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HomeMy WebLinkAbout20250730Rebuttal Testimony.pdf "4%6h-0IQAHO POWER. RECEIVED July 30, 2025 IDAHO PUBLIC MEGAN GOICOECHEA ALLEN UTILITIES COMMISSION Corporate Counsel mgoicoecheaallenC&_idahopower.com July 30, 2025 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-24-44 Idaho Power Company's Application for Approval of a Special Contract and Tariff Schedule 28 to Provide Electric Service to Micron Idaho Semiconductor Manufacturing (Triton) LLC Dear Commission Secretary: Attached for electronic filing, please find Idaho Power Company's Rebuttal Testimonies and exhibit of Grant T. Anderson and Jared L. Ellsworth. If you have any questions about the attached documents, please do not hesitate to contact me. Sincerely, Awr TII Megan Goicoechea Allen MGA:sg Attachments 1221 W. Idaho St(83702) P.O. Box 70 Boise, ID 83707 CERTIFICATE OF SERVICE HEREBY CERTIFY that on the 30t" day of July 2025, 1 served a true and correct copy of Idaho Power Company's Rebuttal Testimonies of Grant T. Anderson and Jared L. Ellsworth 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 PO Box 83720 Chris.Burdin(a)-puc.idaho.gov Boise, ID 83720-0074 Industrial Customers of Idaho Power Hand Delivered c/o Peter J. Richardson U.S. Mail Richardson Adams, PLLC Overnight Mail 515 N. 27' Street FAX Boise, Idaho 83702 FTP Site X Email peter richardsonadams.com Dr. Don Reading Hand Delivered 280 S. Silverwood Way U.S. Mail Eagle, Idaho 83716 Overnight Mail FAX FTP Site X Email dreading(aD_mindspring.com Idaho Irrigation Pumpers Association, Hand Delivered Inc. U.S. Mail Eric L. Olsen Overnight Mail Echo Hawk & Olsen, PLLC FAX 505 Pershing Ave., Ste. 100 FTP Site P.O. Box 6119 X Email Pocatello, Idaho 83205 elo(a)-echohawk.com Lance Kaufman, Ph.D. Hand Delivered 2623 NW Bluebell Place U.S. Mail Corvallis, OR 97330 Overnight Mail FAX FTP Site X Email Iance(a)aegisinsight.com Micron Technology, Inc. Hand Delivered Austin Rueschhoff U.S. Mail Thorvald A. Nelson Overnight Mail Austin W. Jensen FAX Kristine A.K. Roach FTP Site Holland & Hart LLP X Email 555 17' Street, Suite 3200 darueschhoff(a�hol land hart.com Denver, CO 80202 tnelson _hol land hart.com awiensen(a)hol land hart.com karoach hollandhart.com aclee(c)hollandhart.com Clean Energy Opportunities for Idaho Hand Delivered Kelsey Jae U.S. Mail Law for Conscious Leadership Overnight Mail 920 N. Clover Dr. FAX Boise, ID 83703 FTP Site X Email kelsey(a)kelseyjae.com Courtney White Hand Delivered Mike Heckler U.S. Mail 3778 Plantation River Drive, Suite 102 Overnight Mail Boise, ID 83703 FAX FTP Site X Email courtney(a)cleanenergyopportunities.com mike a(�.cleanenergyopportunities.com Stacy Gust Regulatory Administrative Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY' S APPLICATION FOR ) CASE NO. IPC-E-24-44 APPROVAL OF SPECIAL CONTRACT AND ) TARIFF SCHEDULE 28 TO PROVIDE ) ELECTRIC SERVICE TO MICRON IDAHO ) SEMICONDUCTOR MANUFACTURING ) (TRITON) LLC. ) IDAHO POWER COMPANY REBUTTAL TESTIMONY OF GRANT T . ANDERSON 1 Q. Please state your name . 2 A. My name is Grant T. Anderson. 3 Q. Are you the same Grant T. Anderson who 4 submitted direct testimony in this proceeding on behalf of 5 Idaho Power Company ("Idaho Power" or "Company") ? 6 A. Yes . 7 Q. Have you had the opportunity to review the 8 pre-filed testimony of Idaho Public Utilities Commission 9 Staff ("Staff") witness Mr. Michael Eldred, Idaho 10 Irrigation Pumpers Association ("IIPA") witness Dr. Lance 11 Kaufman, and Clean Energy Opportunities for Idaho ("CEO") 12 witness Ms . Courtney White? 13 A. Yes, I have . 14 Q. What is the scope of your rebuttal testimony 15 in this proceeding? 16 A. My rebuttal testimony addresses several 17 aspects of the direct testimony submitted by intervenors in 18 this case . Specifically, I respond to their positions and 19 recommendations related to the proposed pricing structure 20 for the Micron FAB special contract, the marginal cost- 21 based Energy Charge, the design of demand charges, and the 22 Company' s no-harm analysis . 23 Q. Does the fact that you do not address every 24 issue raised in the direct testimony of other parties mean ANDERSON, DI-REB 2 Idaho Power Company 1 that you agree with other parties' testimony on those 2 issues? 3 A. No . It merely reflects that I chose not to 4 address all those issues . It should not be read as an 5 endorsement of, or agreement with, any unaddressed issues . 6 Q. Please summarize your recommendations . 7 A. I recommend that the Commission: 8 (i) Approve the Special Contract and Tariff Schedule 28 9 as a reasonable foundation for serving the Micron 10 FAB, pursuant to compliance filing consistent with 11 my recommendations to ii and iii; 12 (ii) Approve the proposed marginal cost-based Energy 13 Charge, direct the Company to submit a compliance 14 filing aligning the initial Energy Charge with the 15 pricing approved in IPC-E-25-17, and support annual 16 updates through the same docket used for other 17 marginal cost-based pricing; 18 (iii) Approve the methodology used to derive the proposed 19 demand charges and direct the Company to submit a 20 compliance filing to reflect demand charge updates 21 consistent with changes approved in IPC-E-24-07; 22 (iv) Acknowledge the no-harm analysis as a directional 23 tool based on a defined set of assumptions, not a 24 pricing mechanism, and recognize that appropriate ANDERSON, DI-REB 3 Idaho Power Company 1 cost allocation will be addressed in future general 2 rate cases using measurable data . 3 I . PRICING STRUCTURE AND COST ALLOCATION 4 Q. Please summarize your understanding of the 5 intervenor positions regarding Idaho Power' s proposed 6 pricing structure . 7 A. Staff, through Mr. Eldred, generally supports 8 Idaho Power' s proposed pricing structure and recommends 9 clarifying language around future updates and cost 10 allocation treatment in general rate cases . Dr. Kaufman, 11 testifying on behalf of IIPA, asserts that the proposed 12 pricing under-recovers costs and presents a shortfall based 13 on a flawed comparison between two resource portfolios in 14 the Company' s Integrated Resource Plan ("IRP") ; he appears 15 to incorrectly assume that Micron' s prices will remain 16 static and calculates cost differences using this 17 assumption. Ms . White, representing CEO, recommends a time- 18 varying energy pricing structure with the goal of aligning 19 with the hourly variation in system costs; she further 20 proposes recovering capacity costs through volumetric 21 charges aligned with high-risk hours instead of demand 22 charges . 