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HomeMy WebLinkAbout20250530Direct Colburn.pdf RECEIVED May 30, 2025 IDAHO PUBLIC UTILITIES COMMISSION BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-25-16 AUTHORITY TO INCREASE ITS RATES ) AND CHARGES FOR ELECTRIC SERVICE ) IN THE STATE OF IDAHO AND ) AUTHORITY TO IMPLEMENT CERTAIN ) MEASURES TO MITIGATE THE IMPACT ) OF REGULATORY LAG. ) IDAHO POWER COMPANY DIRECT TESTIMONY OF MITCH COLBURN 1 Q. Please state your name, business address, and 2 present position with Idaho Power Company ("Idaho Power" or 3 "Company") . 4 A. My name is Mitch Colburn. My business address 5 is 1221 West Idaho Street, Boise, Idaho 83702 . I am 6 employed by Idaho Power as the Vice President of Planning, 7 Engineering and Construction. 8 Q. Please describe your educational background. 9 A. I graduated from the University of Idaho in 10 2006 with a Bachelor of Science degree in Electrical 11 Engineering, Summa Cum Laude. Thereafter, I obtained a 12 Master of Engineering degree in Electrical Engineering from 13 the University of Idaho in 2010 and a Master of Business 14 Administration from Boise State University in 2015 . I am a 15 licensed Professional Engineer in the State of Idaho. 16 Q. Please describe your work experience with 17 Idaho Power. 18 A. I have worked at Idaho Power since 2007 . 19 Prior to my current role, I served as Director of 20 Engineering and Construction, Director of Resource Planning 21 and Operations, Senior Manager of Transmission & 22 Distribution Strategic Projects, Engineering Leader over 23 500-kilovolt ("kV") and Joint Projects . I held several 24 engineering roles prior to these leadership roles . 25 I am responsible for an organization of more than COLBURN, DI 1 Idaho Power Company 1 275 employees focused on multiple areas : (1) identifying 2 future electric grid infrastructure requirements, (2) 3 resource procurement efforts, (3) operating and maintaining 4 the electric grid, including the wildfire mitigation 5 program and vegetation management, and (4) designing, 6 engineering, and constructing grid infrastructure projects . 7 Q. What is the purpose of your testimony in 8 this matter? 9 A. The purpose of my testimony is to discuss 10 the investments the Company has made in the electrical grid 11 to ensure the provision of safe, reliable service to 12 customers . I will detail specific investments anticipated 13 to be completed in 2025 and included in the Company' s 14 request in this case, demonstrating Idaho Power' s prudent 15 investment in the electrical grid at the transmission and 16 distribution levels . 17 Q. How is your testimony organized? 18 A. My testimony will begin with a discussion of 19 the transmission and distribution-related major projects, 20 or those projects over $2 million ("major projects") , 21 included in Idaho Power' s request in this case that are 22 necessary for the Company' s continued delivery of safe, 23 reliable electric service . Next, I will discuss the Wood 24 River Valley Reliability Project ("WRV Project") , a 25 combined distribution and transmission project for which COLBURN, DI 2 Idaho Power Company 1 the Company has received a Certificate of Public 2 Convenience and Necessity ("CPCN") , the distribution 3 portion of those investments which are proposed for 4 recovery in this case. I will also discuss a project 5 necessary for continued support of Idaho Power' s mobile 6 workforce system. Finally, my testimony will review the 7 Company' s planned enhanced 2025 wildfire mitigation efforts 8 that support the associated capital and operation and 9 maintenance expenditures proposed for recovery in this 10 case . 11 I . TRANSMISSION INVESTMENTS 12 Q. Please describe how the Company defines the 13 transmission-related portion of the electrical grid. 14 A. Transmission generally describes the bulk or 15 high voltage components of the electrical grid, including 16 stations and high voltage lines typically utilized to 17 transmit large volumes of electricity closer to load 18 centers . On Idaho Power' s system, transmission equipment is 19 considered to be facilities at or above 138-kV, with an 20 additional sub-transmission component comprised of 21 facilities at 46-kV and 69-kV. 22 Q. How have the transmission-related 23 investments grown since the completion of the limited scope 24 case in 2024 that included incremental capital investments, 25 Case No. IPE-E-24-07 ("2024 Limited Scope Case") ? COLBURN, DI 3 Idaho Power Company 1 A. Of the $941 . 5 million in infrastructure 2 anticipated to be placed in service in 2025, approximately 3 $201 . 3 million reflects investment in the Company' s 4 transmission system. 5 Q. What drives investment in the transmission 6 system? 7 A. Growth and reliability are the primary 8 drivers of the transmission investments reflected in the 9 Company' s request in this case. Growth-related projects 10 typically include either the construction of new 11 transmission facilities or the expanded capacity of 12 existing facilities . Reliability projects typically include 13 the proactive reconstruction or replacement of aging 14 facilities, additional facilities to increase resiliency, 15 and compliance related projects . My testimony will discuss 16 13 transmission-related major projects expected to be 17 complete in 2025, 11 of which are required to address aging 18 infrastructure, one is growth-related, and one supports 19 security enhancements . 20 Transmission Line Rebuilds and Repairs 21 Q. What is the largest transmission investment 22 necessary to address aging infrastructure expected to be 23 complete in 2025? 24 A. With a cost of approximately $16 . 5 million, 25 the largest transmission investment expected to be complete COLBURN, DI 4 Idaho Power Company 1 in 2025 and included in Idaho Power' s request in this case 2 is the second phase of the rebuild of a portion of Line 3 423 . In fact, three of the transmission investments 4 necessary to address aging infrastructure are associated 5 with transmission line rebuilds : (1) Line 423, (2) Line 6 412, and (3) Line 902 . Delaying the rebuilds could result 7 in higher maintenance and repair costs should the 8 structures need replacement individually, while also 9 potentially reducing reliability, and are therefore 10 critical to the continued delivery of safe, reliable 11 electric service to customers . 12 Q. Is the rebuild of Line 423 the same project 13 that was included in the Company' s 2024 Limited Scope Case? 14 A. Yes . However, the amounts included in the 15 2024 Limited Scope Case were associated with the first 16 phase of the project, and the portion expected to be 17 complete in 2025 is associated with a second phase of the 18 project. Line 423 is a 138-kV line that runs from Ontario 19 to the Quartz substation, south of Baker City in Oregon. 20 The rebuild project is associated with the Huntington to 21 Quartz 138-kV portion of Line 423 ("Huntington-Quartz 22 line") and is being performed in two sections (1) the 23 approximately 24 miles from the Quartz substation to the 24 Nelson Tap/Ash Grove substation ("phase one") , and (2) the COLBURN, DI 5 Idaho Power Company 1 approximately 16 . 5 miles from the Nelson Tap/Ash Grove 2 substation to the Huntington substation ("phase two") . 3 Q. What drove the need for the rebuild of the 4 Huntington-Quartz portion of Line 423? 5 A. The rebuild of the Huntington-Quartz line 6 was required due to the age of the existing line and 7 resulting reliability issues . When evaluating potential 8 outage sources, it was noted that due to the age of the 9 lines, this section was constructed between 1949 and 1951, 10 shield wires had not been installed and therefore lightning 11 was likely contributing to the performance issues . Thus, 12 the Company engaged POWER Engineers, Inc. ("POWER 13 Engineers") , to perform a study to analyze the entire 14 Ontario to Quartz 138-kV line, and specifically the 15 Huntington to Quartz section to determine if a rebuild on 16 the line would increase reliability. 17 Q. What were the results of the analysis? 18 A. POWER Engineers used a lightning performance 19 software, analyzing three cases, each with two different 20 footing resistance assumptions : (1) the existing wood 21 structure with no shield wires, (2) a new wood structure 22 with two shield wires, and (3) a new steel structure with 23 two shield wires . The results indicated that the overall 24 line performance would be significantly improved with the 25 addition of shield wires and further improvement is COLBURN, DI 6 Idaho Power Company 1 expected if steel structures were used in combination with 2 the addition of shield wires . 3 Q. Is Idaho Power replacing the existing wood 4 structures with steel structures? 