Loading...
HomeMy WebLinkAbout20260311Direct Ellsworth- Redacted.pdf RECEIVED MARCH 10, 2026 IDAHO PUBLIC UTILITIES COMMISSION BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY' S APPLICATION FOR ) CASE NO. IPC-E-26-04 CERTIFICATES OF PUBLIC ) CONVENIENCE AND NECESSITY FOR ) THE SOUTH HILLS AND PEREGRINE ) POWER PLANTS AND FOR AN ) ASSOCIATED ACCOUNTING ORDER. ) IDAHO POWER COMPANY DIRECT TESTIMONY OF JARED L. ELLSWORTH 1 Q. Please state your name, business address, and 2 present position with Idaho Power Company ("Idaho Power" or 3 "Company") . 4 A. My name is Jared L. Ellsworth and my business 5 address is 1221 West Idaho Street, Boise, Idaho 83702 . I am 6 employed by Idaho Power as the Transmission, Distribution & 7 Resource Planning Director for the Planning, Engineering & 8 Construction Department. 9 Q. Please describe your educational background. 10 A. I graduated in 2004 and 2010 from the 11 University of Idaho in Moscow, Idaho, receiving a Bachelor 12 of Science Degree and Master of Engineering Degree in 13 Electrical Engineering, respectively. I am a licensed 14 professional engineer in the State of Idaho. 15 Q. Please describe your work experience with 16 Idaho Power. 17 A. In 2004, I was hired as a Distribution 18 Planning engineer in the Company' s Delivery Planning 19 department. In 2007, I moved into the System Planning 20 department, where my principal responsibilities included 21 planning for bulk high-voltage transmission and substation 22 projects, generation interconnection projects, and North 23 American Electric Reliability Corporation' s reliability 24 compliance standards . I transitioned into the Transmission 25 Policy & Development group with a similar role, and in ELLSWORTH, DI 1 Idaho Power Company 1 2013, I spent a year cross-training with the Company' s Load 2 Serving Operations group. In 2014, I was promoted to 3 Engineering Leader of the Transmission Policy & Development 4 department and assumed leadership of the System Planning 5 group in 2018 . In early 2020, I was promoted into my 6 current role as the Transmission, Distribution and Resource 7 Planning Director. I am currently responsible for the 8 planning of the Company' s wires and resources to continue 9 to provide customers with cost-effective and reliable 10 electrical service. 11 Q. What is the Company' s request in this case? 12 A. Idaho Power is requesting the Idaho Public 13 Utilities Commission ("Commission") issue an order (1) 14 granting a Certificate of Public Convenience and Necessity 15 ("CPCN") for the South Hills Power Plant, a cost-effective 16 natural gas-fueled facility providing up to 222 megawatts 17 ("MW") of nameplate generation ("South Hills") to meet an 18 identified capacity deficit in 2029, (2) granting a CPCN 19 for the Peregrine Power Plant, a cost-effective natural 20 gas-fueled facility providing 430 MW of nameplate 21 generation ("Peregrine") to meet an identified capacity 22 deficit in 2030, and (3) confirmation of the Company' s 23 application of accrual of Allowance for Funds Used During 24 Construction ("AFUDC") for both the South Hills and the 25 Peregrine plants to coincide with initial procurement ELLSWORTH, DI 2 Idaho Power Company 1 activities for the natural gas-fueled facilities . The South 2 Hills and Peregrine plants are necessary for Idaho Power to 3 continue to provide safe, reliable electric service in 2029 4 and beyond. 5 Q. What is the purpose of your testimony in this 6 matter? 7 A. The purpose of my testimony is to describe the 8 identification of Idaho Power' s need for new resources to 9 meet an identified capacity deficit beginning in 2029 as 10 informed by the Loss of Load Expectation ("LOLE") 11 methodology utilized in the 2023 Integrated Resource Plan 12 ("IRP") , and subsequently further enhanced through system 13 reliability evaluations . I will describe the most recent 14 system reliability and capacity deficit assessments used to 15 inform and identify near-term capacity needs, providing 16 sound analytical support for the acquisition of resources 17 to address the identified near-term capacity needs . 18 Finally, I will discuss the economic analysis performed to 19 evaluate the South Hills and Peregrine projects alongside 20 the remaining feasible projects . 