20260109Reply Comments - Redacted.pdf

-NIQAW POWER,
RECEIVED
DONOVAN WALKER JANUARY 9, 2026
Lead Counsel IDAHO PUBLIC
dwalker(a)idaho power.corn UTILITIES COMMISSION
January 9, 2026
VIA ELECTRONIC FILING
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-25-27
Application of Idaho Power Company for Approval of a Power Purchase
Agreement with Blacks Creek Energy Center, LLC
Dear Commission Secretary:
Attached for electronic filing is Idaho Power Company's Reply Comments in the
above matter.
The confidential version will be sent in a separate email to the parties who have
signed the Protective Agreement.
If you have any questions about any of the aforementioned documents, please do
not hesitate to contact me.
Very truly yours,
&-)&a
Donovan E. Walker
DEW:sg
Enclosure
1221 W. Idaho St(83702)
P.O. Box 70
Boise, ID 83707

DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalker(o-)idahopower.com
Attorney for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY'S APPLICATION FOR ) CASE NO. IPC-E-25-27
APPROVAL OF A POWER PURCHASE )
AGREEMENT WITH BLACKS CREEK ) IDAHO POWER COMPANY'S
ENERGY CENTER, LLC. ) CONFIDENTIAL REPLY
COMMENTS
COMES NOW, Idaho Power Company ("Idaho Power" or "Company"), and,
pursuant to Idaho Public Utilities Commission's ("Commission") Rules of Procedure 201-
204 and the Notice of Modified Procedure, Order No. 36842, hereby respectfully submits
the following Reply Comments in response to Comments filed by Commission Staff
("Staff") and the Idaho Irrigation Pumpers Association, Inc. ("IIPA") on December 19,
2025.
IDAHO POWER COMPANY'S REPLY COMMENTS - 1

I. BACKGROUND
1. Idaho Power closely monitors resource needs and responds with added and
appropriate urgency to acquire additional low-cost, reliable sources of generation and
capacity, as evidenced by Idaho Power's consecutive requests to acquire resources to
be online in 2023,E 2024,2 2025,3 2026,4 2027,5 and 2028.6 In response to resource needs
identified in the 2023 Integrated Resource Plan ("IRP"), on August 16, 2024, Idaho Power
conducted a competitive solicitation through the issuance of an All-Source Request for
Proposal ("RFP") seeking to acquire a combination of energy and capacity resources.
The 2028 RFP did not restrict bids based on resource type or ownership structure,
however, Idaho Power outlined that the deficit required a minimum of approximately 138
megawatts (WW") of incremental capacity needs and 555 MW of supply-side resource
additions in 2028 and beyond ('2028 RFP"). The Company accepted energy or capacity
incremental to its system beginning in the summer 2028 timeframe and beyond, from
market energy purchases or new or existing resources.
2. The evaluation of the 2028 RFP bids was bifurcated, with prioritization of
the 2028 bids in order to meet summer demand in 2028 ('2028 Bids"), followed by
evaluation of the bids with a commercial operation date after April 1, 2028. Idaho Power's
request in this case is specific to a 2028 Bid. After performing a detailed analysis of the
bids that were submitted and presenting the results to the Public Utility Commission of
Oregon ("OPUC"), a final shortlist of 2028 Bids representing the least-cost, least-risk
Case Nos. IPC-E-22-06 and IPC-E-22-13.
2 Case Nos. IPC-E-23-05 and IPC-E-23-20.
3 Case Nos. IPC-E-22-29 and IPC-E-23-20.
4 Case Nos. IPC-24-01, IPC-E-24-16, and IPC-E-24-45.
5 Case Nos. IPC-E-24-42 and IPC-E-25-27.
6 Case No. IPC-E-25-29.
IDAHO POWER COMPANY'S REPLY COMMENTS -2

