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HomeMy WebLinkAbout20250415Notice_of_Application_Order_No_36541.pdf Office of the Secretary Service Date April 15,2025 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-25-08 COMPANY'S APPLICATION FOR A ) CERTIFICATE OF PUBLIC CONVENIENCE ) NOTICE OF APPLICATION AND NECESSITY FOR AN OWNERSHIP ) INTEREST IN THE SOUTHWEST INTERTIE ) NOTICE OF PROJECT—NORTH 500-KV ) INTERVENTION DEADLINE TRANSMISSION LINE AND APPROVAL OF ) THE UTILIZATION OF CAPACITY ON THE ) ORDER NO. 36541 LINE ) On March 7, 2025, Idaho Power Company ("Company") applied to the Idaho Public Utilities Commission ("Commission") requesting an order: (1) granting a Certificate of Public Convenience and Necessity ("CPCN") for the Company's interests in the Southwest Intertie Project - North ("SWIP-North"), transmission line, including the ownership rights to 250 megawatts("MW")of its northbound capacity, and(2) approving the Company's utilization of an additional 250 MW of GBT Northbound,LLC's("GBT Northbound")northbound capacity rights, both via the SWIP-North agreements.Application at 1-2. In total, the Company claims that it will gain 500 MW of south-to-north capacity on the total Southwest Intertie Project transmission line ("Total SWIP"). The Company asserts this provides a cost-effective resource addition to meet capacity deficiencies. BACKGROUND SWIP-North is an approximately 285 mile,nearly construction ready transmission line that will connect the Midpoint substation, near Shoshone, Idaho, to the Robinson Summit substation, near Ely,Nevada. Id. at 2-3. The Company represents that SWIP-North is planned to be online in 2028. Id. at 5. The Company asserts that SWIP-North will connect to the existing Southwest Intertie Project — South 500-kV line ("SWIP-South"), an existing transmission line that extends between Robinson Summit substation and the Harry Allen substation, northeast of Las Vegas, Nevada. Id. at 3. The Company states that when combined, SWIP-North and SWIP-South form the Total SWIP.Id. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 36541 1 NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company represents that ownership and capacity entitlements associated with SWIP-South, as well as SWIP-North and Total SWIP once completed, are governed by the Second Amended and Restated Transmission Use and Capacity Exchange Agreement by and among Nevada Power Company, Sierra Pacific Power Company, Great Basin Transmission South, LLC, and Great Basin Transmission, LLC, dated as of June 30, 2020 ("TUA"), which is included as Exhibit 2 to Mr. Ellsworth's direct testimony filed in this case.Id. The Company represents that its participation in, and joint ownership of, SWIP-North has been memorialized in: (1) the Participation and Joint Ownership Agreement by and among Great Basin Transmission, LLC, GBT Northbound, LLC and the Company dated as of February 13, 2025; (2) the Capacity Entitlement Agreement by and between GBT Northbound, LLC and the Company dated as of February 13, 2025 ("Capacity Entitlement Agreement"); (3) the Purchase and Sale Agreement by and between GBT Northbound, LLC and the Company dated as of February 13, 2025; and (4) the Purchase Option Agreement by and between GBT Northbound, LLC and the Company dated as of February 13, 2025 ("Definitive Agreements"). Id. at 6. The Company requests approval of the Definitive Agreements, and they are included as Confidential Exhibit No. 5 to Mr. Ellsworth's direct testimony filed in this case.Id. YOU ARE FURTHER NOTIFIED that the Company states that it analyzed SWIP-North, as well as other portfolio scenarios, as part of its 2023 Integrated Resource Plan ("IRP") as providing a 500 MW resource equivalent capacity, from the Desert Southwest ("DSW") market, in the winter months beginning in 2028. Id. at 5. Costs were modeled to reflect a 22.83 percent ownership interest for the Company. Id. The Company asserts the results of its IRP analysis indicated that a portfolio inclusive of SWIP-North was lower cost than one that excluded SWIP- North. Id. YOU ARE FURTHER NOTIFIED that the Company represents that once energized, the Definitive Agreements provide for the Company's undivided ownership interest in approximately 11.4 percent, or 250 MW, of SWIP-North's south-to-north capacity. Id. at 6. GBT Northbound will provide the Company transmission rights for the use of an additional 250 MWs of GBT Northbound's ownership interest of SWIP-North's south-to-north capacity for 40 years through NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 36541 2 the Capacity Entitlement Agreement. Id. At the end of 40 years the Company will have the option to purchase the 250 MWs of SWIP-North from GBT Northbound.' Id. In addition to the Company's ownership interests and