21 Q. You indicated you performed an assessment of 22 system reliability. Is this the same assessment that was 23 performed to support the Company' s request in Case No. IPC- 24 E-25-29, Idaho Power Company's Application for a 25 Certificate of Public Convenience and Necessity for the ELLSWORTH, DI 3 Idaho Power Company 1 Bennett Gas Expansion Project and an Associated Accounting 2 Order ("Bennett Gas Expansion Project") , the most recent 3 request for approval of a resource procurement, which 4 presented the Company' s 2028 through 2030 capacity needs? 5 A. No. The system reliability assessment 6 performed to support the Company' s request in this case 7 includes refreshed inputs and assumes the resource for 8 which Idaho Power seeks approval in Case No. IPC-E-25-29, 9 the Bennett Gas Expansion Project, is online by June 1, 10 2028 . The most recent system reliability assessment 11 identifies capacity deficits of 236 MW and 352 MW in 2029 12 and 2030, respectively. 13 I . BACKGROUND 14 Q. What is the goal of the IRP? 15 A. The goal of the IRP is to ensure : (1) Idaho 16 Power' s system has sufficient resources to reliably serve 17 customer demand and flexible capacity needs over a 20-year 18 planning period, (2) the selected resource portfolio 19 balances cost and risk, (3) balanced treatment is given to 20 both supply-side resources and demand-side measures, and 21 (4) the public is involved in the planning process in a 22 meaningful way. Idaho Power uses Energy Exemplar' s Aurora' s 23 Long-Term Capacity Expansion ("LTCE") modeling platform to 24 develop portfolios, through the selection of a variety of 25 supply- and demand-side resource options, that are least- ELLSWORTH, DI 4 Idaho Power Company 1 cost for a variety of alternative future scenarios while 2 meeting reliability criteria. To verify the portfolios meet 3 the Company' s reliability requirements, Idaho Power 4 utilizes the LOLE methodology. 5 Q. Please explain Loss of Load Expectation. 6 A. LOLE is a statistical measure of a system' s 7 resource adequacy, describing the expected number of event- 8 days per year that a system would be unable to meet demand. 9 The LOLE methodology recognizes that the output of variable 10 energy resources, such as wind and solar, change with time, 11 with their hourly output being dependent on a multitude of 12 factors like weather and environmental conditions; it is 13 essential to capture and value that variability. 14 Q. What inputs are derived from the LOLE 15 methodology that are utilized in the Aurora LICE model? 16 A. Idaho Power implements the LOLE methodology 17 through an internally developed Reliability and Capacity 18 Assessment Tool ("RCAT") which is capable of producing 19 inputs such as a Planning Reserve Margin ("PRM") and 20 resource Effective Load Carrying Capability ("ELCC") 21 values . The PRM can be defined as the percentage of 22 expected capacity resources above forecasted peak demand. 23 The ELCC calculation is a reliability-based metric used to 24 assess the capacity contribution of variable and energy- 25 limited resources . The PRM and ELCC values that are ELLSWORTH, DI 5 Idaho Power Company 1 calculated using the LOLE methodology are a direct input to 2 the Aurora LTCE model . 3 Q. How are the PRM and ELCC values validated 4 between models? 5 A. Because the Aurora LTCE model and the RCAT are 6 two separate tools, a translation is required between the 7 probabilistic LOLE analysis performed in the RCAT and the 8 portfolios produced by the Aurora LTCE model . First, PRM 9 and ELCC values are calculated using the LOLE methodology, 10 which serve as direct inputs to the Aurora LICE model . 11 After Aurora solves for and produces portfolios, select 12 resource buildouts and their corresponding data are 13 analyzed with the LOLE methodology and tested to ensure 14 they meet the pre-designated reliability hurdle through the 15 calculation of annual capacity positions . It is critical 16 when comparing future resource portfolios that each plan 17 achieves at least a base reliability threshold. Figure 1 18 below illustrates the model calibration process . 19 Figure 1 . Idaho Power' s Reliability Flowchart ELLSWORTH, DI 6 Idaho Power Company �► T Geoegatbn ELCC Eff—w toad C,,ryl g Calwdlny RCAT LOLE LTCE RelwbdhtyB Gpaclty toss of toad EapecfaTMn Long TMm CaWgy Eapanvon LOLE Portfolio Z �^�^LTA J J Reliability Hurdle IRP A MAIIAN AURORA IfI�1 h. PRM MR load Manning Reserve M"n � c�.raly IbMllgll 1 2 Q. You indicated that RCAT and Aurora serve 3 different purposes in Idaho Power' s planning process, how 4 is the data exchanged between the two models translated 5 and aligned? 