Loading...
HomeMy WebLinkAbout20251016Staff Comments.pdf RECEIVED October 16, 2025 ADAM TRIPLETT IDAHO PUBLIC DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0318 IDAHO BAR NO. 10221 Street Address for Express Mail: 11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A BOISE, ID 83714 Attorney for the Commission BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S APPLICATION TO UPDATE ) CASE NO. IPC-E-25-24 CLEAN ENERGY YOUR WAY ) CONSTRUCTION AGREEMENT PRICING ) ELEMENTS BASED ON THE 2025 IRP ) COMMENTS OF THE COMMISSION STAFF COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"), by and through its attorney of record, Adam Triplett, Deputy Attorney General, submits the following comments. BACKGROUND On July 25, 2025, Idaho Power Company("Company"), applied for authority to update pricing elements for all contracts under its Clean Energy Your Way ("CEYW") Construction Program that are based on data from the Company's 2025 Integrated Resource Plan("IRP"). The Company represents that its CEYW-Construction Program under Schedule 62 offers a customized renewable energy option for its largest customers (those on special contracts or Schedule 19 -Large Power Service). It allows the customers to meet up to 110% of their yearly energy needs with renewable resources. STAFF COMMENTS 1 OCTOBER 16, 2025 The Company has three customers participating in the Commission-approved CEYW- Construction Program: Brisbie, LLC (`Brisbie"), Micron Technology, Inc. ("Micron"), and the City of Boise. The Company has continued improving the framework for implementing and managing the CEYW-Construction Program. In Order No. 36383, the Commission directed the Company to update pricing for all CEYW-Construction agreements and Schedule 62 in a single filing within 30 days of submitting its IRP, to ensure rates reflect the most current and accurate data. On June 27, 2025, in Case No. IPC-E-25-23, the Company filed its 2025 IRP and is now submitting this application to update the pricing elements in its CEYW agreements, as required by Order No. 36383. The Company requests Commission approval of updates to the following 2025 IRP-based prices for the Brisbie and Micron Special Contracts, and the City of Boise's CEYW Agreement: (1)the "Supplemental Energy Price" for Brisbie's Block 2 load service, and (2) the"Mid- Columbia("Mid-C") Forecast"used to calculate the "Excess Generation Price" for Brisbie, Micron, and the City of Boise. STAFF ANALYSIS Staff reviewed whether both pricing elements of the Supplemental Energy Price and Excess Generation Price complied with the Commission's Orders and are updated with the 2025 IRP. Staff verified that(1) the Company used a P50 load forecast for determining that both pricing elements are consistent with Order No. 36383, (2)the calculation methodology for the Excess Generation Price is aligned with Order No. 35777, and(3) the updated pricing elements are based on the 2025 IRP data. Finally, Staff recommends that the Commission approve the updated pricing elements within the CEYW special contracts and agreements, as filed. Supplemental Energy Price Staff verified that the Company has updated the avoided cost averages based on a P50 load forecast(50%probability that the forecast will be exceeded) for determining the Supplemental Energy Price and confirmed that the calculation for the avoided cost averages is correct. STAFF COMMENTS 2 OCTOBER 16, 2025 The Supplemental Energy Price is the marginal price average applicable to Brisbie's Block 2 load service and is based on the avoided cost averages published in the Company's most recent Commission-acknowledged IRP. In Order No. 36383, the Commission ordered the Company to use a P50 load forecast to calculate the Supplemental Energy Price and Excess Generation Price. Using a P50 load forecast complies with cost-of-service ratemaking and the Commission-approved method for calculating IRP-based avoided cost rates and marginal cost rates. In Attachment Nos. I and 2 of the Application, the Company used a P50 load forecast from the recently referenced 2025 IRP for both pricing elements. In addition, Staff verified that the calculation for the avoided cost averages is correct by averaging the hourly avoided costs, as shown in the workpaper provided in the Company's response to Staff Production Request No. 1. Excess Generation Price Staff confirmed that the hourly Mid-C Forecast, which is used for the Excess Generation Price, is correctly updated from the 2025 IRP, and its calculation methodology is consistent with Order No. 35777. The Excess Generation Price is determined by taking the hourly Mid-C Price Forecast from the IRP, assumed to be a firm-energy market price, and then adjusting it by 82.4%to determine a non-firm energy market price. Additionally, the Commission ordered the Company to apply the 85% adjustment to the hourly Mid-C Forecast to incur a reasonable balance between compensating energy projects and protecting customers. Order No. 35777 at 17-18. Consequently, the Excess Generation Price is defined as the lower of(1) 85% of the hourly Mid- C Forecast, with the non-firm adjustment of 82.4%, or(2) the actual high- or low-load hour Mid- C market price for each hour. As shown in the Company's response to Staff Production Request No. 2, the Company provided an example to calculate the Excess Generation Price, applying both adjustments to the hourly Mid-C Forecast and selecting the lower of the adjusted Mid-C Forecast or the actual high-or low-load Mid-C price. Staff confirmed that the example is calculated correctly and complies with Order No. 35777. STAFF RECOMMENDATION Staff recommends that the Commission approve the updated pricing elements within the CEYW special contracts and agreements, as filed. STAFF COMMENTS 3 OCTOBER 16, 2025 Respectfully submitted this 16th day of October 2025. Adam Triplett Deputy Attorney General Technical Staff. Seungjae Lee I:\Utility\UMISC\COMMENTS\IPC-E-25-24 Comments.docx STAFF COMMENTS 4 OCTOBER 16, 2025 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 16" DAY OF OCTOBER 2025, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. IPC-E-25-24, BY E-MAILING A COPY THEREOF TO THE FOLLOWING: Idaho Power Company: Idaho Power Company: DONOVAN E. WALKER TIMOTHY TATUM MEGAN GOICOECHEA ALL_ EN GRANT T. ANDERSON IPC DOCKETS IDAHO POWER COMPANY IDAHO POWER COMPANY 1221 WEST IDAHO STREET (83702) 1221 WEST IDAHO STREET (83702) PO BOX 70 PO BOX 70 BOISE ID 83707-0070 BOISE ID 83707-0070 E-MAIL: E-MAIL: tttuxn(c?idhoowcr.co dwalker(u;idatlopc}��er.con7 jai dcrsc�n(i Idaho�ower.coti�. Dooicc,echeaallezi(a?idalio ower.uoin doc.ket5(a;idahopow�cr.com f PATRICIA JORDA , SECRETARY CERTIFICATE OF SERVICE