5 A. Yes . The Huntington-Quartz line rebuild will 6 include the replacement of 286 structures from the 7 Huntington substation to the Quartz substation with tubular 8 steel 138-kV structures with shield wire and optical ground 9 wire for fiber optic communications . Due to the age of the 10 existing wood structures, they did not have space for the 11 addition of shield wires . Moreover, because the Huntington- 12 Quartz line was identified as being in a wildfire prone 13 area, the project was prioritized, and grid hardening 14 performed as part of the rebuild. Grid hardening includes 15 the use of steel structures for resiliency against 16 wildfires and improved customer reliability. 17 Q. How does the addition of shield wires improve 18 reliability? 19 A. Shield wires are installed above the 20 conductors for the purpose of channeling lightning strikes 21 to ground, which helps to prevent or minimize damage to 22 power lines and equipment, avoid major outages on the line, 23 and mitigate maintenance and repair costs . Phase two of the 24 rebuild of the Huntington-Quartz line, with a total cost of 25 approximately $16 . 5 million and an anticipated in service COLBURN, DI 7 Idaho Power Company 1 of July 2025, is necessary to ensure Idaho Power continues 2 providing safe, reliable electric service to its customers . 3 Q. What drove the need for the rebuild of Line 4 412? 5 A. Similar to Line 423, nearly half of the 6 structures and crossarms on the approximately 30-mile Boise 7 Bench to Emmett 138-kV section of Line 412 were built in 8 1947 . Having first been identified in 2016 as a rebuild 9 priority to address reliability issues, the Boise Bench to 10 Emmett 138-kV section of Line 412 was routinely 11 experiencing extensive maintenance repairs, emergency 12 repairs and hillside erosion. Due to its location within 13 the red wildfire risk zone along the Boise foothills, the 14 line was also identified in Table 14 of the Company' s 2025 15 Wildfire Mitigation Plan and needed steel structures for 16 resiliency against wildfires and improved customer 17 reliability. The rebuild of the Boise Bench to Emmett 138- 18 kV section of Line 412 is estimated to be complete in 19 October 2025 for a total cost of approximately $12 . 5 20 million. 21 Q. Is the rebuild of Line 902 the same project 22 that was included in the Company' s 2024 Limited Scope Case? 23 A. Yes . However, the amounts included in the 24 2024 Limited Scope Case were associated with one phase of 25 the project, and the portion expected to be complete in COLBURN, DI 8 Idaho Power Company 1 2025 is associated with a second phase of the project. Line 2 902 is one of the three 230-kV transmission lines that run 3 from the Boise Bench substation to the Midpoint substation. 4 Line 902 has been connected to and split into many line 5 sections by station additions over the years, and is now 6 comprised of the Midpoint to Justice, Justice to Mountain 7 Air Wind Tap, Mountain Air Wind Tap to Rattlesnake, 8 Rattlesnake to DRAM, and finally DRAM to Boise Bench 9 segments . Line 902 was originally built over 70 years ago, 10 with 478 of the original structures from 1947 in place . The 11 rebuild project will occur in four phases, the second of 12 which is included in the Company' s request in this case, 13 the approximately four-mile Boise Bench substation to DRAM 14 substation section ("Boise Bench to DRAM") . 15 Q. Is the Boise Bench to DRAM portion of Line 16 902 in a wildfire prone area? 17 A. Yes . All four phases of the Line 902 rebuild 18 fall within the wildfire prone areas as identified in Idaho 19 Power' s Wildfire Mitigation Plan, including the Boise Bench 20 to DRAM section. Therefore, all four phases of the line 21 rebuild will utilize steel structures for resiliency 22 against wildfires and to improve customer reliability. 23 Phase two of the work to rebuild the Boise Bench to DRAM 24 section of Line 902 is expected to be complete in October 25 2025 at a total cost of approximately $2 . 7 million. COLBURN, DI 9 Idaho Power Company 1 Q. What additional transmission investments were 2 necessary to address aging infrastructure? 3 A. The next two transmission investments I am 4 going to discuss that were required to address aging 5 infrastructure were portions of: (1) Line 906 and (2) Line 6 441 . Lines 906 and 441 were identified as needing certain 7 remediations during Idaho Power' s comprehensive maintenance 8 inspection. The Company follows transmission maintenance 9 and inspection practices in accordance with the Western 10 Electricity Coordinating Council and the North American 11 Electric Reliability Corporation ("NERC") requirements to 12 ensure compliance with applicable safety and reliability 13 standards and takes proactive steps to repair or replace 14 transmission line components on an ongoing basis as part of 15 asset management and aging infrastructure assessments . 16 Pursuant to its Transmission Maintenance and Inspection 17 Plan, the Company performs line inspections to identify 18 conditions or defects and inform, prioritize, and schedule 19 maintenance activities . Routine line patrols are conducted 20 annually, and the comprehensive maintenance inspections are 21 generally performed every 10 years and include a detailed 22 inspection of all transmission line components and a pole 23 inspection and ground-line treatment of all wood poles in 24 the line. When inspected, certain poles, cross arms, and 25 insulators on both Lines 906 and 441 were found to be in COLBURN, DI 10 Idaho Power Company 1 poor condition as a result of this process, and therefore 2 identified as needing to be replaced. 3 Q. Where is Line 906 located? 4 A. Line 906, a 106 mile 230-kV line, is one of 5 the three 230-kV transmission lines that run from the Boise 6 Bench substation to the Midpoint substation. The work on 7 Line 906 is expected to be complete in December 2025 at a 8 total cost of approximately $7 . 8 million. 9 Q. Please describe Line 441 . 10 A. Line 441 is an approximately 42 mile 138-kV 11 line that runs from the Oxbow substation to the McCall 12 substation in rough, high-risk terrain. The line is being 13 repaired in two phases, and because they will both be 14 complete in 2025, Idaho Power' s request in this case is 15 associated with both phases of the project. Both phases are 16 expected to be complete by December 2025 for a total cost 17 of approximately $4 . 2 million . 18 Transmission Stations Equipment Replacement 19 Q. You discussed the transmission line 20 investments necessary to address aging infrastructure . What 21 additional transmission investments are necessary to 22 address aging infrastructure and are expected to be 23 complete in 2025? 24 A. The remaining six transmission major 25 projects necessary to address aging infrastructure are all COLBURN, DI 11 Idaho Power Company 1 associated with transmission station equipment replacements 2 due to either equipment failures or equipment beyond its 3 expected operating life. Two of the six investments are 4 required prior to the addition of a new 138-kV line, the 5 Ontario to Cairo line. The 138-kV line will bring service 6 from Ontario substation to the Cairo substation. The new 7 line was identified as part of a corrective action plan to 8 resolve a NERC Transmission Planning ("TPL") compliance 9 issue . The NERC TPL are standards that include several key 10 regulations aimed at ensuring the reliability of the bulk 11 power system. Under TPL-001-4, the Company must establish 12 transmission system planning performance requirements to 13 develop a bulk electric system that will operate reliably 14 over a broad spectrum of system conditions and following a 15 wide range of probable contingencies . 16 Q. How was the compliance issue identified? 17 A. As part of the reliability studies, if the 18 Ontario substation experienced a breaker failure that 19 caused two transformers to go offline, the system 20 configuration would result in just one transformer to serve 21 the entire 69-kV system in the area . As load has grown in 22 the area, reliability standards can no longer be met. The 23 Ontario substation and the Cairo substation major projects 24 were planned as the result of the reliability compliance 25 standards . COLBURN, DI 12 Idaho Power Company 1 Q. Please describe the work being performed to 2 address the reliability issues . 3 A. The solution to the reliability issue was to 4 add a new 138/69-kV source to support the existing 69-kV 5 system. Because the existing Ontario substation was nearing 6 capacity, a new source had to be built at a different 7 substation, the Cairo substation, which is located in the 8 south end of the town of Ontario. The Company is upgrading 9 the line voltage on an existing line, and looping that line 10 into the Cairo substation, which will require four new 69- 11 kV breakers and two new 138-kV breakers to support the 12 connections . 13 Q. What is the total investment in the Cairo 14 and Ontario substations included in Idaho Power' s request 15 in this case? 16 A. Idaho Power has included in its request in 17 this case a total investment of $9 . 3 million for both the 18 Cairo and Ontario substation projects . The Ontario 19 substation work was completed in January 2025 and the Cairo 20 substation work is anticipated to be completed in June 21 2025 . 