20250815Supplemental Application - Redacted.pdf

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RECEIVED
DONOVAN WALKER August 15, 2025
Lead Counsel IDAHO PUBLIC
dwalker(EDidahopower.com UTILITIES COMMISSION
August 15, 2025
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg 8,
Suite 201-A (83714)
PO Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-25-10
Idaho Power Company's Application for Approval of a Power Purchase
Agreement and an Energy Storage Agreement with Crimson Orchard Solar
LLC
Dear Commission Secretary:
Attached for electronic filing is Idaho Power Company's Supplemental Application
in the above-referenced matter.
If you have any questions about any of the aforementioned documents, please do
not hesitate to contact me.
Very truly yours,
Donovan E. Walker
DEW:cd
Attachments
1221 W. Idaho St(83702)
P.O.Box 70
Boise, ID 83707

CERTIFICATE OF ATTORNEY
ASSERTION THAT INFORMATION CONTAINED IN AN IDAHO PUBLIC UTILITIES
COMMISSION FILING IS PROTECTED FROM PUBLIC INSPECTION
In the Matter of Idaho Power Company's Application for Approval of a Power
Purchase Agreement and an Energy Storage Agreement with Crimson Orchard
Solar LLC
Case No. IPC-E-25-10
The undersigned attorney, in accordance with Commission Rules of Procedure
67, believes that the Supplemental Application, as well as Attachment 1 and 2, dated
August 15, 2025, contains information that Idaho Power and/or a third-party claim
constitutes trade secrets or other confidential business records, and/or other non-public
records exempt from disclosure under state or federal law including but not limited to
Idaho Code § 48-801, et seq.; Idaho Code § 74-101, et seq.; and/or U.S. Code of
Federal Regulations Title 17." As such, it is protected from public disclosure, inspection,
examination, or copying.
DATED this 15th day of August 2025.
/I levm� f&�w--I,—-
Donovan E. Walker
Attorney for Idaho Power Company

DONOVAN E. WALKER (ISB NO. 5921
LISA C. LANCE (ISB No. 6241)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY'S APPLICATION FOR ) CASE NO. IPC-E-25-10
APPROVAL OF A POWER PURCHASE )
AGREEMENT AND AN ENERGY STORAGE ) SUPPLEMENTAL
AGREEMENT WITH CRIMSON ORCHARD ) APPLICATION
SOLAR LLC. )
Idaho Power Company ("Idaho Power" or "Company") hereby respectfully submits
to the Idaho Public Utilities Commission ("Commission") this Supplement to the
Company's Application pursuant to the Rules of Procedure of the Idaho Public Utilities
Commission ("RP") 52. The Company's Application, filed March 13, 2025, requests an
order from the Commission: (1) approving the 20-year Power Purchase Agreement
("PPA") between Crimson Orchard Solar LLC and Idaho Power Company supplying the
100 megawatts ("MW") output to the Company ("Crimson Orchard PPA"), (2) approving
the 20-year Energy Storage Agreement ("ESA") between Crimson Orchard Solar LLC and
Idaho Power for 100 MW of dispatchable energy storage capacity ("Crimson Orchard
ESA"), and (3) acknowledging the lease accounting necessary to facilitate the transaction
SUPPLEMENTAL APPLICATION - 1