23 Q. Do you agree with Mr. Eldred' s recommendation 24 to evaluate cost allocation and pricing in the next general 25 rate case? ANDERSON, DI-REB 4 Idaho Power Company 1 A. Yes . The embedded demand methodology presented 2 in this case is a reasonable basis for initially deriving 3 pricing for the Micron FAB special contract. Mr. Eldred 4 notes in his direct testimony that the proposed pricing is 5 adequate to allow the Company to recover the costs that 6 Micron' s load will cause to the system if billing 7 determinants, costs, and benefits are matched to the proper 8 test year. However, the appropriate time to conduct that 9 matching is in a future general rate case after an 10 application is filed to include plant additions and other 11 costs attributable to Micron' s incremental load. These 12 costs are not reflected in the Company' s current base rates 13 nor in its pending general rate case, IPC-E-25-16 . This 14 approach ensures that Micron is allocated costs in 15 proportion to its impact on the system and that other 16 customers are protected from potential cost shifts . 17 Q. Does Mr. Eldred propose a specific cost 18 allocation methodology to be applied in a future general 19 rate case? 20 A. No. Mr. Eldred does not propose a specific 21 methodology. Instead, he recommends that Idaho Power 22 identify and apply an appropriate method in the applicable 23 general rate case, at the time the Company seeks recovery 24 of plant additions and other costs related to Micron' s 25 incremental load. This ensures that cost causation is ANDERSON, DI-REB 5 Idaho Power Company 1 addressed using actual data and system conditions, 2 protecting other customers from potential cost shifts . 3 Q. What conclusions did Mr. Eldred reach 4 regarding the Company' s pricing approach for capacity- 5 related costs? 6 A. Mr. Eldred concluded that the input 7 assumptions and evaluation of risk variables used by Idaho 8 Power were reasonable and concludes that cost allocation 9 must be addressed in a future general rate case when 10 assigning costs to Micron. 11 Q. How do you respond to Mr. Eldred' s conclusion? 12 A. I agree with Mr. Eldred' s conclusion and 13 believe the no-harm analysis should be treated as one data 14 point among many in the Commission' s overall evaluation. I 15 discuss the no-harm analysis specifically in more detail 16 later in my rebuttal testimony. 17 Q. What does Dr. Kaufman state regarding the cost 18 to serve the special contract? 19 A. Dr. Kaufman claims that the cost to serve 20 Micron is approximately $186 per megawatt-hour ("MWh") , 21 presenting this figure as if it is derived directly from 22 Idaho Power' s IRP. His calculation attempts to reflect the 23 difference in levelized cost between two planning 24 portfolios . He suggests that the special contract customer 25 should always pay a cost that is greater or equal to this . ANDERSON, DI-REB 6 Idaho Power Company 1 Q. How do you respond to Dr. Kaufman' s use of the 2 IRP to assess Micron' s cost responsibility? 3 A. Presenting this figure as a definitive cost to 4 serve Micron is misleading and misrepresents the function 5 and purpose of the IRP. As described by Company witness Mr. 6 Ellsworth, Dr. Kaufman' s calculations are flawed in 7 multiple respects . Mr. Ellsworth explains that Dr. 8 Kaufman' s analysis results in double counting of resource 9 costs and fails to acknowledge that the IRP preferred 10 portfolio already includes Micron' s anticipated load. 11 Even if Dr. Kaufman had selected the correct 12 portfolios and avoided the double-counting error, his 13 recommendation to price Micron based on a 20-year IRP 14 portfolio cost differential is fundamentally flawed. It 15 disregards actual test year costs and relies on long-term 16 planning assumptions that do not determine future rates or 17 reflect used-and-useful principles . This methodology is 18 inconsistent with standard ratemaking practices and should 19 not be used to establish pricing for Micron. 20 Given these flaws, Dr. Kaufman' s analysis and 21 resulting conclusions are not reliable. The methodology 22 used deviates from accepted ratemaking practices, 23 incorporates inaccurate assumptions, and fails to reflect 24 how pricing decisions are made through general rate cases . ANDERSON, DI-REB 7 Idaho Power Company 1 For these reasons, I recommend that the Commission 2 disregard Dr. Kaufman' s analysis in this proceeding. 3 Q. How does Dr. Kaufman use his calculated $186 4 per MWh to compare against the pricing initially filed by 5 Idaho Power in this docket? 6 A. Dr. Kaufman applies the initial proposed 7 pricing to 500 megawatts ("MW") of load at a 90 percent 8 load factor. He then compares the implied average revenue 9 from the special contract to his $186 per MWh figure, which 10 he presents as a floor or minimum cost to serve Micron. He 11 then concludes that the proposed pricing is inadequate and 12 suggests that the revenue shortfall would be spread to 13 other customers . 14 Q. Do you agree with Dr. Kaufman ' s calculations 15 and comparison? 16 A. No. This approach fails to acknowledge that 17 the $186 per MWh is not an established cost to serve, and a 18 miscalculated IRP portfolio comparison. There is no 19 recognition for the underlying basis, or billing 20 determinants and test year used, to derive the initial 21 pricing. It also ignores the dynamic nature of pricing 22 updates through general rate cases and compliance filings, 23 where actual cost allocation will occur as Micron' s load 24 increases . ANDERSON, DI-REB 8 Idaho Power Company 1 Q. Please expand on the flaws you identify with 2 Dr. Kaufman' s approach. 3 A. The initial pricing was developed based on 4 Micron' s forecasted load during the initial ramp - not the 5 facility' s forecasted 500 MW at the end of the ramping 6 period. At the time the Company files its next general rate 7 case, it would include Micron in the test year billing 8 determinants to provide an accurate representation of 9 Micron' s allocation of total system investment at that 10 time . As Idaho Power files future general rate cases and 11 includes plant additions needed in part to serve the Micron 12 FAB, Micron" s cost allocation will increase accordingly. 13 Q. Do you agree with Dr. Kaufman' s argument that 14 the difference between the special contract average revenue 15 per MWh and an IRP-derived incremental cost figure results 16 in a revenue shortfall? 17 A. No. Setting aside the flawed assumptions and 18 double - counting errors previously discussed, I do not 19 agree with Dr. Kaufman' s conclusion. His comparison is 20 based on a 20-year IRP portfolio that includes forecasted 21 long-term resource costs—many of which Idaho Power does not 22 have certainty will occur at the time or cost forecasted. 23 He then compares this 20-year planning portfolio average 24 cost to revenues from the initial Micron FAB pricing - but 25 assuming 500 MW - which was designed for Micron' s initial ANDERSON, DI-REB 9 Idaho Power Company 1 ramp, not its full buildout . This mismatch in both the cost 2 basis and load level leads to inaccurate results . 