6 A. To better assess the dynamic diversity benefit 7 caused by a changing resource mix, and to synchronize the 8 models, the Company applies a feedback process between the 9 Aurora LTCE model and the RCAT. Under the feedback process, 10 the annual capacity positions for an Aurora LTCE main case 11 portfolio buildout are calculated using the RCAT. Once the 12 annual capacity positions are known, the PRM in the Aurora 13 LTCE model is modified in years that have significant 14 resource changes so that both models identify a similar 15 capacity position. The feedback loop continues until the 16 main case portfolio is reliable as measured by the annual 17 capacity position to meet the LOLE threshold. The resulting 18 Aurora-produced optimized main case portfolios provide the ELLSWORTH, DI 7 Idaho Power Company 1 least-cost, least-risk future resource buildouts . 2 II . ANNUAL CAPACITY POSITIONS AND THE IRP 3 Q. Company Witness Mr. Hackett indicates the 4 annual capacity positions developed to inform the 2023 IRP 5 were the basis for the commencement of the competitive 6 solicitation for the acquisition of resources, conducted 7 through the issuance of Idaho Power' s 2028 All-Source 8 Request for Proposals (RFP) for Peak Capacity and Energy 9 Resources ("RFP") , which solicited bids in 2028 and beyond. 10 What were the annual capacity positions identified in the 11 2023 IRP beginning in 2029? 12 A. The 2023 IRP identified incremental capacity 13 needs of 142 MW in 2029 and 369 MW in 2030, growing to over 14 1, 150 MW by 2038 . 1 The 2023 IRP Preferred Portfolio included 15 the addition of large quantities of cost-effective clean 16 resources including solar, wind, battery storage, energy 17 efficiency, peaking hydrogen, incremental demand response 18 and geothermal . 19 Q. How did the annual capacity positions change 20 with the 2025 IRP? 21 A. The 2025 IRP identified increased incremental 22 capacity needs earlier in the planning period, 192 MW in 23 2029 and 380 MW in 2030, with the total shortfall exceeding 1 Idaho Power 2023 IRP at 174 (Table 11.15) . ELLSWORTH, DI 8 Idaho Power Company 1 1, 000 MW by 2040 .2 While the 2025 IRP Preferred Portfolio 2 included solar, storage, wind, energy efficiency and 3 incremental demand response, it also included 550 MW of 4 incremental natural gas as cost-effective resource 5 additions . 6 Q. What is driving the need for the addition of 7 natural gas resources? 8 A. Idaho Power is in a period of unprecedented 9 demand growth that is expected to continue over the next 10 several years, including demand growth from large load 11 customers whose load is flat both seasonally and diurnally. 12 The Company also continues to experience significant 13 interest from prospective industrial customers . To meet 14 growing customer demands, the 2025 IRP shows the need for 15 the combination of flexible, dispatchable resources . At the 16 same time, Idaho Power finds itself in an era of heightened 17 uncertainty where numerous probable events could occur that 18 would materially change the resources selected in the near- 19 term action plan of the 2025 IRP. Specifically, there is a 20 real possibility for higher than expected load growth and 21 changes in federal and state policy that must be closely 22 monitored throughout the planning and procurement 23 processes . 2 Idaho Power 2025 IRP at 142 (Table 11.14) . ELLSWORTH, DI 9 Idaho Power Company 1 In addition, uncertainty exists around the eventual 2 fate of the recent changes to the 111 (d) rule regarding 3 carbon emissions for existing and new resources . The 2025 4 IRP studied both large load and 111 (d) rule reversion 5 scenarios and the combinations thereof, which, ultimately 6 supported the pursuit of generation resources in 2029 and 7 2030 to meet forecasted needs, identified in the Preferred 8 Portfolio as natural gas, wind, solar and storage . 9 Q. Did the 2025 IRP consider the volatility of 10 natural gas prices prior to determination of the Preferred 11 Portfolio? 12 A. Yes . The Company tested portfolios under 13 multiple gas price variations, from different sources and 14 in high and low-price scenarios . In addition, modeling of 15 the 2025 IRP included a robust risk analysis, including the 16 stochastic analyses that help quantify the sensitivity and 17 risk associated with variables over which Idaho Power has 18 little or no control, including natural gas prices . 