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HomeMy WebLinkAbout20251007Staff Comments.pdf RECEIVED October 07, 2025 JEFFREY R. LOLL IDAHO PUBLIC DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0357 IDAHO BAR NO. 11675 Street Address for Express Mail: 11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A BOISE, ID 83714 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF PACIFICORP'S ) APPLICATION FOR ACKNOWLEDGEMENT ) CASE NO. PAC-E-25-12 OF THE 2025 INTEGRATED RESOURCE ) PLAN ) COMMENTS OF THE COMMISSION STAFF COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"), by and through its attorney of record, Jeffrey R. Loll, Deputy Attorney General, submits the following comments. BACKGROUND On December 31, 2024, Rocky Mountain Power, a division of PacifiCorp ("Company"), filed a draft version of its 2025 Integrated Resource Plan("Draft IRP")with the Commission in Case No. PAC-E-24-13. The Company indicated that it would file the final version of the 2025 IRP on March 31, 2025. On March 31, 2025, the Company applied to the Commission requesting acknowledgment of the final version of its 2025 IRP ("Application" or"2025 IRP"). On May 22, 2025, the Commission issued Order No. 36605, closing PAC-E-24-13, and opening this docket to consider the Company's 2025 IRP. The Commission issued Order No. STAFF COMMENTS 1 OCTOBER 7, 2025 36620 on June 3, 2025, giving notice of the Company's Application and setting deadlines for interested persons to petition to intervene in the case. No third parties sought to intervene in the case prior to the June 24, 2025, deadline. STAFF ANALYSIS Staff recommends the Commission acknowledge the Company's 2025 IRP. Staff s recommendation is based on the Company meeting the minimum requirements set forth in Commission Orders, its review of the filed 2025 IRP, and responses to production requests, in addition to the participation by Staff in the series of 2025 IRP Public Input Meetings. However, Staff has several conclusions and recommendations summarized below. Staff believes the Company should: 1. Justify the selection of the Company's PP when other portfolios perform consistently better across potential alternative futures; 2. Perform additional analysis by applying "end effects" or similar conditions under each Price-Policy Scenario (PPS) for all competing portfolios in the future IRPs; 3. Review its practices for hedging natural gas fuel supply to mitigate fuel supply risks and dependence on natural gas for dispatchable generation; 4. Meet with Staff to explore the possibility of developing Idaho-specific portfolios prior to the next IRP; 5. Meet with Staff to explore how to balance between meeting the Western Resource Adequacy Program ("WRAP")resource adequacy compliance and avoiding overbuilding resources; 6. Provide more specific information to the Commission before the next IRP regarding removal of new large customer loads, how the customers plan to serve their own loads, and the impact on the Company's system and on its Idaho customers; 7. Provide the Commission with its re-evaluation study before the next IRP regarding the need and timing of the Boardman-to-Hemingway (`B21­1") transmission line; 8. Provide an incremental analysis showing how the types of resources would change as a result of some of the most recent federal policies under the new presidential administration; and STAFF COMMENTS 2 OCTOBER 7, 2025 9. Provide greater clarity whether the defined reliability target is achieved by the developed integrated preferred portfolios in future IRPs. Compliance with the Commission Orders Staff believes the 2025 IRP meets the minimum requirements set forth in Order Nos. 22299 and 25260. Staff reviewed the Company's IRP to confirm that it complies with requirements as specified by Commission Orders and contains the required information. Staff examined the Company's 2025 IRP Methodology, generation resource evaluations, load forecast, transmission planning, demand side resources, market assumptions, and action plan. Each of these subjects are addressed in greater depth in the sections below. Issues Identified from Past IRP(s) In the 2023 IRP, Staff recommended the Company begin forecasting the benefits of WRAP when it is projected to become a binding participant in the next IRP. The Company's reply comments in that case (Case No. PAC-E-23-10) indicated that the Company expected to include discussion of the impacts of WRAP compliance and appropriate modeling of planning reserve margin and resource requirements. This is discussed further within the Analysis of Reliability section below. Overview of the 2025 IRP The 2025 IRP describes the Company's proposed plan to deliver continuous, reliable electric service to its customers over the next 21 years (from January 1, 2025, to December 31, 2045)using an approach that can identify a least-cost, least-risk resource portfolio. In developing this plan, the Company considers a load forecast with varying levels of load growth, future capability and capacity of existing resources, and a range of potential future resources before determining the preferred portfolio. The Company incorporates several risk variables and constraints in its evaluation to arrive at a preferred portfolio it believes is least-cost and least-risk that can meet future customer load while performing well across a range of PPSs throughout the IRP planning horizon. STAFF COMMENTS 3 OCTOBER 7, 2025 In developing the 2025 preferred portfolio, the Company demonstrated high reliance on receiving Inflation Reduction Act("IRA") tax credits for renewables and non-emitting green energy resources, such as wind, solar, and battery storage. However, due to the active executive orders and certain restrictions from the new presidential administration regarding the withdrawal of leases and permits for wind projects on federal lands,1 ending of subsidies for wind and solar or green energy resources,2 and application of reciprocal tariffs on internationally imported goods and materials,3 these may disrupt implementation of such resources in the future and could potentially invalidate some of the IRP results. Although the Company acknowledged the potential impact of these new federal policies, it did not provide any guidance on its plan moving forward. 