, CO 80202
darueschho ff khollandhart.com
tnelson(&,,hollandhart.com
awj ensenghollandhart.c om
IDAHO IRRIGATION PUMPERS ASSOCIATION,INC.'S OBJECTION TO MODIFIED PROCEDURE,DEMAND
FOR HEARING,AND MOTION TO CONSOLIDATE—Page 6
CASE NO.IPC-E-24-44

karoach(a,hollandhart.com
aclee(&hollandhart.com
Industrial Customer of Idaho Power ❑ U.S. Mail
c/o Peter J. Richardson ❑ Hand Delivered
Richardson, Adams, PLLC ❑ Overnight Mail
515 N. 27th St. ❑ Telecopy(Fax)
P.O. Box 7218 ® Electronic Mail (Email)
Boise, ID 83702
peter(&richardsonadams.com
Dr. Don Reading ❑ U.S. Mail
280 S. Silverwood Way ❑ Hand Delivered
Eagle, ID 83616 ❑ Overnight Mail
dreading(&mindspring com ❑ Telecopy(Fax)
® Electronic Mail (Email)
ERIC L. OLSEN
IDAHO IRRIGATION PUMPERS ASSOCIATION,INC.'S OBJECTION TO MODIFIED PROCEDURE,DEMAND
FOR HEARING,AND MOTION TO CONSOLIDATE—Page 7
CASE NO.IPC-E-24-44