22 Q. What are the four remaining transmission 23 station investments necessary due to aging infrastructure 24 you have not yet discussed? COLBURN, DI 13 Idaho Power Company 1 A. The four remaining transmission station 2 investments necessary due to aging infrastructure were made 3 at the Blackfoot, American Falls, Kinport, and Weiser 4 substations . First, at the Blackfoot substation, the 5 existing 138-kV transformer was manufactured in 1953 and 6 had exceeded its expected operating life and repair parts 7 had become difficult or costly to procure. Further, the 8 load tap changer on the transformer was requiring more 9 frequent maintenance, indicating the potential for a 10 transformer failure. In addition, the transformer relays 11 had outdated technology, creating reliability concerns . The 12 existing transformer relays were replaced with new 13 protective relays and the existing bus protection relays 14 and lockouts were replaced with new microprocessor-based 15 protection. The Blackfoot substation equipment replacement 16 project was completed in April 2025 and approximately $5 . 4 17 million is included in Idaho Power' s request in this case . 18 Q. What drove the need for the American Falls 19 substation investments? 20 A. The existing transformer protection relays 21 were electromechanical relays which had exceeded their 22 expected reliable operating lives and therefore posed an 23 increasing risk to the system of failure. Further, the 24 relays lacked the remote access, data archiving, and event 25 analysis capability of modern electronic relays . COLBURN, DI 14 Idaho Power Company 1 Q. What investments were made at the American 2 Falls substation to replace the aging equipment? 3 A. The transformer protection relay packages 4 were replaced, as was the supervisory control and data 5 acquisition ("SCADA") equipment, and the 46-kV breaker, 6 switches, and bus . The American Falls substation equipment 7 replacement project was completed in April 2025 and 8 approximately $3 . 4 million is included in the Company' s 9 request in this case. 10 Q. Please describe the Kinport substation major 11 project anticipated to be complete in 2025 . 12 A. The major project associated with the 13 replacement of aging infrastructure at the Kinport 14 substation involves the replacement of the air-breaks . The 15 existing air-breaks are at the end of the expected life and 16 no further modification or adjustments can be made to the 17 equipment. Due to their age and challenges operating, these 18 air-breaks pose a high risk of failure. The air-breaks are 19 a part of three separate transmission lines that are 20 critical to serving the Pocatello and Blackfoot areas and 21 therefore a failure could cause outages and/or damage other 22 equipment. Idaho Power' s request in this case includes 23 project costs associated with the Kinport substation of 24 approximately $2 . 7 million with anticipated completion in 25 June 2025 . COLBURN, DI 15 Idaho Power Company 1 Q. What work will be done at the Weiser 2 substation to address aging infrastructure? 3 A. The Weiser substation contained equipment 4 that was manufactured as early as 1965 and was due for 5 replacement due to industry technological changes as well 6 as obsolescence. Due to the increasing risk of equipment 7 failure or mis-operation with associated risks of 8 unnecessary or potential extended outages, the oil circuit 9 breakers were replaced with new gas breakers and the 10 electromechanical relays were replaced with modern digital 11 relays . More modern digital relays also provide fault 12 location and other data utilized for reliability purposes 13 not available from electromechanical relays . The Company 14 has included total project costs associated with the Weiser 15 substation of approximately $2 . 6 million in the request in 16 this case. The project was placed in-service in January 17 2025 . 18 Growth-Related Transmission Investments 19 Q. You indicated there is one transmission- 20 related major project Idaho Power has included in its 21 request in this case associated with growth. Where is the 22 work being performed? 23 A. Due to load growth in the Treasure Valley 24 area, the Company was experiencing limited operations of 25 various resources and transmission paths south of the COLBURN, DI 16 Idaho Power Company 1 Treasure Valley to serve load during peak conditions . In 2 addition, increased transmission capacity was needed for 3 delivery of resources from the Hemingway substation, 4 including the Hemingway battery storage resources, as well 5 as resources from the 138-kV system, including the Kuna 6 battery storage resources . To accommodate the growth and 7 increased transmission capacity need, in 2025 Idaho Power 8 is constructing two new 230-kV line terminals and one new 9 138-kV line terminal at the Bowmont substation, which is 10 approximately four miles north of Melba, Idaho. The 11 upgrades at the Bowmont substation are anticipated to be 12 complete in December 2025 for a total cost of approximately 13 $4 . 4 million. 14 Q. Are there any additional transmission-related 15 investments included in Idaho Power' s request in this case 16 that you have not yet discussed? 17 A. Yes . One of the major projects for which the 18 Company is requesting approval in this case is associated 19 with threat and security vulnerability assessment 20 investments made at one of Idaho Power' s transmission 21 substations . 22 Threat and Security Vulnerability Assessment Investments 23 Q. Please describe the threat and security 24 vulnerability assessment investments expected to be 25 complete in 2025? COLBURN, DI 17 Idaho Power Company 1 A. Similar to the threat and security 2 vulnerability assessment investments in Idaho Power' s 3 hydro facilities discussed in the Direct Testimony of Mr. 4 Ryan Adelman, there is one threat and security 5 vulnerability assessment project expected to be completed 6 in 2025 and necessary at the Borah transmission 7 substation. The physical security improvements are being 8 made in accordance with the (1) NERC Reliability Standards 9 specific to Physical Security of the Bulk Electric System 10 and associated Cyber Systems, and (2) Idaho Power' s 11 internal risk assessment process for high and critical 12 rate assets . These enhanced security controls at the 13 substation will better detect, deter, delay, notify, 14 assess, and respond to potential security threat events . 15 Analysis of the Borah transmission substation identified 16 the need for enhanced security controls including the 17 installation of improved security fencing, the upgrade of 18 the closed-circuit television ("CCTV") camera system, as 19 well as other improved security measures . 20 Q. What is the total investment in the Borah 21 transmission substation included in Idaho Power' s request 22 in this case? 23 A. The Company is requesting in this case to 24 include approximately $10 . 5 million associated with the 25 Borah substation threat and security vulnerability COLBURN, DI 18 Idaho Power Company 1 assessment investments . The work is expected to be 2 completed in June 2025 . 3 Q. Do the transmission-related major projects you 4 discussed demonstrate a prudent approach to investment in 5 the Company' s transmission system and support Idaho Power' s 6 transmission-related rate base included in this case? 7 A. Yes . In just one year, the Company is 8 investing over $201 . 3 million in its transmission system. 9 Idaho Power is constantly evaluating the capacity needs, 10 resiliency, and reliability of its transmission system, 11 ensuring that the electrical grid is stable and in 12 compliance with NERC standards . Further, the Company is 13 dedicated to the safety of its customers and communities as 14 evidenced in the continuously evolving Wildfire Mitigation 15 Plan. Idaho Power works to reduce the risk of wildfire 16 ignition through the implementation of core mitigation 17 approaches, such as grid hardening of the electrical 18 system, as evidenced by the transmission-related 19 investments I discuss in my testimony. 20 II . DISTRIBUTION INVESTMENTS 21 Q. Please describe how the Company defines the 22 distribution-related portion of the electrical grid. 23 A. Distribution refers to equipment at 34 . 5-kV 24 and below, including lower voltage lines, substations, and 25 transformers that are typically utilized to provide COLBURN, DI 19 Idaho Power Company 1 electricity at the lower voltages required by the majority 2 of end-use customers . 3 Q. How have the distribution-related investments 4 grown since the completion of the 2024 Limited Scope Case? 5 A. Of the $941 . 5 million in infrastructure placed 6 in service over this period, approximately $207 . 1 million 7 reflects investment in the Company' s distribution system. 8 Q. What factors contributed to investment in 9 Idaho Power' s distribution system over this period? 