20250313IPC Reply Comments.pdf

0I01W Re
MEGAN GOICOECHEA ALLEN
Corporate Counsel
mgoicoecheaallen(didahopower.com RECEIVED
March 13, 2025
Idaho Public
Utilities Commission
March 13, 2025
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-24-42
In the Matter of Idaho Power Company's Application for Approval of a Power
Purchase Agreement with Blacks Creek Energy Center, LLC
Dear Commission Secretary:
Attached for electronic filing please find Idaho Power Company's Reply Comments
in the above matter.
Please feel free to contact me directly with any questions you might have about
this filing.
Very truly yours,
II I' Ir.i_'L(
Megan Goicoechea Allen
MGA:cd
Attachments
1221 W. Idaho St(83702)
P.O. Box 70
Boise, ID 83707

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]
dwalkerCcDidahopower.com
[e-mail]
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY'S APPLICATION FOR ) CASE NO. IPC-E-24-42
APPROVAL OF A POWER PURCHASE )
AGREEMENT WITH BLACKS CREEK ) IDAHO POWER COMPANY'S
ENERGY CENTER, LLC. ) REPLY COMMENTS
COMES NOW, Idaho Power Company ("Idaho Power" or "Company") and,
pursuant to Idaho Public Utilities Commission ("Commission") Rule of Procedure 203 and
the Notice of Modified Procedure, Order No. 36419, hereby respectfully submits the
following Reply Comments in response to Comments filed by Commission Staff ("Staff")
on February 27, 2025.
I. INTRODUCTION
1. On November 8, 2024, Idaho Power filed an Application seeking approval
of a 20-year Power Purchase Agreement("PPA") between Idaho Power and Blacks Creek
Energy Center, LLC ("Blacks Creek" or "Seller") entered into to facilitate Brisbie LLC's
IDAHO POWER COMPANY'S REPLY COMMENTS - 1

("Brisbie") goal of supporting data center operations with renewable energy under the
provisions contained in the Brisbie Special Contract, as amended, that was approved by
the Commission in Order Nos. 35777, 35958, and 36383.
2. In addition to requesting that the Commission approve the Blacks Creek
PPA, which is the third Renewable Resource PPA acquired pursuant to the Brisbie
Special Contract, Idaho Power also requested that the Commission approve the
associated Tariff Schedule 33, Electric Service Rate for Brisbie ("Schedule 33"), based
on the proposed Payment Structure developed in accordance with the structure and
methodology approved in Commission Order Nos. 35958 and 36270 and consistent with
the framework previously approved for the Brisbie Special Contract.
3. In its Comments, Staff made one recommendation specific to the Blacks
Creek PPA and several pertaining to the Proposed Payment Structure, specifically the
Renewable Capacity Credit ("RCC"), which Idaho Power addresses in turn as follows.
II. REPLY COMMENTS
A. PPA RECOMMENDATION — Modification to "Market Price Index" Definition
4. With respect to the Blacks Creek PPA, Staff's sole recommendation was for
the parties to modify the definition and use of "Market Price Index" to include language
that Staff contends is necessary to avoid potential impacts of Washington's Climate
Commitment Act ("CCA") on Idaho Power customers. Though the Comments do not
specifically address PPA approval, based on consultation with Staff, it is the Company's
understanding that Staff supports Commission approval of the PPA subject to the
IDAHO POWER COMPANY'S REPLY COMMENTS - 2