2025 IRP—Volume I at 23. Staff outlined some concerns regarding these specific issues in the Supply-Side Resources section of these comments. Analysis of the IRP Methodology Generally, the Company's process involves two steps to determine the Preferred Portfolio ("PP"): 1. Development of optimized portfolios under different PPSs that can reliably meet the Company's load; and 2. Selection of a PP through an evaluation of how well each of these optimized portfolios can perform under alternative futures using a wide range of risk variables and different combinations of PPSs. Staff believes the end result of these two steps can enable the Company to identify a PP, which is the set of resources that can be implemented over the 21-year planning horizon that meets the reliability needs of its customers, while balancing cost with risk. However, as will be ' Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government's Leasing and Permitting Practices for Wind Projects.URL: https://www.whitehouse.goy/presidential-actions/2025/01/temporary-withdrawal-of-all-areas-on-the-outer- continental-shelf-from-offshore-wind-leasing-and-review-of--the-federal-governments-leasing-and-permitting= practices-for-wind-projects/. 2 Ending market distorting subsidies for unreliable,foreign controlled energy sources.URL: https://www.whitehouse.aoy/presidential-actions/2025/07/ending-market-distorting-sub sidies-for-unreliable- foreien%e2%80%91 controlled-energy-sources/. 3 Modifying the scope of reciprocal tariffs and establishing procedures for implementing trade and security agreements.URL:https://www.whitchouse.goy/presidential-actions/2025/09/modifying-the-scope-of-reciprocal- tariffs-and-establishing=procedures-for-implementing-trade-and-security-agreements/. STAFF COMMENTS 4 OCTOBER 7, 2025 discussed in The 2025 IRP Preferred Portfolio section, Staff has concerns whether the most robust portfolio was selected based on the results of the Company's analysis. As part of its analysis, Staff identified the following key changes in the Company's 2025 IRP methodology compared to the 2023 IRP: • The IRP planning horizon was extended to 21 years instead of the typical 20-year cycle to accommodate a requirement from the State of Washington. 2025 IRP— Volume I at 181; • The portfolios must achieve regional and system WRAP compliance. The IRP modeling captures the WRAP compliance requirements starting in 2028 and continues through the study horizon. Id.; • No federal carbon-dioxide ("CO2") adder is assumed in the PP, and as a result, the existing thermal units can operate indefinitely with ongoing maintenance; • IRA tax credits are extended through the 21-year study period, but the value of production tax credits is reduced in the last five years of the study horizon to better represent the value of resource additions in the latter half of the planning horizon; and • The stochastic analysis of the portfolios incorporates volatility with renewables, thermal outages, load, market prices, and hydro availability using 18 years of actual historical data, from 2006 to 2023. Step 1: Development of Optimized Portfolios that Meet Reliability Requirements The objective of the first step is to identify a diverse set of resource portfolios that can meet the reliability needs of its customers, which can be evaluated for cost and risk in the second step. A resource portfolio is a set of demand and supply-side resources, retirements, and transmission options, that all meet the reliability needs of the Company's customers over the planning horizon. To ensure a diverse set of reliable portfolios, the Company has identified several PPSs. A PPS is a combination of different federal policies (carbon prices, environmental policies, etc.) and natural gas price forecasts (high, medium, and low). By using the Company's PLEXOS modeling software, the Company can then generate a different resource portfolio for a given PPS. For example, a high gas price and no carbon price scenario will drive more renewables and less gas-fueled resources into a portfolio, while a low gas price and high carbon price scenario will drive in less renewables and more gas-fueled resources. STAFF COMMENTS 5 OCTOBER 7, 2025 The Company utilizes two models developed in PLEXOS to generate the portfolios: (1) the Long-Term model ("LT"), which simultaneously optimizes the set of resources for the planning horizon using an optimization algorithm to generate a cost-optimum portfolio for a given PPS; and(2) the Short-Term model ("ST"), which is a time-step simulation model that simulates how the Company would operationally and optimally dispatch the resources included in a resource portfolio by stepping through each hour across the 21-year planning horizon. Because the LT is less granular, the portfolios it generates may not completely meet