transmissions entitlements for SWIP-North,GBT Northbound has dedicated the remaining capacity entitlement on SWIP-North transmission line to the California Independent System Operator. However, GBT Northbound will retain ownership interest in SWIP-North associated with this dedication. Id. at 5. YOU ARE FURTHER NOTIFIED that the Company represents that it is not requesting binding ratemaking treatment in this case. Id. at 9. The Company requests that the Commission find the Company has met the requirements of Idaho Code § 61-526, and that the Commission issue an order granting a CPCN to acquire the rights to approximately 11.4 percent of the northbound capacity of SWIP-North. Id. The Company represents that it will make a future filing to address the cost recovery associated with the Company's ownership interest. Id. The Company intends to finance its 11.4 percent ownership interest in SWIP-North through available credit facilities,borrowing and debt issuances, available case and operating cash flow, and future equity infusions from IDACORP (the Company's parent). YOU ARE FURTHER NOTIFIED that upon energization of SWIP-North, due to transfer capability gains, the transmission capacity allocations across SWIP-South will change. Ellsworth Direct at 10-11. GBT will receive a portion of the new capacity across SWIP-South through the additional transfer capability gains.Id. at 10.Under the TUA,the use of some of GBT's additional capacity entitlements on SWIP-South will provide the Company 500 MWs of south-to-north capacity entitlements over Total SWIP. Id. at 11-12. This will give the Company access to 500 MWs of energy from the DSW. YOU ARE FURTHER NOTIFIED that the Application and testimony have been filed with the Commission and is available for public inspection during regular business hours at the Commission's office. These documents are also available on the Commission's website at ' Under the Definitive Agreements, the Company represents it will secure a capacity entitlement in SWIP-North to utilize 500 MW of south-to-north capacity,representing 46.62 percent of GBT's 1,072 MW of south-to-north capacity, and 22.83 percent of GBT's 2,190 MW of Total SWIP capacity. Ellsworth Direct at p. 14. The Company represents that 100 percent Company ownership of the 500 MW south-to-north transmission capacity on SWIP-North was not an option.Id. at 17. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 36541 3 www.puc.idaho.gov. Click on the "ELECTRIC" icon, select "Open Cases," and click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq. NOTICE OF INTERVENTION DEADLINE YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to obtain parties' rights of participation must file a Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure 71-73, IDAPA 31.01.01.072-073. Persons who wish to intervene as a party must file a Petition to Intervene no later than 21 days after the date of service of this Order. Persons desiring to present their views without parties' rights of participation do not have to intervene and may present their comments without prior notification to the Commission or the parties. YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit numbers to each party in this proceeding. YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, Commission Staff("Staff')will informally confer with the parties to discuss a schedule to process this case and other issues as may be raised by the parties. YOU ARE FURTHER NOTIFIED that the following persons are designated as the Company's representatives in this matter: Donovan E. Walker Tim Tatum Idaho Power Company Vice President, Regulatory Affairs P.O. Box 70 Idaho Power Company Boise, Idaho 83707 P.O. Box 70 dwalkergidahopower.com Boise, Idaho 83707 dockets(a,idahopower.com ttatum(aidahopower.com ORDER IT IS HEREBY ORDERED that persons desiring to intervene in this case for the purpose of obtaining parties' rights of participation must file a Petition to Intervene with the Commission, NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 36541 4 under Rules 71-73, IDAPA 31.01.01.071-073, no later than 21 days after the service date of this Order. IT IS FURTHER ORDERED that, after the Secretary issues a Notice of Parties, Staff will informally confer with the parties to discuss the appropriate scheduling of this case. IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between parties should continue to be accomplished electronically when possible. However, voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 151h day of April 2025. G EDWARD LODGE, PIES' NT 4HN . HAMMOND JR., COMMISSIONER YN H DI , COMMISSIONER ATTEST: I L �..100►.. ~Ica U - c z Commission Secfetwf IALega1\ELECTRIC\IPC-E-25-08_S WIP\orders\IPCE2508_Ntc_App_hit_cb.docx NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 36541 5