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HomeMy WebLinkAbout20250425Notice_of_Application_Order_No_36577.pdf Office of the Secretary Service Date April 25,2025 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-25-10 COMPANY'S APPLICATION FOR ) APPROVAL OF A POWER PURCHASE ) NOTICE OF APPLICATION AGREEMENT AND AN ENERGY STORAGE ) AGREEMENT WITH CRIMSON ORCHARD ) NOTICE OF MODIFIED SOLAR LLC ) PROCEDURE ORDER NO. 36577 On March 13, 2025, Idaho Power Company ("Company") filed an application with the Idaho Public Utilities Commission("Commission") for an order: (1) approving the 20-year Power Purchase Agreement("PPA")between Crimson Orchard Solar LLC ("Crimson Orchard") and the Company, supplying the 100 megawatts ("MW") output to the Company; (2) approving the 20- year Energy Storage Agreement ("ESA") between Crimson Orchard and the Company for 100 MW of dispatchable energy storage capacity; and (3) acknowledgment of the lease accounting necessary to facilitate the transaction and that the resulting expenses associated with both the PPA and the ESA are prudently incurred for ratemaking purposes. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company states that under the PPA, Crimson Orchard will construct, own, operate, and maintain a solar powered generation facility located in Elmore County, Idaho, with an expected nameplate capacity of 100 MW, supplying the output to the Company for a period of 20 years from a commercial operation date of June 1, 2027. Application at 6-7. The Company states that the 20-year ESA was executed for a battery storage system located in Elmore County, Idaho supplying 100 MW of capacity at the point of interconnection on the Company's system, with a commercial operation date of June 1, 2027. Id. at 7. YOU ARE FURTHER NOTIFIED that the Company filed two sets of direct testimony with the Application.Id. at 2. The Company states that the testimony presents the Company's need for new resources to meet an identified capacity deficit in 2027 as informed by previous Integrated Resource Plans ("IRP"). Id. The Company states the annual capacity positions identified in the NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36577 1 2021 IRP were deficits of approximately 101 MW in 2023, 186 MW in 2024, 311 MW in 2025, 560 MW in 2026, and 665 MW in 2027.Id. YOU ARE FURTHER NOTIFIED that the Company states the Crimson Orchard PPA and Crimson Orchard ESA were executed on February 7, 2025, as cost-effective projects that are able to meet a June 1, 2027, operation date. Id. at 6. YOU ARE FURTHER NOTIFIED that the Company requests the Commission acknowledge the lease accounting, as outlined under Generally Accepted Accounting Principles, to facilitate the ESA transaction and that the expenses associated with the ESA are prudently incurred expenses for ratemaking treatment.Id. at 8-9. YOU ARE FURTHER NOTIFIED that the Application and testimony are available for public inspection during regular business hours at the Commission's office. The Application and testimony are also available on the Commission's website at 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 MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter, and that it will proceed under Modified Procedure pursuant to the Commission's Rules of Procedure 201-204, IDAPA 31.01.01.201-.204. The Commission notes that Modified Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this Application may file a written comment explaining why the person supports or opposes the Application. Persons who would like a hearing must specifically request a hearing in their written comments and explain why written comments alone are insufficient. Persons interested in filing written comments must do so by August 1, 2025. Comments must be filed through the Commission's website or by e-mail unless computer access is unavailable. To comment NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36577 2 electronically, please access the Commission's website at http://www.puc.idaho.gov/. Click the "Case Comment Form" and complete the form using the case number as it appears on the front of this document. To file by e-mail, persons must e-mail the comments to the Commission Secretary and all parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code § 74-101(13), and all information provided by such person is available for public and media inspection. If computer access is unavailable, then comments may be mailed to the Commission and the Parties at the addresses below.Persons submitting a comment by mail must provide their name, address, and the Case Number under which they are commenting. Persons submitting a comment by mail also acknowledge that submitting a comment in an open case constitutes a public record under Idaho Code§74-101(13),and all information provided by such person is available for public and media inspection. For the Idaho Public Utilities For Idaho Power Company: Commission: Commission Secretary Donovan E. Walker Idaho Public Utilities Commission Tim Tatum P.O. Box 83720 1221 West Idaho Street(83702) Boise, ID 83720-0074 P.O. Box 70 secretM@,puc.idaho.gov Boise, ID 83707 dwalker(d),idahopower.com Street Address for Express Mail: dockets&idahopower.com a)=ttatum( idahopower.com 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, ID 83714 YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by August 22, 2025. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set, the Commission will consider this matter on its merits and enter its final NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36577 3 order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing. ORDER IT IS HEREBY ORDERED that this Application be processed under Modified Procedure. Persons interested in submitting written comments must do so by August 1, 2025. The Company must file any reply comments by August 22, 2025 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 25th day of April 2025. G EDWARD LODGE, SIDENT R. HAMMOND JR., COMMISSIONER DAYN HAADIE, COMMISSIONER ATTEST: o 1 a B - anc ez Commission Secretary I:\Lega1\ELECTRIC\IPC-E-25-10_Crimson\orders\IPCE2510_Me App_Mod_em.docx NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36577 4