and that the resulting expenses associated with both the PPA and ESA are prudently
incurred for ratemaking purposes. With this Supplemental Application the Company
additionally requests approval of the First Amendments to the PPA and ESA that were
executed on August 13, 2025. Approval of these requests is necessary to position the
Company to meet its obligations to provide safe, reliable service to its customers.
Submitted herewith please find the executed First Amendment to the PPA
(Confidential Attachment 1) and the executed First Amendment to the ESA (Confidential
Attachment 2). In support of its Application and Supplemental Application Idaho Power
submits the following:
I. BACKGROUND
1. On March 13, 2025, Idaho Power filed its Application and the Direct
Testimonies of Eric Hackett and Jared Ellsworth in this matter. The Idaho Irrigation
Pumpers Association, Inc. ("I IPA") was granted intervention on April 10, 2025. Order No.
36538. Micron Technology, Inc. ("Micron") was granted intervention on May 20, 2025.
Order No. 36598. On April 25, 2025, the Commission issued Notice of Application and
Notice of Modified Procedure Order No. 36577 setting a comment deadline of August 1,
2025, and a Company reply comment deadline of August 22, 2025. On August 1, 2025,
Commission Staff filed comments recommending approval of the PPA and ESA,
acknowledgement of the use of lease accounting for the ESA, approval of future
payments at the current fixed rate as prudent excluding future purchase options, and
inclusion of additional language regarding Commission approval of contract
modifications. Staff Comments, p 7. IIPA also filed comments recommending denial of
the PPA, ESA, lease accounting, and determination of prudency for incurred associated
SUPPLEMENTAL APPLICATION - 2

expenses, as well as alternatively recommending a cost cap should the Commission
approve the ESA and PPA. IIPA Comments, p 3.
2. The Crimson Orchard Project is collectively comprised of a 100 MW solar
generation facility that is capable of supplying generation either to the accompanying 100
MW battery storage facility or directly to Company's system, as well as the 100 MW
battery storage facility. The Project will be located in Elmore County, Idaho, and will be
constructed, owned, and operated by Crimson Orchard Solar, LLC. Idaho Power
purchases all output from the solar facility via the PPA, and through the ESAfor the battery
facility has the right to charge, discharge, and dispatch the batteries. The total maximum
output of the Crimson Orchard Project at the Point of Interconnection is 100 MW. The
PPA has a Scheduled Commercial Operation date of April 1, 2027, and the ESA contains
a Guaranteed Commercial Operation date of April 1 , 2027. Both agreements have a term
of 20 years.
3. The Crimson Orchard Project was selected as a least-cost, least-risk
resource, and received approval from the Public Utility Commission of Oregon as a final
shortlisted project through the required competitive resource procurement process in
Oregon pursuant to OAR 860-089-0010, et. seq., that Idaho Power is directed to follow
for generation resource procurements by this Commission. Case No. IPC-E-10-03, Order
No. 32754. This competitive procurement process was initiated on September 15, 2022,
seeking bids from resources to meet capacity deficits in 2026 and 2027. The bid
evaluation process of the project proposals submitted through the 2026 RFP is designed
to identify the combination and size of the proposed resources that will maximize
customer benefits while ensuring Idaho Power meets its energy and capacity needs. The
SUPPLEMENTAL APPLICATION - 3

direct testimony of Mr. Hackett details the bid evaluation process which was consistent
and prescriptive as described in the 2026 RFP, ultimately identifying the final shortlist of
projects which was ultimately approved by the OPUC. As required under the OPUC
competitive bidding rules, the OPUC approved Idaho Power's final shortlist on February
22, 2024. Upon conclusion of the approximately 15-month mandated competitive bidding
rule-compliant process, the Company began negotiations with developers for
procurement of the resources necessary to meet the identified 2027 capacity deficit. On
February 7, 2025, Idaho Power executed the PPA and ESA with Crimson Orchard as one
of the remaining cost-effective projects that was able to meet the June 1, 2027,
commercial operation date.
4. The Crimson Orchard PPA is a 20-year PPA between Idaho Power and
Crimson Orchard Solar LLC, who under the terms of the PPA, will construct, own, operate
and maintain a solar powered generation facility located in Elmore County, Idaho, with an
expected nameplate capacity of 100 MW, supplying the output to the company for the
period of 20 years from a commercial operations date of April 1, 2027. The Crimson
Orchard PPA, executed February 7, 2025, contains levelized, fixed pricing, for the 20-
year term and provides that it will not become effective unless the Commission approves
all of the Crimson Orchard PPA's terms and provisions and declares that all payments the
Company makes for purchases of energy will be allowed as prudently incurred expenses
for ratemaking purposes.
5. The Crimson Orchard ESA is a 20-year ESA between Idaho Power and
Crimson Orchard Solar LLC, who under the terms of the PPA, will construct, own, and
maintain a battery storage system supplying 100 MW of capacity to the point of
SUPPLEMENTAL APPLICATION -4