resources was approved by the OPUC on March 31, 2025. The bid evaluation process of
the project proposals submitted through the 2028 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. Upon conclusion of the
approximately 13-month mandated competitive bidding rule-compliant process, the
Company began negotiations with developers for procurement of the resources
necessary to meet the identified 2028 capacity deficit.
3. Through successful negotiations, Idaho Power and Blacks Creek Energy
Center, LLC, ("Blacks Creek") have executed the Power Purchase Agreement ("PPA")
associated with the Blacks Creek Project, an 80 MW solar photovoltaic ("PV") facility that
will supply energy to the Company's system. The Blacks Creek Project was identified on
the final shortlist of 2028 Bids with a commercial operation date by April 1, 2028. During
contract negotiations the developer indicated the ability to advance the commercial
operation date to June 1, 2027, benefiting the Company by contributing to the remaining
2027 capacity deficit, and ensuring the project is eligible for investment tax credits that
are expected to sunset on December 31, 2027.
4. On September 5, 2025, Idaho Power submitted an Application to the
Commission for an order: (1) approving the 25-year PPA between Blacks Creek and
Idaho Power, and (2) acknowledging that the resulting expenses associated with the PPA
are prudently incurred for ratemaking purposes.
5. On December 19, 2025, Comments were filed by Staff and IIPA. In their
Comments, Staff recommends the Commission (1) approve the Blacks Creek PPA, and
(2) acknowledge that once the solar PV facility is place in service, the contracted PPA
IDAHO POWER COMPANY'S REPLY COMMENTS - 3

expenses will be prudently incurred.' The IIPA however, in their Comments, recommend
the Commission deny or defer approval of the Blacks Creek PPA, suggesting the
Company has not demonstrated a capacity need. In the event the Commission approves
the PPA, IIPA suggests the Commission ensure that existing customers are protected
from bearing costs of new resources necessary to serve new loads.$
6. In these Reply Comments, Idaho Power responds to the recommendations
offered by Staff and addresses IIPA's concerns regarding the capacity need
demonstration, the standard by which the Company is requesting approval of the Blacks
Creek PPA, and cost causation principles. The Company respectfully requests the
Commission (1) accept Staff's recommendations to approve the Blacks Creek PPA,
acknowledging the resulting expenses are prudently incurred for ratemaking purposes,
(2) direct the Company to meet with Staff to discuss Idaho Power's upcoming reliability
assessments and its plan to mitigate the remaining 2027 capacity deficit, and (3) reject
IIPA's unwarranted proposed measures related to cost causation.
II. REPLY COMMENTS
A. The Commission should adopt Staff's recommendation to approve the
Blacks Creek PPA and declare the payments as prudently incurred
expenditures.
7. In order to comply with its continuing obligation to serve customers, the
Company must at times acquire additional resources to meet the identified capacity
deficits on its system when the need arises. On February 29, 2024, Idaho Power
commenced a competitive bidding process, filing a request with the OPUC to (1) approve
the selection of London Economics International LLC ("LEI") as the Independent
Staff Comments, page 7.
8 IIPA Comments, page 9.
IDAHO POWER COMPANY'S REPLY COMMENTS -4

Evaluator ("IE") for the 2028 RFP, (2) approve the proposed 2028 RFP scoring and
modeling methodology, (3) approve the draft 2028 RFP, and (4)waive certain competitive
bidding rules to allow for expedited review and approval of the 2028 RFP. On April 30,
2024, the OPUC approved the selection of LEI as the IE again for Idaho Power's 2028
RFP and evaluation of 2028 RFP resources. The OPUC also approved the concurrent
review of both the scoring and modeling methodologies and preparation of the draft 2028
RFP.
8. Idaho Power performed a quantitative and qualitative evaluation with an
objective scoring methodology to reasonably evaluate the price and non-price attributes
of the 2028 Bids submitted through the RFP process, which included 95 proposals from
19 different bidders, with a total of 147 resource bids, ultimately identifying the final
shortlist of projects with commercial operation by April 1, 2028. As required under the
OPUC competitive bidding rules, the final shortlist was submitted for OPUC review and
on March 31, 2025, the OPUC approved the final shortlist. Once the most cost-effective
2028 projects were identified, the Company began negotiations with developers for
procurement of the resources necessary to meet the identified 2028 capacity deficit. The
request for approval of the Blacks Creek PPA is the result of those efforts.
9. Idaho Power appreciates Staff's comprehensive analysis of the Company's
request in this case, their recommended approval of the Blacks Creek PPA, and the
acknowledgement that the contracted for PPA expenses should be considered prudently
incurred for ratemaking purposes. Staff performed an extensive review in this proceeding
confirming the requirement, the solicitation, the selection and the result. Staff reviewed
the Company's load and resource assumptions utilized in the system reliability
IDAHO POWER COMPANY'S REPLY COMMENTS - 5