10 A. Growth in the distribution system can be 11 directly tied to the addition of new customers, as every 12 new primary or secondary service level customer, requires 13 some form of additional distribution equipment. In 14 addition, similar to certain components of the Company' s 15 transmission system, Idaho Power has also undertaken a 16 number of key projects to proactively harden its 17 distribution system to maintain and improve reliability in 18 light of aging infrastructure. These investments not only 19 include the proactive replacement of aging infrastructure, 20 but also the improvement of the distribution system through 21 the installation of modern technology. Next, I will discuss 22 the distribution-related major projects expected to be 23 completed in 2025 . I will specifically discuss the largest 24 distribution project the distribution portion of the WRV 25 Project, later in my testimony, providing an overview of COLBURN, DI 20 Idaho Power Company 1 its long and complex regulatory history. Aside from the WRV 2 Project, there are 10 distribution-related major projects 3 expected to be complete in 2025, five of which are required 4 to address aging infrastructure and five are growth- 5 related. 6 Aging Infrastructure-Related Distribution Investments 7 Q. What is the largest distribution investment 8 necessary to address aging infrastructure expected to be 9 complete in 2025? 10 A. With a cost of approximately $5 . 2 million, 11 the largest distribution investment associated with the 12 replacement of aging infrastructure and included in Idaho 13 Power' s request in this case is the replacement of two 14 transformers at the Julion Clawson substation. The two 15 existing transformers were manufactured in 1967 . The load 16 tap changers, which adjusts output voltage without 17 interrupting the load, on two transformers had been 18 performing inadequately, and therefore impacting 19 reliability. The transformers had been repaired multiple 20 times in the last few years and because of their age it was 21 becoming difficult to obtain parts for repairs of either 22 transformer and troubleshooting and repairing them had 23 become challenging. In addition, the feeders were carrying 24 more load over the years, and it was becoming difficult to COLBURN, DI 21 Idaho Power Company 1 shift load elsewhere without overloading other equipment, 2 creating reliability concerns . 3 Q. Aside from the reliability issues, were 4 there any additional benefits associated with the 5 transformer replacements? 6 A. Yes . The existing 28 megavolt amperes 7 ("MVA") transformers were upgraded to 44 . 8 MVA transformers 8 which will provide operational flexibility and more 9 capacity to handle higher peak loads . In addition, they are 10 more modern, reliable transformers and therefore easier to 11 maintain and repair. Absent the larger transformers, mobile 12 transformers would need to be brought in to carry the load 13 of the existing transformers during maintenance or when 14 repairs are made. The replacement of the transformers at 15 the Julion Clawson substation is expected to be complete in 16 December 2025 . 17 Q. What additional major projects will the 18 Company be completing in 2025 to proactively harden its 19 distribution system to maintain and improve reliability in 20 light of aging infrastructure? 21 A. Three of the distribution-related major 22 projects associated with aging infrastructure include the 23 upgrade of three distribution stations : the Durkee 24 substation, the Bannock Creek substation and the Caldwell 25 substation. As part of an analysis performed to determine COLBURN, DI 22 Idaho Power Company I alternatives to replacing the existing Line 209, a 69—kV 2 line with structures dating back to 1927, it was determined 3 that removal of most of Line 209 and the serving of loads 4 via other sources was the most economical solution. Part of 5 that solution included the rebuilding of the Durkee 6 substation, an existing 69-kV substation, to a 138-kV 7 substation. The new Durkee substation will connect to an 8 existing nearby 138-kV line, allowing for the removal of 9 the aging Line 209 . 10 Q. What does the rebuild of the Durkee 11 substation entail? 12 A. Installation of a new 138-kV air-break 13 switch, power transformer, a dead-end structure, busbars, 14 and conductors will be made at the Durkee substation. Also, 15 a control building, communication equipment, concrete for 16 foundations, and fencing will be added. The work is 17 scheduled to be complete in October 2025 for a total cost 18 of approximately $3 . 6 million . 19 Q. What drove the need for the upgrade of the 20 Bannock Creek distribution station? 21 A. The Bannock Creek distribution station, 22 located in the middle of the Fort Hall Reservation, was 23 constructed in 1962 through 1963 and still contains some of 24 the original equipment. The principal operating equipment, 25 including the oil-filled breakers and relays and switches COLBURN, DI 23 Idaho Power Company 1 are all the original equipment and the transformer were 2 manufactured in 1969 . The open-backed relays, the auxiliary 3 current transformers, and the control cables were corroded. 4 The concrete foundations, especially the 13-kV bus 5 foundations, are badly decomposed, and the transformer 6 foundation has settled requiring ongoing releveling. 7 Finally, because of their age, the motor-operated air-break 8 switches outside the station fence do not function properly 9 during cold periods . In an effort to improve reliability in 10 light of aging infrastructure, in 2025, Idaho Power will be 11 updating the Bannock Creek station. 12 Q. What upgrades will be made at the Bannock 13 Creek distribution station? 14 A. First, the Company will be converting the 15 power source to 138-kV to improve reliability and reduce 16 long-term maintenance costs on the existing 46-kV line 17 currently serving the station. The yard will be expanded, 18 concrete foundations replaced, and the control building 19 replaced. A nearby 138-kV tap will be extended into the 20 station and new terminal structures installed. The existing 21 transformer will be replaced with a 138/12 . 5-kV transformer 22 being removed from the Linden station. New breakers, 23 controls and switches will complete station renovation. In 24 total, the Bannock Creek distribution station 25 infrastructure improvements are expected to be completed in COLBURN, DI 24 Idaho Power Company 1 November 2025 for a total cost of approximately $3 . 6 2 million. 3 Q. Why is the Caldwell substation in need of an 4 upgrade? 5 A. Similar to the Bannock Creek distribution 6 station, the Caldwell substation was in need of a new 7 control building because the existing building was too 8 small to house the necessary upgraded equipment. The 9 existing relays have reached the end of their life and have 10 been unreliable over the last few years because the 11 contacts have become tarnished and do not allow the relay 12 to reset properly after being in the lockout state . 13 Further, the electromechanical feeder breaker relays do not 14 have the Hot Line Hold functionality that allows for feeder 15 maintenance, nor do they have fault data recording that is 16 used for protection and reliability analysis . 17 The entire protection and control package will be removed, 18 and the new control building will house new panels for the 19 transformer protection, metering, and controls . Total 20 project costs associated with the upgrades at the Caldwell 21 substation included in the Company' s request in this case 22 are approximately $2 . 6 million. The work was completed in 23 February 2025 . 24 25 COLBURN, DI 25 Idaho Power Company 1 Q. Please describe the final major project 2 necessary for distribution system hardening to maintain and 3 improve reliability. 4 A. The final distribution-related major project 5 necessary to address aging infrastructure is associated 6 with the Siphon substation equipment. Like the Bannock 7 Creek distribution station, the Siphon substation has oil 8 breakers that are no longer supported by the manufacturer 9 and repair parts had become difficult or costly to procure . 10 Having been in service since 1972, the equipment was at 11 risk for failure which could lead to customer outages . With 12 a total project cost of approximately $2 . 0 million, the 13 Siphon substation upgrades include the replacement of the 14 breakers and getaway cables, including the extension of the 15 fence to accommodate the new getaway cables . The upgrades 16 at the Siphon substation are anticipated to be completed in 17 May 2025 . 18 Growth-Related Distribution Investments 19 Q. What is the largest growth-related 20 distribution investment expected to be complete in 2025? 21 A. With a cost of approximately $7 . 3 million, 22 the largest distribution investment associated with growth 23 and included in Idaho Power' s request in this case is 24 associated with work at the Vallivue substation. 25 Projections indicated that the transformer capacity would COLBURN, DI 26 Idaho Power Company 1 exceed the planning capacity by nearly six percent in the 2 summer of 2025 . The Company had already transferred two 3 separate loads in an attempt to offload the transformer and 4 had no additional adjacent transformer or feeder capacity 5 available. With the average growth rate of over 5 . 