3 Even if one assumes the IRP had perfect foresight, 4 it would still be inappropriate to base prices on a 20-year 5 average cost . Basing prices on modeled portfolio costs 6 intended to inform long-term planning decisions would 7 bypass the regulatory process that ensures fair and 8 equitable cost allocation. Additionally, a 20-year average 9 ignores the timing of both resource investment and load 10 development, which are critical to aligning costs with cost 11 causation. For these reasons, Dr. Kaufman' s comparison 12 should not be used to evaluate the proposed pricing. 13 Q. Do you agree with Dr. Kaufman ' s argument that 14 the proposed pricing would result in a revenue shortfall 15 borne by other customers? 16 A. No. The premise of his argument is based on 17 the initial pricing for the special contract. In addition 18 to the problems with his approach that I already addressed, 19 Kaufman assumes that the pricing for the special contract 20 would not change in any future rate case over the next 20 21 years and all future increases would be fully borne by 22 other customers . This is not what has been proposed in the 23 special contract and the application in this docket, and I 24 believe it is unreasonable to suggest this outcome would 25 occur. ANDERSON, DI-REB 10 Idaho Power Company 1 II . MARGINAL COST-BASED ENERGY CHARGE 2 Q. Please summarize your understanding of the 3 intervenor positions regarding Idaho Power' s proposed 4 marginal cost-based Energy Charge. 5 A. Mr. Eldred supports the Company' s proposed 6 methodology for establishing the Energy Charge and 7 recommends certain clarifications, including updating the 8 methodology through annual compliance filings and ensuring 9 Commission oversight . He suggests modifying the special 10 contract language in Section 7 . 2 to allow for the Energy 11 Charge methodology to change in the future, and to include 12 a requirement for Commission approval and justification if 13 the pricing basis moves from marginal to embedded or 14 another cost basis . 15 Dr. Kaufman, in contrast, is critical of the 16 proposed marginal cost-based Energy Charge methodology. He 17 argues it only reflects short-run marginal energy costs and 18 recommends incorporating a true-up mechanism or using long- 19 run marginal costs, such as those associated with power 20 purchase agreements or utility-owned resources . 21 Ms . White supports a time-varying rate structure and 22 proposes shifting capacity cost recovery into energy 23 charges during defined high-risk periods to send stronger 24 price signals and better reflect system conditions . These 25 perspectives raise distinct questions about both the ANDERSON, DI-REB 11 Idaho Power Company 1 pricing method itself and how future pricing updates or 2 changes should be managed. I will address these in this 3 section of my testimony. 4 Q. How does the Company respond to Mr. Eldred' s 5 recommendation related to the Energy Charge? 6 A. The Company does not oppose Mr. Eldred' s 7 recommendation. However, the Company' s Application and my 8 direct testimony describe the marginal energy charge 9 methodology most recently approved by the Commission in 10 IPC-E-25-17, which is consistent with the methodology 11 initially presented for the Energy Charge in this case. It 12 is my opinion that the special contract already allows for 13 future changes to the methodology to occur as approved by 14 the Commission - the method itself is not explicitly 15 defined. Additionally, I believe it is inherent in the 16 structure of a Commission-approved special contract that 17 any changes to pricing are subject to Commission approval 18 prior to becoming effective. While I do not oppose Mr. 19 Eldred' s suggestion to be more explicit in the contract 20 language, I do not believe such a clarification is 21 necessary. Lastly, I agree - and it was the Company' s 22 intent - that the Energy Charge should be updated through a 23 compliance filing to align with the marginal energy prices 24 approved by the Commission in IPC-E-25-17 . Going forward, 25 the Energy Charge applicable to the Micron FAB will be ANDERSON, DI-REB 12 Idaho Power Company 1 updated annually as part of the same filing in which Idaho 2 Power updates marginal cost-based energy pricing for all 3 other customers who rely on that methodology. 4 Q. How does the Company respond to Dr. Kaufman' s 5 critique of the marginal cost-based Energy Charge? 6 A. Dr. Kaufman contends that Idaho Power' s 7 proposed marginal cost-based Energy Charge only captures 8 short-run marginal energy costs and recommends instead that 9 the Company incorporate long-run marginal costs or 10 implement a true-up mechanism to address forecast error. 11 The Company acknowledges that the methodology relies on 12 short-run marginal energy costs, consistent with the 13 approach proposed in IPC-E-25-17 . This short-run approach 14 provides actionable, time-sensitive price signals based on 15 near-term market conditions, system operations, and updated 16 expectations for hydro, fuel, and system dispatch. 17 In contrast, long-run marginal costs are based on 18 projected future investments — such as those associated 19 with power purchase agreements or utility-owned resource 20 additions — and are not directly tied to short-term 21 operational realities . Because of this disconnect, long-run 22 marginal cost estimates are more speculative, less 23 transparent to customers and regulators, and difficult to 24 validate . Customers cannot easily discern how their usage 25 affects those long-run projections, and regulators may face ANDERSON, DI-REB 13 Idaho Power Company 1 challenges confirming the assumptions that underlie the 2 figures . Relying on long-run costs would therefore reduce 3 pricing clarity and weaken the link between customer 4 behavior and cost causation. 5 While Idaho Power supports the continued refinement 6 of its marginal cost methodology over time, it believes 7 that any major changes — such as the use of long-run 8 marginal costs or the implementation of a true-up — should 9 be addressed holistically through the annual update process 10 which provides the appropriate forum for evaluating 11 technical and policy considerations and for applying any 12 changes uniformly to all customers subject to marginal 13 cost-based pricing. 14 Q. What is the Company' s response to Dr. 15 Kaufman' s recommendation to implement a true-up mechanism 16 for Micron' s marginal cost-based Energy Charge? 