19 Finally, with the qualitative risk analysis, the Company 20 considered fuel supply risks that incorporated potential 21 impacts to fuel supply infrastructure that can be 22 susceptible to outages from weather, mechanical failures, 23 etc . , including that of natural gas infrastructure . Even 24 considering the natural gas price volatility, the analysis ELLSWORTH, DI 10 Idaho Power Company I and testing performed as part of the 2025 IRP showed the 2 clear need for firm flexible new natural gas resources . 3 Q. What years were new natural gas resources 4 identified as cost-effective resource selections in the 5 2025 IRP Preferred Portfolio? 6 A. The Preferred Portfolio included 150 MW of new 7 gas resources in 2029, 300 MW in 2030, 50 MW in 2041, and 8 50 MW of new natural gas resources in 2043 as cost- 9 effective resource additions . As mentioned by Company 10 Witness Mr. Eric Hackett, it was following this 11 identification that Idaho Power began investigating 12 alternative gas resource solutions that could economically 13 meet the Company' s resource needs, ultimately identifying 14 the South Hills and Peregrine natural gas-fueled facilities 15 to be considered in the competitive procurement process . 16 This conclusion was further validated by Idaho Power' s most 17 recent assessment of system reliability and the annual 18 capacity deficits . 19 III . SYSTEM RELIABILITY ASSESSMENT 20 Q. The Company provided a system reliability 21 assessment with the request for a CPCN for the Bennett Gas 22 Expansion Project identifying capacity needs during the 23 2028 through 2030 time period. Why was the system 24 reliability assessment updated? ELLSWORTH, DI 11 Idaho Power Company 1 A. Idaho Power recognizes that during the near- 2 term resource decision-making phase, the annual capacity 3 positions can be very fluid. In addition, in the face of 4 growing loads, the Company closely monitors resource needs 5 and responds with added urgency, as evidenced by Idaho 6 Power' s consecutive requests to acquire resources to be 7 online in 2023, 2024, 2025, 2026, 2027, and 2028 . 3 The most 8 recent system reliability assessment has identified a 9 capacity deficit of 236 MW in 2029, increasing to 352 MW in 10 2030 . 11 Q. What drove the changes to the annual capacity 12 positions in the most recent system reliability assessment? 13 A. Any time the system reliability evaluation is 14 performed, Idaho Power includes the most up-to-date load 15 and resource inputs . The load forecast, which utilizes the 16 70th percentile peak load forecast for all months in the 17 RCAT, has been updated and therefore has been incorporated 18 in the system reliability evaluation performed for this 19 case . In addition, following the recommendation by 20 Commission Staff ("Staff") in their comments on the 2025 21 IRP, 4 the Company modeled a delay in the commercial 3 Case Nos. IPC-E-22-06, IPC-E-22-13, IPC-E-22-29, IPC-E-23-05, IPC-E-23-20, IPC-E-24-12, IPC-E-24-16, IPC-E-24-42, IPC-E-24-45, IPC-E-24-46, IPC-E-25-10, IPC-E-25-27 and IPC-E-25-29. 4 Case No. IPC-E-25-23, Staff Comments, pages 5-6. ELLSWORTH, DI 12 Idaho Power Company I operation date of the Southwest Intertie Project - North 2 ("SWIP North") . 3 Q. What is your understanding of Staff' s 4 recommendation to assume a delay in the commercial 5 operation date of SWIP-North for modeling purposes? 6 A. In Comments, Staff noted that the construction 7 of new transmission lines can be more vulnerable to legal 8 delays related to permitting and right-of-way than other 9 types of construction projects, citing the Boardman-to- 10 Hemingway transmission line, which could easily extend the 11 online date of a transmission project by months or years . 12 Noting that it is easier to adjust the online date of a 13 transmission resource to earlier than planned rather than a 14 delayed resource, Staff therefore recommended Idaho Power 15 consider adding up to 12 months to the commercial operation 16 date for modeling purposes . Though one right-of-way is 17 outstanding, and the Company believes receipt of the notice 18 to proceed will occur with adequate time, in the most 19 recent system reliability assessment Idaho Power modeled a 20 shift of the SWIP-North November 2028 commercial operation 21 date to May 2029 to better align with Staff' s modeling 22 recommendation. 