reliability constraints. By modeling the portfolio in the ST, any amount of unserved energy is identified, and the resources are adjusted and fed back into the LT model. These steps are repeated until all instances of unserved energy are resolved for a given portfolio. The Company utilizes seasonal loads, operating reserves, and regulation reserves with minimum monthly planning reserve margin ("PRM") requirements based on the WRAP as the primary constraints related to reliability. The result of this process is a diverse set of resource portfolios which should be reliable and least-cost for the Company's system for each PPS. Step 2: Cost Analysis of Portfolios Over Multiple Alternative Futures The objective of Step 2 is to evaluate the cost and risk for each of the portfolios generated in Step 1 across each of the PPSs. The portfolio that is the most robust by performing consistently with the lowest costs across the set of most likely PPSs should be identified as the least-cost, least-risk portfolio and recommended as the PP. To determine how each of the resource portfolios perform relative to cost and risk for each of the portfolios produced in Step 1, the Company uses the ST model described above. In addition to measuring unserved energy when simulating the operation of a given portfolio, the ST model collects the variable costs of every resource dispatch over the 21-year planning horizon and produces a Net Present Value Revenue Requirement ("PVRR") for the simulation run so they can be compared in present day dollars. The Company modeled 13 different PPSs. Staff included a short description of each in Attachment No. A. Staff believes the Company explored a reasonable range of alternative futures. The Company also performed stochastic risk modeling of resource portfolios using actual historical conditions from 18 distinct years (from 2006 to 2023)to account for volatility and real- STAFF COMMENTS 6 OCTOBER 7, 2025 world conditions, such as weather patterns, outages, fuel and market prices, hydro generation, wind and solar generation profiles, etc. Staff believes using the approach of relying on actual historical data provides reasonable correlation between load forecast, extreme weather events, and renewable resource (wind and solar)performances. The results of this additional step provides a risk-adjusted PVRR for each portfolio used in selecting the PP. The resulting rankings based on PVRRs for each of the portfolios in various alternative future PPSs are summarized in Attachment No. B —Table No. 3. The information provided in Table No. 3 is extracted from the data provided in the 2025 IRP—Volume I: Table Nos. 9.34— 9.37. The 2025 IRP Preferred Portfolio The Company selected the "Integrated Base MN"portfolio for its 2025 IRP PP. According to the Company's analysis, it is the least-cost and lease-risk portfolio when comparing the PVRRs for each of the 13 portfolios when run using the PPSs most likely to occur in the future. The PP was developed under the medium gas price and zero carbon-dioxide PPS. Company's Response to Staff Production Request No. 11. In selecting the preferred portfolio, the Company considered the performances of all portfolios including "end effects,"where the overall portfolio costs are evaluated and ranked for five additional years (up to year 2050) beyond the 2025 IRP horizon. 2025 IRP—Volume I at 260: Table No. 9.34, and Company's Response to Staff Production Request No. 12. From the rankings provided in the Attachment No. B —Table No. 3, it appears the "Integrated Base MN"portfolio only ranks as the top performing portfolio when the future PPS is considered as "Medium Gas/Zero CO2"with end effects being applied. However, when future PPS assumptions change, the Company's selected PP does not perform as well as other portfolios. As a result, Staff is concerned that if assumed conditions change in the future (e.g. natural gas prices deviate significantly from the medium gas forecast, or federal CO2 policies become more restrictive to carbon-emitting sources), the "Integrated Base MN"may not be the most cost-effective portfolio compared to other portfolios. In this regard, Staff believes that between each of the 13 considered portfolios, "Integrated Hunter Retire MN,""Integrated Base HH," or"Integrated Base MR"portfolios demonstrate more robust performance across the range of future PPSs based on the Company's rankings and when compared to the Company's selected STAFF COMMENTS 7 OCTOBER 7, 2025 PP. Staff believes the Company should address these concerns and provide further justification for its selected PP. Additionally, the Company only applied end effects to one PPS. Staff believes it does not provide fair comparison among all integrated portfolios for different scenarios. Thus, Staff recommends the Company perform additional analysis by applying end effects or similar conditions under each PPS for all competing portfolios in the future IRPs to ensure they are comparable on a relative basis. Major Resource Additions in 2025 IRP The following items represent major capital additions identified within the Company's selected PP. New Generation Resources: • 3,782 MW of new wind resources; • 5,912 MW of new solar resources, including utility-scale and small-scale resources; • 7,524 MW of storage resources, including four-hour, and 100-hour(iron-air technology) durations; and • 500 MW of advanced nuclear(Natrium reactor demonstration project), which is projected to be online by Fall 2031. Customer Programs: • 5,255 MW of capacity saved through energy