interconnection on Idaho Power's system, with a Guaranteed Commercial Operation Date
of April 1, 2027. The ESA acts as a type of lease, or tolling agreement, through which
Crimson Orchard Solar, LLC will develop, design, construct, and own the battery storage
system and, in accordance with the terms of the agreement, Idaho Power has the
exclusive right to dispatch and use the charging and discharging energy in exchange for
a monthly payment. The ESA is similar to the agreement with Kuna BESS, LLC, approved
by the Commission in Case No. IPC-E-25-20 with Order Nos. 36011 and 36016, providing
150 MW of dispatchable energy storage capacity.
II. ADDITIONAL/SUPPLEMENTAL FACTS
6. After the execution of the Crimson Orchard PPA, during the months of
February, March, and April of 2025,
7.
SUPPLEMENTAL APPLICATION - 5

8. The Company believes that under the current circumstances given the
immediate deficits on Idaho Power's system combined with the very constrained
generation construction and procurement environment as well as the lack of other viable
options, that the Crimson Orchard Project including the proposed First Amendments to
the PPA and ESA continues to be the least-cost, least-risk and prudent resource in order
for the Company to meet its obligations to serve its customers in 2027 and beyond.
SUPPLEMENTAL APPLICATION - 6

III. AMENDED PROVISIONS
9. Idaho Power entered into a First Amendment to the PPA and a separate
First Amendment to the ESA for the Crimson Orchard Project on August 13, 2025. The
amendments for each agreement are conceptually the same in that they generally contain
the same , however because of the different
nature of the PPA vs. the ESA, as well as the different _ contained therein, each
amendment has its unique provisions relative to the PPA and ESA. The amendments
also revise the agreements to include the additional language Commission Staff
recommended in the Modification provisions regarding Commission approval, as well as
additional language regarding equal employment opportunity law.
10. Each amendment contains initial additional definitions needed to define and
describe the new related provisions. The operative language
of each amendment that addresses the substantive provisions starts on
page 4-6 for the PPA amendment and on page 3-5 for the ESA amendment. Each
amendment provides that
For the PPA a
is provided for. For the ESA a similar
is
provided for. Thus,
SUPPLEMENTAL APPLICATION - 7

Power Purchase Agreement:
Battery Tolling Agreement:
11. Generally, there are specific timeframes in which
12. The original contract
SUPPLEMENTAL APPLICATION - 8

IV. THE CRIMSON ORCHARD PROJECT IS NEEDED AND
1111 IS REASONABLE
13. Idaho Power has experienced and expects to continue to experience
sustained load growth and projected capacity deficits on its system. Because the
Company has an obligation to provide adequate, efficient, just and reasonable service on
a nondiscriminatory basis to all those that request it within its service area, the addition
of the new resources has been and continues to be required. Staff has previously
recognized that the preliminary results of the 2025 Integrated Resource Plan indicate load
growth is expected to continue to increase, and the Company's filed IRP reflects that as
well. Staff has also recognized that the lengthy procurement and resource selection
process does not provide the Company with the ability to quickly pivot to additional
resource procurements and puts the Company and the Commission in a dilemma of
moving forward with last-option projects or risking a system capacity deficit/inability to
serve load.
14. As noted by Staff in Staff Comments for this matter, Idaho Power's system
currently "faces a capacity deficit in 2027 and the Crimson Orchard resources are a least-
cost, least-risk ("LC-LR") part of the solution." Staff Comments, p 2. Additionally, although
Staff notes concerns with the required RFP process that it identified in a related case
(IPC-E-24-46), "The concerns are moot because the Crimson Orchard resources are the
only remaining FSL [final shortlist] resources that can be constructed by the 2027
deadline. The other FSL projects were approved in earlier cases or have been eliminated
SUPPLEMENTAL APPLICATION - 9