17 A. The Company recognizes Dr. Kaufman' s concern 18 regarding potential forecast error. One of the primary 19 challenges with implementing a true-up is the difficulty in 20 defining and isolating a clear benchmark for "actual" 21 marginal energy costs, given the dependence on real-time 22 market dynamics, dispatch order, hydro conditions, and fuel 23 costs . These variables are inherently dynamic and difficult 24 to reconcile with forecasted pricing in a consistent, 25 administrable manner. ANDERSON, DI-REB 14 Idaho Power Company 1 The Commission recently addressed this issue in IPC- 2 E-25-17, and in Order No . 36619 directed the Company to 3 work with Commission Staff to evaluate methods to verify 4 current marginal cost forecasting against actual marginal 5 costs prior to the next annual update. Idaho Power 6 recommends that any potential changes to the marginal cost- 7 based energy methodology - including whether a true-up 8 mechanism is appropriate - be considered holistically 9 within the scope of that docket and applied uniformly to 10 all customers that rely on marginal cost-based energy 11 pricing. 12 Q. Does the Company support implementing time-of- 13 use ("TOU") energy pricing for Micron? 14 A. Idaho Power is not opposed to implementing TOU 15 pricing in concept. However, there is no singular approach 16 that must apply to all customers . A uniform marginal energy 17 pricing structure, such as the one currently proposed, is a 18 reasonable starting point for a large customer with a high 19 and consistent load factor. That said, the Company would 20 not be opposed to a TOU structure, so long as the same 21 underlying data relied upon for the proposed Energy Charge 22 was used to calculate a weighted average by time period for 23 the time periods which are consistent with all other 24 industrial load pursuant to tariff Schedule 19 . ANDERSON, DI-REB 15 Idaho Power Company 1 Q. How does the Company respond to Ms . White' s 2 proposal to shift generation and transmission cost recovery 3 into volumetric Energy Charges? 4 A. The Company does not support this 5 recommendation. Ms . White proposes shifting fixed capacity 6 cost recovery into the Energy Charge applied during high- 7 risk hours . While this approach attempts to reflect hourly 8 cost dynamics, Idaho Power believes it introduces 9 misalignment with cost causation principles . Moreover, it 10 would effectively penalize high-load factor customers - 11 those with steady and predictable usage patterns - by 12 making them pay disproportionately more relative to their 13 contribution to system peaks and/or high-risk hours . The 14 Company opposes Ms . White' s proposal because it would 15 eliminate the fixed-cost recovery safeguards built into the 16 special contract, including the Contract and Minimum 17 Billing Demands . Replacing these safeguards with a 18 volumetric rate - especially if Micron responds to peak 19 price signals - could lead to under-recovery of fixed 20 generation and transmission costs, ultimately shifting 21 those costs to other customers . 22 Q. What do you mean when you say Ms . White' s 23 recommendation would move risk to other customers? 24 A. Much of the generation and transmission- 25 related cost recovery under the proposed special contract ANDERSON, DI-REB 16 Idaho Power Company 1 is structured to mitigate cost shifting through the 2 Contract Demand and Minimum Billing Demand provisions . 3 These provisions ensure that Micron pays for the capacity 4 and infrastructure required to serve its load, regardless 5 of monthly or hourly usage fluctuations or delays in 6 meeting its forecasted ramp schedule . Ms . White' s 7 recommendation would eliminate these safeguards by moving 8 those costs into a volumetric charge. If Micron responded 9 to price signals by reducing usage during peak periods 10 and/or high-risk hours, it would result in under collection 11 of fixed costs and shift that cost burden to other 12 customers . 13 Q. Can you explain this concern in greater 14 detail? 15 A. Penalizing high load factor customers is 16 problematic for several reasons . It could misalign prices 17 with actual cost causation by disconnecting pricing from 18 how system costs are incurred. It could also encourage 19 inefficient peaks and higher system costs by weakening 20 incentives for steady usage . It also has the potential to 21 create unfair burdens on lower-usage customers who may pay 22 disproportionately more per unit. Finally, discouraging 23 high load factor usage can suppress innovation in 24 electrification and grid optimization by penalizing 25 consistent and predictable usage profiles that are ANDERSON, DI-REB 17 Idaho Power Company 1 otherwise beneficial to system planning and operational 2 efficiency. 3 III . DEMAND CHARGE PRICING 4 Q. Please summarize your understanding of the 5 intervenor positions regarding Idaho Power' s proposed 6 demand charges . 7 A. Mr. Eldred supports Idaho Power' s use of 8 embedded cost-based demand charges and recommends updating 9 them through a compliance filing to reflect authorized 10 revenue changes . He also emphasizes the importance of 11 reviewing load and cost allocation in the next general rate 12 case to ensure appropriate cost recovery. Dr. Kaufman 13 argues that the proposed demand charges as insufficient to 14 cover Micron' s cost responsibility, relying on his IRP- 15 based analysis that assumes no future price updates . Ms . 16 White, on the other hand, recommends eliminating demand 17 charges entirely and recovering all generation and 18 transmission costs through the volumetric Energy Charge. 19 Q. What is the Company' s position on Mr. Eldred' s 20 recommendation? 21 A. Idaho Power agrees with Mr. Eldred. The 22 Company has proposed three demand charges - Contract 23 Demand, Billing Demand, and Daily Excess Demand - each 24 based on cost causation principles and consistent with 25 prior special contracts . Idaho Power also supports updating ANDERSON, DI-REB 18 Idaho Power Company 1 these charges through compliance filings, as needed, to 2 reflect revenue requirement changes and intends to evaluate 3 cost allocation in the next general rate case. 4 Q. How does the Company respond to Dr. Kaufman' s 5 position on demand-related pricing? 6 A. Dr. Kaufman does not propose specific levels 7 for demand charges but contends that the Company' s proposal 8 under-recovers Micron' s cost responsibility. His argument 9 is based on the flawed IRP comparison discussed earlier and 10 assumes that Micron' s pricing remains unchanged over time. 11 This assumption is inaccurate and ignores the role of 12 general rate cases in revisiting and updating pricing based 13 on actual cost allocation. The Company' s proposed demand 14 charges are intended to recover Micron' s fair share of 15 fixed system costs and help protect other customers from 16 bearing those costs . 17 Q. How does the Company respond to Ms . White' s 18 position on demand pricing? 19 A. As discussed previously in response to Ms . 