modification recommended by Staff to incorporate language that has been included in
three PPAs recently approved by the Commission.'
Case No. IPC-E-24-43
5. Most recently, in Case No. IPC-E-24-43,2 the Commission approved a
standard contract for purchase and sale of electric energy generated by a PURPA
Qualifying Facility ("QF"), which had been amended to include the CCA-related language
as a result of a similar recommendation by Staff.
6. While the Company understood and agreed with Staff that Idaho ratepayers
should be insulated from the costs associated with the CCA, it disagreed that the CCA-
related language was necessary to avoid such potential impacts.3 More specifically, the
Company explained that at the time the language was originally developed, the details of
the cap-and-invest program remained uncertain, leading to concerns and confusion
amongst many stakeholders, including concerns the program would have repercussions
for the regional electric power market and the pricing indices published by the
Intercontinental Exchange ("ICE").
7. In light of the uncertainty, the qualifying language was incorporated to
provide flexibility in the event that implementation of the CCA triggered fundamental
changes in the wholesale electricity market such as the establishment of an alternative or
successor index representative of the Mid-Columbia ("Mid-C") trading hub. However, to
date such concerns have not materialized, and the qualifying language included in the
'See Case Nos. IPC-E-22-29 (Pleasant Valley Solar PPA), IPC-E-24-01 (PVS 2 PPA), and IPC-E-24-43
(Simplot energy sales agreement("ESA") under the Public Utility Regulatory Policies Act("PURPA")).
2 In the Matter of Idaho Power Company's Application for Approval or Rejection of an Energy Sales
Agreement with J.R. Simplot Company for the Sale and Purchase of Electric Energy from the Simplot—
Pocatello CSPP Project, Case No. IPC-E-24-43, Order No. 36477 (Feb. 21, 2025).
3 See Idaho Power Company's Reply Comments at 2-6 (Jan. 22, 2025) in Case No. IPC-E-24-43 for a
more comprehensive discussion of this issues summarized in this section.
IDAHO POWER COMPANY'S REPLY COMMENTS - 3

"Market Price Index" definition accommodating the possibility of an alternative or adjusted
index representing a price for energy that is not delivered to a final point of delivery in a
balancing authority area located entirely in Washington has not been invoked because
no such indices exist.
8. The Commission indicated that it understood why the Company did not
believe the modification was necessary, nevertheless, it supported the inclusion of the
CCA-related language to address Staff's underlying concern and provide greater clarity
as to the Commission's position on the CCA, finding that the "additional clarity provides
maximal protection to Idaho consumers against unreasonable costs that could arise from
the CCA."4
First Amendment to the Blacks Creek PPA
9. The Company appreciates Staff's commitment to ensuring Idaho customers
do not bear the costs of this unilateral Washington policy but does not believe the concern
is implicated under the circumstances. As an initial matter, under the regulatory
framework contemplated by the Brisbie Special Contract, Brisbie pays the costs
associated with the renewable resources required to support its load. Moreover, the
Company disagrees that the Blacks Creek PPA as drafted inappropriately allows market
prices to reflect the impacts of the CCA or that modifying the definition "Market Price
Index" as recommended by Staff avoids potential impacts of CCA on Idaho ratepayers.
10. In fact, because ICE does not publish an index representing, or adjusted to
assume, a price for energy that is not delivered to Washington State, the CCA-related
language that has been included in some contracts has never been invoked; Idaho Power
4 Case No. IPC-E-24-43, Order No. 36477 at 5.
IDAHO POWER COMPANY'S REPLY COMMENTS -4

has not made any adjustments to Mid-C or Market Price Index prices as there is no
definitive basis today for making such adjustment. Additionally, the CCA has no other
identified direct impact on Idaho Power and the PPAs or energy sales agreements it
enters into to serve load on its system.
11. The Company firmly believes that it is not necessary to include the modified
language regarding the CCA in all PPAs or PURPA ESAs in order to fulfill the
Commission's intent to provide maximal protection to Idaho consumers against
unreasonable costs that could arise from the CCA. Notwithstanding, the parties in this
case are willing to incorporate Staff's recommended modification as it will not affect the
rights of the parties under the PPA and will have no impact in how the PPA is administered
as explained above. Moreover, because the Blacks Creek PPA includes provisions that
are implicated if regulatory approval is not timely received, it is important that this case
proceed expeditiously; more specifically, in order to ensure the subject resource is online
in coordination with Brisbie's load service, the PPA provides that failure to obtain
Commission approval by May 8, 2025, will result in a day-for-day extension of the
Scheduled Commercial Operation Date ("COD"),5 and the parties do not want to
experience any complications associated with potential delay past that expiration.
12. Accordingly, and in order to avoid delay and ensure that a final Commission
determination can be timely issued, Idaho Power and Seller have entered into an
amendment to incorporate Staff's recommended change. More specifically, filed herewith
as Attachment 1 is the fully executed First Amendment to the Black's Creek PPA ("First
5 See Section 3.1.4 of the Blacks Creek PPA (Attachment 1 to Application).
IDAHO POWER COMPANY'S REPLY COMMENTS - 5