due to permit denials and interconnection delays." Staff Comments, p 3. In fact, because
of these same concerns and circumstances and the lack of other viable options from the
2027 RFP to meet identified capacity deficits the Company has submitted utility-build
battery storage projects for an additional 100 MW of dispatchable capacity to be online in
2026. Case No. IPC-E-24-45. For these same reasons, and because the Crimson
Orchard Project is the only remaining 2027 RFP FSL project, and one of very few other
identified least-cost/least-risk resources that could come online by 2027, Idaho Power
began discussions with Crimson Orchard Solar LLC regarding their proposed -
— amendments, and ultimately signed amendments to the PPA and ESA on
August 13, 2025, providing for the
15. As referenced in the Company's original application and supporting
testimony the Crimson Orchard Project was selected as a least-cost, least-risk resource
through the approximately 15-month, rule compliant Oregon competitive procurement
process which the Commission requires the Company to comply with for the acquisition
of new generation resources. The final shortlist containing least-cost, least-risk resources
to be online in 2026 and 2027, which includes the Crimson Orchard Project, was approved
by the OPUC and subsequently reviewed by Idaho Staff and the Commission. Staff and
the Commission have previously reviewed several other projects, in fact all remaining
viable final shortlist projects from this 2026-2027 RFP: the Powerex market purchase,
IPC-E-24-12; Jackalope Wind, IPC-E-24-46; Boise Bench Battery, IPC-E-24-16 — as well
as the two 50 MW contingency battery projects, Boise Bench Addition of 50 MW and
SUPPLEMENTAL APPLICATION - 10

Hemingway incremental 50 MW, IPC-E-24-45. Through these past proceedings, as well
as examination of this case, the Company provided Staff not only with information on all
final shortlist projects, but also with all of the additional 22 initial shortlist projects, and the
current viability of each project. Staff confirmed that Crimson Orchard is the only
remaining viable 2026-2027 RFP final shortlist project that can be constructed in time to
meet the 2027 deficits.
16. Idaho Power appreciates Staff's review, analysis, and recommendations
from Staff Comments regarding the Crimson Orchard PPA and ESA. While
acknowledging that Staff will need to re-evaluate its previous recommendations given the
the First Amendments, Idaho Power submits that Staff's prior
analysis and efforts are well reasoned and remain applicable. It continues to be the case
that the originally submitted Crimson Orchard Project and contractual agreements
represent a fully vetted, least-cost, least-risk resource that is necessary to meet identified
capacity deficits in 2027 where there are no other viable options from the 2026-2027 RFP
that can be brought online in that timeframe.
is
reasonable. The potential for the PPA and
for the ESA—
and further exacerbation of the identified
capacity deficits in 2027 when there are limited options and a very constrained resource
procurement environment for that time frame — is a reasonable and prudent course of
SUPPLEMENTAL APPLICATION - 11

