20251219Staff Comments.pdf

RECEIVED
December 19, 2025
JEFFREY R. LOLL IDAHO PUBLIC
DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83702
[phone]
IDAHO BAR NO. 11675
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY'S APPLICATION FOR ) CASE NO. IPC-E-25-27
APPROVAL OF A POWER PURCHASE )
AGREEMENT WITH BLACKS CREEK )
ENERGY CENTER,LLC ) REDACTED 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 September 5, 2025, Idaho Power Company("Company") applied to the Commission
requesting: (1) approval of the 25-year Power Purchase Agreement("PPA")between Blacks
Creek Energy Center, LLC and the Company, and (2) acknowledgment that the resulting
expenses associated with the PPA are prudently incurred for ratemaking purposes
("Application"). The PPA is a 25-year agreement to supply 80 megawatts ("MW") of output
from the Black's Creek solar-powered generation facility ("Project").
On October 6, 2025, the Commission issued a Notice of Application and a Notice of
Intervention Deadline establishing a 21-day intervention period. The Commission granted
STAFF COMMENTS 1 DECEMBER 19, 2025

intervenor status to the Idaho Irrigation Pumpers Association, Inc. and Micron Technology, Inc.
Order Nos. 36803 and 36828.
STAFF ANALYSIS
Staff reviewed the Company's Application and supporting documentation and
recommends that the Commission approve the PPA. Staff also recommends that the
Commission acknowledge that once the proposed system is in service, the contracted PPA
expenses will be prudently incurred. Staff s analysis is described below.
I. A Need for New Resources Exists
Staff agrees that the Company's system faces a capacity deficit in 2027 and therefore
additional resources are necessary to ensure system reliability.
The Company states that "[t]he most recent system reliability assessment has identified a
capacity deficit of 143 MW in 2027." Ellsworth Direct at 8. Staff reviewed the load and
resource assumptions that the Company used to make this determination and concludes that the
true capacity deficit is greater than 143 MW.
According to Company witness Ellsworth, the 143 MW capacity deficit was calculated
assuming that"all 2026 projects, the Jackalope Project, the Crimson Orchard Project...reach
commercial operation on time." Ellsworth Direct at 9 (emphasis added). After this testimony
was filed, the Company filed Case No. IPC-E-25-28 which requested permission to withdraw
from the Jackalope Project because the developer could not meet the planned commercial
operation date for 2027. The removal of Jackalope Project capacity from the Company's load
and resource assumptions means the Company has fewer resources than it initially assumed at
the time of filing its Application; therefore, its system capacity deficit must be greater than 143
MW in 2027. Moreover, Staff believes that additional cost-effective resources beyond the
Project are needed to ensure system reliability.
II. The Project Is a Least-Cost and Least-Risk Resource
Staff believes that the Project is a least-cost, least-risk("LC-LR")resource.
STAFF COMMENTS 2 DECEMBER 19, 2025

a. The 2028 REP Selection Process Was Fair and Reasonable
The fairness of the 2028 All-Source Request for Proposal ("RFP")process is
foundational to any of its results. Staff carefully reviewed Company Witness Hackett's
testimony and the closing report from the Independent Evaluator("IE"), Confidential Exhibit
No. 3. From this review, Staff believes the selection process was fair and reasonable.
Staff agrees that the Company's RFP "allowed bids for all commercially viable resource
types that could meet the specified commercial operation date." Hackett Direct at 12. Staff also
agrees that the bifurcation of the bidders into two groups was reasonable: Group One consisting
of bids with a commercial operation date ("COD") on or before April 2028, and Group Two
consisting of bids with a COD beyond April 2028. Staff believes that sufficient bidders applied
to each group to ensure adequate competition in each group. The Project applied to Group One
and was one of 95 proposals from 19 different bidders in that group. Id.
Staff also believes the Company's evaluation of Group One bids was fair and reasonable.
First, the IE affirmed the reasonableness in its closing report, stating"LEI attests to the
reasonableness of IPC's approach in identifying bids for the final RFP shortlist. The process was
conducted with the utmost fairness and impartiality,upholding the integrity of the selection
process." Confidential Exhibit No. 3 at 8. Second, Staff independently examined the
Company's calculations for each bidder's levelized cost of capacity("LCOC"), because those
values are a major determinant in which resources are identified as LC-LR. See Confidential
Attachment to Company Response to Staff Production Request No. 2. Staff believes that the
LCOC values were fairly and reasonably determined.
Accordingly, Staff agrees that the Group One preliminary final short list ("FSL") was
reasonably determined.
b. The Project Is a Least-Cost Resource
Staff believes that the Project is a least-cost resource based on its top-tier outcome in the
Group One FSL and its competitiveness with other recent Staff-recommended resources.
After the Company determined the preliminary Group One FSL, the Company performed
stochastic analyses to determine which combination of projects was least-cost across a wide
variety of future conditions. The projects were then ranked according to their contributions to
the optimal portfolios. Confidential Exhibit No. 2 lists the ranked FSL projects. The Project is
STAFF COMMENTS 3 DECEMBER 19, 2025