Amendment") between Idaho Power and Seller, which modifies the definition of "Market
Price Index" as recommended in Staff Comments.
B. PRICING RECOMMENDATION — Modifications to Renewable Capacity Credit
Methodology
13. In addition to recommending approval of the Black Creek PPA subject to
the parties modifying the "Market Price Index" definition, Staff made several
recommendations pertaining to the determination of the proposed Payment Structure,
specifically the Renewable Capacity Credit, pursuant to the Brisbie Special Contract and
associated Schedule 33.6
14. Under the terms of Brisbie's Special Contract and Schedule 33, Brisbie is
eligible to receive an annual RCC beginning the later of the Renewable Resource's COD
or the capacity deficiency date identified in Schedule 33. In its Comments, Staff proposes
that the Company incorporate several changes to the methodology applied to arrive at
the proposed RCC and submit a compliance filing reflecting the same.
15. While the Company appreciates Staff's ongoing efforts to refine the
methodology, it is concerned that Staff's recommendations may have unintended
consequences insofar as those recommendations differ from the methodology previously
applied to other Clean Energy Your Way arrangements. As a result, after reviewing Staff's
Comments, the Company suggested it would be beneficial to work together with Staff to
address their specific feedback and reach alignment on a recommended RCC associated
with the Blacks Creek PPA, and Staff was amenable to this approach.
16. This type of collaborative approach has been successfully utilized in the
past by the Company and Staff to address similar issues and develop solutions to
6 Staff Comments at 3-9 (Staff Recommendations 2 through 6 are related to the RCC methodology).
IDAHO POWER COMPANY'S REPLY COMMENTS - 6

implement the Commission's intent for the treatment of RCCs under the Clean Energy
Your Way framework of both the Brisbie7 and Micron$ Special Contracts.
17. Accordingly, the Company respectfully requests the Commission direct it to
work with Staff to develop the structure for calculating Brisbie's RCC under the Brisbie
Special Contract and for the Company to submit a compliance filing with the proposed
RCC and associated update to Schedule 33 within 60 days of the Commission's order in
this case. That will provide the Company and Staff necessary time to evaluate each of
Staff's recommendations and the impacts associated with each.9
III. CONCLUSION
18. Idaho Power appreciates review and consideration of the issues in this case
and the opportunity to offer these Reply Comments to address Staff's recommendations.
Idaho Power respectfully requests that the Commission: (1) issue an order approving the
Blacks Creek PPA and the First Amendment thereto on or before May 8, 2025; (2) direct
the Company to work with Staff to develop the structure for calculating Brisbie's RCC
under the Brisbie Special Contract; and (3) order the Company to submit a compliance
See, e.g., In the Matter of Idaho Power Company's Application for Approval of a Special Contract and
Tariff Schedule 33 to Provide Electric Service to Brisbie's Data Center Facility, Case No. IPC-E-21-42,
Order No. 35777 (May 11, 2023)(approving the special contract and Schedule 33 subject to the parties
making a subsequent compliance to implement Commission directed pricing updates); In the Matter of
Idaho Power Company's Application for Approval of a Power Purchase Agreement with PVS 2, LLC,
Case No. IPC-E-24-01, Order No. 36270 (Jul. 26, 2024)(approving the proposed payment structure
made as a compliance filing following Commission approval of the PVS2 PPA).
8 In the Matter of Idaho Power Company's Application for Approval of a Replacement Special Contract
with Micron Technology, Inc. and a Power Purchase Agreement with Black Mesa Energy, LLC, Case No.
IPC-E-22-06, Order No. 35532 (Sept. 19, 2022)(directing the Company and Staff to"work together to
develop a rate structure for calculating Micron's RCC" under the special contract and to file for approval
through a compliance filing).
9 The time sensitivities associated with the approval of the Blacks Creek PPA do not exist with respect to
updating the RCC component associated with Blacks Creek PPA under Schedule 33, which will not
apply until December 2027.
IDAHO POWER COMPANY'S REPLY COMMENTS - 7

filing with the proposed RCC and associated update to Schedule 33 within 60 days of the
Commission's order.
Respectfully submitted this 13th day of March 2025.
iIxt"
MEGAN GOICOECHEA ALLEN
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S REPLY COMMENTS - 8