20 White ' s energy pricing recommendations, eliminating the 21 demand charge structure would further disconnect prices 22 from cost causation. The Company recommends that the 23 Commission reject her proposal to eliminate demand charges . 24 Removing the demand charge structure would move further 25 away from pricing that reflects cost causation and increase ANDERSON, DI-REB 19 Idaho Power Company 1 the risk that Idaho Power would not fully recover the costs 2 to serve Micron, ultimately resulting in other customers 3 subsidizing Micron' s load. The contractual protections in 4 the special contract — such as the Minimum Billing Demand 5 and Contract Demand — are designed to ensure that fixed 6 generation and transmission costs are recovered regardless 7 of load variability. Eliminating these elements would 8 undermine those safeguards and create a higher risk of cost 9 shift to other customers . 10 IV. NO-HARM ANALYSIS 11 Q. Please summarize your understanding of the 12 intervenor positions regarding the Company' s no-harm 13 analysis . 14 A. Mr. Eldred reviewed the Company' s no-harm 15 analysis and concluded that the input assumptions and 16 evaluation of risk variables were reasonable based on the 17 information available at the time. He clarified that he did 18 not rely exclusively on the no-harm analysis because it is 19 a multivariable analysis with many interdependent 20 assumptions . Instead, he recommends that cost allocation be 21 addressed in a future general rate case. Dr. Kaufman relies 22 on his own interpretation of the no-harm analysis to argue 23 that the proposed pricing under-recovers Micron' s costs and 24 would result in cost shifts to other customers . ANDERSON, DI-REB 20 Idaho Power Company 1 Q. What role did the no-harm analysis play in 2 Idaho Power' s Application? 3 A. The no-harm analysis was provided as a 4 directional tool to help evaluate whether the proposed 5 initial pricing structure could reasonably mitigate cost 6 shifting. It was not used to directly set prices or 7 allocate costs . Rather, it was intended to support the 8 proposed framework and validate that it aligns with cost 9 causation and protects other customers . 10 Q. Do you believe the no-harm analysis should be 11 used to set pricing? 12 A. No. The no-harm analysis is not intended to 13 function as a pricing mechanism. It is a directional 14 evaluation performed at a specific point in time, based on 15 a defined set of assumptions that the Company believes were 16 reasonable when the analysis was conducted. While parties 17 may argue for alternative assumptions or scenarios, the 18 analysis is meant to show that — under reasonable 19 conditions — Micron' s initial pricing can avoid cost shifts 20 to other customers . The appropriate way to assign actual 21 costs is through future general rate cases, where real 22 system conditions and cost data are available. 23 Q. Have any of the assumptions used in the no- 24 harm analysis changed since it was completed? ANDERSON, DI-REB 21 Idaho Power Company 1 A. Yes . Several assumptions used in the no-harm 2 analysis have changed, including Micron' s expected load 3 shape and ramp timing, which Micron most recently updated 4 in December 2024 consistent with the terms of the ESA, and 5 resource costs . Additionally, after the no-harm was 6 conducted, the ESA was executed, and the application in the 7 instant case was filed, Idaho Power filed its 2025 IRP - 8 Case No . IPC-E-25-23 - on June 27, 2025 . These changes 9 demonstrate the limitations of relying on any single 10 snapshot in time for ratemaking purposes . It further 11 underscores the importance of updating Micron' s pricing 12 through future general rate cases as costs become known and 13 measurable . 14 Q. How do you respond to Dr. Kaufman' s 15 interpretation of the no-harm analysis? 16 A. Dr. Kaufman uses the no-harm analysis in a 17 manner that was not intended. He draws absolute 18 conclusions, assumes the inputs are static over time, and 19 introduces his own oversimplified incremental portfolio 20 analysis - using flawed comparisons - to claim that the 21 proposed pricing results in a revenue shortfall . This 22 approach ignores the actual purpose of the no-harm analysis 23 and overlooks the role of future general rate cases and 24 compliance filings to allocate costs as they materialize. ANDERSON, DI-REB 22 Idaho Power Company 1 Q. What is your recommendation regarding how the 2 Commission should treat the no-harm analysis? 3 A. I recommend that the Commission consider the 4 no-harm analysis as one data point among many in evaluating 5 the reasonableness of the initial pricing proposal . 6 Specifically, that an embedded approach for deriving 7 demand-related pricing ensures that Micron is covering its 8 share of all systems resources . It provides directional 9 support that embedded pricing can, based on proper 10 allocation of both embedded and new resource costs, 11 mitigate cost shift to other customers . However, ongoing 12 cost allocation and pricing must be continually addressed 13 through the general rate case process, as Mr. Eldred also 14 recommends . Idaho Power' s overall approach - including 15 demand-based pricing, marginal Energy Charge updates, and 16 contractual mechanisms such as the Contract Demand and 17 Minimum Billing Demand provisions - ensures Micron' s costs 18 are recovered fairly over time without shifting costs to 19 other customers . 20 V. CONCLUSION 21 Q. Do you have any final comments for the 22 Commission? 23 A. Yes . I recommend that the Commission: 24 (i) Approve the Special Contract and Tariff Schedule 28 25 as a reasonable foundation for serving the Micron ANDERSON, DI-REB 23 Idaho Power Company 1 FAB, pursuant to compliance filing consistent with 2 my recommendations to ii and iii; 3 (ii) Approve the proposed marginal cost-based Energy 4 Charge, direct the Company to submit a compliance 5 filing aligning the initial Energy Charge with the 6 pricing approved in IPC-E-25-17, and support annual 7 updates through the same docket used for other 8 marginal cost-based pricing; 9 (iii) Approve the methodology used to derive the proposed 10 demand charges and direct the Company to submit a 11 compliance filing to reflect demand charge updates 12 consistent with changes approved in IPC-E-24-07; 13 (iv) Acknowledge the no-harm analysis as a directional 14 tool based on a defined set of assumptions, not a 15 pricing mechanism, and recognize that appropriate 16 cost allocation will be addressed in future general 17 rate cases using measurable data. 18 This approach ensures that Micron' s costs are recovered 19 fairly and consistently with cost causation principles, 20 while protecting other customers from potential cost shifts 21 as Micron' s load grows over time. 22 Q. Does this conclude your testimony? 23 A. Yes, it does . 