assessment to produce Idaho Power's annual capacity position, concluding the capacity
deficit is now even greaterthan the 143 MW identified by the Company due to the inability
of the Jackalope Wind Project to meet a commercial operation date in 2027, and
concluding that Idaho Power has fewer resources than initially assumed and "additional
cost-effective resources beyond the Project are needed to ensure system reliability."9
10. With respect to the solicitation, Staff thoroughly reviewed the 2028 RFP
selection process, noting that the fairness of the process is "foundational to any of its
results."10 Staff agreed that the 2028 RFP allowed bids for all commercially viable
resource types and that Idaho Power appropriately bifurcated the bidders into two groups
based on commercial operation dates, concluding that both the selection and evaluation
process were fair and reasonable." Further, Staff independently examined the
Company's levelized cost calculations, noting that the values are a major determinant in
which resources are selected, concluding that they were "fairly and reasonably
determined." Finally, Staff independently verified Idaho Power's determination of the top
performing bids, observing the pricing of the PPA as competitive with other recently-
procured resources, identifying the Blacks Creek Project as a least-cost resource, also
noting the reduced risk associated with the project based on the expedited commercial
operation date and the leveraging of an existing project by the developer.12
11. In addition to their review of the 2028 RFP evaluation and selection process,
Staff carefully reviewed the terms and conditions of the Blacks Creek PPA, including the
project development security and output guarantee, noting they believe the "terms
9 Staff Comments, page 2.
1° Id., page 3.
" Id.
12 Id., page 4.
IDAHO POWER COMPANY'S REPLY COMMENTS - 6

reasonably protect the Company and ratepayers from harm." Further, Idaho Power values
Staff's recognition that the provisions associated with existing or new import tariffs, -
do not change the cost-effectiveness of the
Blacks Creek PPA.
12. Lastly, Staff highlighted two additional items specific to this case, (1) cost
causation, and (2) mitigation of the remaining 2027 capacity deficit. Regarding cost
causation, Idaho Power appreciates Staff's recognition of the interest in analyzing cost
recovery associated with the project and supports Staff's conclusion that this case is not
the "right forum for cost allocation"13 discussions, noting that a general rate proceeding is
the more appropriate forum.
13. With respect to mitigation of the remaining 2027 capacity deficit, Staff
recommends that Idaho Power provide Staff with additional information regarding
mitigation of any remaining deficit and that, "[i]f the mitigation plan involves firm market
capacity purchases, the Company should keep distinct records of those purchase so that
they can be properly allocated." Idaho Power is not opposed to this recommendation and
will work with Staff to discuss upcoming reliability assessments and its plan to meet any
remaining 2027 capacity deficits. Additionally, Idaho Power plans to meet load on a long
term, day-ahead, hourly, and intra-hour basis and already maintains records to
substantiate how the overall system load was served. In summary, the Commission
should accept Staff's recommendations to approve the PPA and acknowledge the
resulting expenses are prudently incurred for ratemaking purposes.
13 Id., page 6.
IDAHO POWER COMPANY'S REPLY COMMENTS - 7