6 percent 6 in the urban area for which the Vallivue substation serves, 7 primarily attributable to residential development, it was 8 determined the substation needed to be expanded to allow 9 for more capacity. 10 Q. What additions are planned for the Vallivue 11 substation to accommodate the growth? 12 A. With work expected to be complete in June 13 2025, a new 44 . 8 MVA transformer is being added, new 14 metalclad, the transfer of an existing feeder to the new 15 metalclad, and two new feeders will be added. One feeder 16 will add 1 . 5 miles of second circuit to the existing 17 distribution line and the second feeder will add two miles 18 of second circuit to an existing line. A feeder tie will be 19 added to connect one of the new feeders to an existing 20 feeder. Finally, a control building will be added to house 21 SCADA, communication and high voltage side devices . The 22 Vallivue substation additions are expected to be complete 23 in June 2025 . 24 Q. What other distribution stations require 25 investments that are driven by growth? COLBURN, DI 27 Idaho Power Company 1 A. Idaho Power' s request in this case includes 2 four additional distribution substations where investments 3 are being made to accommodate growth: the Artesian 4 substation, the Lansing substation, the Stoddard substation 5 and the Halfway substation. Similar to the Vallivue 6 substation, the transformer at the Artesian substation was 7 exceeded the planning capacity in the summer of 2024 and 8 growth in the area was approximately one percent annually. 9 Because there is no available adjacent transformer or 10 feeder capacity to offload the existing transformer, a 11 second transformer will be added at the Artesian 12 substation. Along with the installation of a second 46-kV 13 transformer, a capacitor bank will be installed to 14 complement the new transformer, providing reactive power to 15 improve voltage stability, and the existing feeder relays 16 that are over 60 years old will be replaced. Yard 17 improvements will be made to accommodate the expansion and 18 a new pre-manufactured control building installed. The work 19 is expected to be complete in December 2025 with total 20 project costs of $6 . 7 million. 21 Q. What investments will be made at the Lansing 22 substation to accommodate growth? 23 A. The feeder at the Lansing substation was 24 forecasted to exceed the planning capacity in the summer of 25 2025 . Residential growth in this developing rural area is COLBURN, DI 28 Idaho Power Company 1 over six percent annually and with no available adjacent 2 feeder capacity to offload the Lansing substation feeder, 3 additions were planned. A second metalclad will be 4 installed along with two new feeder getaways, distribution 5 circuits and lines that carry power out of the substation. 6 To accommodate the additions, distribution lines coming 7 into the station will be rebuilt and a second circuit will 8 be added to one of the existing distribution lines . The 9 Lansing substation investments are estimated to be 10 approximately $5 . 3 million with work to be completed in 11 December 2025 . 12 Q. Was the Stoddard substation also signaling 13 transformer or feeder capacity in excess of the planning 14 capacity criteria? 15 A. Yes . Like the Lansing substation, the feeder 16 at the Stoddard substation was forecasted to exceed the 17 planning capacity in the summer of 2025 and residential and 18 commercial load in the area was growing over nine percent 19 annually. Multiple load transfers had been made in an 20 attempt to defer substation additions but there were no 21 more options available. A new 138-kV transformer will be 22 added to the substation along with a second metalclad with 23 two additional getaways . Two new distribution lines will be 24 installed, their connection requiring a reconfiguration of 25 an existing distribution line and the transferring of COLBURN, DI 29 Idaho Power Company 1 existing load on a separate line to the new Stoddard 2 distribution line. Finally, a tie switch will be added to 3 balance load between two existing Stoddard distribution 4 lines and a second load transfer will occur to offload a 5 separate existing Stoddard distribution line . 6 Q. What is the total cost of the Stoddard 7 substation additions necessary to accommodate growth? 8 A. The investments necessary at the Stoddard 9 substation, which are identified as two different major 10 projects in the Company' s request in this case, separated 11 between stations and distribution line costs, are estimated 12 to be approximately $6 . 7 million. The distribution line 13 work is anticipated to be complete in June 2025 and the 14 stations work is expected to be completed by December 2025 . 15 Q. What investments are required at the Halfway 16 substation? 17 A. The Halfway substation is expected to exceed 18 the planning capacity in the winter of 2025-2026 . With an 19 average growth trend of 1 . 6 percent annually, and no 20 available adjacent feeder capacity to offload the feeder, 21 it was determined the transformer needed to be replaced 22 with a larger 14 MVA transformer. The station will be 23 expanded, and along with the new transformer, the following 24 equipment will be added: three new bus supports, new 25 disconnects and fuses, a new distribution structure, and COLBURN, DI 30 Idaho Power Company 1 new control boxes . With total project costs estimated to be 2 approximately $3 . 1 million, the Halfway substation upgrades 3 are planned to be completed in October 2025 . 4 Q. Do the distribution-related major projects you 5 discussed demonstrate a prudent approach to investment in 6 the Company' s distribution system and support Idaho Power' s 7 distribution-related rate base included in this case? 8 A. Yes . In just one year, the Company is 9 investing $207 . 1 million in its distribution system. Idaho 10 Power' s thoughtful and proactive approach to investing in 11 its distribution system has resulted in improved 12 reliability metrics over the past decade as detailed in Mr. 13 Adam Richins testimony. In addition, the Company is 14 investing to accommodate growth within the Idaho Power' s 15 service area, ensuring the distribution system is equipped 16 to provide safe, reliable service to customers now and in 17 the future . 18 III . WOOD RIVER VALLEY RELIABILITY PROJECT 19 Q. Please describe the WRV Project. 20 A. Idaho Power' s WRV Project includes a 21 combination of electric distribution, transmission, and 22 substation work, in which the Company will bury or rebuild 23 existing distribution lines as well as construct a new 24 overhead and underground transmission line between the Wood 25 River substation in Hailey and the Ketchum substation in COLBURN, DI 31 Idaho Power Company I northeastern Ketchum. The new transmission line and related 2 facilities will provide a redundant source of energy into 3 the northern portion of the Wood River Valley, including 4 the communities of Ketchum and Sun Valley and portions of 5 Blaine County (collectively referred to as the "North 6 Valley") . 7 Q. What drove the need for the WRV Project? 8 A. The North Valley contains the resort 9 communities of Ketchum and Sun Valley as well as the Sun 10 Valley ski resort. Currently, the North Valley is served by 11 the Wood River and Ketchum substations, which are connected 12 to the Company' s transmission system by a single-source, 13 12 . 4 mile, 138-kV radial line that was built in 1962 with 14 wooden poles . If the line experiences sustained outages, 15 the outages may be lengthy because access to repair the 16 line is impeded by residential development, rough terrain, 17 and aged construction roads in many areas . Further, the 18 mountainous terrain limits vehicle access, impedes 19 equipment set-up, and contributes to avalanche threats . 20 Ultimately, the need to construct the WRV Project was to: 21 (1) increase reliability to the area by providing a 22 redundant source of energy, and (2) reconstruct the 23 existing and aging 138-kV radial transmission line without 24 long-term disruption of service to the North Valley. 25 COLBURN, DI 32 Idaho Power Company 1 Q. Does the Company have standard business 2 practices it follows for determining when construction of a 3 redundant transmission line is needed? 4 A. Yes . Idaho Power generally initiates and 5 constructs a second transmission source and transformer 6 when a substation peak load is projected to exceed 40 7 megawatts ("MW") . With peak loads of about 60 MW at the 8 Ketchum and Elkhorn substations', coupled with the winter 9 tourism population in the North Valley, the need for a 10 second transmission line was strongly supported. Multiple 11 transmission sources are standard practices that Idaho 12 Power implements to reduce the likelihood of sustained 13 outages . Additionally, the Company installs distribution 14 circuit tie switches, where adjacent circuits are 15 available, to reduce the duration of sustained outages on 16 the radially sourced distribution system. 17 Q. Were there any alternatives to the redundant 18 transmission line component of the WRV project? 