among the top performing bids. Staff independently verified this analysis. See Confidential
Attachment to Company Response to Staff Production Request No. 3.
Furthermore, the levelized fixed pricing identified in this PPA is competitive with other
recent Staff-recommended resources.' Case Nos. IPC-E-24-46 (Jackalope Wind) and IPC-E-25-
10 (Crimson Orchard)both include variable energy resources structured as PPAs with levelized
fixed pricing per megawatt-hour("MWh"). Staff recommended each of those resources as LC-
LR given the circumstances known at the time, and this project's levelized fixed price per MWh
is objectively competitive with those two projects.
Based on the reasons stated above, Staff believes the Project is a least-cost resource.
c. The Project Is a Least-Risk Resource
Staff believes the Project is a least-risk resource due to the anticipated reduction of the
overall capacity deficit, the expedited timeframe for the project to be brought online, and reduced
development risks due to leveraging an existing project.
Staff agrees with Company Witness Ellsworth who stated, "the addition of the Blacks
Creek PPA would reduce the 2027 capacity deficit of 143 MW to a capacity deficit of 120 MW."
Ellsworth Direct at 9. Staff believes that this proposed resource would aid in the reduction of
risk to reliability by reducing the capacity deficit.
Staff also notes that the project reduces reliability risk as it can be brought online
relatively quickly because many of the typical development risks have been resolved. First, the
developer is already mobilized on site for a similar project. Second, the project site has space for
the additional photovoltaic panels needed for the project. Finally, the existing Generation
Interconnection Agreement with the developer has 80 MW of incremental unused capacity.
Hackett Direct at 22-23. Staff believes these circumstances significantly reduce the risk of
meeting the online date and are major factors in reducing the overall risk of the project.
Taking all the above points into consideration, Staff agrees with Company Witness
Hackett who states, "With a remaining 2027 capacity deficit of 143 MW, the Blacks Creek
Project is necessary to continue to provide safe, reliable electric service in 2027 and beyond."
Hackett Direct at 27-28.
'See Confidential Exhibit No.4 at 89.
STAFF COMMENTS 4 DECEMBER 19, 2025

d. Import Tariffs
One final consideration is the impact of import tariffs. Section 6.1 of the PPA
(Confidential Exhibit No. 4) includes provisions associated with new tariffs or increases or
decreases to existing import tariffs. Staff agrees with Company Witness Hackett's reasoning that
the frequently changing tariff situation should not change the relative rankings of the remaining
2028 bids in the FSL. Hackett Direct at 28.
The provisions allow
e. The PPA Terms Are Reasonable
In addition to tariff considerations discussed above, Staff carefully reviewed the other
terms of the PPA and believes that the terms reasonably protect the Company and ratepayers
from harm. These terms include a project development security and an output guarantee. The
ratepayers will also benefit from the Company obtaining ownership of the renewable energy
certificates generated by the project. Hackett Direct at 25-26.
f. Conclusion
In conclusion, Staff believes that the Project is a LC-LR resource. Therefore, Staff
recommends that the Commission approve the PPA and acknowledge that once the system is
placed in service, any contracted PPA expenses will be prudently incurred.
III. Other Considerations
Staff addresses two issues that are highlighted by this case but are not germane to
assessing the prudence of the resource: a) cost causation and b) mitigation of the capacity deficit.
a. Cost Causation
Cost causation has been a significant topic of discussion in recent months because of the
unprecedented load growth facing the Company. The draft 2025 Integrated Resource Plan
STAFF COMMENTS 5 DECEMBER 19, 2025