efficiency(`BE")programs; and 769 MW of capacity saved through direct load control programs. Key Thermal Outcomes: • Exit from the Colstrip project in Montana by 2030; • Coal-to-gas conversion of Naughton Units 1 and 2 in Kemmerer, WY,by 2026; • Initiate coal-to-gas conversion of Dave Johnston Units 1 and 2 in Glenrock, WY,by 2029; and • Carbon Capture and Sequestration ("CCS") options for Jim Bridger Units 3 and 4 in Rock Springs, WY, for completion by 2030. New Transmission and Upgrades: • New transmission from Walla Walla, Washington to Yakima, Washington; STAFF COMMENTS 8 OCTOBER 7, 2025 • New transmission, including a 10-mile line from Summer Lake to Burns, Oregon, and an 88-mile line from Summer Lake to Full Circle in Central Oregon; • Various upgrades to increase the transfer capability from southern Utah to the major load center in the Wasatch Front; • Various upgrades that increase transfer capability between the Summer Lake, Oregon and Hemingway, Idaho substations; • These near-term upgrades connect with a later upgrade a new transmission line connecting Walla Walla to the Full Circle substation, expected in 2039; and • Additional local transmission upgrades to connect clean resources to the transmission system in southern Utah, southern and central Oregon, the Willamette Valley in Oregon, and in Yakima and Walla Walla, Washington. In terms of transmission resources, compared to the 2023 IRP, the Company excluded B2H transmission line from its resource list. This issue is discussed in further detail in the Planning of Transmission Resources section. Coal Unit Retirements and Gas Conversions In the 2025 IRP, some of the Company's coal-fired units do not have any enforceable environmental compliance requirement and continue coal-fired operation throughout the IRP planning horizon, as opposed to the retirements assumed in 2023 IRP. 2025 IRP—Volume I at 233. Several other coal units are either planned to be converted to gas or outfitted with CCS technology based on the natural gas supply to each unit. 2025 IRP—Volume I at 9. This is similar to what the Company planned in the 2023 IRP. Staff believes the transition to increased dependency on natural gas increases the risk of customers being exposed to price volatility tied to markets for natural gas supply compared to relatively lower cost coal. Staff recommends the Company review its practices for hedging natural gas-fuel supply to reduce exposure to natural gas price volatility as it continues to gradually step away from coal and increases its natural gas capacity for dispatchable generation in the following IRPs. Table No. 1 below summarizes the differences between 2025 and 2023 IRP regarding the existing majority and minority-owned coal units. STAFF COMMENTS 9 OCTOBER 7, 2025 Table No. 1: Comparison of Thermal Unit Retirements and Gas Conversion between 2025 and 2023 IRP. Year Coal Unit 2025 IRP Retirement/ 2023 IRP Retirement Conversion as Input Conversion as Input (No EPA 111(d) Regulation) 2024 Jim Bridger 1, 2 Not retired(Gas conversion 2024) 2037 (Gas conversion 2024) 2025 Colstrip 3 Transfer Capacity to Unit 4 Same Craig 1 End of life assumed Same 2026 Naughton 2 Not retired(Gas conversion 2026) 2036 (Gas conversion 2026) Naughton 1 2042 (Gas conversion 2026) Retirement 2036 (Gas conversion 2026) 2027 Hayden 2 End of life assumed Same Dave Johnston 3 Clean air compliance Same 2028 Craig 2 End of life assumed Same Hayden I End of life assumed Same 2029 Colstrip 4 PacifiCorp exit Same Dave Johnston Not retired(Gas conversion 2029) Retirement 2028 1, 2 2030 Jim Bridger 3, 4 2042 (CCS conversion 2030) 2037 (Gas conversion 2030) 2032 Wyodak Retirement 2032 Retirement 2039 Dave Johnston 4 Not retired Retirement 2039 Huntington 1, 2 Not retired Retirement 2032 Hunter 1 Not retired Retirement 2031 Load Forecast Staff reviewed the methodology used to derive the load forecast and believes it is sound and has resulted in a load forecast that is reasonable for purposes of planning the Company's resources. Staff also compared the 2023 IRP and 2025 IRP load forecasts and has determined the largest impact has been the removal of new large customers' loads from the forecast due to STAFF COMMENTS 10 OCTOBER 7, 2025 these customers supplying their own power. Based on its analysis, Staff has several concerns and recommends the Company provide the Commission with more specific information regarding these customers' loads, how they plan to serve their own loads, and the impacts it will have on the Company's system and on Idaho customers. The 2025 IRP peak load forecast increased from 11,318 MW in 2025 to 15,518 MW in 2044, as shown in Figure A.1 of Appendix A—Load Forecast. As stated in Appendix A, the peak load forecast is used in portfolio development and is the maximum load required on the system. Staff ensured that jurisdictional peak load forecasts are reasonably developed using historical actual data, such as load and weather, and economic data, including employment and population, to fit with each customer class's characteristic. Additionally, Staff verified that the peak load forecast in 2025 IRP—Volume II: Figure A.1 of Appendix A is identical to the load in 2025 IRP—Volume I: Table Nos. 9.12 and 9.13 - Preferred Portfolio Summer Capacity Load and Resource Balance and proved that the peak load forecast is incorporated with portfolio development. For the annual load, the 2025 IRP energy-load forecast is about 12% less than the energy- load forecast in the 2023 IRP. Specifically, the average decreased amount of energy