19 A. No. Reconstruction of the existing line, which 20 was required whether a redundant transmission line was 21 constructed or not, was not feasible absent long-term 22 outages without building either a redundant transmission 23 line or a temporary line that would be removed after 1 The Elkhorn substation is located between the Ketchum and Wood River substations, via a tap connection on the existing Wood River to Ketchum line. COLBURN, DI 33 Idaho Power Company 1 construction because of the extreme disruption of service 2 required by the reconstruction. 3 WRV Project Background 4 Q. Prior to commencing work, did Idaho Power 5 perform any community outreach and invite public 6 participation regarding the plan for the WRV Project? 7 A. Yes . In 1995, the Company first undertook an 8 extensive public involvement process regarding the proposed 9 construction of the WRV Project. At the conclusion of the 10 process, Idaho Power carefully evaluated the input received 11 from the area' s public officials and citizens . The general 12 response at that time was that, despite the unavoidable 13 risk of an outage to the existing transmission line, the 14 proposed new transmission line should not be built. The 15 reasons for the public opposition included the difficulty 16 of finding an acceptable route for the transmission line, 17 aesthetic impacts, perceived health and safety concerns, 18 and the requirement that local funding of incremental costs 19 of placing part or all the line underground would be 20 required. The project was put on hold indefinitely and 21 Idaho Power' s previous Certificate of Public Convenience 22 and Necessity to construct the line was cancelled. 2 2 In the Matter of the Application of Idaho Power Company for an Amended Certificate of Public Convenience and Necessity No. 272, Case No. IPC- E-95-06, Order No. 26107 and cancelled Certificate No. 272 (Aug. 1995) ; Case No. U-1006-89, Order No. 11315 and Certificate No. 272 (Feb. 1974) . COLBURN, DI 34 Idaho Power Company 1 Subsequently, in 2004, Idaho Power initiated several 2 Community Advisory Committees ("CAC") and undertook a 3 comprehensive, cooperative transmission planning exercise 4 with the communities and leaders across its service 5 territory. These committees were created to provide a 6 cooperative effort between the Company and the communities 7 it serves in developing an outline for prioritized 8 improvements and additions to Idaho Power' s transmission 9 and substation infrastructure. One of those, the Wood River 10 CAC, was convened in 2007 and developed the Wood River 11 Valley Electrical Plan ("WREP") , a comprehensive plan for 12 future transmission facilities in the Wood River Valley. 13 Q. Did the WREP include some form of the WRV 14 Project? 15 A. Yes . The WREP included construction of the 16 redundant 138-kV transmission line between the Wood River 17 and Ketchum substations . The WREP was updated in 2011 after 18 additional deliberations and extensive public outreach, and 19 in 2012 the CAC reconvened to provide additional input for 20 planned open house events . In 2014, both the City of 21 Ketchum and the Ketchum Energy Advisory Committee were 22 invited to join the CAC, which reaffirmed the need for a 23 second energy path into the North Valley. While most of the 24 parties generally agreed upon the purpose and need for the 25 redundant transmission line, the consensus opinion was that COLBURN, DI 35 Idaho Power Company 1 a feasible route could only be obtained and permitted if at 2 least a portion of the line was underground. However, the 3 parties were unable to reach agreement about the funding 4 and payment of any incremental cost difference between an 5 overhead, or least-cost alternative, and an underground, or 6 higher-cost build. 7 Q. Did Idaho Power provide an option for 8 undergrounding a portion of the WRV Project such that no 9 incremental cost recovery from the local jurisdictions 10 would be required? 11 A. Yes . The proposed line route and facilities 12 included a 138-kV overhead transmission line from the Wood 13 River substation, north along Highway 75, to an underground 14 transmission transition point near Elkhorn Road, and then 15 underground to the Ketchum substation. These proposed 16 facilities would follow the same path as the existing 17 distribution lines, replacing them and minimizing the 18 aesthetic impact. The route was economically equivalent to 19 the Company' s standard construction configuration and 20 therefore would not require any additional incremental cost 21 recovery from the local jurisdictions . 22 CPCN for the WRV Project 23 Q. You indicated Idaho Power had previously filed 24 a request for a CPCN for a new transmission line to serve 25 the North Valley area but withdrew the request. Did the COLBURN, DI 36 Idaho Power Company 1 Company file a subsequent request for a CPCN following 2 community consensus on a feasible route that included Idaho 3 Power' s proposed solution that would not require 4 incremental cost recovery from local jurisdictions? 5 A. Yes . On November 8, 2016, the Company filed 6 Case No. IPC-E-16-28, requesting the Commission find that 7 the new 138-kV transmission line and related facilities to 8 provide redundant service from the Wood River substation 9 into the Ketchum substation was needed, and further 10 requesting the Commission grant a CPCN for construction of 11 the line as proposed and agreed upon by the local 12 jurisdictions . The Commission issued Order No. 33872 on 13 September 15, 2017, granting Idaho Power' s request for a 14 CPCN for a second 138-kV line, approving the requested 15 route of overhead transmission from the Wood River 16 substation to the transition point near Elkhorn Road, then 17 underground transmission to the Ketchum substation. 18 Q. At the time the CPCN was issued, had the 19 Company received the local permits necessary for 20 construction of the new 138-kV line? 21 A. No. Prior to the CPCN proceeding, Idaho Power 22 submitted an application for a Conditional Use Permit 23 ("CUP") to the Blaine County Board of Commissioners 24 ("County Board") , which was ultimately denied. Subsequent 25 to the issuance of the CPCN, the Company filed a new CUP COLBURN, DI 37 Idaho Power Company 1 with the County Board to seek out a mutually acceptable 2 route configuration that was consistent with the CPCN route 3 and acceptable to Blaine County, with the opportunity to 4 mutually agree to certain micro-siting of facilities, and 5 for the County Board to request additional undergrounding 6 should it identify a method to fund the additional 7 incremental cost of such undergrounding. 8 Idaho Power then carried out extensive public 9 involvement and local permitting efforts relating to the 10 transmission line project and, although lengthy, ultimately 11 came to an agreement with the County Board on a line route 12 configuration, as well as a surcharge mechanism to fund the 13 incremental cost of additional undergrounding by Idaho 14 Power' s customers in Blaine County. 15 Final WRV Project Route Configuration 16 Q. What changes were made to the line route 17 configuration that required the establishment of a 18 surcharge mechanism? 19 A. Following filing of the new CUP application in 20 November 2017, Idaho Power worked with the Blaine County 21 Planning and Zoning ("P&Z") Commission, with engagement 22 from the County Board, and lengthy public hearing 23 processes, conducting extensive analysis of the micro- 24 siting options identified by the P&Z Commission. The CUP 25 application was approved on January 15, 2019, though no COLBURN, DI 38 Idaho Power Company 1 specific route for the line was approved. While several 2 parties appealed this decision, the County Board ultimately 3 affirmed the P&Z Commission' s CUP grant on appeal, with the 4 condition that "the entire transmission line be 5 undergrounded from the Wood River Substation north to the 6 City of Ketchum.3 However, recognizing it could be difficult 7 to secure the required funding to bury the entire 8 transmission line, the decision left open the possible 9 consideration of "an overhead transmission line in this 10 area. "4 11 Securing funding to underground substantial portions 12 of the line did prove difficult, although the County Board 13 explored a variety of options, including passing a bond or 14 government grants . The County Board, with consultation from 15 the P&Z Commission, prioritized portions of the line and 16 facilities for undergrounding. To cover the cost of the 17 incremental undergrounding, the County Board asked Idaho 18 Power to develop a surcharge mechanism that would be placed 19 on Blaine County customers' electric bills . 20 Ultimately the new line configuration, referred to 21 as the Owl Rock Road Route, was agreed upon by all parties 22 involved in the P&Z and CAC efforts, and included the 23 burial of: (1) an additional 1 . 4 miles of transmission, 3 County Board's June 2019 Decision on Appeal. 