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 13th day of March 2025, 1 served a true and
correct copy of Idaho Power Company's Reply Comments upon the following named
parties by the method indicated below, and addressed to the following:
Commission Staff Hand Delivered
Chris Burdin U.S. Mail
Deputy Attorney General Overnight Mail
Idaho Public Utilities Commission FAX
11331 W. Chinden Blvd., Bldg No. 8 FTP Site
Suite 201-A (83714) X Email Chris.Burdin(a)_puc.idaho.gov
PO Box 83720
Boise, ID 83720-0074
Christy Davenport
Legal Administrative Assistant
IDAHO POWER COMPANY'S REPLY COMMENTS - 9

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-24-42
IDAHO POWER COMPANY
ATTACHMENT 1

FIRST AMENDMENT TO THE POWER PURCHASE AGREEMENT
BETWEEN
BLACKS CREEK ENERGY CENTER,LLC
AND
IDAHO POWER COMPANY
This First Amendment to the Power Purchase Agreement("First Amendment")is effective
as of March 12,2025 ("Effective Date")and is entered into by and between Idaho Power Company,
an Idaho corporation("Idaho Power") and Blacks Creek Energy Center, LLC, a Delaware limited
liability company("Seller"), (individually a"Party" and collectively the "Parties").
WHEREAS, Idaho Power entered into the Power Purchase Agreement ("PPA") with the
Seller on October 11, 2024, for the purchase and sale of energy and Green Tags for the benefit of
Brisbie, LLC(`Brisbie" or"Customer")pursuant to a Special Contract between Idaho Power and
Brisbie ("Special Contract"). The PPA was filed for review and approval with the Idaho Public
Utilities Commission("Commission") on November 8, 2024.
WHEREAS, Commission Staff filed its Comments regarding the PPA on February 27,
2025, recommending approval of the PPA conditioned modifying the definition of Market Price
Index in the PPA to be consistent with Brisbie's prior Renewable Resource PPAs, and that the
Company make a compliance filing relating to several methodology items related to the Special
Contract pricing. Case No. IPC-E-24-01.
WHEREAS,the Parties desire to enter this First Amendment to the PPA to address Staff s
condition and modify the definition of Market Price Index in the PPA,and submit the same for the
Commission's approval of the PPA with this First Amendment.
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound,the Parties hereto agree as follows:
1. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part of
the PPA, as amended,by this reference to the same extent as if these recitals were set forth in full
at this point.
2. Amendment. (new language is underlined
The first paragraph of Section 1.78 of the PPA shall hereby be Amended as follows:
"1.78 "Market Price Index"means 82.4%of the monthly arithmetic average of each day's
Intercontinental Exchange ("ICE") daily firm Mid-C Peak Avg and Mid-C Off-Peak Avg
index prices with such prices being the index representing or adiusted to assume, a vrice
for energy that is not delivered to a final point of delivery in a balancing authority area
located entirely in Washington or a designated scheduling point associated with a
Washington retail provider with a balancing authority area operated by a federal power
marketing_administration, in the month as follows: ..."
First Amendment to PPA Page 1

3. Commission Approval. The obligations of the Parties under this First Amendment are subject
to the Commission's approval of this First Amendment and such approval being upheld on appeal,
if any, by a court of competent jurisdiction.
4. Effect of Amendment. Except as expressly amended by this First Amendment,the terms and
conditions of the PPA remain unchanged.
5. Capitalized Terms. All capitalized terms used in this First Amendment and not defined herein
shall have the same meaning as in the PPA.
6. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit
of the Parties hereto, and their respective heirs, executors, administrators, successors, and assigns,
who are obligated to take any action which may be necessary or proper to carry out the purpose
and intent hereof.
7. Authority. Each Party represents and warrants that as of the Effective Date: (i) it is validly
existing and in good standing in the state in which it is organized, (ii) it is the proper party to
amend the PPA, and(iii) it has the requisite authority to execute this First Amendment.
8. Counterparts. This First Amendment may be executed in any number of counterparts, each
of which shall be deemed an original and all of which taken together shall constitute a single
instrument.
IN WITNESS WHEREOF,the Parties hereto have caused this Second Amendment to be
duly executed as of the date above written.
IDAHO POWER COMPANY BLACKS CREEK ENERGY CENTER, LLC
By: HQC Solar Holdings 1,LLC, its sole
/ member and manager
By: -
By: Hanwha Q CELLS USA Corp., its sole
Name: h7i9�+✓ �� L member and manager
Title: /� ?c)C-)OIL
By:
Name: Jay Jung
Title: Authorized Signatory
First Amendment to PPA Page 2