from 2025 through 2027 is expected to be 6,117 gigawatt-hours ("GWh"), and 10,973 GWh less from 2028 through 2044. The Company stated that the primary driver for this decrease is the exclusion of specific new large-load customers who are expected to acquire their own resources. See 2025 IRP, Appendix A - Load Forecast. However, the 2025 IRP didn't include detailed information regarding these large-load customers and how they plan to serve their own load. Without more detailed information, Staff has concerns regarding the size of these customers' loads, their load factors, and the types of resources they plan to acquire. Depending on these details, this may require the Company to continue to provide these customers with reserves, raising questions regarding how those additional costs will be allocated between States. In addition, the location of these resources could drive changes in the transmission system, which is discussed in more detail in the Planning of Transmission Resources section of these comments. Thus, Staff recommends the Commission direct the Company to provide the Commission with more specific information regarding these customers and how they plan to serve their own loads. STAFF COMMENTS 11 OCTOBER 7, 2025 Planning of Transmission Resources Based on the Company's methods, Staff believes that the Company planned for transmission for its system that will provide sufficient delivery of power to its load throughout its service territory. However, Staff has two concerns, both related to large load customers: (1)the elimination of need for the Boardman-to-Hemmingway transmission line in the Company's preferred portfolio, and(2) how these customers will obtain the necessary power to serve their own load and its effect on the Company's transmission system. In addition to the recommendation included in the Load Forecast section, Staff recommends that the Company provide the Commission with its re-evaluation study regarding the need and timing of the B2H transmission line. The Commission issued a certificate of public convenience and necessity ("CPCN") for the B2H transmission line. Order No. 35839. Additionally, it was modeled in the 2023 IRP as a resource providing a capacity increase of approximately 818 MW from east to west and 300 MW from west to east. However, the Company excluded the B2H transmission from the preferred portfolio in the 2025 IRP because the Company is re-evaluating the need and timing of the transmission line due to conditions that have changed since the 2023 IRP was acknowledged. Application at 84. According to the Company, B2H was needed to facilitate load service for specific new large-load customers. 2025 IRP—Volume II• Appendix M— Stakeholder Feedback. However, several of the large-load customers are located in Oregon, accounting for nearly 70% of the total decreased loads and driving the need for the B2H transmission line. See 2025 IRP, Appendix A - Table A.3. After removing these large-load customers from the load forecast in the 2025 IRP, the associated transmission line was no longer needed. Staff believes the Company's re-evaluation may trigger actions that may need to be taken regarding the CPCN. The re-evaluation may also affect the commitments the Company has made to Idaho Power Company for its portion of the transmission line's capacity. Therefore, Staff recommends that the Commission direct the Company to submit its re-evaluation for the B2H transmission line when the Company finalizes the re-evaluation study before its next IRP. Staff s second concern with new large-load customers is how each will obtain the necessary power to serve its own load and the effect on the transmission system. The lack of information creates concerns, especially if the way these large customers plan to acquire their power is from the market or from resources that are not located at the customer's site, requiring STAFF COMMENTS 12 OCTOBER 7, 2025 additional transmission infrastructure. This is especially a concern given the typical practice for the Company to allocate the cost of transmission between the states. Therefore, if these large- load customers require new transmission or transmission upgrades and are located outside of Idaho, it will be important for the incremental costs not to be jurisdictionally allocated to Idaho. Supply-Side Resources Although Staff believes the Company properly updated the assumptions for supply-side resources, reflecting the advanced technology, environmental factors, and costs under the previous Biden administration, several recent changes to federal policies may have invalidated some of the results. Staff recommends that the Company provide an incremental analysis showing how the types of resources would change as a result of some of the most recent federal policies. Staff reviewed the supply-side resources in the 2025 IRP and compared them to resources in the 2023 IRP. As stated in the 2025 IRP on page 142 in Chapter 7—Resource Options, the list of the supply-side resources was modified to reflect stakeholder input, new technology developments, environmental factors, cost dynamics, and anticipated permitting requirements. The Company used the Annual Technology Baseline by the National Renewable Energy Laboratory, as much as possible, for consistency, unlike what occurred in the 2023 IRP. The Company also included the addition of hydrogen-fueled resources for selection into portfolios in this IRP. Staff believes the addition of hydrogen resources resulted from an assessment of new technological development. However, the