action. The approval of the Crimson Orchard Project PPA, ESA, and amendments is in
the best interest of Idaho Power and its customers in order to assure just, adequate, and
reasonable continuation of service at the least cost.
V. PROCEDURE
17. The original PPA and ESA contain provisions providing for the required
approval of the Commission, and further that should IPUC approval not be obtained by
six-months after the filing of the same with the Commission seeking approval that the
Scheduled and Guaranteed Commercial Operation dates could be extended on a day-
for-day basis until the Commission issues its Order. The initial filing date of the Application
was March 13, 2025, resulting in this six-month approval period expiring on September
13, 2025. As part of the First Amendments submitted herewith, this six-month approval
period is extended to October 31 , 2025. Consequently, Idaho Power respectfully requests
that the Commission set a procedural schedule that would allow for a Commission Order
by October 31 , 2025.
18. The initial procedural schedule currently has Idaho Power reply comments
due on August 22, 2025, after which the case would be fully submitted under the
Commission Notice of Modified Procedure Order No. 36577. Idaho Power understands
that the existing procedural schedule will need to be modified to accommodate Staff,
Party, and stakeholder review and comment upon the Frist Amendments and Idaho
Power's Supplemental Application. Idaho Power respectfully requests that the
Commission strike the current August 22, 2025, Company reply comment deadline and
set a new comment deadline for Staff, Intervenors, and any other interested party —
followed by a quick turn-around Company reply comment deadline, and leaving sufficient
SUPPLEMENTAL APPLICATION - 12

time following the Company reply comment deadline for the Commission to issue its
Order by October 31, 2025.
VI. CONCLUSION
19. Idaho Power respectfully requests that the Commission issue an order: (1)
approving the 20-year PPA between Crimson Orchard Solar LLC and Idaho Power
Company, (2) approving the 20-year ESA between Crimson Orchard Solar LLC and Idaho
Power, (3) approving the First Amendment to Power Purchase Agreement between
Crimson Orchard Solar LLC and Idaho Power Company, (4) approving the First
Amendment to the Energy Storage Tolling Agreement between Crimson Orchard Solar
LLC and Idaho Power, and (5) acknowledging the lease accounting necessary to facilitate
the transaction and that the resulting expenses associated with both the PPA and ESA
are prudently incurred for ratemaking purposes.
Respectfully submitted this 15th day of August 2025.
'—/I� '�Cv&kk-
DONOVAN E. WALKER
Attorney for Idaho Power Company
SUPPLEMENTAL APPLICATION - 13

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 15th day of August 2025, 1 served a true and
correct copy of the Supplemental Application upon the following named parties by the
method indicated below, and addressed to the following:
Commission Staff Hand Delivered
Erika K. Melanson 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 Erika.melanson(aD_puc.idaho.gov
PO Box 83720
Boise, ID 83720-0074
Idaho Irrigation Pumpers Association, Hand Delivered
Inc. U.S. Mail
Eric L. Olsen Overnight Mail
Echo Hawk & Olsen, PLLC FAX
P.O. Box 6119 FTP Site
505 Pershing Ave., Ste. 100 X Email eloCaD_echohawk.com
Pocatello, Idaho 83205
Dr. Lance Kaufman Hand Delivered
2623 NW Bluebell Place U.S. Mail
Corvallis, OR 97330 Overnight Mail
FTP Site
X Email lance aegisinsight.com
Micron Technology, Inc. Hand Delivered
Austin Rueschhoff U.S. Mail
Thorvald A. Nelson Overnight Mail
Austin W. Jensen FTP Site
Kristine A.K. Roach X Email
Holland & Hart LLP darueschhoff(a_hollandhart.com
555 17t" Street, Suite 3200 tnelson(a)-hollandhart.com
Denver, CO 80202 awiensen(a-hollandhart.com
karoach(a)_hollandhart.com
aclee(D-hol land hart.com
caa-�—
Christy Davenport
Legal Administrative Assistant
SUPPLEMENTAL APPLICATION - 14

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-25-10
IDAHO POWER COMPANY
ATTACHMENT NO. 1

ATTACHMENT 1
IS CONFIDENTIAL AND WILL BE PROVIDED TO THOSE PARTIES THAT EXECUTE
THE PROTECTIVE AGREEMENT IN THIS MATTER

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-25-10
IDAHO POWER COMPANY
ATTACHMENT NO. 2

ATTACHMENT 2
IS CONFIDENTIAL AND WILL BE PROVIDED TO THOSE PARTIES THAT EXECUTE
THE PROTECTIVE AGREEMENT IN THIS MATTER