B. The Company has demonstrated incremental capacity needs and has an
obligation to serve all those that request it within its service area.
14. To comply with its continuing obligations to serve customers, Idaho Power
must acquire additional resources to meet the identified capacity deficits on its system
when the need arises. Neither Staff nor IIPA dispute that the Company has identified a
capacity need.14 IIPA however notes that the driver of the capacity need can be attributed
to new large load customers and absent the new large loads, a capacity need may not
exist.15 As such, IIPA does not believe the Company has met the "standard of
necessity".16 However, IIPA's assertion is based on multiple false premises.
15. As noted by IIPA, Idaho Power does not dispute that large loads are
contributing to the capacity need and that the Company does not evaluate the system
capacity without the inclusion in the load forecast of new large load customers who have
entered into procurement or construction agreements with Idaho Power.17 Because,
under Idaho law, 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. This obligation to serve does not apply to only "existing" customers, as
suggested by IIPA,18 nor should the capacity need determination be based only on the
loads of existing customers.19
16. In fact, Idaho Code § 61-315 prohibits the discrimination or preference of
rates, charges, service, or facilities between classes of service. Staff recognized the
14 Staff Comments, page 2. IIPA Comments, page 2.
15 IIPA Comments, page 3.
1s Id., page 1.
17 Id., page 5.
18 Id., pages 1-3.
19 Id., page 4.
IDAHO POWER COMPANY'S REPLY COMMENTS - 8

"imminent load growth" identified in the 2025 IRP being the cause of the annual capacity
deficits and supported the procurement of the Blacks Creek Project to help mitigate those
capacity deficits.20 The inclusion of the large loads in the determination of capacity needs
does not prevent the Commission from determining whether the PPA is necessary to
provide reliable service, as IIPA states.21 In fact, omitting the committed large loads would
do the exact opposite; a capacity deficit would still exist and Idaho Power would be unable
to meet system reliability requirements.
17. The standard by which the Company is requesting approval of the Blacks
Creek PPA is Idaho Power's obligation to provide adequate, efficient,just, and reasonable
service on a nondiscriminatory basis to all those that request it within its service area.22
The Blacks Creek Project was identified through an extensive competitive bidding
process and is necessary and required to timely meet the Company's resource needs
and to continue to provide reliable and adequate service to Idaho Power's customers
starting in the summer of 2027 and beyond.
i. The _geo_graphical location of customer loads is not factored into the
determination of the Company's capacity needs.
18. Idaho Power's resource procurement process is rooted in comprehensive
system-level planning, rather than responding to "the needs of a particular customer or
discrete class of customers,"23 designed to identify the least-cost, least-risk combination
of resources that can meet forecasted customer demand while maintaining system
reliability. Resources are selected based on overall portfolio performance, not on
20 Staff Comments, page 6.
21 IIPA Comments, page 2.
22 Idaho Code §61-302 and §61-502.
23 Id.
IDAHO POWER COMPANY'S REPLY COMMENTS - 9

locational needs, resulting in competition amongst various technologies for cost-
effectiveness and reliability for the entire system, not a single site as suggested by I IPA.24
Moreover, resource siting is driven by feasibility and regulatory realities, not by proximity
to demand centers. Constraints exist where Idaho Power can add generation, including
failed permitting and community opposition. As detailed in the Direct Testimony of Mr.
Eric Hackett, the Blacks Creek Project was identified as a least-cost, least-risk resource
through a competitive solicitation process, initiated following identification of a capacity
deficiency through the IRP process, and its proximity to any new large loads had no
bearing on the selection of the resource.
C. Cost recovery associated with the Blacks Creek PPA expenditures is more
appropriately contemplated in a future rate proceeding.
19. The Company's request in this case is for approval of the Blacks Creek
PPA, confirming the project was appropriately identified as a least-cost, least-risk
resource necessary to meet the identified 2027 capacity deficiency, and acknowledging
the expenditures are prudently incurred for ratemaking purposes. The request is not a
request to include the costs in rates at this time, as indicated by IIPA.25 Nevertheless, for
clarification, with respect to new large loads included in the determination of the 2027
capacity deficiency, when those new large loads initiated a request for service with Idaho
Power, the Company negotiated a unique energy service agreement, or special contract,
with those customers. In addition to service terms, the special contract provides for a
unique pricing structure — that is subject to Commission approval — to ensure the rates
the new large load customer pays contemplates the impact its load has on the Company's
24 Id., page 4.
25 Id., page 8.
IDAHO POWER COMPANY'S REPLY COMMENTS - 10