Company didn't reflect the new federal policies under the current administration. Staff believes that the extent of the changes may have invalidated much of the 2025 IRP results due to the changing costs of resources as a result of the elimination of production tax credits, investment tax credits, and the inclusion of reciprocal tariffs. Staff recommends that the Company provide an incremental analysis to show how the Company's resource plan would change under the more recent federal policies. Nuclear Resource—Natrium Demonstration Project Staff believes the Company should provide the Commission with regular updates on its progress toward implementing the advanced Natrium Nuclear plants. The 2025 IRP Preferred STAFF COMMENTS 13 OCTOBER 7, 2025 Portfolio selected 500 MW of capacity through advanced Natrium Nuclear demonstration project (commercially name as Kemmerer Power Station Unit 1 or"KU1") starting January 1, 2032. In response to Staff Production Request No. 15, the Company stated that it recently executed a power purchase agreement("PPA") with US SFR Owner, LLC, a subsidiary of TerraPower, LLC, for the KUl project. The Company acknowledged that similar to adopting any new or forward technology, the KU1 nuclear project comes with first-of-a-kind("FOAK") technology risk and associated FOAK program and construction costs. 2025 IRP—Volume I at 147. Although, the structure of this specific PPA shields customers from these costs, Staff is concerned that if these associated risks and costs exceed the benefits, and if the Company does not have any suitable cost-effective alternatives to replace the equivalent generation amount(500 MW, as assumed through KU1 project), then customers could be highly impacted. 2025 IRP— Volume I at 147 and Company's Response to Staff Production Request No. 15. One of the variants (No Nuclear Variant) of the PP, as outlined in 2025 IRP—Volume I at 263 states that if no nuclear project was selected through the IRP horizon, it adds a total $1.794 billion of incremental costs to the system. Additionally, in the 2023 IRP PP, the Company indicated that a Natrium project would be in place by 2030. However, in this IRP, the Company extended the timeline by two years. Given the importance for this type of resource in the Company's portfolios, Staff is concerned this nuclear resource may not be available when expected. The delay could shift resource selections in future IRPs and could inflate the cost of future resources due to the uncertainty. Staff believes the Company should take necessary efforts to determine the actual timing of this resource, so the Company does not get locked into short-term alternatives that are not least-cost and least-risk over the long-term. Front Office Transactions ("FOTs') In developing the integrated PP, the Company did not count FOTs towards the WRAP resource adequacy compliance requirements because WRAP only allows specified sources to count towards its compliance, and most of the standard market purchases come from unspecified sources. Staff Comments in Case No. PAC-E-25-08 at 3. However, the Company stated that "[w]hile 2025 IRP does not allow FOTs to meet WRAP compliance requirements, PacifiCorp STAFF COMMENTS 14 OCTOBER 7, 2025 expects to continue pursuing economic short-term and intermediate-term market opportunities that assist with WRAP compliance and/or balancing." 2025 IRP at 178. The Company agreed to include FOTs in the Load and Resource Balance ("L&R") in Case No. PAC-E-25-08 and stated that"some short-term resource opportunities are likely to exist in the future as various utilities and market participants are likely to have excess supply in some periods and insufficient supply in others." Company's Reply Comments in Case No. PAC- E-25-08 at 3. Staff believes that not counting FOTs in the integrated PP could result in overbuilding resources. Therefore, Staff recommends that the Commission direct the Company to meet with Staff to explore how to balance between meeting the WRAP resource adequacy compliance and avoiding overbuilding resources. Demand-Side Management("DSM") The Company's near-term action plan calls for cost-effective acquisition of EE and Demand Response ("DR")resources that provide annual system capacity and energy selections. 2025 IRP at 17. A portion of these selections are provided by Idaho EE selections. The Company explains that because DSM resources compete with supply side resources, optimization of DSM resources results in selection of all cost-effective options. 2025 IRP at 8. The Company contracted with a third party to conduct a Conservation Potential Assessment ("CPA") for the 2025 IRP. 2025 IRP at 171. This assessment provided a broad estimate of demand-side resource characteristics to inform modeling of these resources in competition with supply-side alternatives. Id. at 172. EE Programs In its near-term action plan, the Company identifies system-level EE selections totaling 2,413 GWh of energy and 610 MW of capacity by 2028. 2025 IRP Vol I at 3. Idaho contribution to this total is 89.7 GWh and 21.6 MW. 2025 IRP Appendix D supporting workpapers. EE selections are made by selecting groups of measures bundled by the temperature dependence and timing of savings. In the Company's model, Idaho had 25 measure bundles with 12 related to measures that save the most during the summer. 2025 IRP—Volume II: Appendix D at 96. The Company's IRP indicates that all Idaho bundles were selected. Id. Staff believes that this methodology is reasonable. STAFF COMMENTS 15 OCTOBER 7, 2025 DR Programs In its near-term action plan, the Company identifies system-level DR selections totaling 83 MW of capacity by 2028. 