24 ANDERSON, DI-REB 24 Idaho Power Company 1 DECLARATION OF GRANT T. ANDERSON 2 I, Grant T . Anderson, declare under penalty of 3 perjury under the laws of the state of Idaho: 4 1 . My name is Grant T. Anderson. I am employed 5 by Idaho Power Company as the Pricing & Tariff Manager in 6 the Regulatory Affairs Department. 7 2 . On behalf of Idaho Power, I present this 8 pre-filed rebuttal testimony in this matter. 9 3 . To the best of my knowledge, my pre-filed 10 rebuttal 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 July 2025, at Boise, Idaho. 16 � 17 Signed: �. '44"IL 18 RANT T. ANDERSON 19 20 21 22 23 ANDERSON, DI-REB 25 Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY' S APPLICATION FOR ) CASE NO. IPC-E-24-44 APPROVAL OF SPECIAL CONTRACT AND ) TARIFF SCHEDULE 28 TO PROVIDE ) ELECTRIC SERVICE TO MICRON IDAHO ) SEMICONDUCTOR MANUFACTURING ) (TRITON) LLC. ) IDAHO POWER COMPANY REBUTTAL TESTIMONY OF JARED L. ELLSWORTH 1 Q. Please state your name . 2 A. My name is Jared L. Ellsworth. 3 Q. Are you the same Jared L. Ellsworth who 4 submitted direct testimony in this proceeding on behalf of 5 Idaho Power Company ("Idaho Power" or "Company") ? 6 A. Yes . 7 Q. What is the purpose of your rebuttal 8 testimony? 9 A. My rebuttal testimony responds to claims 10 made by Dr. Lance Kaufman on behalf of the Idaho Irrigation 11 Pumpers Association ("IIPA") regarding Idaho Power' s long- 12 term resource planning assumptions and modeling. I 13 specifically address Dr. Kaufman' s mischaracterization of 14 the Company' s Integrated Resource Plan ("IRP") outputs, his 15 incorrect assignment of incremental costs to serve Micron, 16 and his misunderstanding of Idaho Power' s system 17 reliability and import assumptions . I also respond to 18 allegations concerning transmission costs associated with 19 serving Micron. My testimony explains how Idaho Power' s IRP 20 modeling and planning framework appropriately evaluates 21 system resource needs and reliability, while pricing and 22 cost allocation are addressed through separate ratemaking 23 processes . 24 Q. Does the fact that you do not address every 25 issue raised in the direct testimony of other parties mean ELLSWORTH, DI-REB 2 Idaho Power Company 1 that you agree with other parties' testimony on those 2 issues? 3 A. No . It merely reflects that I chose not to 4 address all those issues . It should not be read as an 5 endorsement of, or agreement with, any unaddressed issues . 6 I . COST TO SERVE AND IRP MISCHARACTERIZATION 7 Q. Dr. Kaufman claims that the incremental cost 8 to serve Micron is $186 per megawatts-hour ("MWh") based on 9 the 2025 IRP. Do you agree? 10 A. No. Dr. Kaufman ' s calculation is flawed both 11 in methodology and execution. The $186 per MWh figure is 12 derived from a comparison between the preferred portfolio - 13 which already includes Micron' s load - and a separate IRP 14 run that adds 500 megawatts ("MW") of generic high load 15 factor incremental load and identifies a new optimized 16 portfolio . Using the difference in levelized cost between 17 these two portfolios to retroactively assign a cost to 18 Micron is circular and inappropriate, as it assumes Micron 19 is not included in the base portfolio . 20 Moreover, Dr. Kaufman' s Exhibit 203 contains a 21 miscalculation that doubles the resource cost, 22 significantly inflating the result. My Exhibit No. 2 23 illustrates and corrects this error. Additionally, the $186 24 per MWh figure does not pass a basic reasonableness check. 25 For example, based on the 2025 IRP data, a reciprocating ELLSWORTH, DI-REB 3 Idaho Power Company 1 engine operating at a 90 percent capacity factor has a cost 2 of less than $70 per MWh - further illustrating that Dr. 3 Kaufman' s estimate is not representative of the cost to 4 serve Micron. 5 Q. Are there other issues with the interpretation 6 or use of the IRP data that you would like to clarify? 7 A. Yes . The portfolio cost shown in Idaho Power' s 8 IRP is a levelized revenue requirement, representing the 9 net present value of costs over the entire planning period. 10 These are planning metrics - not ratemaking tools - and 11 should not be interpreted as a declining revenue 12 requirement . 13 Q. Can you elaborate on how IRP modeling is 14 utilized? 15 A. IRP modeling is used to identify the least- 16 cost, least-risk long-term resource portfolio for the 17 entire system. It operates on system-level planning 18 assumptions such as levelized costs, resource diversity and 19 corresponding system contribution, market access and 20 conditions, and planning reserve margins . The assumptions 21 and methods used in IRP modeling are not intended for 22 setting prices for individual customers 23 Q. On page 5 of his direct testimony, Dr. Kaufman 24 compares the $186 per MWh cost figure to a derived cost per 25 MWh presented in recent Idaho Power Certificate of Public ELLSWORTH, DI-REB 4 Idaho Power Company 1 Convenience and Necessity ("CPCN") filings . Do you agree 2 with that comparison? 3 A. No. Even setting aside the erroneous $186 per 4 MWh figure, Dr. Kaufman' s comparison mischaracterizes how 5 Idaho Power plans for and procures new resources . The 6 referenced costs in recent resource procurement filings 7 result from competitive procurement processes intended to 8 address system-wide capacity and energy needs - not to 9 serve an individual customer. Dr. Kaufman attempts to 10 translate a single resource' s cost into an average cost to 11 serve continuous load, assuming a 24/7 obligation met by 12 only one resource. This ignores how Idaho Power' s resources 13 are integrated and dispatched as part of a diverse system 14 portfolio . 15 Idaho Power acquires least-cost, least-risk 16 resources to address identified capacity and energy 17 shortfalls during specific high-need periods - not to 18 address all hours of the day. These recently procured 19 resources optimally fit into Idaho Power' s existing 20 resource stack and work cohesively to cost effectively 21 serve growing customer demand - as more thoroughly 22 described in the referenced resource procurement dockets . 23 Dr. Kaufman' s cost comparison calculations do not 24 include the overall system benefits of the referenced 25 resources . For example, storage resources can be charged ELLSWORTH, DI-REB 5 Idaho Power Company 1 using low- or negative-cost energy during high solar output 2 hours and then discharged during high-demand/high-cost 3 hours later in the evening. This storage discharge energy 4 can decrease Idaho Power' s reliance on more expensive 5 market purchases or thermal fuel-based resources . The 6 referenced Jackalope wind project provides output that can 7 displace higher cost market purchase energy or thermal 8 fuel-based energy. The project can also decrease system 9 reliance on Idaho Power' s flexible hydro system during 10 lower demand parts of the day, freeing the flexible hydro 11 system to better serve higher demand/higher cost hours in 12 the evening. 