23 Q. How does the addition of the proposed South 24 Hills and Peregrine projects impact the capacity 25 deficiencies in 2029 and 2030? ELLSWORTH, DI 13 Idaho Power Company 1 A. Including the most up-to-date load and 2 resource inputs and market purchase assumptions, and 3 assuming all contracted 2026 and 2027 projects and the 4 Bennett Gas Expansion Project reach commercial operation 5 on time, the addition of the South Hills and Peregrine 6 plants would reduce the capacity deficits of 236 MW in 7 2029 and 352 MW in 2030, to a capacity deficit of 98 MW in 8 2029 and provide capacity length of 125 MW in 2030 . The 9 addition of the South Hills and Peregrine projects will 10 support continued safe, reliable operations in 2029 and 11 beyond. 12 Q. How does the addition of the South Hills and 13 Peregrine plants impact the annual capacity positions 14 beyond 2029? 15 A. In addition to helping meet the capacity 16 deficit of 236 MW in 2029 and 352 MW in 2030, 5 the South 17 Hills and Peregrine plants will reduce the incremental 18 capacity needs beyond 2029 as shown in Table 1 below. 19 Table 1 . Annual Capacity Position with the South Hills and 20 Peregrine Plants 2029-2032 Year Most Recent Most Recent Capacity Capacity Position Position w/South Hills and Peregrine Plants6 2029 (236) MW (98) MW 5 Because both South Hills and Peregrine have mid-year in-service dates, the ELCC of the project is lower in the first year as compared to future years. By 2031, the full ELCC of both resources, approximately 500 MW, is recognized. 6 Assumes a SWIP-North online date of May 2029. Assumes the Crimson Orchard Project and Blacks Creek 400 MW solar online June 2027. ELLSWORTH, DI 14 Idaho Power Company 2030 (352) MW 125 MW 2031 (553) MW (60) MW 2032 (690) MW (196) MW 1 2 A delay of resource procurements in 2029 will only 3 exacerbate the capacity deficiencies in 2029 and beyond. 4 Further, based on the real possibility for additional load 5 growth in Idaho Power' s service area, the Company' s 6 capacity positions beyond 2029 could very likely grow to 7 even greater deficits . 8 Q. Does the 125 MW length in 2030 indicate a 9 capacity surplus for the Company? 10 A. No, the capacity positions are calculated 11 assuming all firm transmission imports are available 24 12 hours a day, seven days a week, including transmission that 13 does not have a resource behind it. During the operations 14 horizon, the Company evaluates how many purchases are 15 required to maintain reliability and avoid over- 16 procurement. An identified position of capacity length from 17 the RCAT gives Idaho Power flexibility to procure less 18 resources in the market and maintain reliability but it 19 does not represent surplus capacity that can be sold to the 20 market . 21 Q. Has Idaho Power evaluated the impact to the 22 capacity positions should the additional load materialize? ELLSWORTH, DI 15 Idaho Power Company 1 A. Yes . Assuming only the addition of 2 ' in the load forecast, which is anticipated to come online 3 in 2029, and ramping to full load in 2032, the capacity 4 deficiencies grow considerably. Table 2 presents the 5 incremental capacity needs beginning in 2029, inclusive of 6 the South Hills and Peregrine plants, with and without the 7 load. 8 Table 2 . Annual Capacity Position with the South Hills and 9 Peregrine Plants and Additional Loads 2029-2032 Year Most Recent Capacity Most Recent Capacity Position w/South Hills Position w/South Hills and Peregrine Plants and Peregrine Plants and 2029 (98) MW (191) MW 2030 125 MW (114) MW 2031 (60) MW (413) MW 2032 (196) MW (661) MW 10 11 As can be seen in Table 1, the addition of the South Hills 12 and Peregrine plants is necessary to position Idaho Power 13 to continue to provide safe, reliable electric service in 14 2029 and beyond. That identified need is further bolstered 15 under the scenario presented in Table 2 . 16 IV. SOUTH HILLS AND PEREGRINE COST-EFFECTIVENESS EVALUATION 17 Q. Did the Company evaluate the cost- 18 effectiveness of the South Hills and Peregrine plants 19 following their identification as resource alternatives ELLSWORTH, DI 16 Idaho Power Company 1 that are able to contribute to Idaho Power' s capacity 2 needs? 3 A. Yes . After identification of the South Hills 4 and Peregrine gas-fired plants as potential resource 5 additions, Company Witness Mr. Eric Hackett requested the 6 Bid Evaluation Team evaluate the cost-effectiveness of the 7 projects as compared to all remaining feasible 2029 and 8 later final shortlist projects ("feasible 2029 Projects") 9 received through the RFP solicitation. This evaluation was 10 performed in a manner consistent with the analyses 11 performed to evaluate the 2028 bids, commencing with 12 Aurora' s LTCE modeling. Through this process, portfolios 13 are developed to meet the identified capacity needs through 14 the selection of resource options that are least-cost for a 15 variety of alternative future scenarios while meeting 16 reliability criteria. 