("IRP") shows that the compound annual system average load growth rate from 2026-2031 is
forecast to be seven percent overall, ranging as low as 0.5 percent for residential load and as high
as 31 percent for additional firm load. 2025 IRP, Appendix C at 6. In aggregate, this imminent
load growth is the cause of the annual capacity deficits, and therefore it is the cause for projects
procured to mitigate that capacity deficit, including this project.
Consistent with the cost-causation principle, there is understandable interest in analyzing
this project with the goal of assigning allocation of cost recovery. Staff does not believe this
case is the right forum for cost allocation. The purpose of this case is to determine the prudence
of the resource. Staff believes the correct forum to debate the allocation of costs is a separate
docket that is proposed in the pending settlement for Case No. IPC-E-25-16.
b. Mitigation of the Capacity Deficit
Another issue highlighted by this case is the looming capacity deficit for 2027. As
discussed earlier, the Project will reduce the 2027 capacity deficit from 147 MW to 120 MW, if
it and several other projects are built on schedule. In fact,because of the Jackalope project
cancellation, the deficit is likely to be greater than 120 MW. Furthermore, all the remaining bids
from the 2028 RFP have a COD of 2028 or later, so these potential resources will not mitigate
the 2027 deficit. Staff is unaware of any additional supply-side resources that can be procured
and brought online in 2027.
Historically, firm market purchases would be used to cover these capacity deficits, but
Staff believes that both transmission capacity and surplus generation capacity are increasingly
scarce. Furthermore, due to short supply and high demand, any such firm purchases are likely to
be expensive.
Accordingly, Staff recommends that the Company outline and communicate its plan to
mitigate the 2027 capacity deficit, due to the perceived lack of additional potential resources and
the size of the 2027 deficit. Also, if the Company makes firm market purchases to cover the
2027 capacity deficit, it should keep distinct records of those purchases so that they can be
properly allocated.
STAFF COMMENTS 6 DECEMBER 19, 2025

STAFF RECOMMENDATION
Staff recommends that the Commission approve the PPA and acknowledge that once the
system is placed in service, the contracted PPA expenses will be prudently incurred.
Staff also recommends that the Commission direct the Company to outline and
communicate its plan to mitigate the 2027 capacity deficit. If the mitigation plan involves firm
market capacity purchases, the Company should keep distinct records of those purchases so that
they can be properly allocated.
Respectfully submitted this 19th day of December 2025.
Jeffrev R_ Loll
Deputy Attorney General
Technical Staff. Matt Suess, Vicki Stephens
I:\Utility\UMISC\COMMENTS\IPC-E-25-27 Comments-Redacted.docx
STAFF COMMENTS 7 DECEMBER 19, 2025

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 19th DAY OF DECEMBER 2025,
SERVED THE FOREGOING REDACTED COMMENTS OF THE COMMISSION
STAFF, IN CASE NO. IPC-E-25-27, 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
Intervenor Intervenor
IIPA MICRON
Eric L. Olsen Austin Rueschhoff
Echo Hawk& Olsen, PLLC Thorvald A. Nelson
P.O. Box 6119 Austin W. Jensen
505 Pershing Ave., Ste. 100 Kristine A.K. Roach
Pocatello, ID 83205 Holland&Hart, LLP
elo&echohawk.com 555 171h St., Suite 3200
tayshagechohawk.com Denver, CO 80202
E-MAIL:
Lance Kaufinan, Ph.D. darueschhoff(c hollandhart.com
2623 NW Bluebell Place tnelson&hollandhart.com
Corvallis, OR 97330 aw'enl sen(d),hollandhart.com
E-MAIL: lance&ae isg insi hg t.com karoachghollandhart.com
aclee(d,hollandhart.com
� tic Req'L'
PATRICIA JORDA9, SECRETARY
CERTIFICATE OF SERVICE