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HomeMy WebLinkAbout20251120Staff Comments.pdf RECEIVED November 20, 2025 CHRIS BURDIN IDAHO PUBLIC DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83702 (208) 334-0314 IDAHO BAR NO. 9810 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S PETITION TO WITHDRAW ) CASE NO. IPC-E-25-28 CERTIFICATE NO. 559,INCLUSIVE OF THE ) BUILD TRANSFER AGREEMENT AND ) POWER PURCHASE AGREEMENT FOR ) REDACTED COMMENTS OF THE JACKALOPE WIND PROJECT ) THE COMMISSION STAFF APPROVED BY ORDER NO. 36659 ) COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"), by and through its attorney of record, Chris Burdin, Deputy Attorney General, submits the following comments. BACKGROUND On September 19, 2025, Idaho Power Company ("Company"), filed a petition with the Commission to withdraw Certificate of Public Convenience and Necessity("CPCN")No. 559 and requested that the Commission withdraw approval of the Power Purchase Agreement ("PPA") between the Company and Jackalope Wind, LLC issued in Order No. 36659. The Company represented that the Commission approved the Build Transfer Agreement (`BTA") and PPA for the Jackalope Project in Order No. 36659. Petition at 3. The Company stated that after Commission approval, the developer faced permitting delays and uncertainty around federal land use policies, which may push the planned commercial operation date beyond 2027. Id. STAFF COMMENTS 1 NOVEMBER 20, 2025 The Company represented that it was relying on the project's 2027 commercial operation date to accommodate the Company's capacity deficits, that the Company has now entered into a Letter of Agreement to terminate the BTA and PPA, and that the Company will now pursue other options to meet its capacity deficits. Id. STAFF ANALYSIS Staff agrees that external circumstances are likely to prevent timely completion of the Jackalope Project, and therefore Staff believes that an agreement to terminate the project is reasonable. Staff briefly addresses the confidential terms of the agreement and recommends that the Commission withdraw CPCN No. 559 and its approval for the PPA. A Project Withdrawal Agreement is Reasonable The Company represents that"the developer was facing permitting delays and uncertainty around federal land use policies, therefore pushing the planned commercial operation date beyond 2027." Application at 3. Staff believes that this outcome is consistent with several incremental restrictions imposed by the Trump Administration on wind projects, culminating in a Department of the Interior directive that materially delays permit approvals for wind projects on federal land.1 The Jackalope Project site was a mix of federal and private land parcels.2 Given these permitting delays, Staff agrees that the completion date of the Jackalope Project could easily extend beyond 2027. Delays beyond 2027 will put eligibility for production tax credits at risk,3 which would substantially change the cost-effectiveness of the project, adding additional risk to the project. Therefore, Staff believes that termination of the Jackalope Project development agreement was reasonable. Confidential Agreement Terms Staff believes that two terms of the confidential Letter of Agreement are noteworthy: 1 Departmental Review Procedures for Decisions,Actions,Consultations,and Other Undertakings Related to Wind and Solar Energy Facilities,retrieved from https://www.doi.gov/media/document/departmental-review-procedures- decisions-actions-consultations-and-other,November 13,2025. 2 IPC-E-24-46 Response to Staff Request No. 6. 3 Tax Bill Significantly Changes Clean Energy Credits and Incentives,retrieved from https://rsmus.com/insights/services/business-tax/obbba-tax-clean-energy html,November 13,2025. STAFF COMMENTS 2 NOVEMBER 20, 2025 In its Response to Staff s Production Request No. 2, the Company explained the following facts about the Staff believes this is a reasonable application of and presumes that The Letter of Agreement also establishes a Confidential Attachment No.1 at 3. If the developer succeeds ,both the developer and the Company agree to _ Id. If anew Id. Staff notes that should this set of circumstance occur, the Company will need to consider the Commission's policy governing the acquisition of large supply-side resources, currently being deliberated in Case No. GNR-E-25-01. The Company also acknowledges that it would STAFF COMMENTS 3 NOVEMBER 20, 2025 need to reestablish the cost effectiveness of the resource. Confidential Response to Staff Production Request No. 3. CONCLUSION In conclusion, Staff believes that the terms of the Letter of Agreement are reasonable. STAFF RECOMMENDATION Staff recommends that the Commission withdraw CPCN No. 559 and withdraw approval for the PPA. Respectfully submitted this 20th day of November 2025. C�. Chris Burdin Deputy Attorney General Technical Staff. Matt Suess, Kimberly Loskot I:\Utility\UMISC\COMMENTS\IPC-E-25-28 Comments-Redacted.doex STAFF COMMENTS 4 NOVEMBER 20, 2025 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 20th DAY OF NOVEMBER 2025, SERVED THE FOREGOING REDACTED COMMENTS OF THE COMMISSION STAFF, IN CASE NO. IPC-E-25-28, BY E-MAILING A COPY THEREOF TO THE FOLLOWING: Idaho Power Company: DONOVAN E. WALKER TIM TATUM LEAD COUNSEL VICE PRESIDENT, REGULATORY IDAHO POWER COMPANY AFFAIRS 1221 WEST IDAHO STREET (83702) IDAHO POWER COMPANY PO BOX 70 1221 WEST IDAHO STREET (83702) BOISE ID 83707-0070 PO BOX 70 E-MAIL: BOISE ID 83707-0070 dwalkergidahopower.com E-MAIL: dockets(a,idahopower.com ttatum&idahopower.com PATRICIA JORDA9, SECRETARY CERTIFICATE OF SERVICE