13 II . INCREMENTAL RESOURCE COMPARISON 14 Q. Dr. Kaufman claims the resources selected in 15 the "With Micron" scenario are insufficient to meet 16 Micron' s full capacity requirement . Do you agree? 17 A. No. Dr. Kaufman ' s analysis overlooks the 18 fundamental principle of least-cost, least-risk resource 19 planning. The Aurora Long-Term Capacity Expansion ("LTCE") 20 model used by Idaho Power selects the optimal resource 21 portfolio needed to meet the system load and reliability 22 requirements . His claim that the scenario falls 60 MW short 23 is based on a deterministic Load and Resource ("L&R") 24 balance that does not reflect Idaho Power' s probabilistic 25 reliability planning. ELLSWORTH, DI-REB 6 Idaho Power Company 1 Q. How did Dr. Kaufman develop his L&R balance 2 analysis? 3 A. In his "Confidential Table 2 : Portfolios 4 Underlying IPC' s No-Harm Analysis, " Dr. Kaufman 5 individually assessed the new resource additions selected 6 in both the "With Micron" and "Without Micron" scenarios 7 for years 2024 through 2033, specifically highlighting the 8 nameplate amounts of solar, wind, storage, and gas 9 resources . Dr. Kaufman then multiplied the resource 10 nameplate capacities by their corresponding Effective Load 11 Carrying Capability ("ELCC") to determine the capacity 12 contribution. However, Dr. Kaufman misapplied the ELCC 13 values and made assumptions inconsistent with Idaho Power' s 14 reliability methodology. Specifically, the analysis was 15 inconsistent with ELCCs published in Appendix C: Technical 16 Report of the 2023 IRP ("Appendix C") to solar, wind, and 17 battery resources; for gas, Dr. Kaufman assumed an ELCC of 18 one hundred percent . Dr. Kaufman then compares the 19 resulting capacity contribution values to the "With Micron" 20 scenario incremental demand. 21 Q. Do you agree with the capacity contribution 22 results of Dr. Kaufman' s L&R balance analysis? 23 A. No. Dr. Kaufman' s capacity contribution 24 calculation is fundamentally flawed. First, Idaho Power 25 states in the "Effective Load-Carrying Capability Results" ELLSWORTH, DI-REB 7 Idaho Power Company 1 section of Appendix C that seasonal saturation ELCC curves 2 were implemented into the portfolio analysis, and the ELCC 3 values published there - referenced in Appendix C and 4 utilized by Dr. Kaufman - were solely for informational 5 purposes . Second, those values were derived using the last- 6 in ELCC method for a single load and resource year. This 7 means the ELCC values represent the capacity contribution 8 of the final resource added to the portfolio in a 9 particular year and are not intended to represent total 10 portfolio contribution across years or resource types . 11 Applying these informational values across multiple years 12 and resource classes, as Dr. Kaufman did, does not reflect 13 the diversity benefits inherent in Idaho Power' s resource 14 portfolio, nor captures the year-to-year change of the 15 ELCCs . Additionally, Dr. Kaufman assigns the full nameplate 16 capacity to gas resources without accounting for derates 17 due to forced outage rates, which overstates their 18 contribution to reliability. As a result, his capacity 19 balance assessment does not reflect the probabilistic 20 approach used by Idaho Power. 21 Q. Does Dr. Kaufman' s L&R balance analysis 22 reflect how Idaho Power performs its capacity position 23 calculation? 24 A. No. Idaho Power uses probabilistic reliability 25 analyses to calculate annual capacity positions, not the ELLSWORTH, DI-REB 8 Idaho Power Company 1 over-simplified deterministic L&R balance Dr. Kaufman used. 2 ELCC is an output, not an input, in Idaho Power' s 3 reliability model . Dr. Kaufman' s deterministic approach 4 does not align with the current industry standard or 5 Company practice. 6 Q. Does the "With Micron" portfolio meet Idaho 7 Power' s internal reliability standard? 8 A. Yes . Both the "With Micron" and "Without 9 Micron" portfolios met the Company' s planning standard of 10 0 . 1 event-days per year Loss of Load Expectation ("LOLE") , 11 as verified using Idaho Power' s Reliability and Capacity 12 Assessment Tool ("RCAT") . 13 III . TRANSMISSION COSTS 14 Q. Dr. Kaufman asserts that Idaho Power omitted 15 transmission costs attributable to Micron in its analysis . 16 Is this accurate? 17 A. No. All Interconnection Facilities and direct 18 assignment transmission infrastructure necessary to serve 19 Micron' s load are fully funded by Micron through the 20 Procurement and Construction Agreements, as described in my 21 direct testimony. 22 Q. What assumptions are reflected in the "With 23 Micron" and "Without Micron" portfolios regarding 24 transmission costs? ELLSWORTH, DI-REB 9 Idaho Power Company 1 A. Both the "With Micron" and "Without Micron" 2 portfolios incorporate the same modeled assumptions for 3 transmission costs . For example, the Boardman to Hemingway 4 ("B2H") line is treated in the IRP as a resource that 5 provides capacity by enabling access to the Pacific 6 Northwest market, while Gateway West ("GWW") Segments 8 and 7 10 are modeled as necessary to integrate resources east of 8 the Treasure Valley onto the Idaho Power system. These 9 transmission investments are not tied to any single 10 customer but reflect system-level planning needs . 11 Q. Dr. Kaufman states that Micron demand is 12 equivalent to two thirds of the capacity of B2H and half 13 the capacity of GWW Segments 8 and 10, and therefore argues 14 that a proportional share of these costs should be assigned 15 to the "With Micron" portfolio. How do you respond? 16 A. Assigning a proportional share of these 17 transmission costs to the "With Micron" portfolio would 18 result in double-counting. The capacity required to serve 19 Micron is already reflected in the portfolio. Adding an 20 additional cost allocation based on relative demand would 21 incorrectly overstate Micron' s impact and is inconsistent 22 with how transmission planning and cost treatment is 23 handled within the IRP framework. 24 Q. On page 6 of his direct testimony, Dr. Kaufman 25 states that it is likely that Idaho Power will require ELLSWORTH, DI-REB 10 Idaho Power Company 1 additional network upgrades to serve the Micron FAB. Do you 2 agree? 3 A. No. There is no evidence that such system 4 upgrades would not already be addressed through Idaho 5 Power' s existing cost allocation methodologies . The 6 Company' s no-harm analysis is grounded in assumptions 7 consistent with the 2023 IRP, which includes cost 8 assumptions related to transmission network infrastructure 9 as part of the generation cost for each resource. 10 Therefore, to the extent network costs are associated with 11 serving Micron' s load, those costs are already captured in 12 the IRP modeling and would be appropriately allocated to 13 Micron. 