system. In addition to failing to recognize cost-causation protections already in place for
customers,26 as noted by Staff, this case is not the "right forum for cost allocation"
discussions.
D. Idaho Power's clarification of the capacity need determination and the
resulting Blacks Creek Project.
20. IIPA's Comments include a number of flawed statements that appear to be
based on a misunderstanding of assumptions underlying the Company's analyses
presented in this case. Idaho Power understands IIPA's concerns regarding the
procurement of new resources necessary to serve customers and the associated
affordability. For clarification, IIPA indicates the record does not establish the cost of the
Blacks Creek PPA and therefore the Commission cannot evaluate whether the resource
selection is prudent,27 yet the PPA was filed as Confidential Exhibit No. 4 to Mr. Eric
Hackett's Direct Testimony. Resource adequacy and thus resource procurement is driven
by high-risk hours, not system peak as suggested by IIPA.28 IIPA also incorrectly
computes the capacity position by subtracting peak load from resource capacity; the
Company calculates the capacity position to meet the pre-determined Loss of Load
Expectation threshold, which is derived from the hourly Loss of Load Probability, also
known as the high-risk hours of the year.29 The suggestion that the solar facility does not
support a winter adequacy issue30 is flawed; the project contribution to the capacity
position is analyzed for the entire year meaning it addresses annual reliability needs. IIPA
claims alternative resources were not evaluated yet the Direct Testimony of Mr. Eric
21 Id., page 2.
27 Id.
2s Id.
29 Id., page 3.
30 Id., page 6.
IDAHO POWER COMPANY'S REPLY COMMENTS - 11

Hackett discusses at length the 147 resources bid into the 2028 RFP and the resulting
evaluation.31 Collectively, these flaws lead to IIPA's erroneous conclusion that the
Commission cannot make a prudence determination on the selection of the Blacks Creek
Project as necessary to helping meet the identified 2027 capacity deficit.
III. CONCLUSION
21. Idaho Power acknowledges and appreciates IIPA and Staff's review of the
Company's application and respectfully requests the Commission (1) accept Staff's
recommendations to approve the Blacks Creek PPA, acknowledging the resulting
expenses are prudently incurred for ratemaking purposes, (2) direct the Company to meet
with Staff to discuss Idaho Power's upcoming reliability assessments and its plan to
mitigate the remaining 2027 capacity deficit, and (3) reject IIPA's unwarranted proposed
measures related to cost causation and allocation. The Blacks Creek Project is a prudent
and least-cost, least-risk system resource required to help meet the identified capacity
deficit in 2027.
DATED at Boise, Idaho this 9t" day of January 2026.
DONOVAN E. WALKER
Attorney for Idaho Power Company
31 Id.
IDAHO POWER COMPANY'S REPLY COMMENTS - 12

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 91" day of January, 2026, 1 served a true and
correct copy of Idaho Power Company's Reply Comments upon the following named
parties by the method indicated below, and addressed to the following:
Commission Staff Hand Delivered
Jeffrey R. Loll 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 jeff.loll(a)puc.idaho.gov
PO Box 83720
Boise, ID 83720-0074
Micron Technology, Inc. Hand Delivered
Austin Rueschhoff U.S. Mail
Thorvald A. Nelson Overnight Mail
Austin W. Jensen FAX
Holland & Hart LLP X Email darueschhoff(c)hol land hart.com
555 17th Street, Suite 3200 tnelson hollandhart.com
Denver, CO 80202 awjensen(o)hol land hart.com
aclee hollandhart.com
mamcmiIlen(a)hol land hart.com
Idaho Irrigation Pumpers Association, Hand Delivered
Inc. U.S. Mail
Eric L. Olsen Overnight Mail
ECHO HAWK & OLSEN, PLLC FAX
505 Pershing Avenue, Suite 100 X EMAIL elo(aDechohawk.com
P.O. Box 6119 TayshaC@_echohawk.com
Pocatello, ID 83205
Lance Kaufman, Ph.D. Hand Delivered
2623 NW Bluebell Place U.S. Mail
Corvallis, OR 97330 Overnight Mail
FAX
X EMAIL lance(a-)aegisinsight.com
Stacy Gust,
Regulatory Administrative Assistant
IDAHO POWER COMPANY'S REPLY COMMENTS - 13