4 Id. COLBURN, DI 39 Idaho Power Company 1 located to the south from Elkhorn Road to near Owl Rock 2 Road, and (2) the existing distribution line for 3 approximately 8 miles along the planned route along 4 Buttercup Road to Highway 75 . The transmission line would 5 include overhead construction from the Wood River 6 substation to the underground transition point at Owl Rock 7 Road. Additionally, rather than place the existing 8 distribution lines as under-build on the new overhead 9 transmission structures, the existing distribution lines 10 along the route would be buried. This will both reduce the 11 height of the transmission poles and reduce the number of 12 lines in the air as the transmission line will have three 13 energized wires while the existing distribution line has 14 between three and six energized wires and one neutral wire . 15 Q. Did the County Board approve the CUP for the 16 Owl Rock Road Route? 17 A. Yes . On December 22, 2020, Idaho Power filed 18 an application to the County Board for CUP approval of the 19 Owl Rock Road Route funded by a surcharge mechanism to be 20 placed on Blaine County customers' electric bills . The 21 County Board approved the CUP for the Owl Rock Road Route 22 on March 9, 2021 . Under this CUP, the County Board modified 23 the "all underground" condition for the WRV Project and 24 replaced the language with a condition that the CUP was 25 contingent on partial undergrounding as decided on with the COLBURN, DI 40 Idaho Power Company 1 Owl Rock Road Route. This final CUP from the County Board 2 gave Idaho Power authority to move forward with an 3 application with the Commission for approval of a modified 4 line route CPCN based on the Owl Rock Road Route, as well 5 as authority to develop a surcharge that would be used to 6 collect the incremental costs of undergrounding from Blaine 7 County customers . 8 Q. Please describe the intent of the surcharge 9 mechanism. 10 A. As I discussed earlier in my testimony, to 11 recover the incremental costs of undergrounding the section 12 of transmission and distribution lines prioritized by the 13 County Board, the Company was asked by the County Board to 14 develop a monthly surcharge to be applied to Idaho Power' s 15 Blaine County customers' bills over an estimated 20-year 16 period. 17 Q. Did the Company receive approval from the 18 Commission for the changes to the line route configuration 19 and resulting surcharge mechanism? 20 A. Yes . On June 28, 2022, in Case No . IPC-E-21- 21 25, the Commission issued Order No. 35452, finding the 22 modified line configuration for the WRV Project and 23 implementation of a surcharge mechanism were fair, just, 24 and reasonable.5 The Commission issued an amended CPCN to 5 Case No. IPC-E-21-25, Order No. 35452 at 16 (June 28, 2022) . COLBURN, DI 41 Idaho Power Company 1 reflect the new line route configuration on August 2, 2022 . 2 Figure 1 below is the Owl Rock Road Route, identifying the 3 transmission line and line segments to be buried. 4 FIGURE 1 5 WRV PROJECT i' .1 Jv- 1 i -Lbnny fnnunif.an L.i. 6 7 WRV Project Costs 8 Q. What is the status of the WRV Project? 9 A. In the fall of 2023, work began on the 10 distribution line portion of the WRV Project and continued 11 until the weather prohibited progress . Construction resumed 12 again in the spring of 2024, paused again when weather COLBURN, DI 42 Idaho Power Company 1 prohibited progress, and resumed in 2025 . Work is 2 anticipated to be complete on the distribution line portion 3 by November 2025 . 4 Q. The distribution undergrounding is a portion 5 of the broader WRV Project. What work is being completed in 6 November 2025? 7 A. Work on the WRV Project began with the 8 undergrounding of approximately eight miles of the existing 9 distribution line along Buttercup Road and Highway 75, to 10 allow the future transmission line to be built with shorter 11 transmission poles to meet county height requirements . To 12 prepare for undergrounding of the distribution line, crews 13 first excavated a duct bank and made multiple bores along 14 the eight-mile route. Next, the distribution line is 15 installed in the duct bank and equipment is installed to 16 connect existing customers . 17 Q. Has Idaho Power included the costs associated 18 with the distribution line portion of the WRV Project, 19 which is anticipated to be completed in November 2025, in 20 the Company' s request in this case? 21 A. Yes . However, the Company has reduced the 22 total project costs by the estimated incremental 23 undergrounding costs of distribution, as those costs will 24 be recovered from Idaho Power' s Blaine County customers 25 only through the surcharge mechanism upon completion of COLBURN, DI 43 Idaho Power Company 1 both the distribution and transmission portions of the 2 project . 3 Q. You indicated the Company reduced the WRV 4 Project costs associated with the distribution line 5 included in Idaho Power' s request in this case by an 6 estimate of the incremental undergrounding costs . Why was 7 an estimate used as opposed to actual costs? 8 A. Order No. 35452 acknowledged the Company' s 9 methodology for computing the estimated incremental 10 grounding costs . Because the distribution line 11 configuration Idaho Power would have constructed under a 12 standard construction configuration was not built, the 13 Company cannot identify the precise costs it would have 14 incurred under the hypothetical scenario. That is, the 15 request for proposals issued for the work to be performed 16 or materials to be procured was based on a different 17 distribution line configuration and therefore Idaho Power 18 cannot compute with certainty the portion of the costs that 19 would have been incurred under a different distribution 20 line configuration. 21 Q. How did Idaho Power develop the incremental 22 cost estimate? 23 A. To estimate the incremental costs associated 24 with the modified distribution line configuration, the 25 Company built a cost estimate associated with a comparable COLBURN, DI 44 Idaho Power Company 1 overhead distribution line rebuild with a standard 2 construction configuration which entails replacement of all 3 distribution line equipment, including overhead wires and 4 pole mounted equipment, except for most of the distribution 5 poles . Costs were added to reflect: (1) the overhead 6 distribution work being performed on an energized system, 7 (2) the replacement of a portion of the existing wood poles 8 with taller, steel poles as required by the line design, 9 and (3) the addition of distribution intersect poles that 10 would have been required for the distribution under-build. 11 Finally, Allowance for Funds Used During Construction, 12 overheads, and a contingency were applied to the total 13 project costs as is standard when developing a project cost 14 estimate. 15 Q. What are the WRV Project costs included in the 16 Company' s request in this case? 17 A. Net WRV Project cost of $11 . 8 million are 18 included for recovery in this case from all customers, 19 which reflects estimated project costs less the amount that 20 will be recovered through the separate WRV Project 21 surcharge . 22 Q. In Case No. IPC-E-24-07, Idaho Power included 23 in its request costs associated with the distribution line 24 portion of the WRV Project. Is this the same portion of the 25 project the Company is requesting recovery of in this case? COLBURN, DI 45 Idaho Power Company 1 A. Yes . However, while initially proposed to be 2 included in Idaho Power' s request in Case No. IPC-E-24-07, 3 when it became clear that, due to circumstances outside of 4 the Company' s control, the distribution portion of the line 5 would not be fully completed in December 2024 as previously 6 expected, in rebuttal testimony, Idaho Power proposed to 7 remove the amounts from the request. With the work nearing 8 completion, the Company has again included the costs 9 associated with the distribution line portion of the WRV 10 project in this case. 11 IV. MOBILE WORKFORCE SYSTEM INVESTMENT 12 Q. Please describe the investment necessary for 13 support of Idaho Power' s mobile workforce system. 14 A. The Company' s mobile workforce system enables 15 the electronic dispatching of work to crews and electronic 16 acknowledgement of the completion of orders, allowing for 17 the real-time processing of customer-request or outage 18 driven work through mobile devices . Idaho Power currently 19 uses the CGI Technologies and Solutions Inc. ("CGI") 20 PragmaCAD and PragmaLINE solutions to serve the mobile 21 workforce system. However, beginning in 2023, the current 22 CGI server and data base would no longer be supported and 23 no enhancements were available. Absent the mobile workforce 24 system, the Company would revert back to the inefficient 25 processing of orders manually via phone or paper. The COLBURN, DI 46 Idaho Power Company 1 existing software however was coupled with the Company' s 2 Outage Management System, which was scheduled to be 3 migrated to the single vendor platform as part of the grid 4 modernization efforts and would require decoupling as part 5 of the migration. As a result, the software solution for 6 the mobile workforce system was planned for implementation 7 coincident with the migration of the Outage Management 8 System. 