14 IV. ENERGY IMPORTS AND RESOURCE SURPLUS 15 Q. What topic do you address in this section? 16 A. I address Dr. Kaufman' s assumptions about 17 Idaho Power' s exposure to market losses in the event Micron 18 terminates service and explain how Idaho Power' s IRP 19 planning assumptions provide greater operational 20 flexibility. 21 Q. How do Idaho Power' s IRP modeling assumptions 22 regarding market imports impact Dr. Kaufman' s analysis of 23 lost revenues in the event of termination? 24 A. Dr. Kaufman assumes that if Micron terminates 25 service, Idaho Power would be forced to sell surplus energy ELLSWORTH, DI-REB 11 Idaho Power Company 1 at a market rate of $45 per MWh. However, Dr . Kaufman' s 2 assumption exaggerates the potential financial exposure. 3 Idaho Power' s IRP includes seasonal import assumptions to 4 meet system needs . During these times, if Micron' s load 5 were removed, Idaho Power would reduce imports rather than 6 generating surplus energy to sell at a loss . 7 V. CONCLUSION 8 Q. Please summarize your conclusions . 9 A. Dr. Kaufman ' s testimony contains several 10 critical errors in his use and interpretation of Idaho 11 Power' s IRP. He mischaracterizes the portfolio comparison 12 by assigning incremental costs to Micron based on flawed 13 data, including a calculation error that doubles resource 14 costs . He incorrectly assumes Idaho Power must add 427 MW 15 of capacity contribution to serve Micron, misinterprets 16 reliability planning standards, and overstates potential 17 financial risk by overlooking Idaho Power' s planning 18 flexibility. Idaho Power' s modeling and planning framework 19 appropriately evaluates system-level needs and supports 20 reliable and cost-effective resource development. This 21 distinction between long-term system planning and 22 ratemaking is essential in evaluating the relevance of Dr. 23 Kaufman" s testimony. 24 Q. Does this conclude your testimony? 25 A. Yes, it does . ELLSWORTH, DI-REB 12 Idaho Power Company 1 DECLARATION OF JARED L. ELLSWORTH 2 I, Jared L. Ellsworth, declare under penalty of 3 perjury under the laws of the state of Idaho: 4 1 . My name is Jared L. Ellsworth. I am employed 5 by Idaho Power Company as the Transmission, Distribution 6 and Resource Planning Director for the Planning, 7 Engineering and Construction Department. 8 2 . On behalf of Idaho Power, I present this 9 pre-filed rebuttal testimony and Exhibit No. 2 in this 10 matter. 11 3 . To the best of my knowledge, my pre-filed 12 rebuttal testimony and Exhibit are true and accurate. 13 I hereby declare that the above statement is true to 14 the best of my knowledge and belief, and that I understand 15 it is made for use as evidence before the Idaho Public 16 Utilities Commission and is subject to penalty for perjury. 17 SIGNED this 30th day of July 2025, at Boise, Idaho. 18 19 20 21 Signed: 22 JARED L. ELLSWORTH 23 24 25 26 27 ELLSWORTH, DI-REB 13 Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-24-44 IDAHO POWER COMPANY ELLSWORTH , DI-REB TESTIMONY EXHIBIT NO. 2 Case No.IPC-E-24-44 Ellsworth Exhibit No.2 Kaufman(IIPA)Calculation Error Column (A) (B) (C) (D) (E) (F) (G) (H) (1) (A +B) (A*2+B) (E+F) (E*2+F) Preferred Portfolio Additional 500 MW Portfolio Incremental ................................................................................ ................................................................................ Resource Market Portfolio Kaufman Resource Market Portfolio Kaufman Energy Row Year Total Total Total Total Total Total Total Total (MWh) (1) 2026 $ 509,589 $ 106,830 $ 616,419 $ 1,126,007 $ 509,649 $ 106,736 $ 616,385 $ 1,126,035 - (2) 2027 630,798 93,676 724,473 1,355,271 631,024 93,365 € 724,390 € 1,355,414 € - (3) 2028 686,016 55,783 741,799 1,427,815 686,228 55,669 741,896 1,428,124 - (4) 2029 864,936 10,109 875,045 1,739,981 887,073 16,791 € 903,864 € 1,790,938 € 227,182 (5) 2030 1,009,302 (24,263) 985,039 1,994,341 1,040,005 (13,255) 1,026,750 2,066,755 501,035 (6) 2031 873,781 128,425 1,002,206 1,875,987 906,024 151,116 € 1,057,140 € 1,963,164 € 925,398 (7) 2032 866,518 162,663 1,029,181 1,895,699 982,752 176,146 1,158,898 2,141,650 1,644,927 (8) 2033 854,610 147,331 1,001,941 1,856,552 1,138,529 157,277 € 1,295,806 € 2,434,335 € 3,114,290 (9) 2034 870,075 143,675 1,013,750 1,883,825 1,192,661 154,607 1,347,268 2,539,929 4,041,267 (10) 2035 888,187 144,974 1,033,161 1,921,348 1,221,294 159,098 € 1,380,392 € 2,601,686 € 4,056,327 (11) 2036 869,065 141,687 1,010,752 1,879,818 1,207,558 156,480 1,364,038 2,571,596 4,063,013 (12) 2037 896,125 133,486 1,029,611 1,925,736 1,245,368 144,578 € 1,389,946 € 2,635,314 € 4,056,341 (13) 2038 898,532 128,504 1,027,036 1,925,568 1,269,099 139,716 1,408,815 2,677,914 4,056,406 (14) 2039 910,719 103,120 1,013,839 1,924,557 1,287,539 113,916 € 1,401,455 € 2,688,994 € 4,056,328 (15) 2040 922,326 93,751 1,016,078 1,938,404 1,318,891 102,577 1,421,468 2,740,359 4,062,989 (16) 2041 955,956 82,225 1,038,181 1,994,136 1,355,159 95,565 € 1,450,724 € 2,805,883 € 4,056,197 (17) 2042 963,642 87,086 1,050,728 2,014,371 1,366,472 98,980 1,465,452 2,831,924 4,056,387 (18) 2043 1,021,168 92,079 1,113,247 2,134,415 1,430,823 102,275 € 1,533,098 € 2,963,921 € 4,056,320 (19) 2044 1,049,931 79,950 1,129,881 2,179,812 1,462,456 92,810 1,555,266 3,017,722 4,063,038 (20) 2045 1,098,969 86,582 1,185,551 2,284,520 1,521,368 97,743 € 1,619,111 3,140,479 € 4,056,320 ..................................... ..... .. . .. s <......................................:.................................................................................................................................................................... (21) Total $ 17,640,244 $ 1,997,673 $ 19,6-37,917 $ 37,278,162 $ 22,659,973 $ 2,202,190 $ 24,862,163 $ 47,522,136 55,093,765 ............................................................................................_.......................................................................................................................................................................................................... (22) (23) Comparison of IRP Portfolio vs.Kaufman Exhibit 203 (24) 500 MW vs.IRP Preferred Portfolio $/MWh Notes: (25) Corrected Calculation $95 Rows 4-20:(Column G-Column C)/Column I (26) IIPA Calculation With Error $186 Rows 4-20:(Column H-Column D)/Column I ............................................................................................................................................................... (27) %Difference 96% .............................................................................................................................................................: Exhibit No.2 Case No. IPC-E-24-44 J. Ellsworth, IPC Page 1 of 1