17 Q. What resource options were available as part 18 of this evaluation? 19 A. As part of this evaluation, for 2029, Aurora 20 could either select the South Hills plant or any 21 combination of the feasible 2029 Projects, and for 2030, 22 Aurora could select either Peregrine or any combination of 23 the feasible 2029 projects . The feasible 2029 projects 24 included wind, solar and battery storage projects . ELLSWORTH, DI 17 Idaho Power Company 1 Once the portfolios are created, Idaho Power uses 2 Aurora to determine the operating costs of the portfolios 3 for the 20-year planning timeframe. Through this process, 4 Aurora performs hourly simulations to compare how 5 portfolios perform throughout the planning timeframe . These 6 simulations include the costs associated with adding the 7 new generation resources and optimally dispatching the 8 resources to meet the constraints within the model . The 9 resulting portfolio costs are calculated as the net present 10 value ("NPV") of the 20-year stream of annualized costs, 11 fixed and variable, for each portfolio. 12 Q. What modeling assumptions were utilized in 13 Aurora for the evaluation? 14 A. The modeling assumptions utilized in Aurora 15 were consistent with those utilized in the 2025 IRP. In 16 addition, the resource characteristics and capital costs of 17 the feasible 2029 Projects, the South Hills and Peregrine 18 plants were Aurora inputs . 19 Q. What were the results of the evaluation? 20 A. With respect to South Hills, the Company 21 evaluated the following 20-year optimized portfolios : (1) 22 excluding South Hills in 2029, and including the most 23 economically feasible 2029 Projects, and (2) including 24 South Hills in 2029, and excluding other 2029 Projects . 25 Each portfolio was optimized for the other years in the 20- ELLSWORTH, DI 18 Idaho Power Company 1 year horizon. The intention of this analysis is to 2 specifically evaluate South Hills compared to feasible 3 alternatives in 2029 . The results indicate that the NPV of 4 the portfolio that includes South Hills in 2029 is $- 5 — more cost-effective than the best feasible 6 alternative. 7 For 2030 resources, the Company took a similar 8 approach to evaluate the Peregrine project. The Company 9 evaluated optimized 20-year portfolios : (1) excluding 10 Peregrine in 2030, and including the most economically 11 feasible 2029 Projects, with a 2030 commercial operation 12 date, and (2) including Peregrine in 2030, and excluding 13 other projects . Each portfolio was optimized for the other 14 years in the 20-year horizon. Thus, Peregrine was compared 15 to feasible alternatives in 2030 . The results indicate that 16 the NPV of the portfolio that includes Peregrine is $- 17 — more cost-effective than the best feasible 18 alternative . As efficient, flexible, dispatchable 19 resources, South Hills and Peregrine offer least-cost, 20 least-risk resource alternatives to meeting the Company' s 21 identified capacity deficiencies . 22 Q. You indicated the annual capacity positions 23 could grow to even larger deficits with the addition of 24 additional load growth. Did Idaho Power consider if ELLSWORTH, DI 19 Idaho Power Company I additional load would change the economics of the natural 2 gas resources? 3 A. Yes . The Company continues to have significant 4 interest from prospective industrial customers . As such, 5 the 2025 IRP studied multiple additional large load 6 scenarios with both 300 MW and 500 MW cases . The results 7 indicated even larger quantities of natural gas resources 8 as cost-effective resource additions under additional large 9 load futures . As evidenced by the annual capacity positions 10 presented earlier in my testimony, the South Hills and 11 Peregrine plants help ensure the Company has sufficient 12 resources and positions Idaho Power to reliably serve 13 customer demand. 14 V. MEETING THE CAPACITY DEFICIENCY 15 Q. Do you believe there is sufficient support for 16 the procurement of the South Hills and Peregrine projects? 