9 Q. What work does the PragmaCAD migration 10 require? 11 A. In addition to the software migration, the 12 decoupling of the PragmaCAD system from the Outage 13 Management System requires the building of PragmaCAD- 14 specific databases and servers . This approximately 15-month 15 process includes the migration, design, and configuration 16 followed by testing, verification, training and deployment. 17 Total project costs associated with the software migration 18 included in Idaho Power' s request are approximately $2 . 8 19 million and the project was completed in April 2025 . 20 Q. Does the PragmaCAD migration demonstrate a 21 prudent approach to investment in the Company' s system? 22 A. Yes . The decoupling of the PragmaCAD from the 23 Outage Management System and subsequent migration of the 24 PragmaCAD software was necessary to support the mobile 25 workforce and the Company' s continued delivery of safe, COLBURN, DI 47 Idaho Power Company 1 reliable electricity to customers . 2 V. IDAHO POWER' S WILDFIRE MITIGATION EFFORTS 3 Q. How does the Company work to mitigate wildfire 4 risks? 5 A. Idaho Power deploys a variety of wildfire risk 6 mitigation activities through its Wildfire Mitigation Plan 7 ("WMP") , which was developed in response to the increase in 8 frequency and intensity of wildfires seen across the 9 western United States in recent years . In 2019, the Company 10 first developed the WMP to identify areas within the Idaho 11 Power' s service area exposed to higher levels of wildfire 12 risk. As an action plan for Company operations, the WMP 13 includes best practices for mitigating wildfire risk that 14 guide operational, personnel, and communication practices 15 before, during, and after wildfire season. 16 Q. What is contributing to the growth of western 17 wildfires in recent years? 18 A. A variety of factors have contributed to a 19 greater number of destructive wildfires, including climate 20 change, increased human encroachment in wildland areas, 21 historical land management practices, and changes in 22 wildland and forest health, among other factors . In 2024, 23 Idaho saw its most active fire season in recent history. 24 The National Interagency Fire Center ("NIFC") recorded 252 25 wildfire starts and 1, 509, 455 acres burned in or near Idaho COLBURN, DI 48 Idaho Power Company 1 Power' s service area during the 2024 season6 with 996, 7627 2 acres of the total acreage referenced above burned in the 3 State of Idaho. While the number of fire starts was 4 slightly above the 30-year average of 235, the number of 5 acres burned in or near Idaho Power' s service area almost 6 doubled the 30-year average of 860, 725 .8 Development of the 7 2025 WMP came on the heels of this active 2024 fire season 8 and, drawing from its experiences, Idaho Power conducted a 9 comprehensive evaluation of its entire wildfire program 10 including activities, tools, and personnel, and identified 11 several critical measures to strengthen and enhance its 12 existing efforts . These items fall into four categories : 13 Quantifying Wildland Fire Risk, Situational Awareness, 14 Wildfire Program & Personnel, and Enhanced Vegetation 15 Management. 16 Q. What are the Company' s plans to strengthen the 17 quantification of wildland fire risk? 18 A. Assessing and monitoring wildfire risk is the 19 cornerstone of Idaho Power' s wildfire mitigation efforts . 20 Beginning in 2025, the Company is transitioning to a 21 wildfire risk modeling platform that will give Idaho Power 22 more granular insight into wildfire risk across the 6 Idaho Power's 2025 Wildfire Mitigation Plan, pg. 13. 7 National Interagency Coordination Center - Wildland Fire Summary and Statistics Annual Report 2024, pg. 44. 8 Idaho Power's 2025 Wildfire Mitigation Plan, pg. 13. COLBURN, DI 49 Idaho Power Company 1 Company' s service area, allow Idaho Power to incorporate 2 weather modeling into risk assessments, and help the 3 Company produce updated risk maps of its service area and 4 transmission corridors . Idaho Power will also expand its 5 fire spread simulation modeling to gain deeper insight into 6 fire behavior and the potential consequence of wildfire 7 ignitions within the Company' s service area. Additionally, 8 Idaho Power will be investing in a variety of tools and 9 databases to help the Company assess the efficacy of its 10 wildfire mitigation efforts . Idaho Power anticipates the 11 costs of advanced wildfire risk modeling tools to enhance 12 wildfire mitigation efforts to be approximately $2 million 13 in 2025 . 14 Q. How will Idaho Power improve its situational 15 awareness associated with wildfire risk? 16 A. Situational awareness plays a vital role in 17 the Company' s ability to adequately prepare for and operate 18 during times of heightened wildfire risk. Each wildfire 19 season, through its own experience as well as those of 20 other utilities, Idaho Power learns more about how to 21 enhance situation awareness through a variety of means . For 22 the upcoming fire season, the Company has identified four 23 areas for expanded situational awareness efforts : (1) 24 contracting for the evaluation and validation of the data 25 collected through the Idaho Power-specific weather tool, COLBURN, DI 50 Idaho Power Company 1 (2) pursuit of a waiver from the Federal Aviation 2 Commission to operate drones beyond the visual line of 3 sight, (3) commence an aerial drone inspection pilot 4 project, and (4) expand the contract for standby helicopter 5 service. At an estimated annual cost of approximately 6 $900, 000, these enhanced situational awareness efforts will 7 aid in the preparation for, and operation during, the 8 wildfire season. 9 Q. What improvements will Idaho Power be making 10 to strengthen and enhance its wildfire mitigation program 11 and personnel? 12 A. One of the key lessons learned from the past 13 year is that wildfire work is truly a year-round effort 14 that requires dedicated staff to prepare for, manage, and 15 learn from each wildfire season. To strengthen Idaho 16 Power' s wildfire mitigation efforts, the Company will hire 17 additional personnel to support critical functions 18 essential for reducing wildfire risk and enhancing system 19 safety. The total cost of the new positions in 2025 is 20 estimated to be approximately $1 . 1 million. 21 Q. How will Idaho Power enhance its vegetation 22 management efforts? 23 A. Vegetation management is both imperative to 24 the Company' s wildfire mitigation efforts and a source of 25 significant challenge. The availability of qualified labor COLBURN, DI 51 Idaho Power Company 1 has diminished while demand for vegetation management 2 services has grown across the Western United States . To 3 help address these challenges, Idaho Power has hired a 4 three-person internal vegetation management crew to help 5 reduce ongoing pruning costs, improve production levels, 6 and mitigate rising expenses associated with contracted 7 services . Additionally, the Company will continue to invest 8 in Enhanced Vegetation Management practice in wildfire risk 9 zones . Vegetation management continues to represent the 10 largest single cost category in Idaho Power' s wildfire 11 mitigation activities, with an estimated incremental cost 12 of $19 .2 million in 2025 . 13 Q. Do you believe the Company' s wildfire 14 mitigation efforts demonstrate a prudent and proactive 15 approach to mitigating wildfire risk? 16 A. Yes . Idaho Power' s WMP presents holistic and 17 prudent strategies to improve safety, reliability while 18 balancing affordability for customers and the communities 19 the Company serves . Idaho Power continues its grid 20 hardening efforts to protect against wildfires and other 21 natural emergencies . In addition, to reduce wildfire risk, 22 the Company is expanding situational awareness 23 capabilities, further enhancing vegetation management 24 programs and upgrading risk modeling practices . COLBURN, DI 52 Idaho Power Company I VI . CONCLUSION 2 Q. Please summarize your testimony. 3 A. As evidenced by the continued growth in 4 transmission and distribution investments, the Company 5 continues its thoughtful and prudent approach to 6 construction and maintenance of its transmission and 7 distribution systems to ensure Idaho Power maintains a safe 8 and reliable system, while also making great strides to 9 mitigate wildfire risk. 10 Q. Does this conclude your direct testimony in 11 this case? 12 A. Yes, it does . 13 COLBURN, DI 53 Idaho Power Company 1 DECLARATION OF MITCH COLBURN 2 I, Mitch Colburn, declare under penalty of perjury 3 under the laws of the state of Idaho: 4 1 . My name is Mitch Colburn. I am employed by 5 Idaho Power Company as the Vice President of Planning, 6 Engineering and Construction. 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 30th day of May 2025, at Boise, Idaho. 16 17 Signed: 18 MITCH COLBURN 19 20 21 22 23 24 25 COLBURN, DI 54 Idaho Power Company