2025 IRP—Volume I at 3. Idaho contribution to this total is negligible, showing no Idaho DR capacity selected until 2030. 2025 IRP Appendix D at 94. In the 2023 IRP, the cumulative Idaho DR selection was 55.6 MW by the end of the forecast horizon. 2023 IRP Appendix D at 108. In 2025, Idaho DR potential across the 2025 forecast horizon totaled 27 MW. CPA at 60-61. The overwhelming majority of this new potential is related to irrigation load control programs with 16.2 MW. Id. The next highest potential is in heating ventilation and air conditioning direct load control programs with 3.2 MW. Id. The CPA Explains that expansions to the existing irrigation load control programs after the 2023 CPA have reduced the availability of incremental potential. Id. Staff believes that these assumptions are reasonable. Analysis of Reliability Staff believes the Company should include an additional verification step to confirm that the selected PP meets the defined loss of load expectation("LOLE")target. The 2025 IRP modeling steps incorporate WRAP compliance requirements for the PRMs starting from 2028 and continues through the study horizon. WRAP defined a PRM of 14.4% for summer months (based on July 2025 projections) and 16.8% for winter months (based on December 2025 projections) of additional capacity the Company needs to ensure a LOLE target of 1-event-day in 10 years, or 2.4 event hours per year. 2025 IRP—Volume I at 131. Staff believes that WRAP- defined PRMs vary significantly from month to month and year to year, and using a fixed amount of PRM for the full IRP period of 21 years can potentially alter the cost and risk factors of the PP. The defined PRMs act as adjustment factors to increase the amount of load that the resource plan must meet; however, without a process to mathematically verify whether the portfolios meet the LOLE target is not outlined in the 2025 IRP. Staff believes that once the portfolios are developed, the Company should be able to verify whether the resulting portfolios met the original target as a feedback loop. This feedback loop and final verification step is important because portfolios with a significant number of variable resources may require a higher PRM than a portfolio with a higher concentration of dispatchable resources for a given STAFF COMMENTS 16 OCTOBER 7, 2025 reliability target. Therefore, Staff recommends that the Company provide greater clarity relative to these expectations in future IRPs. Idaho-Specific Portfolio The Company started with three jurisdictional portfolios (i.e. the Oregon jurisdiction, the Washington jurisdiction, and the Utah/Idaho/Wyoming/California jurisdiction) in the 2025 IRP process to arrive at the system integrated PP. Staff would like to explore the possibility of developing an Idaho-specific portfolio for the next IRP. Therefore, Staff recommends that the Commission direct the Company to meet with Staff to explore such a possibility before the next IRP. This recommendation is aligned with Staff s recommendation in Case No. PAC-E-25-08, the Company's capacity deficiency period case.4 First, the Company creates each jurisdictional portfolio by excluding the constraints and requirements of other jurisdictions (except for load requirements). Response to Staff Production Request No. 4 (a). Second, the Company integrates jurisdictional portfolios into an integrated PP by adopting the largest quantity of each resource across all jurisdictional portfolios by year as the cumulative amounts of resources to be built for the system. Response to Staff Production Request No. 5 (a). Third, resources selected from the Eastern jurisdictional portfolio (i.e. the Utah/Idaho/Wyoming/California jurisdiction) are assigned to Utah/Idaho/Wyoming/California in the integrated PP; and resources selected from the Western jurisdictional portfolios (i.e. the Oregon jurisdiction or the Washington jurisdiction) are allocated as 75 percent to Oregon and 25 percent to Washington customers. Response to Staff Production Request No. 5 (d). Lastly, since Idaho is combined with Utah, Wyoming, and California, it is difficult to know the amounts of resources that need to be planned for, from the perspective of Idaho. Therefore, Staff recommends that the Commission direct the Company to meet with Staff to explore the possibility of developing an Idaho-specific portfolio before the next IRP. Action Plan The IRP contains an action plan section that provides a status update of action items from the Company's 2023 IRP as well as 2025 IRP action plan which"identifies the steps the 4 In Case No.PAC-E-25-08,capacity deficiency was determined based on a L&R before new resources were added. In the IRP,the preferred portfolio included new resources selected to meet the Company's capacity needs. STAFF COMMENTS 17 OCTOBER 7, 2025 company will take over the next two-to-four years to deliver a least-cost, least-risk portfolio for customers, based on the resources and requirements identified in its preferred portfolio, with a focus on the front five years of the planning horizon." 