17 A. Yes . The resource acquisitions presented in 18 this case were pursued and procured as a least-cost, 19 least-risk method of meeting the capacity deficits first 20 identified in the Company' s 2023 IRP, again in the 2025 21 IRP, and subsequently with the results of the updated 22 system reliability evaluation. The fluidity of the 23 capacity deficit period, continued high load growth, and 24 supply chain disruptions and delays further support the 25 resource procurements which are necessary to adequately ELLSWORTH, DI 20 Idaho Power Company 1 address 2029 and 2030 capacity deficits . 2 Q. What actions has Idaho Power taken to acquire 3 least-cost, least-risk resources to ensure continued safe, 4 reliable electric service beginning in 2029? 5 A. Under Idaho law, Idaho Power has an obligation 6 to provide adequate, efficient, just, and reasonable 7 service on a nondiscriminatory basis to all those that 8 request it within its certificated service area. ? Further, 9 as indicated by Order No. 35643, Idaho Power is responsible 10 for planning and managing its load and resource portfolio 11 and the Commission expects "the Company to closely monitor 12 its projected capacity needs going forward and to act 13 proactively to ensure a robust RFP process can be 14 completed. "8 Therefore, in order to meet its obligations to 15 reliably serve customers, as discussed in greater detail in 16 the Direct Testimony of Mr. Eric Hackett, Idaho Power filed 17 an application with the Public Utility Commission of Oregon 18 ("OPUC") to open an independent evaluator selection docket 19 to oversee the RFP process, 9 in compliance with the OPUC 20 competitive bidding guidelines, which the Commission 21 directed Idaho Power to follow as well . 10 Idaho Code §§ 61-302, 61-315, 61-507. 8 Page 13. 9 Docket UM 2255. io Order No. 32745. Case No. IPC-E-10-03. ELLSWORTH, DI 21 Idaho Power Company 1 Given the significant timeframe related to the RFP 2 process under the competitive bidding guidelines, which 3 spans nearly 18 months and is solely related to the RFP 4 process and excludes the time required for contract 5 negotiation and execution, material procurement, and 6 construction, which can add another two to six years to the 7 process, the RFP remained flexible to account for the 8 fluidity of the Company' s annual capacity positions as well 9 as any potential delays in the SWIP-North online date and 10 other projects . Ultimately, the alternative resources 11 selected were based on the recently-identified capacity 12 deficiency of 236 MW in 2029 and 352 MW in 2030 . Note, 13 these deficits are perfect capacity, so they require Idaho 14 Power to procure more megawatts of nameplate capacity, 15 depending on the ELCC of each resource. Through the 16 Company' s robust competitive bidding process, Idaho Power 17 identified the cost-effective resource alternatives as 18 necessary to fill the capacity deficiencies beginning in 19 2029, including the South Hills and Peregrine plants, which 20 will supply Idaho Power with 222 MW and 430 MW of nameplate 21 generation, respectively. 22 VI . CONCLUSION 23 Q. Please summarize your testimony. 24 A. Idaho Power' s most recent system reliability 25 evaluation has identified a capacity deficiency of 236 MW ELLSWORTH, DI 22 Idaho Power Company 1 in 2029, increasing to 352 MW in 2030 . In response to this 2 resource need, the Company has identified the South Hills 3 plant, a natural gas facility providing up to 222 MW of 4 generation, and the Peregrine plant, a natural gas facility 5 providing 430 MW of nameplate generation, as a least-cost, 6 least-risk resources for which Idaho Power is requesting 7 the Commission grant a CPCN at this time . 8 Q. Does this complete your testimony? 9 A. Yes, it does . ELLSWORTH, DI 23 Idaho Power Company 1 DECLARATION OF JARED L. ELLSWORTH 2 I, Jared L. Ellsworth, declare under penalty of 3 perjury under the laws of the state of Idaho: 4 1 . My name is Jared L. Ellsworth. I am employed 5 by Idaho Power Company as the Transmission, Distribution & 6 Resource Planning Director for the Planning, Engineering & 7 Construction Department. 8 2 . On behalf of Idaho Power, I present this 9 pre-filed direct testimony in this matter. 10 3 . To the best of my knowledge, my pre-filed 11 direct testimony is true and accurate. 12 I hereby declare that the above statement is true to 13 the best of my knowledge and belief, and that I understand 14 it is made for use as evidence before the Idaho Public 15 Utilities Commission and is subject to penalty for perjury. 16 SIGNED this loth day of March 2026, at Boise, Idaho. 17 18 �✓ ,\ 19 Signed: ELLSWORTH, DI 24 Idaho Power Company