2025 IRP at 303. The Company's 2023 IRP action plan status update includes items spanning its service territory. Staff believes the Company is continuing to move forward with, or has reasonably accomplished, many of its Idaho-specific action items. The 2023 IRP action plan items related to Idaho includes the following: • EPA requirements and the planned path forward to maintain compliance; • Boardman to Hemingway, Energy Gateway South, and Energy Gateway West transmission lines; • Energy Efficiency and Demand Response targets; and • Renewable Energy Credit Sales. The Company's 2025 IRP action plan includes items spanning its service territory. The 2025 IRP action plan items related to Idaho include the following: • EPA requirements and the planned path forward to maintain compliance; • Gateway West segments D.3 and E: o Note, B2H is being reevaluated and is absent from the 2025 IRP action plan. • Energy Efficiency and Demand Response targets: o Identifying a decrease in EE annual capacity forecast of 64% in 2025 and 55% in 2026; and o Identifying a decrease in DR annual incremental capacity forecast of 88% in 2025 and 98% in 2026. These items are discussed in greater detail within the EE Programs and DR Programs sections above. STAFF RECOMMENDATION Staff recommends that the Commission acknowledge the Company's 2025 IRP, submitted on March 31, 2025. Further, Staff recommends the Commission direct the Company to: 1. Justify the selection of the Company's PP when other portfolios perform consistently better across potential alternative futures; STAFF COMMENTS 18 OCTOBER 7, 2025 2. Perform additional analysis by applying "end effects" or similar conditions under each PPS for all competing portfolios in the future IRPs; 3. Review its practices for hedging natural gas-fuel supply to mitigate fuel supply risks and dependence on natural gas for dispatchable generation; 4. Meet with Staff to explore the possibility of developing Idaho-specific portfolios prior to the next IRP; 5. Meet with Staff to explore how to balance between meeting the WRAP resource adequacy compliance and avoiding overbuilding resources; 6. Provide more specific information to the Commission before the next IRP regarding removal of new large customer loads, how these customers plan to serve their own loads, and the impact on the Company's system and on Idaho customers; 7. Provide the Commission with its re-evaluation study before the next IRP regarding the need and timing of the 132H transmission line; 8. Provide an incremental analysis showing how the types of resources would change as a result of some of the most recent federal policies under the new presidential administration; and 9. Provide greater clarity whether the LOLE reliability target of 2.4 event hours per year is achieved by the developed integrated preferred portfolios in future IRPs. Respectfully submitted this 7th day of October 2025. 7 Jeffrev R. Loll Depury Attorney General Technical Staff. Shubhra Deb Paul Seungjae Lee Yao Yin Jason Talford Vicki Stephens I:\Utility\UMISC\COMMENTS\PAC-E-25-12 Comments.docx STAFF COMMENTS 19 OCTOBER 7, 2025 Attachment No. A 2025 IRP Portfolios Table No. 2: A List of All Integrated Jurisdictional Portfolios of the 2025 IRP and Their Descriptions Portfolio Name Description Integrated Base MN* Medium gas price, zero CO2 costs. Integrated Base LN Low gas price, zero CO2 costs. Integrated Base HH High gas price, high CO2 costs. Integrated Base MR Medium gas price, with at-risk federal regulations. Integrated No CCS MN MN policy, with no coal units are able to select CCS technology. Integrated No Nuclear MN MN policy, with no nuclear resources are eligible for selection. Integrated No Coal Post MN policy, with all coal resources must retire or convert by 2032 MN January 1, 2032. Integrated Offshore Wind MN policy, with high-capacity factor offshore wind resources. MN Integrated No Future Tech MN policy, with no nuclear, hydrogen or 100- hour storage, or MN biodiesel peaking. Integrated Geothermal MN MN policy, with high-capacity factor geothermal resources. Integrated Hunter Retire MN policy, with all Hunter units to retire no later than January 1, MN 2030. Integrated No CCS MR MR policy, with no coal units are able to select CCS technology. Integrated Base SC SCGHG Price-Policy Scenario. *Company selected Preferred Portfolio ATTACHMENT NO. A CASE NO. PAC-E-25-12 STAFF COMMENTS 20 OCTOBER 7, 2025 Attachment No. B 2025 IRP Portfolio Rankings Table No. 3: Summary of the 2025 IRP Portfolio Rankings in Various Alternative Future PPSs Portfolio Ranks in Various Alternative Future Price-Policy Scenarios Medium Gas/ Medium Gas/ Low High Gas, Medium Gas/ Zero CO2 Zero CO2 Gas/Zero Coal/High Social Cost (ST) w/End CO2 CO2 of CO2 Portfolio Name: Effects (ST) (ST) (ST) Integrated Base MN* 4 1 5 8 8 Integrated No CCS MN 6 6 8 11 11 Integrated No Nuclear 9 7 12 10 4 MN Integrated No Coal Post 7 8 6 4 5 2032 MN Integrated Offshore 13 13 13 13 13 Wind MN Integrated No Future 10 10 9 12 10 Tech MN Integrated Geothermal 11 11 10 9 9 MN Integrated Hunter 1 3 2 3 2 Retire MN Integrated Base MR 3 5 1 2 3 Integrated No CCS MR 8 9 7 5 6 Integrated Base LN 5 4 4 6 12 Integrated Base HH 2 2 3 1 1 Integrated Base SC 12 12 11 7 7 *Company's selected Preferred Portfolio ATTACHMENT NO. B CASE NO. PAC-E-25-12 STAFF COMMENTS 21 OCTOBER 7, 2025 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 7TH DAY OF OCTOBER 2025, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. PAC-E-25-12, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING: MARK ALDER DATA REQUEST RESPONSE CENTER JOE DALLAS PacifiCorp ROCKY MOUNTAIN POWER 825 NE MULTNOMAH, SUITE 2000 1407 WEST NORTH TEMPLE STE 330 PORTLAND, OR 97232 SALT LAKE CITY UT 84116 E-MAIL ONLY: E-MAIL: mark.alderkpacificorp.com datarequest(kpacificorp.com joseph.dallas(&,pacificorp.com irp(a,pacificorp.com PATRICIA JORIAN, SECRETARY CERTIFICATE OF SERVICE